Introduction
In any tax system, registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input Tax Credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input Tax Credit of tax paid by him.
Need and advantages of registration
Registration will confer the following advantages to a taxpayer:
In case you are confused about GST as a business owner, feel free to consult the GST experts at AEOS CONSULTANCY SERVICES You can get comprehensive assistance with GST Registration and GST Return Filing Online.
In any tax system, registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input Tax Credit for the taxes on his inward supplies. Without registration, a person can neither collect tax from his customers nor claim any input Tax Credit of tax paid by him.
Need and advantages of registration
Registration will confer the following advantages to a taxpayer:
- He is legally recognized as supplier of goods or services.
- He is legally authorized to collect taxes from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/recipients.
- He can claim Input Tax Credit of taxes paid and can utilize the same for payment of taxes due on supply of goods or services.
- Seamless flow of Input Tax Credit from suppliers to recipients at the national level.
Liability to register
GST being a tax on the event of “supply”, every supplier
needs to get registered. However, small businesses having
all India aggregate turnover below Rupees 20 lakh (10 lakh
if business is in Assam, Arunachal Pradesh, J&K, Himachal
Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya,
Nagaland or Tripura) need not register. The small businesses,
having turnover below the threshold limit can, however,
voluntarily opt to register.
The aggregate turnover includes supplies made by him on
behalf of his principals, but excludes the value of job-worked
goods if he is a job worker. But persons who are engaged
exclusively in the business of supplying goods or services or
both that are not liable to tax or wholly exempt from tax or
an agriculturist, to the extent of supply of produce out of
cultivation of land are not liable to register under GST.
Nature of registration
The registration in GST is PAN based and State specific.
Supplier has to register in each of such State or Union
territory from where he effects supply. In GST registration,
the supplier is allotted a 15-digit GST identification number
called “GSTIN”, and a certificate of registration incorporating
therein this GSTIN is made available to the applicant on the
GSTN common portal. The first 2 digits of the GSTIN is the
State code, next 10 digits are the PAN of the legal entity, the
next two digits are for entity code, and the last digit is check
sum number. Registration under GST is not tax specific,
which means that there is single registration for all the taxes
i.e. CGST, SGST/UTGST, IGST and cesses.
A given PAN based legal entity would have one GSTIN per
State, that means a business entity having its branches
in multiple States will have to take separate State wise
registration for the branches in different States. But within
a State, an entity with different branches would have single
registration wherein it can declare one place as principal
place of business and other branches as additional place
of business. However, a business entity having separate
business verticals (as defined in section 2 (18) of the CGST Act,
2017) in a state may obtain separate registration for each of
its business verticals.
Generally, the liability to register under GST arises when
you are a supplier within the meaning of the term, and also
your aggregate turn over in the financial year is above the
exemption threshold of 20 lakh rupees. However, the GST law
enlists certain categories of suppliers who are required to get
compulsory registration irrespective of their turnover that
is to say, the threshold exemption of 20 lakh is not available
to them. Some of such suppliers who need to register
compulsorily irrespective of the size of their turnover are:
- Inter-state suppliers
- A person receiving supplies on which tax is payable by recipient on reverse charge basis
- Casual taxable person who is not having fixed place of business in the State or Union Territory from where he wants to make supply
- Non-resident taxable persons who are not having fixed place of business in India
- A person who supplies on behalf of some other taxable person (i.e. an Agent of some Principal)
- E-commerce operators, who provide platform to the suppliers to supply through it
- Suppliers who supply through an e-commerce operator
- Those ecommerce operators who are notified as liable for GST payment under Section 9(5)
- TDS Deductor
- Those supplying online information and data base access or retrieval services from outside India to a non-registered person in India.
A Casual taxable person is one who has a registered business
in some State in India, but wants to effect supplies from
some other State in which he is not having any fixed place
of business. Such person needs to register in the State
from where he seeks to supply as a Casual taxable person.
A Non-Resident taxable person is one who is a foreigner
and occasionally wants to effect taxable supplies from any
State in India, and for that he needs GST registration. GST
law prescribes special procedure for registration, as also
for extension of the operation period of such Casual or
Non-Resident taxable persons. They have to apply for
registration at least five days in advance before making any
supply. Also, registration is granted to them or period of
operation is extended only after they make advance deposit
of the estimated tax liability.
In respect of supplies to some notified agencies of United
Nations organisation, multinational financial institutions and
other organisations, a unique identification number (UIN) is
issued.
Standardisation of procedures
A total of 30 forms/formats have been prescribed in the
GST registration rules. For every process in the registration
chain such as application for registration, acknowledgment,
query, rejection, registration certificate, show cause notice
for cancellation, reply, cancellation, amendment, field visit
report etc, there are standard formats. This will make the
process uniform all over the country. The decision making
process will also be fast. Strict time lines have been stipulated
for completion of different stages of registration process.
An application has to be submitted online through the
common portal (GSTN) within thirty days from the date
when liability to register arose. The Casual and Non-Resident
taxable persons need to apply at least five days prior to the
commencement of the business. For transferee of a business
as going concern, the liability to register arises on the date of
transfer.
The Proper Officer has to either raise a query or approve the
grant of registration within three working days failing which,
registration would be considered as deemed to have been
approved. The applicant would have to respond within seven
working days starting from the fourth day of filing the original
application. The Proper Officer would have to grant or reject
the application for registration within seven working days
thereafter.
Amendment of registration
Amendment of registration
Except for the changes in some core information in the
registration application, a taxable person shall be able to make
amendments without requiring any specific approval from
the tax authority. In case the change is for legal name of the
business, or the State of place of business or additional place
of business, the taxable person will apply for amendment
within 15 days of the event necessitating the change. The
Proper Officer, then, will approve the amendment within the
next 15 days. For other changes like the name of day-to-day
functionaries, e-mail IDs, mobile numbers etc. no approval
of the Proper Officer is required, and the amendment can be
affected by the taxable person on his own on the common
portal.
Cancellation of registration
The GST law provides for two scenarios where cancellation
of registration can take place; the one when the taxable
person no more requires it (voluntary cancellation), and
another when the Proper Officer considers the registration
liable for cancellation in view of certain specified defaults
(Suo-motu cancellation) like when the registrant is not doing
business from the registered place of business or if he issues
tax invoice without making the supply of goods or services.
The taxable person desirous of cancellation of registration
will apply on the common portal within 30 days of the event.
warranting cancellation. He will also declare in the application,
the stock held on the date with effect from which he seeks
cancellation. He will also work out and declare the quantum
of dues of payments and credit reversal, and the particulars of
payments made towards discharge of such liabilities. In case
of voluntary registration (taken despite not being liable for),
no cancellation is allowed until expiry of one year from the
effective date of registration. If satisfied, the Proper Officer
has to cancel the registration within 30 days from the date
of application or the date of reply to notice (if issued, when
rejection is concluded by the officer).
Revocation of cancellation
In case where registration is cancelled suo-motu by the Proper
Officer, the taxable person can apply within 30 days of service
of cancellation order, requesting the officer for revoking the
cancellation ordered by him. However, before applying, the
person has to make good the defaults (by filing all pending
returns, making payment of all dues and so) for which the
registration was cancelled by the officer. If satisfied, the
proper officer will revoke the cancellation earlier ordered by
him. However, if the officer concludes to reject the request for
revocation of cancellation, he will first observe the principle
of natural justice by way of issuing notice to the person and
hearing him on the issue.
Physical verification for registration
Physical verification is to be resorted to only where it is found
necessary in the subjective satisfaction of the proper officer.
If at all, it is felt necessary, it will be undertaken only after
granting the registration, and the verification report along
with the supporting documents and photographs, shall
have to be uploaded on the common portal within fifteen
working days.
In case you are confused about GST as a business owner, feel free to consult the GST experts at AEOS CONSULTANCY SERVICES You can get comprehensive assistance with GST Registration and GST Return Filing Online.
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