GST Registration: Online Process, Eligibility, Expert Views

Registration is an important process in goods and service tax because registration is the main entry gate towards the goods and service tax act.

Feature of GST Registration:

• PAN-based Registration. No Centralized Registration. State-wise Registration. Separate Registration in Every State from where the supplier makes a taxable supply of G/S. 

Note: Registration not required for a State from where he makes Non-taxable supply.

• Registration is based on ATO computed on All India Basis. Thus supplier is required to obtain registration in every State/UT from where he makes a taxable supply of G/S.

Note: For determining eligibility for registration → ATO computed on All India Basis. Once registered, GST is payable by each branch (if any) separately.NO Tax Specific Registration → Single registration for CGST, SGST, IGST & Cess, etc.

• Single registration in a State. But if the supplier has multiple PoB in a State/UT, 2 options:
• Get Single registration for the said State [one place as PPoB& other branches as APoB. [In such case, Para 3 of Schedule 1/Section 7(1)(c) is not applicable]
• Separate registrations for each PoB in such State/UT.[In such case, Para 3 of Schedule 1/Section 7(1)(c) is applicable]
• Composition levy in case of separate registration for different PoB in a state/UT.

If one branch is paying tax u/s 10, all other branches shall pay tax u/s 10. (Composition) If one branch becomes ineligible for the composition levy, all other branches become ineligible.

Note: You can get help on Online GST Registration Service In Noida from a professional CA.

A person who is not liable to be registered may get himself registered voluntarily.

Separate Registration for SEZ Unit/developer & ISDs (even if in the same state).

Now we are going to answer your possible common questions as we covered above.

Advantage of Registration:

• Only RP can collect taxes from customers & pass on ITC of G/S supplied to recipients.
• Only RP can claim ITC of taxes paid & can utilize same for payment output tax liability.
• Only RP is eligible to apply for Government bids or contracts or assignments.

Statutory provision of Goods & Service Tax: 

(1) Every supplier shall be liable to be registered under this Act in the State or Union Territory, other than special category States, from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

Provided further that the Government may, at the request of a special category state and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.

Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of a supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

Explanation.–For the purposes of this subsection, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in the exempt supply of services provided by way of extending deposits, loans, or advances in so far as the consideration is represented by way of interest or discount.] Get more details on Trade Mark Registration service In Noida.

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a license under existing law, shall be liable to be registered under this Act with effect from the appointed day.

(3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as an agoing concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

(4) Notwithstanding anything contained in sub-section (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, the demerger of two or more companies pursuant to an order of a high court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.

Explanation. For the purposes of this section, ––

• The expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
• The supplies of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to insection143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
• The expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except for the State of Jammu & Kashmir 3[and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhand].

In the nut cell, we can understand with the help of the following table.

Category	States	Threshold Limit for person engage in Supply
		Exclusively Goods	Services
Normal States (other than Special Category States under constitution)	Puducherry + Telangana	Rs. 20 Lac	Rs. 20 Lac
	Others	Rs. 40 Lac	Rs. 20 Lac
Special Category States (For Section 22)	Manipur, Mizoram, Tripura (MMT), Nagaland	Rs. 10 Lac	Rs. 10 Lac
Special States as per constitution but not for section 22.	AP + UK + Meghalaya + Sikkim	Rs. 20 Lac	Rs. 20 Lac
	J&K + Assam + Himachal Pradesh	Rs. 40 Lac	Rs. 20 Lac

 

 

In following cases there is no any threshold limit i.e. compulsory registration should be taken in following cases.

Compulsory Registration:

Person making any Inter-State Taxable supply of Goods. → Inter-State supply of Services & Handicraft Goods → Limit of 10/20L R
Casual Taxable Persons making taxable supply. → Inter-State taxable supply of Handicraft Goods & availing benefit of NN 10/2019 → Limit of 10/20L R
NRTP making taxable supply
Persons who are required to pay tax under RCM. Note: If person is engaged exclusively only in RCM supplies → No Registration required.
(a)  Every ECO who is required to collect tax at source u/s 52[AMD]; (b)  Persons who supply G/&S through ECO [other than specified u/s 9(5)]. Note: Suppliers supplying only services through ECO → Limit of Rs. 20/10LR
Persons required to deduct tax at source u/s 51 (whether or not separately registered under GST)
Persons making taxable supply of G/&S on behalf of other taxable person (as agent/otherwise)
Input Service Distributor (ISD) [whether or not separately registered under GST]
Person supplying OIDAR services from a place outside India to an unregistered person in India

 

Following persons are not liable for registration:

1	Person engaged exclusively in supply of Non-taxable or Exempt G/&S
2	Agriculturist (Individual/HUF), to the extent of ‘supply of produce out of cultivation of land’.
3	Persons making only RCM supplies.
4	Inter-State supplier of taxable services upto Rs. 20/10 L.
5	CTP making taxable supplies of handicraft goods upto Rs. 20/10 Lacs.
6	Inter-state supplier of specified handicraft goods upto Rs. 20/10 Lacs. Note: Such person must have obtained a PAN & generated an e-way bill.

 

 

Voluntary registration [Sec 25(3)]: Person may get himself registered voluntarily. Once a person obtains voluntary registration, he has to pay tax even though his aggregate turnover does not exceed Rs. 20/10 lacs.

 

Deemed Registration [Section 26]: Grant of registration/UIN under any SGST/UTGST Act is deemed to be registration/UIN granted under CGST Act provided application for registration has not been rejected under CGST Act.

Time Limit for Registration:

Type of Person	When to apply
Liable to register	within 30 days from date on which he becomes liable to registration
CTP or NRTP	at least 5 days prior to commencement of business.
Voluntary	When he desires so.

 

Effective date of Registration

Cases	Effective date
If application is submitted within 30 days from becoming liable to registration	Date of becoming liable to registration
If application is submitted after 30 days from the date of becoming liable to registration	Date         of         grant         of registration

 

 

§ Ifthereisanychangeinanyof thedetailsfurnishedinapplicationforregistration/UIN, RPshallsubmitanapplication(within15daysof suchchange)electronicallyinGSTREG14. § Ifchangerelatestonon-corefieldsof information,registrationcertificateshallstandamendeduponsubmissionof theapplicationforamendmentontheCommonPortal. § Ifchangerelatedtocorefieldsofinformation,POmayapproveorrejectamendments.Suchamendmentshalltakeeffectfromdateofoccurrenceofeventwarrantingamendment. Core field of Information: (a) Name of business; (b) Address of PPoB/APoB; (c) Addition, deletion or retirement of partners, directors, Karta, Managing Committee, Trustees, CEO. § Ifchangeinconstitutionof anybusinessresultsinchangeofPANof registeredperson, thesaidpersonshallapplyforfreshregistration. § Application for amendment of registration form cannot be filled if there is change in PoBfrom one State to another because GST registrations are State-specific. If one wishes to relocatehisbusinesstoanotherState, hemustvoluntarilycancelhiscurrentregistration&applyforafreshregistrationinrelocating state. § If PO is of the opinion that the amendment sought is not warranted (or the documents furnished therewith are incomplete), he may, within 15 working days serve a notice in Form GST REG-03. This SCN can be replied within 7 working days (in Form GSTREG-04). § IfPOfailstotakeactionwithintime-limitsgivenabove, certificateof registrationshallstandamendedtotheextentappliedfor&amendedcertificateshallbemadeavailabletoRP.

 

 

 

Applicability	Registration prescribed u/r 8, 9 & 10 are also applicable to person paying tax under composition levy, person seeking voluntary registration &CTP.
Non – Applicability	§ NRTP;personrequiredtodeducttaxatsourceu/s51 orcollecttaxatsourceu/s52&Personsupplying OIDARservicesfromo/sIndiatoNTOR.
Application	§ ApplicationforregistrationinGSTREG01 isdividedinto2Parts(i)A&(ii)B. § ApplicationhastobesubmittedelectronicallyatCommonPortaldulysigned/verifiedthroughElectronic VerificationCode(EVC)[AadharOTP].
Documents	§ Permanent Account Number (PAN), mobile number, e-mail address,State/UT.
Verification	§ PAN → from CBDT database; Mob. No. & E-mail → OTP sent onit.
TRN	§ Temporary Reference Number is generated & communicated to theapplicant. § ApplicantshallelectronicallysubmitapplicationinPartBalong withspecifieddocumentsattheCommonPortalusingTRN.
Acknowledgement	§ Onreceiptof suchapplication, anacknowledgementintheprescribedformshallbeissuedtotheapplicantelectronically. § CTPgetsa TRN formakinganadvancedepositof taxinhiselectroniccashledger&anacknowledgementisissuedonlyaftersaiddeposit.
Forwarded	§ Application shall be forwarded to the ProperOfficer.
Examination by PO	§ If application & accompanying documents are found to be in order, PO shall grant registration to applicant within 3 working days from date of submission ofapplication.
Deficiency in application	§ If application is found to be deficient, PO may issue a notice to applicant electronically in Form GST REG-03 within 3 working days from date of submission ofapplication.
Clarification by applicant	§ Applicantshallfurnishclarification,informationordocumentselectronically,inFormGSTREG-04,within7workingdaysfromdateofreceiptofnotice. § If PO is satisfied with clarification, information, etc., he may grant registration to applicant within 7 working days from date of receipt of such clarifications.
Rejection by PO	§ Where no reply is furnished by the applicant (or where the proper officer is not satisfied with the clarifications), the proper officer may reject such application & inform the applicant electronically in Form GSTREG-05.
Deemed approval	§ If POfailstotakeany actionwithin3days(7daysincaseof deficiency),applicationforgrantof registrationshallbedeemedtohavebeenapproved.
Registration certificate [Rule 10]	§ Wheretheapplicationforgrantof registrationhasbeenapproved, acertificateofregistrationinFormGSTREG-06willbeissued. § Itshows theprincipalplaceof business&additionalplaceorplacesofbusiness& is madeavailabletotheapplicantonthecommonportal& aGoods& Services Tax Identification Number (GSTIN) shall beassigned. § GSTIN contains the following characters: [15characters] 2 characters for State code; 10 characters for PAN or TAN 2 characters for the entity code 1 checksum character

 

 

 

 

 

 

 

On application by RP	PO may cancel registration in following cases: § Businesshasbeendiscontinued,transferredfullyforanyreason(includingdeathoftheproprietor,amalgamated,demergedorotherwisedisposedof). § There is any change in the constitution of thebusiness. § Taxableperson(otherthanvoluntaryregistration)isnolongerliabletoberegisteredu/s22or24.
Cancellation in case of default	PO may cancel the registration from such date (including retrospective date) if § Registered person has contravened prescribed provisions of the Act orrules; § Person paying tax under Composition scheme has not furnished returns for 3 consecutiveyears; § RP (other than composition scheme) has not furnished returns for continuous period of 6months; § Whereanyperson(whohastakenvoluntaryregistration)hasnotcommencedbusinesswithin6monthsfromthedateof registration. § Registration has been obtained by means of fraud, wilful misstatement or suppression offacts § does not conduct any business from the declared place ofbusiness, § issues invoice without supply of G/S in violation of theprovisions of this Act. Note: Opportunity of being heard shall be given before cancellation. Suspension of Registration during pendency of Proceedings: Same as Above.
No Discharge of liability	Cancellation does not discharge liability of taxpayer for any period prior to the date of cancellation (whether or not such tax & other dues are determined before or after the date of cancellation).
Payment of dues	Every RP whose registration is cancelled shall pay amount equivalent to higher of: a)     Reversalof ITCclaimedinrespectof inputsheldinstock&inputscontainedinsemi-finishedorFG heldinstockorcapitalgoodsorP&Mor b)     Output tax payable on such goods on immediately preceding day ofcancellation. Note: In case of Capital Goods or P&M, amount payable shall be reduced by 5% per quarter or part thereof. Such payment can be made by way of debit in ECL or electronic cash ledger.
Some other cases of Cancellation	§ RP does not conduct any business from the declared place ofbusiness. § RP issues invoice without supply of G/S in violation of the provisions of theAct. § RP violates the provisions pertaining to Anti-profiteering measure of sec171.
UIN	Person to whom a UIN has been granted u/r 17 cannot apply for cancellation.
Provided that during pendency of the proceedings relating to cancellation filed by registered person, registration may be suspended for such period & in such prescribed manner.
Thus, taxpayer is freed from the routine compliances, including filing returns, under GST law during pendency of the proceedings related to cancellation of registration.
Where registered person has applied for cancellation of registration:		Where a registered person has applied for cancellation of registration, the registration shall be deemed to be suspended from: a) date of submission of the application or b) date from which the cancellation is sought, whichever is later pending the completion of proceedings for cancellation of registration.
Where cancellation of Registration has been initiated by the Department onits ownmotion:		Where PO has reasons to believe that the registration of a person is liable to be cancelled, he may, after affording the said person a reasonable opportunity of being heard, suspend the registration of such person w.e.f a date to be determined by him, pending the completion of the proceedings for cancellation of registration.