GST

Why is GST Registration Required?

GST registration is important because it will enable you to avail various benefits that are available under the GST regime. One such benefit is to avail seamless input tax credit. Multiple taxes are being clubbed under GST and thus the cascading of taxes that is prevailing currently will no longer be the case. Also, timely registration will help you avoid any kind of interface with tax authorities.

Person liable to register under GST (Sec. 22 & 24) :

• With a Turnover in a FY > Rs.20 lakhs.

(Rs. 10 lakhs if place of supply is in special category i.e Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand)

• Registered or holding license under Existing Law.
• Who is transferee or successor of business of business of a registered person.
• Making Inter-state taxable supply.
• Who is a casual or non-resident taxable person making taxable supply.
• Required to pay tax under reverse charge or u/s 9(5).
• Making taxable supply on behalf of other taxable persons.
• Required to deduct tax u/s 51 or ISD , whether or not separately registered under this Act.
• Who effects supplies ( other than supplies specified u/s 9(5)) through e-commerce operator who is required to collect TCS u/s 52.
• E-commerce operator.
• Supplying online information access/retrieval services from outside India to an unregistered person in India.
• Notified class of persons.

Person not liable to register (Sec. 23) :

• Person engaged in the business of supplying only exempt supply under this Act or Integrated GST Act.
• An agriculturist, to the extent of supply of produce out of cultivation of land
• Notified category of persons.

Procedure for Registration (Sec. 25) :

• Registration to be applied for within 30 days from the date of becoming liable
• PAN is mandatory for registration. However deductor may have TAN instead of PAN.
• A person though not liable may register voluntarily, & all the provisions of this Act, as are applicable to registered person, shall apply to such person.
• A casual or non-resident taxable person shall apply at least 5 days prior to the commencement of business.
• Only single registration in a state or Union territory shall be granted. However, for person having multiple business verticals, separate business registration for each business vertical can be granted subject to conditions.
• A person who has obtained registration for himself or his establishment in more than one State or Union territory shall be treated as distinct persons under this Act for each such registration.
• A certificate of registration shall be issued from prescribed date & shall be deemed to have been granted after expiry of notified period, if no deficiency has been communicated to the applicant within that period.

Registration under State or Union territory (Sec. 26) :

• Registration under State or Union territory Act is deemed as registration under this Act unless application for registration is rejected under this Act within time specified u/s 25(10).
• Rejection of application for registration under State or Union territory Act is deemed as registration under this Act.

In case of Casual or Non-resident taxable person (Sec. 27) :

• Certificate of registration is valid for the period specified in the application or 90 days whichever is earlier.
• Taxable supply is to be made only after issue of certificate.
• At the time of applying, advance deposit shall be made of estimated tax liability for the period for which the registration is sought by crediting the electronic cash ledger and the same shall be utilized only as per Sec.49.

Changes in the information (Sec.28) :

• Changes in the information given for registration shall be communicated within prescribed period. The same may be rejected after giving an opportunity of being heard. Rejection of such information under State or Union territory GST Acts shall be deemed to be rejection under this Act.

Registration may be cancelled (Sec.29) :

• Registration may be cancelled from any date including retrospective date, if person has:

1. Contravened the provisions of the Act or rules.

2. Not filed returns for 6 months continuously (3 consecutive tax periods if he is paying tax u/s 10).

3. Voluntarily registered u/s 25(3) & has not commenced business within 6 months from the date of registration.

4. Obtained registration by means of fraud, willful misstatement or suppression of facts.

• Cancellation of registration shall not affect the liability to pay tax or to discharge any obligation under this Act for any period to the date of cancellation.
• Cancellation of registration under State or Union territory Act is deemed as cancellation under this Act.
• On cancellation, e-ledger shall be debited by ITC determined u/s 18(1).

Revocation of cancellation (Sec. 30) :

• A person may apply for revocation of cancellation within 30 days from the date of service of the order of cancellation.
• Revocation of cancellation of registration under State or Union territory GST Acts shall be deemed to be revocation of cancellation under this Act.