REGISTRATION UNDER GST
Transitional provisions for existing taxable persons
Existing taxable persons will be given provisional registration certificate. It will be valid for six months. They will submit required details. Then final registration certificate under GST will be issued – clause 142 of GST Model Law, 2016.
Person liable to be registered under GST
As per Schedule III to GST Model Law, 2016, following persons require registration.
| 1. | Supplier of goods and services with aggregate turnover over specified limit – Every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds Rs nine lakh [Rs four lakhs in case of NE States including Sikkim]. | |
| The supplier of goods and services shall not be liable to registration if his aggregate turnover consists of only goods and/or services which are not liable to tax under this Act. | ||
| The taxable threshold shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. | ||
| The supply 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 in section 43A, and the value of such goods shall not be included in the aggregate turnover of the registered job worker. | ||
| 2. | Persons registered under earlier law – Every person who, on the day immediately preceding the appointed day (i.e. introduction of GST), is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day. [However, proviso to clause 19(1) of GST Model Law, 2016 states that only ISD requires fresh registration and not others] | |
| 3. | Transferee of business – 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 a going 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. | Registration after merger or amalgamation or scheme – In a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies by an order of a High Court, the transferee shall be liable to be registered, where required, 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. | |
| 5. | Other persons requiring registration without threshold limit – In addition to above, the following categories of persons shall be required to be registered under this Act: |
| (i) | persons making any inter-State taxable supply, irrespec-tive of the threshold limit | |
| (ii) | casual taxable persons, irrespective of the threshold limit | |
| (iii) | persons who are required to pay tax under reverse charge, irrespective of the threshold limit | |
| (iv) | non-resident taxable persons, irrespective of the threshold limit | |
| (v) | persons who are required to deduct tax under section 37 | |
| (vi) | persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise, irrespective of the threshold limit | |
| (vii) | input service distributor | |
| (viii) | persons who supply goods and/or services, other than branded services, through electronic commerce operator, irrespective of the threshold limit | |
| (ix) | every electronic commerce operator, irrespective of the threshold limit | |
| (x) | an aggregator who supplies services under his brand name or his trade name, irrespective of the threshold limit; and | |
| (xi) | such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council. |
Procedure for registration under GST
The model GST law does not prescribe procedure relating to registration. The Empowered Committee had released Report of the Joint Committee on Business Processes for GST on Registration Processes in GST Regime in July 2015 [made available to public in October 2015] giving procedure for registration. The brief details are as follows.
PAN based GSTIN – Each taxpayer will be allotted a State wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). First 2 digits will be State Code. Next 10 digits will be Income Tax PAN. 13th digit will be entity code. 14th digit will be blank for future use. 15 the digit will be check digit.
Procedure for obtaining Registration – For obtaining registration, all the taxable persons shall interact with tax authorities through a common portal called GST Common Portal 2 that would be set up by Goods and Services Tax Network (GSTN). Acknowledgement Number would be generated and intimated to the applicant. Once the application is approved and GSTIN is generated, the same along with Log-in ID and temporary Password will be sent to the authorized signatory. This credential will be permanently used to access the GST Common Portal subsequently.
Scanned copies of prescribed documents to be attached – Scanned copies of prescribed documents are to be attached. These cover PAN, address proof, constitution of business, bank details, authorised signatory, photograph etc.
Verification by jurisdictional authorities – Electronic application will be verified by jurisdictional authorities. If deficiency is there, it will be informed.
The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal. Jurisdictional details would be intimated to the applicant at this stage.
Registration certificate – In case registration is granted, applicant can download the Registration Certificate from the GST common portal. GST law may provide that GST Registration certificate shall be displayed at the principal place of business of the taxpayer.
Registration Requirements
Every person who is liable to be registered under Schedule III of this Act (as above) shall apply for registration in every such State in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed – clause 19(1) of GST Model Law, 2016.
He must have income tax PAN.
If the person, other than an Input Service Distributor, is registered under an earlier law, it shall not be necessary for him to apply for fresh registration under this section and he shall follow the procedure as may be prescribed in this behalf.
He must have income tax PAN.
Taxable persons having multiple business verticals – A person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed – clause 19(2) of GST Model Law, 2016.
“Business vertical” shall have the meaning assigned to a ‘business segment’ in Accounting Standard 17 issued by ICAI – clause 2(18) of GST Model Law, 2016.
He must have income tax PAN.
Voluntary registration – A person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person – clause 19(3) of GST Model Law, 2016.
He must have income tax PAN.
Registration by non-resident taxable person – A non-resident taxable person may be granted registration under on the basis of any other document (other than Income Tax PAN) as may be prescribed.
“Non-resident taxable person” means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India – clause 2(69) of GST Model Law, 2016.
Registration by proper officer without application – Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed – clause 19(5) of GST Model Law, 2016.
UIN by UN Agencies, Embassy, Consulates without registration – Any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), Consulate or Embassy of foreign countries and any other person or class of persons as may be notified by the Board/Commissioner, shall obtain a Unique Identity Number, in the manner prescribed, for the purpose(s) notified, including refund of taxes on the notified supplies of goods and/or services received by them – clause 19(6) of GST Model Law, 2016.
Registration or UIN within prescribed period – The registration or the Unique Identity Number, shall be granted or, as the case may be, rejected after due verification in the manner and within such period as may be prescribed.
The proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a reasonable opportunity of being heard – clause 19(8) of GST Model Law, 2016.
Certificate of registration – A certificate of registration shall be issued in the prescribed form, with effective date as may be prescribed – clause 19(8A) of GST Model Law, 2016.
Registration or UIN deemed to have been granted – A registration or an Unique Identity Number shall be deemed to have been granted after the period prescribed under sub-section (7), if no deficiency has been communicated to the applicant by the proper officer within that period – clause 19(9) of GST Model Law, 2016.
Rejection of registration or UIN means rejection under other GST law also – Any rejection of application for registration or the Unique Identity Number under the CGST Act/SGST Act shall be deemed to be a rejection of application for registration under the SGST Act/CGST Act – clause 19(10) of GST Model Law, 2016.
Registration under SGST means registration under CGST also and vice versa – The grant of registration or the Unique Identity Number under the CGST Act/SGST Act shall be deemed to be a grant of registration or the Unique Identity Number under the SGST/CGST Act provided that the application for registration or the Unique Identity Number has not been rejected under SGST/CGST Act within the time specified – clause 19(11) of GST Model Law, 2016.
Government can specify other categories requiring registration – The Central or a State Government may, on the recommendation of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act – clause 19(12) of GST Model Law, 2016.
Registration provisions relating to casual taxable person and non-resident taxable person
The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for a period of ninety days from the effective date of registration – clause 19A(1) of GST Model Law, 2016.
The proper officer may, at the request of the said taxable person, extend the aforesaid period of ninety days by a further period not exceeding ninety days.
A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought – clause 19A(2) of GST Model Law, 2016.
Where any extension of time is sought for registration as casual taxable person, such taxable person shall deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilized in the manner provided under section 35.
Amendment of registration under GST
Every registered taxable person shall inform the proper officer of any changes in the information furnished at the time of registration, or that furnished subsequently, in the manner and within such period as may be prescribed – clause 20(1) of GST Model Law, 2016.
The proper officer may, on the basis of information furnished under sub-section (1) or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within such period as may be prescribed.
Approval of the proper officer shall not be required in respect of amendment of such particulars as may be prescribed.
The proper officer shall not reject the request for amendment in the registration particulars without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.
Any rejection or, as the case may be, approval of amendments under the CGST Act/SGST Act shall be deemed to be a rejection or approval of amendments under the SGST Act/CGST Act – clause 20(4) of GST Model Law, 2016.
Cancellation of GST registration
The proper officer may, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed.
The proper officer will have regard to the circumstances where, –
| (a) | the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or | |
| (b) | there is any change in the constitution of the business; or | |
| (c) | the taxable person, other than the person registered under section 19(3) [voluntary registration], is no longer liable to be registered under Schedule III. |
Suo motu cancellation of registration under GST – The proper officer may, in the manner as may be prescribed, cancel the registration of taxable person from such date, including any anterior date, as he may deem fit, where,—
| (a) | the registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or | |
| (b) | a person paying tax under section 8 [composition scheme] has not furnished returns for three consecutive tax periods; or | |
| (c) | any taxable person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or | |
| (d) | any person who has taken voluntary registration under section 19(3) has not commenced business within six months from the date of registration. |
Cancellation where registration obtained by fraud – Where any registration has been obtained by means of fraud, wilful mis-statement or suppression of facts, the proper officer may cancel the registration with retrospective effect, subject to the provisions of section 29.
Notice and hearing before cancellation of registration – The proper officer shall not cancel the registration without giving a notice to show cause and without giving the person a reasonable opportunity of being heard – clause 21(4) of GST Model Law, 2016.
Liability continues despite cancellation of registration – The cancellation of registration under this section shall not affect the liability of the taxable person to pay tax and other dues under the Act for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
Cancellation under SGST means cancellation under CGST and vice versa – The cancellation of registration under the CGST Act/SGST Act shall be deemed to be a cancellation of registration under the SGST Act/CGST Act – clause 21(6) of GST Model Law, 2016.
Payment of amount of GST on stock and capital goods – Every registered taxable person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit or cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed.
In case of capital goods, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods reduced by the percentage points as may be prescribed in this behalf or the tax on the transaction value of such capital goods under sub-section (1) of section 15, whichever is higher.
The amount payable shall be calculated in accordance with generally accepted accounting principles in such manner as may be prescribed – clause 21(8) of GST Model Law, 2016.
Revocation of cancellation of registration
Any registered taxable person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order – clause 22(1) of GST Model Law, 2016.
The proper officer may, in the manner and within such period as may be prescribed in this behalf, by way of an order, either revoke cancellation of the registration or reject the application for revocation for good and sufficient reasons.
The proper officer shall not reject the application for revocation of cancellation of registration without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.
Revocation of cancellation of registration under the CGST Act/SGST Act shall be deemed to be a revocation of cancellation of registration under the SGST Act/CGST Act – clause 22(4) of GST Model Law, 2016.