GST

Topic : GST Registration

 General Provisions and Procedure of registration
About GST Registration
 The structure of GST stands on the foundation of the
registration system.
 it is a registered person who is liable to pay tax and who is
eligible to avail the benefits of the input tax credit mechanism.
 A registered person can also collect GST from his recipients.
An unregistered person is not taxed and is also kept outside
the input tax credit mechanism.
 In the GST Regime, a business whose turnover exceeds
Threshold limit is required to register as a taxable person.
 If the organization carries on business without registering
under GST, it will be an offence under GST and heavy penalties
will apply.
 General Provisions and Procedure of registration

Benefits of registering under GST

A. For normal registered business:

 Take input tax credit

 Make interstate sales without restrictions
 Register on e-commerce websites
 Have a competitive advantage compared to other businesses

B. For Composition dealers:

 Limited compliance
 Less tax liability
 High working capital
 General Provisions and Procedure of registration

Who Should Register for GST ?

 Individuals registered under the Pre-GST law (i.e., Excise, VAT,

Service Tax etc.)
 Any business involved in the supply of goods whose turnover in a
financial year exceeds Rs.40 lakhs for Normal Category states (Rs.20
lakhs for Special Category states)*
 Any business involved in the supply of services whose turnover in a
financial year exceeds Rs.20 lakhs for Normal Category states (Rs.10
lakhs for Special Category states)
 A person making inter-state supplies of Goods
 When a business which is registered has been transferred to
someone/demerged, the transferee shall take registration with effect
from the date of transfer.
 General Provisions and Procedure of registration

Continued…

 Casual taxable person / Non-Resident taxable person

 Agents of a supplier & Input service distributor
 Those paying tax under the reverse charge mechanism
 Persons who are required to deduct tax at source
 Person who supplies via E-commerce Operator/aggregator
and Every e-commerce aggregator
 Person supplying online information and database access
or retrieval services from a place outside India to a person
in India, other than a registered taxable person
 General Provisions and Procedure of registration

Who are exempted from GST Registration ?

 Agriculturists

 Persons falling in Threshold Exemption Limit

 Persons making Nil-Rated/ Exempt supplies of goods and

services
 Persons making Non-Taxable/ Non-GST supplies of goods

and services
 Activities that are neither Supply of Goods nor Services

 Persons making only supplies covered under reverse charge

 Individual advocates, including senior advocates.

 Individual sponsorship service providers, including

players.
 About GST Registration
• Every person has to apply for registration in every State in
which he is liable, within thirty days from the date on which
he becomes liable to registration.
• Casual / non-resident taxable persons should apply at least
five days before their commencement of business.
• Registration number in GST will be PAN based and hence,
having PAN would be a prerequisite for obtaining registration.
• The assessee must obtain separate registration for each State,
as registration under GST will be State-wise,
• The assessee has an option to obtain a separate registration
for each of the ‘business verticals’ in the same State.
 About GST Number
 GSTIN – 15 digit alphanumeric code
 GSTIN structure comprises
First 2 numbers → State code of the registered person
Next 10 characters → PAN of the registered person
Next number→ Entity number of the same PAN
Next character → Alphabet Z by default
Last number → alpha or digit, used for detection of
errors
 NO Charges payable to the government for GST
Application
 General Provisions and Procedure of registration

Documents Required for GST Registration (General)

 PAN of the Applicant
 Aadhar Card
 Passport size Photograph
 Proof of business registration or Incorporation certificate
 Identity and Address proof of Promoters/Director with
Photographs
 Address proof of the place of business (Electricity Bill)
 NOC/Consent Letter
 Bank Account statement/Cancelled cheque
 Digital Signature
 Letter of Authorization/Board Resolution for Authorized
Signatory
 General Provisions and Procedure of registration

Procedure for GST Registration

 The applicant needs to submit his PAN, Mobile number and E-mail address in Part A of Form GST REG-01 on GSTN Portal.

 The PAN is then verified on the GSTN Portal while the Mobile number and the E-mail address are verified through an OTP
(One-time-password). An acknowledgment will be issued to the applicant in the Form GST REG-02.

 The Applicant then needs to fill the Part B of Form GST REG-01 and specify the application reference number. The form
can be submitted after attaching the required documents. The authentication would be done by signature through DSC or E-
Signature.

 If any additional information is required, Form GST REG-03 will be issued. The Applicant needs to respond in Form GST
REG-04 with the required information within 7 working days from the date of the receipt of Form GST REG-03.

 If applicant has provided all the required information via Form GST REG-01 or Form GST REG-04, the registration
certificate in Form GST REG-06 for the principal place of the business as well as for every additional place of business will
be issued. If, however, the details submitted are not satisfactorily, the registration application will be rejected using
Form GST REG-05.

 The applicant who is required to deduct TDS or collect TCS shall, however, submit an application in Form GST REG-07 for
the purpose of registration.
 Casual taxable person
 Casual taxable person means a person who supplies taxable goods or services occasionally
in a taxable Territory where he does not have a fixed place of business. The person can act
as a Principal or agent or in any other capacity.

 A Casual Taxable person cannot opt for Composition Scheme.

 A CTP has to obtain a Temporary Registration which is valid for a maximum period of 90
days in the State from where he seeks to supply as a Casual taxable person. It can be
extended for a further period not more than 90 days on deposit of additional tax liability.

 A CTP is required to make the advance deposit of GST (based on an estimation of tax
liability).

 CTP is eligible for the refund of any amount deposited in excess of tax liability which will be
refunded after all the necessary returns have been furnished for the Registration period.
 Non resident Taxable person
 A non-resident taxable person is defined as one residing outside India and making a
taxable supply in India.
 The Goods and Services Tax Law has defined a ‘non-resident taxable person’ as any person who
occasionally undertakes transactions involving the supply of goods or services, or both, whether as
principal or agent or in any other capacity, but who has no fixed place of business or residence in India.
 Irrespective of whether the business is involved in a one-time transaction or frequent taxable
transactions, every non-resident individual or company will have to obtain a registration under the
Goods and Services Tax .
 Every person or business who falls under the definition covered above needs to apply for registration
at least five days prior to the commencement of business
 A non-resident taxable person needs to electronically submit a duly signed application, along with a
self-attested copy of his valid passport, for registration.
 The non-resident (if it is a company) must submit its tax identification number of its original country
(whatever is the equivalent of our PAN in that country)
 A person applying for registration as a non-resident taxable person will be given a temporary reference
number electronically by the Common Portal for making an advance deposit of tax in his electronic
cash ledger and an acknowledgment will be issued thereafter.
 Difference between CTP & NRTP

Casual Taxable Person Non-resident Taxable Person

One who has a registered (fixed place) of

business in one state in India but wants to effect One who is a foreigner and occasionally wants to
supplies from some other state in which he does effect taxable supplies from any state in India
not have ant fixed place of business.

Has a PAN (Permanent Account Number) Do not have a PAN ((Permanent Account Number)
Number ) Number.

Same application form for registration as for Separate application form for registration by non-
normal taxable persons viz Form GST REG01 resident taxable person viz Form GST REG-9
Has to file normal Form GSTR-1, Form GSTR-2 Has to file a separate simplified GST return in the
and Form GSTR-3 returns format Form GSTR-5
Can get ITC only in respect of import of goods and
Can claim ITC of all inward supplies
/or services.
 Aggregate Turnover
As per section 2(6) of CGST Act, 2017

‘Aggregate turnover’ means the aggregate value of all

taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on
reverse charge basis), exempt supplies, exports of
goods or services or both and inter-State supplies of
persons having the same Permanent Account Number, to
be computed on all India basis but excludes central tax,
State tax, Union territory tax, integrated tax and cess.
 Threshold limit of Turnover
States who opted for a States who opted
new limit of Rs. 20 lakhs for new limit of
for Services and Rs.40 lakh Rs.20 lakh for both
for goods goods and Services
Chhattisgarh, Jharkhand, Puducherry
Delhi, Bihar, Maharashtra, Meghalaya
Andhra Pradesh, Gujarat, Sikkim
Haryana, Goa, Punjab, Uttar Arunachal Pradesh
Pradesh, J&K, Ladakh,Assam, Telangana
Himachal Pradesh, Karnataka, Uttarakhand
Madhya Pradesh, Odisha,
Rajasthan, Tamil Nadu, West Mizoram
Bengal,Chandigarh, Tripura
Aandaman & Nicobar, Dadra Manipur
and Nagar haveli Nagaland
Lakshadweep,Silvasa,Diu &
Daman,
 Amendments in Registration
Three Types Of Amendments That Can Be Done

Change In Core Field: Core fields are one which require approval from
jurisdictional officer .The changes in Core field includes the legal name of the
business, the address of the principal place of business, and any additional place
of business. It takes 15 days to get approval from a proper office to amend the
Core Fields.

Change In Non-core Field: There are some fields which don’t require any
approval from a proper office and amendments in Non-core fields can be easily
done online. All the fields except those, which are covered under core fields come
under a Non-core field.Non-core amendments will be on live basis. As soon as you
sign your application, your changes will be applicable.

Change In Email Or Mobile Number: The change in email or mobile number

requires a verification by OTP(One-Time Password) after online verification on
common GST portal
 Amendments in Registration
What are details that can be changed or updated? – core Field

A business owner can apply for change(s) of the following items:

 Name of business
 Address of the principal place of business
 An additional place of business
 Addition, deletion or retirement of partners or directors, Managing Committee, CEO

What about changes other than the above-mentioned? – Non-Core field

 Change(s) other than the above-mentioned will be amended immediately on submitting

FORM GST REG- 14 on the Common Portal.

Can the PAN (Permanent Account Number) be changed or updated?

 No. If there is any mistake in the PAN number, the applicant will have no other choice
except to file for a fresh registration using FORM GST REG-01.This is because GSTIN is
based on the PAN.
 Cancellation of Registration
 Cancellation of GST registration simply means that the
taxpayer will not be a GST registered person any more.
He will not have to pay or collect GST or claim input tax
credit and accordingly, need not file GST returns.

Consequences of Cancellation
 The taxpayer will not pay GST anymore

 For certain businesses, registration under GST is

mandatory. If the GST registration is cancelled and

business is still continued, it will mean an offence under
GST and heavy penalties will apply.
 Cancellation of Registration
Why does a taxpayer wish to cancel his registration?

 The business has been discontinued.

 The business has been transferred fully, amalgamated, demerged or disposed.
 There is a change in the constitution of the business (For example- Private limited
company has changed to a public limited company)

Forms for cancellation

 All must file an application for cancellation in FORM GST REG 16.
 The following details must be included in FORM GST REG 16-
 Details of inputs, semi-finished, finished goods held in stock on the date on
which cancellation of registration is applied
 Liability thereon
 Details of the payment
 The proper officer has to issue an order for cancellation in FORM GST REG-19
within 30 days from date of application. The cancellation will be effective from a
date determined by the officer and he will notify the taxable person
 Cancellation of Registration
Cancellation by tax officer- The registration can be cancelled, if the taxpayer-
 Does not conduct any business from the declared place of business
 Issues invoice or bill without supply of goods/services (i.e., in violation of the provisions)

 A taxpayer who cannot file GSTR-1 due to GSTR-3B not being filed for more than two consecutive months


Avails input tax credit in violation of the provisions

Procedure
 If the proper officer has reasons to cancel the registration of a person then he will send a show cause notice to such
person in FORM GST REG-17.

 The person must reply in FORM REG–18 within 7 days from date of service of notice why his registration should not
be cancelled.

 If the reply is found to be satisfactory, the officer will drop the proceedings and pass an order in FORM GST REG –20.

 If the registration is liable to be cancelled, the proper officer will issue an order in FORM GST REG-19. The order will
be sent within 30 days from the date of reply to the show cause.
 Revocation of Cancellation
 Revocation means the official cancellation of a decision or promise. Revocation of cancellation of

registration means that the decision to cancel the registration has been reversed and the registration is

still valid.
 This is applicable only when the tax officer has cancelled the registration of a taxable person on his own

motion. Such taxable person can apply to the officer for revocation of cancellation within thirty days

from the date of the cancellation order.

Procedure
 A registered person can submit an application for revocation of cancellation, in FORM GST REG-21

within 30 days from the date of service of the cancellation order at the Common Portal.
 If the proper officer is satisfied he can revoke the cancellation of registration by an order in FORM GST

REG-22 within 30 days from the date of receipt of the application. Reasons for revocation of cancellation

of registration must be recorded in writing.

 Revocation of Cancellation
 The proper officer can reject the application for revocation by an order in FORM GST REG-05 and

communicate the same to the applicant.

 Before rejecting, the proper officer must issue a show cause notice in FORM GST REG–23 for the

applicant to show why the application should not be rejected. The applicant must reply in FORM GST

REG-24 within 7 working days from the date of the service of notice.
 The proper officer will take decision within 30 days from the date of receipt of clarification from the

applicant in FORM GST REG-24.

Note: Application for revocation cannot be filed if the registration has been cancelled

because of the failure to file returns. Such returns must be furnished first along with

payment of all dues amounts of tax, interest & penalty.

Thank you