Registration under GST Law
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.
Liability to register
GST being a tax on the event of “supply”, every supplier needs to get registered.
e event of “supply”, every supplier needs to get registered. However, small businesses having all India aggregate turnover as below need not to registered under GST:
- Rupees 20 lakh
- Rupees 10 lakh if business is in Assam, Arunachal Pradesh, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or Tripura.
The small businesses, having turnover below the threshold limit can, however, voluntarily opt to register.
Suggested Read: How to calculate Aggregate Turnover for GST registration with practical examples ?
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.
Suggested Read: Know your GSTIN – What is GST Number and its structure?
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.
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.
A unit in SEZ or a SEZ developer needs to necessarily obtain separate registration.
Compulsory registration under GST
Suggested Read: Who is required to register compulsorily under GST?
Standardization 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 on line through the common portal (GSTN) as per following:
- A person needs to register 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.
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 in the Core Information: In case of amendment in the core information, the registered person is required to take the specific approval of the tax authorities. Core information fields are as follows:
- Legal name of the business
- State of place of business
- Additional place of business
In all above cases taxable person will apply for amendment within 15 days of the event necessitating the change. The proper officer, then, will approve the amendment within next 15 days.
Amendment in the Non Core Information: In case of amendment in the non core information, i.e. 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.
Suggested Read: How to make the amendments in the Core field and Non Core field of GST registration information?
Generally, the amendments take effect from the date of application for amendment. Commissioner, however, has been given powers to permit amendments with retrospective effect.
Cancellation of Registration
The GST law provides for two scenarios where cancellation of registration can take place;
Voluntary cancellation: When the registered person is not required the GST registration.
Suo-motu cancellation: When the proper officer considers the registration liable for cancellation in view of certain specified defaults.
The taxable person desirous of cancellation of Registration will apply on the common portal within 30 days of 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 obtaining registration), 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).
Suggested Read: All about cancellation / revocation the GST Registration
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 so 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.
Suggested Read: All about cancellation/ revocation of GST Registration
Physical verification in connection with 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.
Suggested Read: All about cancellation / revocation of GST Registration
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