GST Registration

Registration: Mandatory or Suo-moto under GST?

For certain businesses, registration under GST is mandatory. If the organization carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply.

A ‘taxable person’ under GST, is a person who carries on any business at any place in India and who is registered or required to be registered under the GST Act. Any person who engages in economic activity including trade and commerce is treated as taxable person. A taxable person with one PAN having work in different states can apply multiple GSTIN on state basis.

‘Person’ here includes individuals, HUF, company, firm, LLP, an AOP/BOI, any corporation or Government company, body corporate incorporated under laws of foreign country, co-operative society, local authority, government, trust, artificial juridical person.

A common threshold exemption would apply to registration under both CGST and SGST, taxpayers with an annual turnover of Rs. 40 lakhs (earlier it was Rs. 20 lakhs till 31-03-2019) and Rs. 10 lakhs for special category States. Under the threshold limit taxpayer can Suo-moto take GST registration, whereas above the threshold limit it has to be mandatory to take registration under GST Act.

An optional composition scheme registration (i.e. to pay tax at a flat rate on turnover without credits) is available to small taxpayers (including to manufacturers other than specified category of manufacturers and service providers) having an annual turnover of less than Rs. 1.5 crore** per annum ( Rs.75 Lakhs for NE States and Himachal Pradesh) can opt for Composition scheme.

  • CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores with effective from 1st April 2019.

Details of GST registration forms of various category click here

Need and Advantages of GST Registration

Registration will confer the following advantages to a taxpayer:-

  • He is legally recognized as supplier of goods or services globally.

  • He is legally authorized to collect tax from his customers and pass on the credit of the taxes paid on the goods or services supplied to the purchasers/ recipients.

  • He can claim input tax credit of taxes paid on his purchases / procurement and can utilize the same for payment of taxes due on supply of goods or services.

  • Seamless flow of Input tax credit from suppliers to recipients at the national level.

  • Have a competitive advantage compared to other businesses.

Are you liable to register for GST

Generally, the liability to register under GST arises when you are a “supplier” within the meaning of the term, and also if your aggregate turn over in the financial year is above the specified exemption threshold. However, the GST law enlists certain categories of suppliers who are required to get compulsory registration irrespective of their turnover that is to say, the specified threshold exemption limit is not available to them.

 

Under the GST Act, GST Registration can be of various types. Taxable person should aware of the different types of GST Registration before selecting the appropriate one. They are:

  • GST registration is mandatory for-

    • Any business whose aggregate turnover in a financial year exceeds Rs 40 lakhs or likely to exceeds Rs. 40 Lakhs (Rs 10 lakhs for North Eastern and hill states).​

    • Persons making any inter-State taxable supply of goods/ services.
      Note:

      • Aggregate Turnover includes:- Taxable Sales, Exempt Sales, Export Sales, Interstate Sales, Sales by Agents or Principal, (Amount of taxes not included).​​​

      • If your turnover is exclusively supply of only exempted  goods/services which are exempt under GST, no need to take Registration

      • Registration limit in GST is Rs. 20 lakhs (40 lakhs w.e.f. 01-04-2019 via notification no.10/2019) for both local and interstate supply; earlier the registration is necessary for service provider if he making even Rs. 1 as interstate supply. However in the case of goods supplier, it has necessary to take registration for inter state supply.

  • However in the following cases No limit of Turnover required, i.e. the cases for mandatory registration under GST Act, irrespective of turnover:-

    • Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.)  needs to register under GST, too.​

    • When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.

    • Casual taxable person*.

    • Non-Resident taxable person*.

    • Agents of a supplier (Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise).

    • An aggregator who supplies services under his brand name or his trade name.

    • Persons who are required to pay tax under the reverse charge mechanism.

    • Persons who are required to deduct/ collect TDS/ TCS under GST(Government Entities, E-commerce Companies).

    • Input service distributor*.

    • E-commerce operator or aggregator**

    • Person who supplies via e-commerce aggregator.

    • Special Economic Zone Unit / Developer.

    • 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.

    • 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 (such as UN Embassy/ Body/ other notified individuals).

      * Person define in the website in special registration category. 
      **
      E-commerce operators/aggregators (services of transportation of passengers by Ola, Uber etc.) need not register if total sales is less than Rs. 20 lakhs/40 lakhs (amended). Notification No. 65/2017 – Central Tax dated 15.11.2017

Special Category registration under GST

Special Category registration under GST

Casual taxable person and Non-resident taxable person (section 24)

  • A casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business. Section 24 provides for special provisions relating to casual taxable person and non-resident under GST.

  • Casual/ non-resident taxable person may obtain a temporary registration for a period of 90 days (extendable for additional 90 days).

  • A person who obtains registration u/s 24, will be required to make advance deposit of GST (based on his estimated tax liability).

Who is a Casual Taxable Person ?

A casual taxable person is one who has a registered business in some State in India, but wants to effect supplies from some other State in which he is not having any fixed place of business. Such person needs to register in the State from where he seeks to supply as a casual taxable person. Individuals who wish to set up a seasonal shop or stall can opt for this category.

Example: A person who has a place of business in Bangalore supplies taxable consulting services in Pune where he has no place of business would be treated as a casual taxable person in Pune.

Normally casual taxable person is required to obtain a Registration Certificate, However Govt. has given exemption, if following conditions are satisfied:-

  • Person is dealing with interstate supplies of Handicraft goods.

  • Aggregate annual Turnover is not more than Rs. 20 lakhs (till 31-03-2019) / Rs. 40 lakhs (w.e.f. 01-04-2019 via notification no. 10/2019), (Rs. 10 lakhs in special category of state applied i.e. for NE and Hill States).

Who is a Non-Resident Taxable person under GST?

When a non-resident occasionally supplies goods/services in a territory where GST applies, but he does not have a fixed place of business in India. As per GST, he will be treated as a non-resident taxable person. It is similar to above except the non-resident has no place of business in India. In case of non-resident taxable person, the registration may be granted on the basis of the valid passport or the Tax Identification number (TAN) issued by the respective country (if it is incorporated business entity).

Non-resident taxable person is one who is a foreigner and occasionally wants to effect taxable supplies from any State in India, and for that he needs GST registration. GST law prescribes special procedure for registration, as also for extension of the operation period of such casual or non-resident taxable persons.

Other  Special Category taxable person Under GST

Who is an Composition Scheme Dealer ?

A GST taxpayer or small businesses, having an annual turnover* is below Rs. 1.5 crore** can opt for Composition Scheme. In case of North-Eastern states and Himachal Pradesh, the present limit is Rs 75 lakh.

This scheme is a lucrative option for all SMEs who want lower compliance and lower rates of taxes under GST.

  • Composition dealers will pay nominal tax rates based on the type of business:

    • Composition dealers are required to file only one quarterly return (instead of three monthly returns filed by normal taxpayers).​

    • They cannot issue taxable invoices, i.e., collect tax from customers and are required to pay the tax out of their own pocket.

    • Businesses that have opted for Composition Scheme cannot claim any Input Tax Credit.

  • Composition scheme is not applicable to :

    • Inter-state sellers​

    • E-commerce sellers

    • Supplier of non-taxable goods

    • Manufacturer of Notified Goods

  • Composition Scheme for Service Providers:

    • In the 32nd GST Council Meeting, it has been announced that the scheme will now be available to service providers too. The scheme for service providers is available from  1 April 2019.

    • The composition scheme for service providers gives an option to taxpayers rendering services having aggregate annual turnover up to Rs. 50 lakh to pay tax at a nominal rate, subject to conditions.

    • The following persons can opt into this scheme:

      • Supplier of services only (i.e., service providers)​

      • Suppliers of goods and services (i.e., those suppliers who were not eligible for composition scheme earlier)

 *Turnover of all businesses registered with the same PAN should be taken into consideration to calculate turnover

**CBIC has notified the increased in the threshold turnover for opting into the Composition Scheme from Rs 1 crore to Rs 1.5 crores with effective from 1st April 2019.

Who is an Input Service Distributor ?

‘Input Service Distributor’ means an office of the supplier of goods/services which receives tax invoices on receipt of input services and issues tax invoices for the purpose of distributing the credit of CGST/SGST/IGST paid on the said services to your branch with same PAN. (It must be a supplier of taxable goods /services having the same PAN as that of the office referred to above).

Thus, only credit on ‘input services’ can be distributed and not on input goods or capital goods.

This will be a new concept for assessees who are currently not registered as input service distributor. However, They need to separately register as ISD regardless of the turnover.

Who is TDS Deductor under GST?

‘TDS Deductor’ covers the authorities notified under notification No. 33/2017-Central Tax dated 15.09.2017, who are mandated to deduct GST TDS @ 1% on payment made to supplier where value of such supply, under a contract, is more than Rs. 2.5 lakh. Such authorities are required to register separately as a TDS deductor irrespective of the turnover, the operation of tax deduction has been implemented w.e.f 1st October, 2018.

Who is OIDAR service suppliers?

Those supplying online information and data base access or retrieval services from outside India to a non-registered person in India. A simplified registration Scheme is provided for OIDAR service suppliers. Instead of State-wise registration, he will take single registration for entire India either himself or through his appointed agent in India, and will pay IGST. The registration to and other GST compliance by the OIDAR service providers is exclusively administered by the Principal Commissioner of Central Tax, Bengaluru West and all officers subordinate to him.

What is centralised unique identification number (UIN) ?

In respect of supplies to some notified agencies of United Nations organisation, multinational financial institutions and other organisations, a centralised unique identification number (UIN) is issued. UIN is a classification made for foreign diplomatic missions and embassies not liable to tax in India.

Persons, who are not liable to register under GST

Irrespective of the turnover, certain category of persons are not liable to register under GST. This means that even if their turnover crosses Rs. 10 Lakhs/20 Lakhs/40 Lakhs, as applicable, these persons do not have to register under GST. Let us learn about these persons who are not required to register under GST.

Agriculturists

An agriculturist is an individual or Hindu Undivided Family (HUF), who undertakes cultivation of land either:

  • By his own labour / By the labour of his family or

  • By servants on wages paid in cash or kind, or by hired members under the person’s supervision or the personal supervision of any member of the family

Agriculturists supplying produce generated by the cultivation of land are exempted from registering under GST. Even if their turnover crosses the threshold limit, they are not liable to register under GST.

For example: An agriculturist supplying fruits and vegetables cultivated by him is not liable to register under GST.

Persons exclusively supplying exempt goods or services

Persons who exclusively supply exempt goods or services are among the persons who are not required to register under GST. Exempt goods or services include nil-rated goods and services, non-taxable goods and services and supplies notified as exempt by the Government.

For example: Supply of alcohol for human consumption is a non-taxable supply under GST. Persons who exclusively supply alcohol are not liable to register under GST.

Persons exclusively making reverse charge supplies

Persons who exclusively make supplies on which the recipient is liable to pay tax on reverse charge, are not liable to register under GST.

For example: A Goods Transport Agency (GTA), an Advocate etc. exclusively providing service to notified persons, who are liable to pay tax on reverse charge, is not required to register under GST.

Job workers providing services to registered persons in another state

Under mandatory registration rules, any person making interstate taxable supplies has to register under GST, irrespective of turnover. However, job workers who provide job work services to registered persons in a different state need not mandatorily register under GST. They will need to register only when their turnover crosses the threshold limit.

Note: This exemption is not applicable for job workers providing services related to jewellery and goldsmiths’ and silversmiths’ wares.

Persons supplying handicraft goods to persons in another state

Person is dealing with interstate supplies of Handicraft goods to persons in another state are not required to mandatorily register. They need to register only when their turnover crosses the threshold limit. Handicraft goods are certain specified goods made by craftsmen predominantly by hand, though some machinery might have been used in the process.

Note:- Person supplying handicraft, should obtain a PAN (Permanent Account Number) and the goods must be moved under the cover of e-way bill as supply made in different states, irrespective of the value of the goods. 

Documents Required for GST Registration 

The list of documents required for each of the form of business is different. Hence, we will discuss documents required for GST registration for each of the form of business. 

  • Documents for Registered Office Address proof of all category

    • Copy of Electricity bill/ Landline bill/ House Tax receipts/ water Bill.​

    • No objection certificate of the owner (in all cases).

    • Rent/ Lease agreement (in case premises are rented)

  • Along with Point No. 1 Additional Documents required as per business category:

    • Sole proprietorship / Individual documents​

      • PAN card and ID-Address proof of the individual.​

      • Passport size Photo of Individual.

      • Copy of Cancelled chaque or bank statement.

      • Declaration to comply with the provisions.

      • Details of Nature of Business.

      • List of Items Supply/ Manufactured/ Purchased and /or service provided.

      • Registered Office Address Proof as above mentioned.

    • Partnership firm documents

      • PAN card of the Partnership firm.​

      • Partnership Deed.

      • Cancel Cheque/ Copy of Bank Statement of firm.

      • Declaration to comply with the provisions.

      • PAN and ID-Address proof of all partners.

      • Passport size Photo of all Partners.

      • Details of Nature of Business.

      • List of Items Supply/ Manufactured/ Purchased and /or service provided.

      • Registered Office Address Proof as above mentioned.

    • Limited Liability Partnerships (LLP)

      • PAN card of the LLP.​

      • Registration Certificate of the LLP.

      • LLP Partnership agreement.

      • Cancel Cheque/ Copy of Bank Statement of the LLP.

      • Declaration to comply with the provisions.

      • Copy of Board resolution.

      • Digital Signature Required any of the designated partner (If not provided, additional cost will apply)

      • Passport size Photo of all designated Partners.

      • PAN and ID/ Address proof of all designated partners.

      • Details of Nature of Business.

      • List of Items Supply/ Manufactured/ Purchased and /or service provided.

      • Registered Office Address Proof as above mentioned.

    • Private Limited Company (Pvt Ltd)/ Public Company (limited company)/ One person company (OPC) documents

      • PAN card of the company.​

      • Registration Certificate of the company.

      • Memorandum of Association (MOA) /Articles of Association (AOA).

      • Cancel Cheque/ Copy of Bank Statement.

      • Declaration to comply with the provisions.

      • Copy of Board resolution.

      • List of Directors as on date.

      • Digital Signature Required any of the directors (If not provided, additional cost will apply)

      • PAN and ID-Address proof of all directors.

      • Passport size Photo of all directors.

      • Details of Nature of Business.

      • List of Items Supply/ Manufactured/ Purchased and /or service provided.

      • Registered Office Address Proof as above mentioned.

For more details about documents required under GST under certain category visit https://www.gst.gov.in/docadvisor/

Documents Required for GST Registration 

If you do not pay tax or pay a lesser amount than what is due, the penalty that is levied is 10% of the due amount (in case of genuine errors). However, the minimum penalty is Rs.10,000.

If you have not registered for GST and are deliberately trying to evade tax, the penalty levied is 100% of the due tax amount.

Amendment of Registration 

A taxable person shall be able to make amendments without requiring any specific approval from the tax authority, except for the changes in some core information in the registration application.

In case the change is for legal name of the business, or the State of place of business or additional place of business, the 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. For other changes like 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. A functionality to update email and mobile number of the authorised signatory is available in the GST system.

The taxpayers can get it done by the concerned jurisdictional tax authority. Generally, the amendments take effect from the date of application for amendment. Commissioner, however, has been given powers to permit amendments with retrospective effect.

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.

Cancellation of Registration 

The GST law provides for two scenarios where cancellation of registration can take place:

  • When the one when the taxable person no more requires it (voluntary cancellation), 

  • when the proper officer considers the registration liable for cancellation in view of certain specified defaults (Suo-moto cancellation) like when the registrant is not doing business from the registered place of business or if he issues tax invoice without making the supply of goods or services. 

The taxable person, who desire to 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 preceding to 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.

Till 23.01.2018, the voluntary registration taken despite not being liable for obtaining registration could not be cancelled until expiry of one year. However, the rule has now been amended to allow voluntary registration to be cancelled any time.

Suspension of Registration

Under the situation, GST registration can be suspended, mentioned here:-

  • Where a registered person has applied for cancellation of registration, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration. 

  • Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he may suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration. 

  • A registered person, whose registration has been suspended, shall not make any taxable supply during the period of suspension and shall not be required to furnish any monthly / quarterly return.

Revocation of Cancellation 

In some of the situation registered person, who applied for cancellation of registration, wants to revoke the cancellation, i.e. wants to continue same GST registration for their business, than it can happen in the below situation:

  • When the registration has been cancelled by the GST Officer on his own motion and not on the basis of an application by the registered person, then the registered person, whose registration has been cancelled, can submit an application for revocation of cancellation of registration, within a period of thirty days from the date of the service of the order of cancellation of registration. 

  • However, if the registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns.

  • On examination of the application, if the GST Officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, then he shall revoke the cancellation of registration by an order within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant. 

  • However, if on examination of the application for revocation, if the Proper Officer is not satisfied then he will issue a notice requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the reply within a period of seven working days from the date of the service of the notice.

  • Upon receipt of the information or clarification, the Proper Officer  shall dispose of the application within a period of thirty days from the date of the receipt of such information. In case it is not satisfactory the applicant will be mandatorily given an opportunity of being heard, after recording the reasons in writing, the GST officer has grant or reject the application for revocation of cancellation of registration and communicate the same to the applicant.

  • The revocation of cancellation of registration under the SGST Act or the UTGST Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under CGST Act.

GST Registration Forms

The details of all GST regsitration forms & details of forms to be filed under the GST Law as such required by the Suppliers, All GST forms should be filed electronically only.

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