Registration under GST Law

[niranjan gupta]

Introduction

The general meaning of registration is a method of officially recording something. Usually something is registered to claim more rights, or to protect ownership, or because the law says it must be registered to be used legally.

Presently, to do business in India there are a list of registration under Direct & Indirect Taxation law. Indirect taxation majorly covers the Customs, Central Excise, Service Tax, VAT/CST, Professional Tax, Entry Tax, Entertainment Tax, Luxury Tax, Octroi and other local taxes as applicable time to time. VAT, Professional Tax, Entry Tax, Entertainment Tax, Luxury Tax, Octroi and other local taxes are governed by the State Government and Customs, Central Excise, Service Tax and Central Sales Tax are governed by the Central Government.

The Central Government and State Government adjoined their hands to bring GST for doing business in a simplified manner. The suggested GST model provides for subsuming the Central Excise Duty, Service Tax, CST, VAT and other local taxes.

Definition

“supplier” in relation to any goods and/or services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied;

“aggregate turnover” means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST Act, as the case may be. Also, the aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.

Time limit for applying for Registration under GST law

Every person liable to be registered under GST Act shall apply for registration within thirty days from the date on which he becomes liable to registration. [S.19]

In case of a person, other than an Input Service Distributor, is registered under earlier law, it shall not be necessary for him to apply for fresh registration under the S. 19 and he shall follow the procedure as may be prescribed in this behalf.

Threshold Limit under GST law

Under GST model, it is proposed that 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 ₹ 9 lakh. However, this limit is ₹ 4 lakh for the persons conducting business in North East states including Sikkim.

It is also proposed in the GST model that in case the aggregate turnover consists of only goods and/or services which are not liable to tax under this Act, that supplier shall not be liable to registration.

The following categories of persons shall be required to be registered under this Act, irrespective of the proposed threshold limit:

1. persons making any inter-State taxable supply
2. casual taxable persons
3. persons who are required to pay tax under reverse charge
4. non-resident taxable persons
5. persons who are required to deduct tax under section 37
6. persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise
7. Input Service Distributor
8. persons who supply goods and/or services, other than branded services, through electronic commerce operator
9. every electronic commerce operator
10. an aggregator who supplies services under his brand name or his trade name
11. 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.

Moreover, for calculating the taxable threshold, it 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.

Threshold Limit under Central Excise, Service Tax and respective State Laws

Service Tax: Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds nine lakh rupees shall make an application for registration within a period of thirty days of exceeding the aggregate value of taxable service of nine lakh rupees.

Central Excise: The exemption is provided in terms of payment of excise duty as SSI. The exemption is available for first clearances up to an aggregate value not exceeding one hundred and fifty lakh rupees made.

VAT: Following table shows the general threshold limit under respective VAT laws:

Region	State	Turnover	WCT
North	Delhi	₹ 20 lakh in the current year	Total contract amount received exceeds ₹ 20 lakh
North	Haryana	₹ 5 lakh in the current year	Total contract amount received equals or exceeds ₹ 5 lakh
North	Punjab	Voluntary Registration ₹ 5 lakh	₹ 5 Lakh
North	UP	₹ 5 lakh	Total contract amount received equals or exceeds ₹ 5 lakh
North	UK	₹ 5 lakh	Total contract amount received equals or exceeds ₹ 5 lakh
North	J & K	₹ 7.5 Lakh during any period of 12 consecutive months	₹ 7.5 Lakh
North	HP	₹ 8 lakh	₹ 8 lakh
West	Maharashtra	Turnover exceeds ₹ 5 lakh and value of taxable goods sold is ₹ 10000 or more	₹ 1 lakh in case a dealer who is Importer Rs 5 lakh in any other case
West	Gujarat	Turnover exceeds ₹ 5 lakh and value of taxable goods sold is ₹ 10000 or more	Turnover exceeds (sale or purchase) ₹ 5 lakh and value of taxable goods sold is ₹ 10000 or more
West	Rajasthan	Total Turnover exceeds ₹ 10 lakh	Total Turnover exceeds ₹ 10 lakh
West	Goa	Turnover exceeds ₹ 5 lakh	Total Turnover exceeds ₹ 5 lakh
Central	MP	Turnover exceeds ₹ 5 lakh	Turnover exceeds ₹ 5 lakh
Central	Bihar	Turnover exceeds ₹ 5 lakh	Every contractor executing has to get registration irrespective of the turnover.
Central	Chhattisgarh	Turnover exceeds ₹ 10 lakh	If taxable turnover of the dealer equals or exceeds the limit prescribed.
Central	Jharkhand	Turnover exceeds ₹ 5 lakh	Dealer involved in Works Contract and leasing with a turnover exceeding ₹ 25,000.
Central	Orissa	Turnover exceeds ₹ 5 lakh	₹ 50,000
South	AP	Turnover exceeds ₹ 50 lakh for twelve consecutive month	Executing works contract of the value exceeding ₹ 7.5 lakh for Government or local authority or opted for composition
South	Karnataka	Taxable turnover is likely to exceed ₹ 7.5 lakh at any time during the year Taxable turnover exceed ₹ 62,500 in any month.	If taxable turnover of the dealer equals or exceeds the limit prescribed.
South	Kerala	Total Turnover during any year is greater than or equals to ₹ 10 lakh	Every contractor executing has to get registration irrespective of the turnover.
South	Tamil Nadu	Turnover greater than or equal to ₹ 5 lakh in the preceding year or Purchases and sales goods within the state and his total turnover in preceding year is greater than or equal to ₹ 10 lakh	Dealer of local and interstate transactions is ₹ 5 lakh or more; or Dealer of local transactions is ₹ 10 lakh or more;
East	West Bengal	Taxable turnover exceeds ₹ 5 lakh	Contractual transfer price exceeds ₹ 5 lakh
East	Assam	Gross turnover of sale or purchase exceeds ₹ 6 lakh	Total contract amount received exceeds ₹ 2 lakh
East	Sikkim	Taxable turnover exceeds ₹ 3 lakh	Total contract amount received exceeds ₹ 1 lakh
East	Arunachal Pradesh	Turnover exceeds ₹ 5 lakh	Total contract amount received exceeds ₹ 5 lakh
East	Manipur	Gross turnover of sale or purchase exceeds ₹ 5 lakh	Total contract amount received exceeds ₹ 50,000
East	Meghalaya	Gross taxable turnover exceeds ₹ 1 lakh	Total contract amount received exceeds ₹ 1 lakh
East	Mizoram	Gross taxable turnover exceeds ₹ 3 lakh	Total contract amount received exceeds ₹ 3 lakh
East	Tripura	Gross taxable turnover exceeds ₹ 3 lakh during any period of 12 consecutive months	Nil
East	Nagaland	Gross taxable turnover exceeds ₹ 3 lakh	Total contract amount received exceeds ₹ 3 lakh

Registration under GST

1. Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration. [S. 19(4)]
2. A non-resident taxable person may be granted registration under sub-section (1) on the basis of any other document as may be prescribed.[S. 19(4A)]
3. 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. [S. 19(7)]
4. 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.[S. 19(8)]
5. 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.[S. 19(9)]
6. 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. [S. 19(10)]
7. 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. [S. 19(12)]
8. 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.
9. A person may get himself registered voluntarily.
10. Following person shall require to obtain a Unique Identification Number for the purpose as notified including refund of taxes on the notified supplies of goods and/or services received by them:
    1. any specialized agency of the United Nations Organization;
    2. any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947);
    3. Consulate or Embassy of foreign countries; and
    4. any other person or class of persons as may be notified by the Board / Commissioner.

Special Provision for casual taxable person and non-resident taxable person

1. 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. [S. 19A(1)]
2. 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. [Proviso to S. 19A(1)]
3. Casual taxable person or a non-resident shall make an advance deposit of tax which shall be equal to the estimated tax liability for the period for which the registration sought.[S.19A(2)]
4. In case of extension of registration time, such person shall deposit an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought. [Proviso to S. 19A(2)]
5. 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. [S. 19A(2)]

Amendment in Registration

1. Any change in information submitted at the time of registration or subsequently shall be intimated to the proper officer in the manner and within such period as may be prescribed. [S. 20(1)]
2. 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. [S. 20(3)]
3. 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. [S. 20(4)]

Cancellation of Registration

1. The registration certificate shall be cancelled either on his own motion by the proper officer or on an application filed by the registered taxable person or by his legal heirs (in case of death of such person), as the case may be, under the following circumstances:
   1. Discontinuance/merger/demerger/amalgamation of business or otherwise disposed of.
   2. Change in constitution of business.
   3. The registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed.
   4. A person paying tax under section 8 has not furnished returns for three consecutive tax periods.
   5. Any taxable person, other than a person specified in point (e), has not furnished returns for a continuous period of six months;
   6. Any person who has taken voluntary registration and has not commenced business within six months from the date of registration.
   7. Where registration has been obtained by means of fraud, wilful misstatement or suppression of facts.
2. 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.
3. 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.
4. Every registered person shall pay tax equivalent to input tax on  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.
5. 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, whichever is higher.

Revocation of cancellation of registration

1. Every registered person whose registration has been cancelled by the proper officer suo motu, may apply for revocation of registration within 30 days from the date of cancellation order.
2. The proper officer may either revoke the cancellation of the registration or reject the application for revocation for good and sufficient reasons.
3. The proper shall require to serve a proper show cause notice or give a reasonable opportunity of being heard before rejecting the application for revocation.
4. 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.

Transitional Provisions

1. On the appointed day, every person registered under any of the earlier laws shall be issued a certificate of registration on a provisional basis in such form and manner as may be prescribed.
2. Such provisional registration certificate shall be valid for a period of six months. The said validity period shall be extended for such period as the Central/State Government may, on the recommendation of the Council, notify.
3. Every person to whom provisional registration has been issued shall furnish information and within such time as may be prescribed.
4. Final registration shall be granted by the Central/State Government on submission of such information.
5. The provisional certificate of registration issued to a person may be cancelled if such person fails to furnish, within the time specified.
6. In case a person filed the application before the proper officer that he is not liable to registration under S. 19 then provisional certificate issued shall be deemed to have not been issued.

(The authors of the article are associated with M/s SS Kothari Mehta & Co, Chartered Accountants, New Delhi. They can be reached at nk.gupta@sskmin.com & s.aggarwal@sskmin.com)