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Requirement & Condition for GST registration section 25 - GST Ready Reckoner - GSTExtract Procedure , Requirement Condition for GST registration Procedure, Requirement Condition [ Section 25 of CGST Act 2017 read with rule 8, 9,10 ,10A , 10B, 11, 12, 16 , 17 , 18 , 24, 25 , 26 of CGST Rules] Time Limit for taking Registration Any person liable for registration shall apply for registration [ section 22 or 24 ] Within 30 days from the date on which the person becomes liable in every such State or Union Territory in which he is so liable other than Casual taxable person or a non-resident taxable person. Casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business. A SEZ unit or a SEZ developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory. [Inserted vide CGST (Amendment) Act, 2018 w.e.f. 01-02-2019 ]. Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located. Voluntary registration A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person. Separate registration if multiple place of business within in state A person seeking registration shall be granted a single registration in a State or Union territory but a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business (amended by CGST (Amendment) Act, 2018 w.e.f 01-02-2019). Voluntary Registration can also be sought and provisions as are applicable to a registered person, shall apply to such person. A person who has obtained or is required to obtain more than one registration, shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act. Where a registered person has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act. In respect of supplies to some notified agencies of United Nations organisation, multinational financial institutions and other organisations notified by the United Nations or any other person or class of persons, as may be notified by the Commissioner , shall be granted a Unique Identity Number (UIN) is issued. Important clarification 1. Clarification regarding taxability of services provided by an office of an organisation in one State to the office of that organisation in another State, both being distinct persons. [ Circular No. 199/11/2023-GST dated 27th July 2023 ] Case laws M/S. AESTHETIK ENGINEERS PRIVATE LIMITED (AAR) 2023 (7) TMI 244 M/S. VISHNU ENGINEERING CORPORATION (AAR) 2023 (7) TMI 247 Suo-moto registration by the proper officer Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG- 12 . Such person shall either:- Every person to whom a temporary registration has been granted shall, within a period of ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 8 or rule 12 : File appeal against temporary registration:- person has filed an appeal against the grant of temporary registration, in such case, the application for registration shall be submitted within a period of thirty days from the date of the issuance of the order upholding the liability to registration by the Appellate Authority. The GSTN thereafter grant shall be effective from the date of the order granting registration. The provisions relating to verification and issue of certificate of registration under normal registration shall mutatis mutandis, apply. Example Particular Date of Application on temporary basis Date of registration granted Effective date The proper officer finds that a person liable to registration under the Act has failed to apply for such registration 15.02.2023 20.02.2023 20.02.2023 Unique Identity Number by UN Bodies This Unique Identity Number will be needed for claiming refund of taxes paid on notified supplies of goods and services received by them, and for any other purpose as may be notified Following bodies need unique identity number to claim refund:- any specialised agency of the United Nations Organisation any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) Act, 1947 Consulate or Embassy of foreign countries and any other person or class of persons, as may be notified by the Commissioner The taxable supplier supplying to these organizations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier. The proper officer may, upon submission of an application in FORM GST REG-13 or after filling up the said form, assign a Unique Identity Number to the said person and issue a certificate in FORM GST REG-06 within three working days from the date of submission of application. A registration or a Unique Identity Number shall be deemed to have been granted after the expiry of 3 days, if no deficiency has been communicated to the applicant within that period. The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed. A certificate of registration shall be issued in such form and with effect from such date as may be prescribed under rule 10 of CGST Rules . Furnishing of Permanent Account Number Every person shall have a Permanent Account Number issued under the Income tax Act, 1961 in order to be eligible for grant of registration Except following person A person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration. Non-Resident Taxable Person , registration granted as per manner prescribed . Aadhaar authentication process in GST registration ( refer this chapter link ) Furnishing of Bank Details [ Rule 10A ] Any registered person, other than registration under rule 12 (Registration for TCS or TDS) or rule 16 (Suo moto registration) , as the case may be, a) w.e.f. 04.08.2023 within 30 days from the date of grant of registration or Note:- Earlier from the 04.08.2023 that is 45 days from the date of grant of registration. ( Notification no. 38/2023- Central Tax Dated 04.08.2023 ) b) the date on which the return required under section 39 is due to be furnished, whichever is earlier of (a) or (b), furnish information with respect to details of bank account which is in name of the registered person and obtained on Permanent Account Number of the registered person , or any other information, as may be required on the common portal in order to comply with any other provision. In case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor. Effective date of registration certificate [ Rule 10 ] In case of mandatory registration If application of registration filed within 30 day - from the date on which person become liable for registration. If application of registration filed after 30 day - from the date of grant registration. Example Case Particular Date of Application Date of registration granted Effective date First Mr. A becomes liable to register from 01.07.2019 15.07.2023 10.08.2023 01.07.2019 Second Mr. B becomes liable to register from 01.07.2019 03.08.2023 20.08.2023 20.08.2023 In the first case , Mr. A is eligible to avail the ITC on inputs held in closing stock (i.e Raw Material, Semi finished Goods, Finished goods) Except the capital goods as well as purchases made from 1 st July 2019 onwards. In the second case , Mr. B is eligible to avail the ITC only for the purchases made w.e.f. 20 th of Aug 2019. Time limit for the decision on the Online Registration Application If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within three common working days. If they communicate any deficiency or discrepancy in the application within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such communication . Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have 7 days from the date when the taxable person communicates removal of deficiencies. In case no response is given by the departmental authorities within the said time line, the portal shall automatically generate the registration. CASE LAW 1. RANJANA SINGH VERSUS COMMISSIONER OF STATE TAX AND 2 OTHERS( 2021 (12) TMI 832 - ALLAHABAD HIGH COURT ) Issue :- The issues in the case were related to the rejection of the petitioner's application for GST registration due to non-submission of electricity bill and non-specification of the nature of possession of the business premises. The petitioner had submitted PAN, Aadhar, and house tax receipt as required by the Act and Rules. Decision :- The court quashed the impugned orders dated 23.09.2021 and 28.10.2021 and directed the respondents to pass an appropriate order on the material available on record within a period of seven working days from the date of receipt of a copy of this order. The court also imposed a cost of ₹ 15,000 on the respondents. Structure of (GSTIN) 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. The first 2 digits of the GSTIN is the State code, [State Code as defined under the Indian Census 2011] The next 10 digits are the PAN of the legal entity, The next two digits are for entity code, and The last digit is check sum number. Signed by proper officer:- Every certificate of registration shall be duly signed or verified through electronic verification code by the proper officer under the Act. Where the registration has been granted as deemed registration as per rule 9(5) , the applicant shall be communicated the registration number, and the certificate of registration, duly signed or verified through electronic verification code, shall be made available to him on the common portal, within a period of three days after the expiry of the period 7 days or 30 days as case may be. Display provision Display of registration certificate At principal place of business and At every additional place of business display of GSTIN number In the name board exhibited at the entry of Principal place of business and At every additional place of business Instruction No. 01/ 2023 -GST Guidelines for Special All-India Drive against Fake Registrations The Central and State Tax administrations have decided to launch a Special Drive on All India basis from 16 th May 2023 to 15 th July 2023 to detect suspicious/ fake registrations and to conduct requisite verification. Based on detailed data analytics and risk parameters, GSTN will identify fraudulent GSTINs and will share the details of such identified suspicious GSTINs with the concerned State/ Central Tax administration. On receipt of such data, a time bound exercise of verification of the suspicious GSTINs shall be undertaken by the concerned jurisdictional tax officer(s). If, after detailed verification, it is found that the taxpayer is non-existent and fictitious , then the tax officer may immediately initiate action for suspension and cancellation of the registration of the said taxpayer. The matter may also be examined for blocking of input tax credit in Electronic Credit Ledger as per the provisions of Rule 86A of CGST Rules without any delay. Suitable action may be initiated for demand and recovery of the input tax credit wrongly availed by the recipient on the basis of invoice issued by the said non- existing supplier, without underlying supply of goods or services or both. Action may also be taken to identify the masterminds/ beneficiaries behind such fake GSTIN for further action, wherever required, and also for recovery of Government dues and/ or provisional attachment of property/ bank accounts, etc. as per provisions of section 83 of CGST Act.
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