Registration under GST

Importance of registration
• Registration: Fundamental requirement for tax compliance in the
economy.
• No tax compliance possible: Without identification of tax payers
• Implies obtaining a unique number (GSTIN) from the concerned tax
authorities
• Purpose: 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.
Registration
• Taxable person:
• Section 2 (107): “taxable person” means a person who is registered or
liable to be registered under section 22 or section 24;
• Register in a State/union territory from where making supplies
• No concept of centralized registration under GST rather State-wise
registration under GST.
• Mandatory registration irrespective of threshold limit of Rs.40 Lakh in
specified cases. (Section 24)
• For government organizations / embassies, UIN is required
PERSONS LIABLE FOR REGISTRATION
[SECTION 22]
• Threshold limit for registration [Section 22(1)]
Every supplier shall be liable to be registered under this Act-
• in the State or Union territory,
• other than special category States,
• from where he makes a taxable supply of goods or services or both,
• if his aggregate turnover in a financial year exceeds twenty lakhs (forty
lakhs) rupees. (w.e.f. 01.04.2019)
• However, where such person makes taxable supplies of goods or services
or both from any of the special category States, he shall be liable to be
registered if his aggregate turnover in a financial year exceeds ten
lakh(twenty lakh) rupees. (w.e.f. 01.04.2019)
• Note:- Aggregate Turnover is defined under section 2(6) of CGST Act, 2017
Special category States
• Arunachal Pradesh,
• Assam,
• Manipur,
• Meghalaya,
• Mizoram,
• Nagaland,
• Tripura,
• Sikkim and
• Hilly States including HP, J&K, Uttarakhand
Aggregate Turnover
• Section 2(6) of CGST Act , 2017
• Aggregate Turnover means the aggregate value of all taxable supplies,
exempt supplies, exports of goods and/or services, and inter-State supplies
of a person having the same PAN, to be computed on all India basis
• Aggregate Turnover excludes-
• taxes, if any, charged under the CGST Act, SGST/UTGST Act and the IGST
Act,
• the value of inward supplies on which tax is payable by a person on reverse
charge basis, and
• the value of inward supplies.
Registered persons under existing law to get registered
under GST [Section 22(2)]
• Every person who,
• on the day immediately preceding the appointed day,
• is registered or holds a licence under an existing law,
• shall be liable to be registered under this Act
• with effect from the appointed day.

In case of transfer of business by registered person;

transferee to get new registration [Section 22(3)]

Transferee of business to get fresh registration in case of

amalgamation or demerger etc. [Section 22(4)]
PERSONS NOT LIABLE FOR REGISTRATION.
[SECTION 23]
• Persons not liable to get registered [Section 23(1)]:-
• The following persons shall not be liable to registration, namely:––
• (a) any person engaged exclusively in the business of supplying goods
or services or both that are not liable to tax or wholly exempt from
tax under this Act or under the Integrated Goods and Services Tax
Act;
• (b) an agriculturist, to the extent of supply of produce out of
cultivation of land.
• Category of Persons notified by Govt. not required to get registered
[Section 23(2)]
COMPULSORY REGISTRATION IN CERTAIN
CASES [SECTION 24]
• Notwithstanding anything contained in Section 22(1), the following categories of persons shall be required to be
registered under this Act,––
• Inter-State taxable supply;
• Casual taxable persons making taxable supply;
• Persons who are required to pay tax under reverse charge;
• Electronic Commerce Operators
• Non-resident taxable persons making taxable supply;
• Persons who are required to deduct tax under section 51,
• Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent
or otherwise;
• Input Service Distributor, whether or not separately registered under this Act;
• Persons who is required to collect tax at source under section 52;
• Every person supplying online information and database access or retrieval services from a place outside India to a
person in India, other than a registered person; and
• Notified Categories by the Government on the recommendations of the Council.
Procedure for registration { Section 25(1)]
• Every person who is liable to be registered under section 22 or section 24
shall
• apply for registration in every such State or Union territory
• in which he is so liable within thirty days from the date on which he
becomes liable to registration, in such manner and subject to such
conditions as may be prescribed.
• However, a casual taxable person or a non-resident taxable person shall
apply for registration at least five days prior to the commencement of
business.
• Explanation — 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.
Section 25
• Only one registration to be granted in a State or UT [Section 25(2)]
• All the provisions of Act, as are applicable to a registered person, are
applicable to the person getting registered voluntarily [Section 25(3)]
• Every registration to be treated as distinct person in case of a person
having more than one registration [Section 25(4)]
• A person who has obtained or is required to obtain more than one
registration,
- whether in one State or Union territory or
- more than one State or Union territory shall,
- in respect of each such registration,
- be treated as distinct persons for the purposes of this Act.
Establishment of same person in different states to
be treated as establishment of distinct person
[Section 25(5)]
• Where a person who has obtained or is required to obtain registration in a State
or Union territory in respect of an establishment,
• 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.
• Every person shall have a Permanent Account Number issued under the Income-
tax Act, 1961 in order to be eligible for grant of registration. [Section 25(6)]
• However, 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
• Registration to non-resident taxable person may be granted on the
basis of other prescribed documents [Section 25(7)]
• Registration by proper officer in case of failure of person to get
registered [Section 25(8)]
• Grant of Unique Identification Number [Section 25(9)]: For
government organizations / embassies
• UIN to be granted or rejected after due verification [Section 25(10)]
• RC to be issued in prescribed form [Section 25(11)]
• RC/UIN deemed to be granted after expiry of Prescribed period if no
deficiency communicated [Section 25(12)]
DEEMED REGISTRATION [Section 26]
• RC/UIN deemed to be granted under State GST Act/UT GST Act if not
rejected in specified time [Section 26(1)]
• Rejection of application under SGST/UTGST Act to be deemed as
rejection under CGST Act [Section 26(2)]

• SPECIAL PROVISIONS RELATING TO CASUAL TAXABLE PERSON AND

NON-RESIDENT TAXABLE PERSON [SECTION 27]
•
AMENDMENT OF REGISTRATION [SECTION
28]
• It may be noted that the proper officer may be informed for making
amendments and he may approve or reject the amendments.
However, in certain cases, as may be prescribed, approval of proper
officer may not be required.
• Changes in registration particulars, to be informed to proper officer in
prescribed form and period [Section 28(1)]
• Proper officer may approve or reject the amendments in registration
particulars [Section 28(2)]
• Rejection or approval of amendments under SGST/UTGST Act deemed
to be rejection or approval under CGST Act [Section 28(3)]
CANCELLATION OF REGISTRATION [Section
29]
• Cancellation of registration on application of registered person or suo-moto action by proper officer [Section
29(1)]
• The proper officer may, either on his own motion or on an application filed by the registered person or by
his legal heirs, in case of death of such person, cancel the registration.
• Cancellation of registration under certain circumstances [Section 29(2)]
• Contravention of provisions of the Act or the rules
• Return has not furnished returns for three consecutive tax periods for person under Section 10; or
• Has not furnished returns for a continuous period of six months; or
• Voluntary registration under Section 25(3) has not commenced business within six months from the date of
registration; or
• Registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
• However, the proper officer shall not cancel the registration without giving the person an opportunity of
being heard.
• Input Tax Credit availed in respect of inputs in stock/capital goods or output tax, whichever is higher, to be
paid on cancellation of Registration Certificate [Section 29(5)]
REVOCATION OF CANCELLATION OF
REGISTRATION. [SECTION 30]
• Any registered person, whose registration is cancelled by the proper
officer on his own motion, may apply to such officer for revocation of
cancellation of the registration in the prescribed manner within thirty
days from the date of service of the cancellation order.
• Proper officer may revoke cancellation or reject application [Section
30(2)]
• Revocation of cancellation under SGST/UTGST Act shall deemed to be
revocation under CGST Act [Section 30(3)]
Time and Procedure
• Time Limit : Person liable to be registered shall apply for registration in every such State in which he is so
liable within 30 days from the date on which he is liable.
• Validation
• Part A of the Form REG-01
• Valid PAN - to be verified from the CBDT database by the GSTN
• Valid Mobile Number – to be verified through ‘One Time Password’ (OTP)
• Valid Email ID - to be verified through ‘One Time Password’ (OTP)
• State/ Union Territory
• After validation, GSTN system will generate a temporary reference number. In case of casual taxable person,
person shall be given a temporary ref. no. for payment of advance tax.
• After, submission and verification of application, system will issue a registration certificate which will include
• Principal place of business
• Additional Place of Business
Benefits of Registration
• Legally recognized as supplier of goods or services.

• Authorized to collect tax from customers and pass on credit of the

taxes paid to recipients.

• Claim input tax credit of taxes paid and can utilize the same for
payment of taxes due on supply of goods or services.
• Seamless flow of credits