CHAPTER I

Registration under GST Law

Introduction

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.

Need and advantages of registration

Registration will confer the following advantages to a taxpayer:

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

• 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 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.

Liability to register

GST being a tax on the event of “supply”, every supplier needs to get
registered. However, small businesses having all India aggregate turnover
below Rupees 20 lakh (10lakh if business is in Assam, Arunachal Pradesh,
Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya,
Nagaland or Tripura) need not register. The small businesses, having
turnover below the threshold limit can, however, voluntarily opt to
register.

The aggregate turnover includes supplies made by him on-behalf of his
principals, but excludes the value of job-worked goods if he is a job
worker. But persons who are engaged exclusively in the business of
supplying goods or services or both that are not liable to tax or wholly
exempt from tax or an agriculturist, to the extent of supply of produce out
of cultivation of land are not liable to register under GST. Also, if all
the supplies being made by a supplier are taxable under reverse charge,
there is no requirement for such a supplier to register in light of
Notification No. 5/2017-Central Tax dated 19.06.2017.

Nature of Registration

The registration in GST is PAN based and State specific.The registration in
GST is PAN based and State specific. Registration under GST Law 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, 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. Registration under GST
is not tax specific which means that there is single registration for all
the taxes i.e. CGST, SGST/UTGST,IGST and cesses.

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
with in a State an entity with different branches would have single
registration wherein it can declare one place as principalplace of business
and other branches as additional placeof business. However, 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. Further a unit in SEZ or a SEZ
developer needs to necessarily obtain separate registration.

• 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 exemption threshold of20 lakh
  rupees (10 lakh rupees in special category states except J & K). 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 threshold exemption of20 lakh rupees or 10 lakh rupees as the
  case maybe is not available to them. Some of such suppliers who need to
  register compulsorily irrespective ofthe size of their turnover are those
  who are, –

• Inter-state suppliers; However, persons making inter-state supplies of
  taxable services and having an aggregate turnover, to be computed on all
  India basis, not exceeding an amount of twenty lakh rupees (ten lakh
  rupees for special category States exceptJ & K) are exempted from
  obtaining registration vide
  Notification No. 10/2017-Integrated Tax dated 13.10.2017.

• A person receiving supplies on which tax is payable by recipient on
  reverse charge basis Casual taxable person who is not having fixed place
  of business in the State or Union Territory from where he wants to make
  supply. However casual taxable persons making supplies of specified
  handicraft goods need not take compulsory registration and are entitled
  to the threshol d exemption of Rs. 20 Lakh. Handicraft goods
  arespecified in Notification no. 33/2017-Central Tax dated 15.09.2017 as amended by
  Notification no.38/2017-Central Tax dated 13.10.2017

• non-resident taxable persons who is not having fixed place of business
  in India Registration under GST Law

• A person who supplies on behalf of some other taxable person (i.e. an
  Agent of some Principal)

• E-commerce operators, who provide platform to the suppliers to make
  supply through it

• Suppliers of goods who supply through such e-commerce operator who are
  liable to collecttax at source. Persons supplying services
  throughe-commerce operators need not take compulsory registration and
  are entitled to avail the thresholdexemption of Rs. 20 Lakh as per
  Notification No.65/2017-Central tax dated15.11.2017

• Those ecommerce operators who are notified asliable for GST payment
  under Section 9(5) of the CGST Act, 2017

• TDS Deductor

• Input service distributor

• Those supplying online information and data base access or retrieval
  services from outside India to a non-registered person in India.

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.A
non-resident taxable person is one who is a foreignerand 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. They have to apply for registration at least five days in
advance before making any supply. Also, registration is granted to them or
period of operation is extended only after they make advance deposit of the
estimated tax liability.

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.

Standardisation of procedures

A total of 30 forms / formats have been prescribed in theGST 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
visitreport 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 thecommon portal (GSTN)
within thirty days from the datewhen 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 dateof 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.

Amendment of Registration

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

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; the one when the taxable person no more requires it
(voluntary cancellation), and another when the proper officer considers the
registration liable for cancellation in view of certain specified
defaults(Suo-motu cancellation) like when the registrant is not doing
business from the registered place of business or ifhe issues tax invoice
without making the supply of goodsor services. The taxable person desirous
of cancellation of Registration will apply on the common portal within
30days 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).

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 can cellation 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.

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.