In this, we will cover
- A]Introduction and advantages of registration
- B]Person liable for registration
- C]Person not liable for registration
- D]Compulsory registration
- E]Procedure for registration
- F]Amendment of registration
- G]Cancellation of registration
(A)Starting from introduction
In any tax system, registration is the most important requirement for identifiers of taxpayer ensuring tax compliance in the economy. Registration of any business entity under the GST law implies obtaining a unique number (GST Identification Number or GSTIN)
(B) Advantages of Registration:
- 1. He is legally recognized as a supplier of goods or services.
- 2. He is legally authorised to collect taxes from his customers and pass on the goods or services supplied to the purchaser/recipients.
- 3. He can claim an input tax credit of taxes paid
- 4. Seamless flow of Input Tax Credit from suppliers to recipients at the national level
- 5. Registered person is eligible to apply for government bids or contracts or assignments.
- 6. Registered person under GST can easily gain trust from customers.
(C) Person liable for registration:-
- 1. Those (Taxpayers) who exceed threshold limit u/s 22 (1) i.e.
Aggregate turnover of supply of goods & Services
Exceed 20 lacs for normal states
Exceed 10 lacs in case of special category states (Except J & K) as specified under article 279 A
- 2. Those who are registered under earlier law u/s 22 (2)
- 3. Transferee liable to be registered from the date of the succession of a business. Sec 22 (3)
- 4. In case of Amalgamation / Demerger transferee is liable to register from the date on
which Registrar of Companies issue Incorporation Certificate giving effect to order of High Court etc.
Where Aggregate Turnover Includes:-
- 1. All Taxable supplies
- 2. Exempt supplies
- 3. Exports of goods or services
- 4. Inter-State supplies
- 5. Supplies made by Agent or Job Workers of a person having the same PAN to be computed on all India basis.
- 1. Central Tax (CGST)
- 2. State Tax (SGST)
- 3. Union Territory Tax (UTGST)
- 4. Integrated Tax (GST)
- 5. Compensation cess
- 6. Agriculturist (only Individual and HUF) limited to supply of produce out of Cultivation of Land.
- 7. Value of inward supplies on which tax is payable by a person on a revenge charge basis. (RCM)
(D) Person not liable for registration. (Sec 23)
- (1) Person engaged exclusively in supplying goods/services / both not liable to tax or wholly exempt from tax.
- (2) Individuals and HUF who are agriculturist limited to supply of produce out of cultivation of land.
- (3) Specified category of persons notified by the Government under notification no. 5/2017-CT dated 19-6-2017 w.e.f 22.6.2017. A person only engaged in making taxable supplies, the total tax on which is liable to be paid on reverse charge basis. (Exempt from obtaining registration)
(E) Compulsory Registration (Sec24) (Irrespective of turnover Limit)
- 1. Persons making any inter-state supply of taxable goods or services.
- 2. Casual taxable persons making a taxable supply of goods or services.
- 3. Persons who are required to pay tax under reverse charge.
- 4. E-Commerce operators.
- 5. Input service distributor, whether or not separately registered under this Act.
- 6. Persons making supplies through E-Commerce operators liable to collect tax at source u/s 52.
- 7. Agents paying tax on behalf of other taxable persons.
- 8. Specialised agencies who have been allotted UIN (Unit Identification Number)
- 9. Non-resident taxable persons.
- 10.Supply of on lines information database services from outside India to Non – registered person in India.
- 11.Such other person or class of person as may be notified by the government on the recommendation of the GST council.
(i) Exemption for Small Taxpayers: GST Council has decided to exempt those service providers whose annual aggregate turnover is less than 20 lacs ( 10 lacs in a special category states except J&K) from obtaining registration even if they are making inter-state taxable supplies of services (vide Notification No. 10/2017 – Integrated Tax Dt. 13-10-2017).
(ii) Exemption for Job Worker: The central Government, on the recommendation of the Council, has specified the job workers engaged in making the inter-state supply of services to a registered person as the category of persons exempted from obtaining registration under the said Act (vide Notification No.7/2017 -)
(F) Procedure for Registration (sec 25 and rule 8 of G.S.T rules, 2017)
Procedure for Registration:-
Every person liable to get registered and the person seeking voluntary registration shall, before applying for registration, declare his Permanent Account Number (PAN), mobile number, e-mail address, State/UT in Part A of FORM GST REG-01 on GST Common Portal PAN, mobile number and e-mail address are validated PAN validated online by Common Portal from CBDI database Mobile number and email verified through a one-time password sent to it. Temporary Reference Number (TRN) is generated and communicated to the applicant on the validated mobile number and e-mail address. On receipt of such application, an acknowledgement in the prescribed form shall be issued to the applicant electronically. A Casual Taxable Person (CTP) applying for registration gets a TRN for making an advance deposit of tax in his electronic cash ledger and an acknowledgement is issued only after said deposit Application shall be forwarded to the Proper Officer examines the application and accompanying documents. If same are found in order? If No Proper officer issue notices electronically, within 3 working days from application date thereby seeking clarifications information or documents from the applicant. If same are found in order? If yes Proper officer will grant registration certificate in form GST REG-06
(F) Procedure for registration (Sec 25) (Time limit & Other important Aspects)
1. Time Limit for Registration:-
Every person who is able to be registered u/s 22 or 24 apply for registration
30 days from the date on which he becomes liable to registration (Note: Date of Liability not to be considered)
For every State
2.Casual taxable person(CTP) or non-resident taxable person (NRTP) shall apply for registration
At least five days prior to commencement of business with an advance tax deposit of the equivalent amount of estimated tax liability.
2. State-wise Registration
► One State – One Registration
► There is no centralized registration under G.S.T
► The business entity having different branches in the same state must declare one place as Principal place of business (PROB) and other branches as an additional place of business (APOB)
► Separate Registration for different business verticals within a State / Union Territory. Business Verticals
It is a separate component enterprise that is engaged in the supply of individual goods or
services which they think have risk and returns that are different from those of the other business entities.
To be considered in determining goods or services are related include
- (a)Nature of goods and services
- (b)Nature of the production process
- (c)Types of customers
- (d)Methods of distribution
- (e) Nature of Regulatory environment such as Banking, Insurance, Public utilities
3. Suo – moto registration by the proper officer where the proper officer, under any
- ☆Any other Proceedings
- ☆Due to any other source
Comes to know that a person liable to register under the act has failed to apply for such registration then:-
Such officer may register the said person temporary basis and issue an order in the prescribed form
A person against whom such action is taken shall
(a)Submit an application for registration within 90 days from the date of grant of temporary registration.
(b)File an appeal against such temporary Reg.
If Appellate Authorityupholds the liability Reg. appl. Submitted in 30 days from the date of order. GSTN granted becomes effective From the date of order of Proper Officer
4. Deemed Registration (Sec 26)
► Grant of Reg. UIN under SGST/UGST Act.
► Rejection of appl. For Reg under SGST/CGST
(G) Amendment of Registration (Sec 28)
Application for amendment of registration is to be made by the registered person (RP) / Unique Identity Number (UIN) holder within 15 days of the change taking place. Application to be made in G.S.T common portal Amendment with respect NON-CORE FEILD Certificate of Reg. stands amended Amendment related to CORE FEILD forwarded to Proper Officer The opinion of Proper Officer received within 15 days NO Certificate of Registration shall stand amended Positive opinion Yes Check the opinion of PO Negative Opinion PO will issue a show-cause notice Check whether RP/UIN holder has responded within 7 working days No Response Application is rejected Yes Response Check whether PO responds within 7 working days No response received Certificate of Registration shall stands amended Not Satisfied Application is rejected Satisfied Certificate of Registration shall stands amended
(H) Cancellation of Registration (Sec 29)
Cancellation of registration is possible in 3 ways
(a) (i) Suo – Motu cancellation: Under following situation Reg. can be cancelled by proper officer (PO) suo – motu.
☆RP violated any Rule / Act
☆Composition dealer did not file a return for 3 consecutive tax periods.
☆ RP did not file a return for 6 consecutive tax periods.
☆Reg. obtained by fraud, etc.
☆Any other person who has taken voluntary registration did not commence business within 6 months
(ii)Procedure for cancellation:-
Issue of SCN by PO in FORM G.S.T REG – 17 requiring RP to give a response in 7 working days
Check whether RP has given response or not? in FORM GST REG-18 No Response Order of cancellation by PO in FORM G.S.T REG. – 19 and inform the date to RP Yes Response Check whether PO has given response or not? Not Satisfied Order of cancellation by PO in FORM G.S.T REG. – 19 and inform the date to RP Satisfied Drop the proceedings of cancellation and issue such order in FORM G.S.T REG. – 20
(b) and (c) Application for cancellation of Registration by (b) Registered Person (RP) OR by RP’s legal heirs.
(i) Under the following situation
1. Discontinuation of business
4. Otherwise disposal
5. Death of RP ( for legal heirs )
(ii)Procedure for cancellation of registration under (b) and (c)
RP shall electronically submit an application in FORM GST REG – 16 within 30 days of the occurrence of an event (situation) requiring the cancellation of Reg.
Application submitted must include following
► Details of inputs, semi-finished or finished goods, capital goods held in stock
► Liability thereon
► Details of payment if any made against liability
► Other relevant documents.
If PO satisfied or not?
Issue an order of cancellation and inform the date to RP
Not – satisfied
Drop the proceedings of cancellation and issue such order
Payment of GST
(A) Introduction: Sec 49 of the GST act along with rules published by the Central Board of Excise and Custom (CBEC) govern the new payment procedure which covers the following areas.
¤Manner of use and cross-use of ITC
¤Interest on delayed payments
¤Electronic payment forms
¤UIN foe each transaction
(B) Following procedure for payment is to be followed.
(a) What payments are to be made under GST?
► For Intra State supply → CGST, SGST/UTGST
►For Inter-State supply → IGST
►Additional applicable) → Interest, penalty fees or any other amount
►For some registered people → TDS and TCS
(b) Who is liable to pay GST?
• Supplier or making forward supplies (charge)
• Recipients under Reserve charge mechanism
• Electronic commerce operators
•Electronic commerce operators who are required to collect TCS on the net value of supplies made through them and deposit it with the government
• Government Departments making payment to vendors above a specified limit i.e ₹2,50,000 and are required deduct TDS.
(c) Types of Accounts
Once a taxpayer is registered under GST Common Portal (GSTCP) 2 ledgers and 1 Register will be automatically opened for the tax payer. Electronic Liability Register to find out tax payers cross tax liability Form GST PMT-01 Electronic credit ledger
(ITC credit ledger)
to find out how much credit for input tax is available
FORM GST PMT-02
Electronic cash ledger
All amount paid by the taxpayer is reflected here
FORM GST PMT -05
*Electronic cash ledger (E-cash ledger)
E-cash ledger reflects amount deposited which can be used towards any payment such as tax, interest, penalties, cess etc money can be deposited in the E-cash ledger by various modes of payments
(iii)OTC [Over The Counter]
For using the OTC facility the restriction is that the taxpayer can load E-cash ledger by OTC only once in the tax period and not for an amount exceeding ₹10,000/- But such restriction will not be applicable.
(a)For a government department
(b)For person notified by the commissioner
(c)The proper officer/other authorized officer is recovering any amount outstanding and attachment regarding proceedings from the sale of movable/immovable properties and such amount is collected by DD/Cheque/Cash
Challan [Form No. GST PMT -06]
• Under GST it is necessary to have online i.e E-Challan
• Challan can be created in multiple sitting
• But once a challan is uploaded it is conclusive ( i.e it cannot be edited)
• Validity period of the challenge is 15 days
•There is a single challan for all taxes, fees, penalty, interest & other payments
[D]Other Important points relating to payments
1. Date of deposit of tax is the date of credit of amount in the account of government.
2. Heach of E-Cash Leder
(a) Major heads
IGST, CGST,SGST/UTGST. Cess
Tea, interest, Penalty fees, other
3. Cross utilization of funds across major and minor heads is not possible i.e
• The amount deposited towards payment of IGST (Tax) cannot be used to pay CGST (Tax) (This is the major head)
• The amount deposited towards payment of IGST (Tax) cannot be used to pay IGST ( interest ) (This is the minor head)
4. Sequence of payment o tax
(i) self-assessed tax and other dues ( interest fees and any other amount payable under the act or rules) of the previous tax periods.
(ii)self-assessed tax and other dues of the current tax periods
(iii)any amount payable including demand determined u/s 73 or sec 74 (i.e demand arising out of demand notice and adjudication proceedings comes last.
5. Due dates of payment of taxes by suppliers
Who is the supplier?
* Registered dealer under normal scheme
The due date for Payment
*20th of the following month
*18th of the month following the end of the quarter
Note: If a person has to pay IGST (Tax) but has deposited the same amount by mistake in
CGST (Tax) then, a person has to first deposit such amount in IGST (Tax) and then a refund for the same will be provided by Government to the taxpayer (i.e. the refund of CGST (Tax) paid by mistake
Tax System and Tax Rates
|Within State||Between State|
|Transaction||Intra State Supply||Intra UT Supply||Inter State Supply||Import of Services|
|Authority to Levy Tour||Central Govt + State Govt||Central Govt + UT Govt (Union Territory)||Central Govt||Central Govt|
|Taxes Applicable||CGST+SGST||CGST+UTGTS||IGST||Treat as Inter-State Supply|