GST REGISTRATION NOTES

Introduction

The GST (Goods and Service Tax) Bill was approved by Central Government in an effort
to replace all state or central government-imposed indirect taxes. As a result, it is now
compulsory for entities engaging in the supply of goods and services across states to do GST
registration online.

Anyone who has a valid PAN, is registered under the current Income Tax Law and
crosses the turnover GST limit can register for GST. People who have to pay TDS, casual
traders, etc., have to register for GST. Existing assesses have to get their provisional ID and
password for GST portal from their state’s ACES or VAT website. After they login on to the
GST portal, they will have to create a new user ID and password.

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.

Advantages of registration under GST

Registration under Goods and Service Tax (GST) regime will confer following advantages to the
business:

 Legally recognized as supplier of goods or services.

 Proper accounting of taxes paid on the input goods or services which can be utilized for
payment of GST due on supply of goods or services or both by the business.

 Legally authorized to collect tax from his purchasers and pass on the credit of the taxes
paid on the goods or services supplied to purchasers or recipients.

PERSONS LIABLE FOR REGISTRATION

 Aggregate turnover requirement for GST registration is as below:
Aggregate Turnover
Region
Liability to Register Liability for Payment of
Tax
Rs. 9 Lakhs Rs. 10 Lakhs
North East India
Rs. 19 Lakhs Rs. 20 Lakhs
Rest of India

The following persons Liable for GST Registration – Section 22 of the CGST Act:

a) State or UTs:

Every supplier of the goods or services or both needs to register in a State or a Union Territory, if
his turnover exceeds Rs.20 lakhs.

b) Special Category States:

In case of special category states namely AP, J&K, Assam, Nagaland, Mizoram, Sikkim,
Uttarakhand, etc., the person shall be liable to be registered if his turnover exceeds Rs.10 lakhs.

c) Aggregate Turnover:

Means aggregate value of all taxable supplies, exempt supplies, Exports, and inter-State supplies
of persons having the same PAN but excludes taxes.

d) Registration:

Any person who is registered before the appointed day i.e. 1st July 2017 is liable to be registered
under the CGST Act.

e) Registration of Transferee or Successor:

If a registered business by a taxable person is transferred to another person, then such a person,
be it successor or a transferee, shall be liable to be registered under the Act.

f) Registration in case of amalgamation or demerger:

A transfer due to sanction of a scheme or an arrangement for amalgamation or a demerger takes
place of two or more companies in accordance with the order of the High Court or Tribunal, the
transferee shall be liable to be registered.

Explanation. ––For the purposes of this section,––

( i ) the expression “aggregate turnover” shall include all supplies made by the taxable
person, whether on his own account or made on behalf of all his principals;

( ii ) 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 143, and the value
of such goods shall not be included in the aggregate turnover of the registered job
worker;
( iii ) the expression “special category States” shall mean the States as specified in sub-
clause ( g ) of clause ( 4 ) of article 279A of the Constitution.
(special provision with respect to the States of Arunachal Pradesh,Assam, Jammu and
Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim,Tripura, Himachal Pradesh
and Uttarakhand)

Persons Not Liable to be Registered – Section 23 of the CGST Act:

Following persons are not liable for registration:

a) Exempted Goods or Services:

Any person who is engaged exclusively in supply of those goods or services which are wholly
exempted from tax or are not liable to pay tax under CGST or under IGST Act.

b) An Agriculturist:

For those supply only which is produced out of cultivation of land.

c) Notified Person:

Furthermore, the government on the recommendation of the GST council may issue notification
& specify special category of persons who are not liable for registration.

COMPULSORY REGISTRATION IN CERTAIN CASES

 Notwithstanding anything contained in sub-section ( 1 ) of section 22, the following
categories of persons shall be required to be registered under this Act,––
( i ) persons making any inter-State taxable supply;
( ii ) casual taxable persons making taxable supply;
( iii ) persons who are required to pay tax under reverse charge;
( iv ) person who are required to pay tax under sub-section ( 5 ) of section 9;
( v ) non-resident taxable persons making taxable supply;
( vi ) persons who are required to deduct tax under section 51, whether or not separately
registered under this Act;
( vii ) persons who make taxable supply of goods or services or both on behalf of other
taxable persons whether as an agent or otherwise;
( viii ) Input Service Distributor, whether or not separately registered under this Act;
( ix ) persons who supply goods or services or both, other than supplies specified under
subsection ( 5 ) of section 9, through such electronic commerce operator who is required
to collect tax at source under section 52;
( x ) every electronic commerce operator;
( xi ) 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
( xii ) such other person or class of persons as may be notified by the Government on the
recommendations of the Council.

PROCEDURE FOR REGISTRATION

GST registration process will be online through a portal maintained by Central Government of
India. Govt. will also appoint GSPs (GST Suvidha Providers) to help businesses with the
registration process.

(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:
Provided that 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.

( 2 ) A person seeking registration under this Act shall be granted a single registration in a State
or Union territory:

Provided that a person having multiple business verticals in a State or Union territory may be
granted a separate registration for each business vertical, subject to such conditions as may be
prescribed.

( 3 ) 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.

( 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.

( 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.

( 6 ) Every person shall have a Permanent Account Number issued under the Income-tax Act,
1961 in order to be eligible for grant of registration:

Provided that 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.

( 7 ) Notwithstanding anything contained in sub-section ( 6 ), a non-resident taxable person may

be granted registration under sub-section ( 1 ) on the basis of such other documents as may be
prescribed.
( 8 ) Where a person who is liable to be registered under this Act fails to obtain registration, the
proper officer may, without prejudice to any action which may be taken under this Act or under
any other law for the time being in force, proceed to register such person in such manner as may
be prescribed.

( 9 ) Notwithstanding anything contained in sub-section ( 1 ),––

( a ) any specialised agency of the United Nations Organisation or any Multilateral Financial
Institution and Organisation notified under the United Nations (Privileges and Immunities) Act,
1947, Consulate or Embassy of foreign countries; and

( b ) any other person or class of persons, as may be notified by the Commissioner,

shall be granted a Unique Identity Number in such manner and for such purposes, including
refund of taxes on the notified supplies of goods or services or both received by them, as may be
prescribed.

( 10 ) 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.

( 11 ) A certificate of registration shall be issued in such form and with effect from such date as
may be prescribed.

( 12 ) A registration or a Unique Identity Number shall be deemed to have been granted after the
expiry of the period prescribed under sub-section ( 10 ), if no deficiency has been communicated
to the applicant within that period.

For registration the following details to be furnished by different persons:

a) Details to be furnished:

Before applying for registration process, person has to declare the following:

• PAN

• Mobile number

• E-mail address

• State or UT
In Part A of FORM GST REG-01 on the Common Portal, either directly or through a
Facilitation Centre notified by Commissioner.

b) Reference Number:

On successful verification of the PAN, mobile number and e-mail, a temporary reference number
shall be generated and communicated to the applicant.

c) Application:

Using the reference number, the applicant shall electronically submit an application in Part B of
FORM GST REG-01, duly signed or verified through electronic verification code (EVC), along
with documents specified in the form.

d) Specified Documents:

The following specified documents are required to be submitted along with the application:

A. Documents required for Private Limited Company, Public Company (limited company)
/ One Person Company (OPC):

i)Company documents

• PAN card of the company

• Registration Certificate of the company

• Memorandum of Association (MOA)/ Articles of Association (AOA)

• Copy of Bank Statement

• Declaration to comply with the provisions

• Copy of Board resolution

ii) Director related documents

• PAN and ID proof of directors

iii) Registered Office documents

• Copy of electricity bill/ landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

B. Documents required for Limited Liability Partnerships (LLPs):

i) LLP Documents

• PAN card of the LLP

• Registration Certificate of the LLP

• LLP Partnership agreement

• Copy of Bank Statement of the LLP

• Declaration to comply with the provisions

• Copy of Board resolution

ii) Designated Partner related documents

• PAN and ID proof of designated partners

iii) Registered Office documents

• Copy of electricity bill, landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

C. Documents required for Normal Partnerships

i) Partnership documents

• PAN card of the Partnership

• Partnership Deed

• Copy of Bank Statement

• Declaration to comply with the provisions

ii) Partner related documents

• PAN and ID proof of designated partners

iii) Registered Office documents

• Copy of electricity bill / landline bill, water bill

• No objection certificate of the owner

• Rent agreement (in case premises are rented)

• Documents required for Sole proprietorship / Individual

iv) Individual documents

• PAN card and ID proof of the individual

• Copy of Cancelled cheque or bank statement

• Declaration to comply with the provisions

v) Registered Office documents

• Copy of electricity bill/ landline bill, water bill

• No objection certificate of the owner

• Rent agreement ( in case premises are rented)

D. Acknowledgement:

On the receipt of an application, an acknowledgement shall be issued to the applicant in FORM

GST REG-02.

DEEMED REGISTRATION

(1) The grant of registration or the Unique Identity Number under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a grant of
registration or the Unique Identity Number under this Act subject to the condition that the
application for registration or the Unique Identity Number has not been rejected under this Act
within the time specified in sub-section (10) of section 25.

(2) Notwithstanding anything contained in sub-section (10) of section 25, any rejection of
application for registration or the Unique Identity Number under the State Goods and Services
Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a rejection of
application for registration under this Act.
SPECIAL PROVISIONS RELATING TO 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 the period specified in the application for registration or ninety days
from the effective date of registration, whichever is earlier and such person shall make taxable
supplies only after the issuance of the certificate of registration:

Provided that the proper officer may, on sufficient cause being shown by the said taxable
person, extend the said period of ninety days by a further period not exceeding ninety days.

(2) A casual taxable person or a non-resident taxable person shall, at the time of submission of
application for registration under sub-section ( 1 ) of section 25, make an advance deposit of tax
in an amount equivalent to the estimated tax liability of such person for the period for which the
registration is sought:

Provided that where any extension of time is sought under sub-section (1), such taxable person
shall deposit an additional amount of tax equivalent to the estimated tax liability of such person
for the period for which the extension is sought.

(3) 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 49.

AMENDMENT OF REGISTRATION

Every registered person and a person to whom a Unique Identity Number has been

assigned shall inform the proper officer of any changes in the information furnished at the time
of registration or subsequent thereto, in such form and manner and within such period as may be
prescribed.

( 2 ) The proper officer may, on the basis of information furnished under sub-section ( 1 ) or as
ascertained by him, approve or reject amendments in the registration particulars in such manner
and within such period as may be prescribed:

Provided that approval of the proper officer shall not be required in respect of amendment of
such particulars as may be prescribed:
Provided further that the proper officer shall not reject the application for amendment in the
registration particulars without giving the person an opportunity of being heard.

( 3 ) Any rejection or approval of amendments under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
rejection or approval under this Act.

CANCELLATION OF REGISTRATION

( 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, in
such manner and within such period as may be prescribed, having regard to the circumstances
where,––

( a ) the business has been discontinued, transferred fully for any reason including death of the
proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or

( b ) there is any change in the constitution of the business; or

( c ) the taxable person, other than the person registered under sub-section ( 3 ) of section 25, is
no longer liable to be registered under section 22 or section 24.

( 2 ) The proper officer may cancel the registration of a person from such date, including any
retrospective date, as he may deem fit, where,––

( a ) a registered person has contravened such provisions of the Act or the rules made thereunder
as may be prescribed; or

( b ) a person paying tax under section 10 has not furnished returns for three consecutive tax
periods; or

( c ) any registered person, other than a person specified in clause ( b ), has not furnished returns
for a continuous period of six months; or

( d ) any person who has taken voluntary registration under sub-section ( 3 ) of section 25 has
not commenced business within six months from the date of registration; or

( e ) registration has been obtained by means of fraud, wilful misstatement or suppression of

facts:
Provided that the proper officer shall not cancel the registration without giving the person an
opportunity of being heard.

( 3 ) The cancellation of registration under this section shall not affect the liability of the person
to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules
made thereunder 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 ) The cancellation of registration under the State Goods and Services Tax Act or the Union
Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation
of registration under this Act.

( 5 ) Every registered person whose registration is cancelled shall pay an amount, by way of
debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax
in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in
stock or capital goods or plant and machinery on the day immediately preceding the date of such
cancellation or the output tax payable on such goods, whichever is higher, calculated in such
manner as may be prescribed:

Provided that in case of capital goods or plant and machinery, the taxable person shall pay an
amount equal to the input tax credit taken on the said capital goods or plant and machinery,
reduced by such percentage points as may be prescribed or the tax on the transaction value of
such capital goods or plant and machinery under section 15, whichever is higher.

( 6 ) The amount payable under sub-section ( 5 ) shall be calculated in such manner as may be
prescribed.

REVOCATION OF CANCELLATION OF REGISTRATION

( 1 ) Subject to such conditions as may be prescribed, 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.

( 2 ) The proper officer may, in such manner and within such period as may be prescribed, by
order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be rejected
unless the applicant has been given an opportunity of being heard.

( 3 ) The revocation of cancellation of registration under the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a
revocation of cancellation of registration under this Act.