MODULE-V REGISTRATION UNDER GST 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. ADVANTAGES OF REGISTRATION: © Heis 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 on his purchases / procurements 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. © Registered persons eligible to apply for government bids or contracts, PERSONS LIABLE FOR REGISTRATION: 1. The supplier's supplies exceed the Threshold iit 2. All persons registered under the existing law i.e. VAT Act, CST Act, Central Excise and Service Tax. 3. The transferee or the suocessor of « going concem. 4, The transferee on account of amalgamation or de-merger of two or more companies. PERSONS NOT LIABLE FOR REGISTRATION: 1. Persons exclusively engaged in the supply of exempted supplies. 2. An Agriculturist 3. Specified category persons notified by the government: A. Persons Making only Reverse Charge Supplies. B. Persons making interstate Taxable supplies of services up to Rs. 20 Lakhs C. Persons making interstate Taxable supplies of Handicraft Goods up to Rs. 20 Lakhs. D. Casual Taxable Persons making interstate Taxable supplies of Notified Handicraft Goods up to Rs. 20 Lakhs. COMPULSORY REGISTRATION: The following categories of persons shall be required to be registered under this Act— apa i) Persons making any inter-state taxable supply. i) Casual taxable persons making taxable supply. iii) Persons who are required to pay tax under reverse charge. iv) Specified categories of service tax on intra-state supplies.v) Persons making taxable supply of goods or services or both on behalf of other taxable person(s). vi) In-put Service Distributor, whether or not separately registered under GST Law. vii) Persons supplying goods or services or both through such electronics commerce operators who is required (o collect tax at source under section 52 of GS' viii) Every electronic commerce operator. ix) Every person supplying online information from outside India to an unregistered person in India. x) Non-resident taxable persons making taxable supply; xi) Persons or class of persons notified by the Government on the recommendation of GST Council. PROCEDURE FOR REGISTRATION: 1. Section 25 (1) ~ Limitation period for apply for Registration for persons liable to be registered under section 22 or section 24 is to applied within thirty days from the date on which the person becomes Provison to Section 25(1) — Limitation period for apply for Registration for Casual Taxable Persons or Non-Resident Taxable Person is at least five days prior to the commencement of business. 2. Rule 8 for application Form GST REG-01 — a) Part A requires PAN, Mobile Number and E Mail ID b) After successfull verification of PAN, mobile number and E Mail [D temporary reference number (IRN) is issued. c) Using TRN Part B can be submitted online. 4) After successful submission of Part B an acknowledgement shall be issued electronically. e) Bank Account Detail if not furnished in Registration Application — Rule 10A — Furnish such detail of Bank as soon as may be but not later than forty five days from the date of grant of registration or the date on which the return required under section 39 is due to be furnished, whichever is earlier. 3. Rule 9 for Verification and Approval or Rejection of Application a) The Proper Officer shall approve the grant of registration within a period of three working days from the date of submission of the application. b) Clarification of information: If the application submitted under rule 8 is found to be deficient or where the proper officer requires any clarification with regard to any information provided in the application or documents furnished therewith, he may issue a notice to the applicant electronically in FORM GST REG-03 within a period of three working days from the date of submission of the application and the applicant shall furnish such clarification, information or documents electronically, in FORM GST REG-04, within a period of seven working days from the date of the receipt of such notice, x ©) Approval of Registration: Where the proper officer is satisfied with the clarification, information or documents furnished by the applicant, he may approve the grant of registration to the applicant within a period of seven working days from the date of the receipt of such clarification or information or documents.d) Rejection of Application: Where no reply is furnished by the applicant in responye to the notice is not satisfied issued under sub-rule (2) or where the proper offic« th the clarification, information or all, for reasons to be recorded in writing, reject such application and inform -05. documents furnished, hi the applicant electronically in FORM GST Ri 4, Deemed registration if the Proper Officer fails to take any action within specified period: a) Section 25(12) — A regis ation or a Uniq ribed under sub-s Identity Number shall be deemed to have been granted after the expiry of the period pre: ion (10), if no deficiency has been communicated to the applicant within that period. b) Rule 9(5) ~ If the proper officer fails to take any action, — (a) within a period of three working days from the date of submission of the application; or (b) within a period of seven working days from the date of the receipt of the clarification, information or documents furnished by the applicant under sub- rule (2), the application for grant of registration shall be deemed to have been approved. 5. Effective Date of Registration — a) If Application Submitted Wi date on which the person becomes liable to registration where the application for registration has been ime Rule 10 (2) ~ The registration shall be effective from the submitted within a period of thirty days from such date. b) If Application Submitted after Expiry Time Rule 10 (2) — Rule 10 (3) ~ Where an application for registration has been submitted by the applicant after the expiry of thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of the grant of registration. 6. Rule 13 for Non Resident Taxable Person — a) In place of PAN such person shall electronically submit an application, along with a self-attested copy of his valid passport, for registration, duly signed or verified through electronic verification code, in FORM GST REG-09, at least five days prior to the commencement of business. b) Authorised Signatory shall be a person resident in India having a valid Permanent Account Number. [ Rule 13(4) ] 7. Special provisions relating to casual taxable person and non-resident taxable person — Section 27 of CGST Act, 2017. a) Validity Period of Registration — The certificate of registration issued shall be valid for the period specified in the application for registration or ninety days from the effective date of registration, whichever is earlier. It may be further extended for a period not exceeding ninety days. b) Advance Deposit of Tax — Section 27 (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. ©) Utilisation of Advance Tax — This amount may be used for making payment towards output tax liability in the manner provided under section 49.CANCELLATION OF REGISTRATION: ‘The GST law provides for two scenarios where cancellation of registration can take place; 1. Voluntary cancellation: The one when the taxable person no more requires it, 2. Cancellation by the proper officer: when the proper officer considers the registration liable for cancellation in view of certain specified defaults (Suo-moto cancellation): a. The registrant is not doing business from the registered place of business. b. The Supplier issues tax invoice without making the supply of goods or services. ‘The taxable person desirous of cancellation of Registration will apply on the common portal within 30 days of event warranting cancellation. He will also declare in the application the stock held on the date preceding to 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. REVOCATION OF REGISTRATION: i, When the registration has been cancelled by the Proper Officer (Superintendent of Central Tax) on his ‘own motion and not on the basis of an application by the registered person, then the registered person, whose registration has been cancelled, can submit an application for revocation of cancellation of registration, in FORM GST REG-21, to the Proper Officer (As- sistant or Deputy Commissioners of Central Tax), within a period of thirty days from the date of the service of the order of cancellation of registration at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. ii. However, if the registration has been cancelled for failure to furnish returns, application for revocation shall be filed, only after such retums are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said retums. iii, On examination of the application, if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, then he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and ‘communicate the same to the applicant. iv. However, if on examination of the application for revocation, if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is not satisfied then he will issue a notice in FORM GST REG- 23 requiring the applicant to show cause as to why the application submitted for revocation should not be rejected and the applicant has to furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24. v. Upon receipt of the information or clarification in FORM GST REG-24, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) shall dispose of the application within a period of thirty days from the date of the receipt of such information or clarification from the applicant. In case theinformation or clarification provided is satisfactory, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) shall dispose the application as per para (iii) above, In case it is not satisfactory the applicant will be mandatorily given an opportunity of being heard, after which the Proper Officer (Assistant or Deputy Commissioners of Central Tax) afler recording the reasons in writing may by an order in FORM GST REG- 05, reject the application for revocation of cancellation of registration and communicate the same to the applicant, vi. The revocation of cancellation of registration under the SGST Act or the UTGST Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under CGST Act. CONCEPT OF DISTINCT PERSON UNDER GST: Distinet persons are persons with different GSTINs belonging to one legal entity (single PAN) situated within the same state or in two different states or in a different country. When a supply is made between distinet persons during the course of business, it is considered as a supply even when there is no consideration. Therefore these transactions are considered as a taxable supply. Taxability under GST for a distinct person The supply made between distinct persons shall be a taxable supply and it shall be taxed on a value determined by Rule 2 of the Valuation Rules. As per these rules, the value of the transaction shall be the following: = Open market value of such supply + Ifopen market value is unavailable, value of goods/ services of like kind and quality + If the above two are not possible, then as per Rule 4 (value shall be equal to 110% of cost of production) or Rule 5 (residual value) «When recipient is eligible for full input tax credit, then the value declared in the invoice shall be the open market value for such transactions.