GST Registration

20161007_174130

20161007_174045

GST Registration

CMA Sandeep Kumar

Topics

Provisions regarding Registration

Liability to be registered under GST

Matters when Govt. shall not be regarded as Taxable Person

Amendment/Cancellation

Proposed Registration on Requirement

Two Model Acts

Single registration State Special (One/Multiple places of business in One State)

The taxable person in the GST regime will be required to take State special single registration for CGST, IGST and SGST purposes (Multiple registrations in a state for business verticals are permitted)

Provisions in Model Law: Chapter VI

Registration: Section 19 [14 sub sections 1 to 12(Including 4A& 8A]

Special provisions relating to casual taxable person and non-resident taxable person [Section 19 A93 sub sections)]

Amendment of registration [section 20, 4 sub sections]

Cancellation of registration (Section 21, 8 sub sections)

Revocation of cancellation of registration (Section 22, 4 sub sections)

Categories:

  • Existing registrations & New Registrations
  • Mandatory & Voluntary.





 Registration

Liability: Schedule III: within 30 days [Section 19(1)]

No fresh registration for ISD [Section 19(1)]

Registration for multiple Business verticals in a State [Section 19(2)]

Voluntary Registration [Section 19(3)]

Every person shall have a permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under sub-sec(1), (2) or (3)[section19(4)]

Registration on by Proper officer in case of failure by the liable person to get him registered. ) [section19(5)]

Unique Identity Number for UN organizations etc. Multilateral Financial Institution, Embassies, others for refund etc.)[section19 (6)]

The registration or the unique identity Number, shall be granted or, as the case may be, rejected a endue verification in the manner and within such period as may be prescribed) [section19 (7)]

Rejection of application for Registration No. or Unique Identity Number only a reissuing SCN or giving opportunity of being heard) [section19 (8)]

A registration or a Unique Identify Number shall be deemed to have been granted for the period prescribed under sub-section (70, if no deficiency has been communicated to the applicant by the proper officer within that period.  [section19 (9)]

Automatic Rejection by another authority: any rejection of application for registration for the Unique Identity Number under the CGST Act/ SGST Act shall be deemed to be a rejection of application for registration under the SGST Act/ CGST Act [section19 (10)]

No Rejection within time means deemed registration: grant of registration or the Unique Identity Number under the CGST Act/ SGST Act shall be deemed to be a grant of registration or the Unique Identify Number under the SGST/CGST Act.[section19 (11)]

 Power to exempt from Registration

Certificate of registration shall be issued in the prescribed form on completion of the above formalities showing effective date (Normally the date of application). [section19 (8A)]

Schedule III (Persons liable to be registered)

  • Turnover Criteria: 9 lakhs or 4 lakhs (NE States) (NOW LIMIT 20/10 LAKHS)
  • Previous registered Assesses
  • Transfer of business from another person
  1. Succession or otherwise
  2. Merger/amalgamation
  • Persons making any Inter-State taxable supply, irrespective of the threshold specified under paragraph 1;
  • Causal taxable persons, irrespective of the threshold specified under paragraph 1;
  • Persons who supply goods and / or services on behalf of other registered taxable persons whether as an agent or otherwise
  • Input service distributor
  • Persons who supply goods and/ or services, other than branded

Services, through electronic commerce operator every electronic commerce operator

  • Every electronic commerce operator an aggregator who supplies services under his brand name or his trade name
  • Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

 Causal Taxable Person and Non-Resident Taxable person

  • Registration for ninety days.
  • Extendable for further 90days.
  • Advance deposit of GST of an amount equivalent to the estimated tax liability at the time of making an application for registration.
  • In manner to proper officer about the changes in the information submitted at the time of registration.
  1. The business has been discontinued,
  2. Transferred fully for any reason including death for the proprietor,
  3. Amalgamated with other legal entity,
  4. Demerged or otherwise disposed of; or
  5. There is any change in the constitution of the business; or
  6. The taxable person is no longer liable to be registered under Schedule III

 Cancellation of Registration

By the Officer

  • Contravention of the provisions of the Act by registered person.
  • Non filing of returns for three consecutive months by persons registered under composition scheme.
  • Any taxable person, other than a person specified above has not furnished returns for a continuous period for six month.
  • Any person who has taken voluntary registration has not commenced business within six months from the date of registration.
  • In case registration has been obtained by means of fraud, willful misstatement or suppression of facts, the proper officer may cancel the registration with retrospective effect.





 Law of Natural Justice

Cancellation on only a reissue of SCN & giving opportunity of being heard

Cancellation under one Act means cancellation under another Act (CGST & SGST).

 Salient Features of Registration Process

  • Pan Based Registration: PAN will be mandatory
  • Unified application to both tax authorities
  • To be filed within 30 days
  • State-wise registration for entities having presence in more than one State
  • Need not apply separately for each state.
  • Deemed approval within three days
  • Within a PAN, separate registration for separate business verticals within a state possible.
  • 15 digit alphanumeric structure
  • State-wise
  • Based on PAN
  • 13th Digit for Verticals of entities with same PAN in same State
  • 14th digit left blank for future use
  • 15th digit- Checksum

Suppliers under Composition Scheme

  • Suppliers with turnover below a particular threshold.
  • To pay tax on turnover with no input tax credit.
  • To opt at the beginning of the year- applicable till eligibility or opting out.
  • Switch from composition to regular scheme voluntarily or on crossing threshold.
  • Suppliers making interstate supplies not eligible.
  • Migration of existing tax payers to the GSTN database
  • Taxpayers with valid PAN
  • Online application form through Common Portal
  • Documents to be filed for
  • Constitution of Business
  • Principal Place of Business
  • Bank Accounts
  • Authorised Signatory
  • Photograph

 Obtaining Registration

  • Applications not submitted through Digital Signature to be supported by sending a signed copy of summary extract of the form.
  • Processing of application and grant of registration even before signed copy received
  • Cancellation to be initiated if no signed copy received.
  • E-Mail and SMS based alerts to the applicants
  • No application fee (advance tax in case of casual suppliers)
  • Applications can be filed through Facilitation Centers (FCs) or through Tax Return Preparers (TRPs).

 Approval Process

  • Online verification of certain details like PAN, CIN, Bank Account (if possible) and Adhaar.
  • Online communication of application to jurisdictional authority by the backend modules of tax authorities.
  • 3 common working days for tax authorities to respond
  • Deemed approval after 3 days
  • Single opportunity to tax authorities to raise query, if any-7 days for action
  • Mostly post registration visits based on risk profile
  • Online communication of application to jurisdictional
  • Online grant of registration
  • Log-in ID and temporary password communicated to the tax payer
  • Downloadable Registration Certificate to be provided by GSTN
  • Refusal to register by one tax authority deemed as refusal by both
  • Communication of reason for refusal of registration

 Migration of Existing Tax Payers

  1. Existing registrants either with States or with Centre to be migrated to GSTIN- Process already initiated.
  • VAT registration data to be used for migration of dealers in goods
  • Service tax registration data to be used for migration of service providers
  • Validation of existing registration information by GSTN
  1. Validation of existing registration information by GSTN
  2. Verification/ updation of migrated data by existing registrants within a specified period
  3. Issuance of GSTIN by GSTN
  4. Verification by Centre/State Authorities after issuance of GSTIN

Amendment to Registration Details

  • On time amendment essential for efficient tax administration.
  • Most of the details to be amended by the tax payer on self service basis.
  • Some of them like mobile number and e mail address through online verification.
  • Some critical details like name, principal place of business to be amended after approval from tax authorities.
  • Some critical details like name, principal place of business to be amended after approval from tax authorities.





 Surrender and Cancellation

  1. Cancellation by Tax authorities:
  • Signed copy of the summary extract of submitted application form not received even after a reminder.
  • Tax payer contravenes specified provision of the GST law
  • Taxpayer has not filed any return at all during a prescribed period as prescribed under GST law.
  1. Cancellation of registration to be prospective
  2. A person, whose registration was cancelled by tax authority on his own motion, may apply for revocation of registration.
  3. Substantial penalty in case registration obtained with fraudulent intentions.