GST is the biggest tax reform in India, tremendously improving ease of doing business and increasing the taxpayer base in India by bringing in millions of small businesses in India. By abolishing and subsuming multiple taxes into a single system, tax complexities would be reduced while tax base is increased substantially. Under the new GST regime, all entities involved in buying or selling goods or providing services or both are required to register for GST. Entities without GST registration would not be allowed to collect GST from a customer or claim input tax credit of GST paid or could be penalised. Further, registration under GST is mandatory once an entity crosses the minimum threshold turnover of starts a new business that is expected to cross the prescribed turnover.
As per the GST Council, entities in special category states with an annual turnover of Rs.10 lakhs and above would be required to register under GST. All other entities in rest of India would be required to register for GST if annual turnover exceeds Rs.20 lakhs. There are also various other criteria’s, that could make an entity liable for obtaining GST registration – irrespective of annual sales turnover. Entities required to register for GST as per regulations must file for GST application within 30 days from the date on which the entity became liable for registration under GST.
1) What’s the benefit of registering a business 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.
2) What is the liability for GST registration in India?
Aggregate turnover requirement for GST registration is as below:
Liability to Register
Liability for Payment of Tax
North East India
Rs 9 Lakhs
Rs 10 Lakhs
Rest of India
Rs 19 Lakhs
Rs 20 Lakhs
3) What is the registration process for GST in India?
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.
Based on the information provided by GSTN, registration process looks like this:
1. The applicant, will need to submit his PAN, mobile number and email address in Part A of Form GST REG–01 on the GSTN portal or through Facilitation center (notified by board or commissioner).
2. The PAN is verified on the GST Portal. Mobile number and E-mail address are verified with a one-time password (OTP). Once the verification is complete, applicant will receive an application reference number on the registered mobile number and via E-mail. An acknowledgement should be issued to the applicant in FORM GST REG-02 electronically.
3. Applicant needs to fill Part- B of Form GST REG-01 and specify the application reference number. Then the form can be submitted after attaching required documents.
4. If additional information is required, Form GST REG-03 will be issued. Applicant needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
5. If you have provided all required information via Form GST REG-01 or Form GST REG-04, the registration certificate in Form GST REG –06 for the principal place of business as well as for every additional place of business will be issued to the applicant. If the person has multiple business verticals within a state he can file a separate application for the registration in Form GST REG-01 for each business verticals.If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.The applicant who is required to deduct TDS or collect TCS shall submit an application in Form GST REG – 07 for registration. If he is no longer liable to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration.
Documents required for GST registration:
· PAN card of the Company
· Proof of constitution like partnership deed, Memorandum of Association (MOA) /Articles of Association (AOA), certificate of incorporation.
· Details and proof of place of business like rent agreement or electricity bill
· Cancelled cheque of your bank account showing name of account holder, MICR code, IFSC code and bank branch details
· Authorized signatory like List of partners with their identity and address proof in case of partnership firm or List of directors with their identity and address proof in case of company.
You can register your business for GST on GSTN portal.
If you are a taxpayer in Goa, then you should read the notification and get yourself enrolled before November 29, 2016.
For rest of India, the dates have also been announced. The table is as follows:
Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh
Service Tax Registrants
Delta All Registrants (All Groups)
These timelines keep changing. So, please keep checking this page for further updates.
4) Can a person without GST registration claim ITC and collect tax?
No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.
5) What will be the effective date of registration?
Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In case of suomoto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the
date of order of registration.
6) Who are the persons liable to take a Registration under the Model GST Law?
Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed above in a year is liable to get himself registered. However, certain categories of persons mentioned in Schedule III of MGL are liable to be registered irrespective of this threshold.
An agriculturist shall not be considered as a taxable person and shall not be liable to take registration. (As per section 9 (1))
7) What is aggregate turnover?
As per section 2 (6) of the MGL, aggregate turnover includes the aggregate value of:
(i) all taxable and non-taxable supplies,
(ii) exempt supplies, and
(iii) exports of goods and/or service of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act.
Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies.
8) Which are the cases in which registration is compulsory?
As per paragraph 5 in Schedule III of MGL, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons
whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services other than branded services, through electronic
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name or his trade name; and
k) 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.
9) What is the time limit for taking a Registration under Model GST Law?
Any person should take a Registration, 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.
10) If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?
No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 19 of Model GST Law.
11) Whether a person having multiple business verticals in a state can obtain for different registrations?
Yes. In terms of Sub-Section (2) of Section 19, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
12) Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
Yes. In terms of Sub-section (3) of Section 19, a person, though not liable to be registered under Schedule III, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
13) Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
Yes. 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 Section 19 of the Model GST Law.
However as per section 19 (4A) of MGL, PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed.
14) Whether the Department through the proper officer, can suo-moto proceed with registration of a Person under this Act?
Yes. In terms of sub-section (5) of Section 19, 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 that is, or may be taken under the MGL, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed.
15) Whether the proper Officer can reject an Application for Registration?
Yes. In terms of sub-section 7 of MGL, the proper officer can reject an application for registration after due verification. However, it is also provided in sub-section 8 of Section 19, the proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.
16) Whether the Registration granted to any person is permanent?
Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
17) Is it necessary for the UN bodies to get registration under MGL?
All UN bodies Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States. This UIN will be needed for claiming refund of taxes paid by them and for any other purpose as may be prescribed in the GST Rules.
18) What is the responsibility of the taxable person supplying to UN bodies?
The taxable supplier supplying to these organizations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier.
19) Is it necessary for the Govt. organization to get registration?
A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.
20) Who is a Casual Taxable Person?
Casual Taxable Person has been defined in Section 2 (21) of MGL. It means a person who occasionally undertakes transactions in a taxable territory where he has no fixed place of business.
21) Who is a Non-resident Taxable Person?
A taxable person residing outside India and coming to India to occasionally undertake transaction in the country but has no fixed place of business in India is a non-resident taxable person in terms of Section 2 (69) of the MGL.
22) What is the validity period of the Registration certificate issued to a Casual Taxable Person and non-Resident Taxable person?
The certificate of registration issued to a “casual 34 taxable person” or a “non-resident taxable person” shall be valid for a period of ninety days from the effective date of registration. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not
exceeding ninety days.
23) Is there any Advance tax to be paid by a Casual Taxable Person and Non-resident Taxable Person at the time of obtaining registration under this Special Category?
Yes. While a normal taxable person does not have to make any deposit of money to obtain registration, 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 19, 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. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought.
24) Whether Amendments to the Registration Certificate is permissible?
Yes. In terms of Section 20, the proper officer may on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within such period as may be prescribed. It is to be noted that permission of the proper officer for making amendments will be required for only certain core fields of information, whereas for the other fields, the registrant can himself carry out the amendments.
25) Whether Cancellation of Registration Certificate is permissible?
Yes. Any Registration granted under this Act may be cancelled by the Proper Officer, in circumstances mentioned in Section 21 of the MGL. The proper officer may, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable 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.
26) Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?
Yes. The cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act). (Section 21 (6))
27) Can the proper Officer Cancel the Registration on his own?
Yes, in certain circumstances specified under section 21(2) of MGL, the proper officer can cancel the registration on his own. Such circumstances include not filing return for a continuous period of six months (for a normal taxable 36 person) or three months (for a compounding taxpayer), and not commencing business within six months from the date of registration. However, before cancelling the registration, the proper officer has to follow the principles of natural justice. (Section 21 (4))
28) What happens when the registration is obtained by means of wilful mis-statement, fraud or suppression of facts?
In such cases, the registration may be cancelled with retrospective effect by the proper officer. Section 21(3).
29) Is there an option to take centralized registration for services under MGL?
No. There is no such option.
30) If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each such vertical in the state?
No. However the taxpayer has the option to register such separate business verticals independently in terms of Section 19(2) of MGL.
31) Who is an ISD?
ISD stands for Input Service Distributor and has been defined under Section 2 (56) of MGL. It is basically an office meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units proportionately.
32) Will ISD be required to be separately registered other than the existing taxpayer registration?
Yes. The ISD registration is for one office of the taxpayer which will be different from the normal registration.
33) Can a taxpayer have multiple ISDs?
Yes. Different offices of a taxpayer can apply for ISD registration.
34) What could be the liabilities (in so far as registration is concerned) on transfer of a business?
The transferee or the successor shall be liable to be registered with effect from such transfer or succession and he will have to obtain a fresh registration with effect from such date. (Schedule III of MGL).
35) Whether all assesses /dealers who are already registered under existing central excise/service tax/vat laws will have to obtain fresh registration?
No. GSTN shall migrate all such assesses /dealers to the GSTN network and shall issue GSTIN number and password. They will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of GSTIN number. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have their businesses.
36) Whether the job worker will have to be compulsorily registered?
No. Section 43A of MGL does not prescribe any such condition.
37) Whether the goods will be permitted to be supplied from the place of business of a job worker?
Yes. But only in cases where the job worker is registered or the principal declares the place of business of the job worker as his additional place of business.
38) At the time of registration will the assessee have to declare all his places of business?
Yes. The principal place of business and place of business have been separately defined under section 2(78) & 2(75) of MGL respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.
39) Is there any system to facilitate smaller dealers or dealers having no IT infrastructure?
In order to cater to the needs of taxpayers who are not IT savvy, following facilities shall be made available:-
Tax Return Preparer (TRP):
A taxable person may prepare his registration application /returns himself or can approach the TRP for assistance. TRP will