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What is GST registration?

A unique GST identification number is issued to the taxpayer after filing an online application on the Common portal. Any person having a GST number means he is registered under Goods & Service Tax. Registered taxpayers are required to collect tax from customers and deposit it to the Government.

Registrants will enjoy the following benefits-

  • Legally recognized as supplier
  • Tax can be collected from customers
  • Taxes paid on purchases can be reduced from output tax liability
  • No inter-state sale restrictions
  • Competitive advantage in the market

Types of GST registration

Voluntary registration

Any individual or business who is not required by law to get registered under GST may apply for registration on a voluntary basis. In that case, he has to follow all GST compliances as if he was liable for registration. Further, as per section 29 of the CGST Act, voluntary registration may be canceled if the business has not been commenced within six months from the date of registration.

Mandatory registration

Every person is legally bound to register in the GST regime if,-

  • he is engaged in the supply of goods or services, and the aggregate turnover of his supplies exceeds the GST threshold limit i.e 40 lakhs in the case of goods and 20 lakhs for services.
  • he is covered under the compulsory GST registration criteria. This means it is mandatory for a specified category of persons to obtain GSTIN online even their annual turnover is less than the above-mentioned GST threshold.

Suo moto registration

As per rule 26 of CGST rules, a GST officer may register the person on a temporary basis if during any proceedings he finds that such person liable to registration under the Act and has failed to apply for same Any person to whom temporary GST registration is granted shall apply for registration within a period of ninety days from the date of the temporary registration.

Registration under composition levy

Small taxpayers whose turnover is less than Rs 1.50 crores have an option to register under the GST composition scheme. In this scheme, GST levied at the reduced rates and also fewer GST compliances need to follow.

Who should apply for GST registration?

(1) Any person who is engaged in the exclusive supply of goods, and his aggregate turnover of such supplies exceeds Rs 40 lakh in a financial year

(2) Any person who is engaged in the supply of services, and his aggregate turnover of services exceeds Rs 20 lakh in a financial year.

(3) Inter-state state supplier of goods or services

(4) Person liable to pay tax under reverse charge mechanism

(5) Casual taxable person

(6) Non-Resident taxable person

(7) E-commerce operator

(8) A person who requires to deduct tax under section 51 of CGST act, 2017

(9) Input service distributor

(10) Any person who is engaged in the supply of goods or services on the behalf of another taxable person

(11) Every person supplying OIDAR  services from a place outside India to an unregistered person in India

(12) Persons notified by the government

Who is not required to register under GST?

Any person engaged in the following supplies exempted from registration under GST-

(a) Supply of exempted or non-taxable goods/services

(b) Agriculturists

(c) Inter-state sale of services and aggregate turnover is less than Rs 20 lakhs.

(d) Supply covered under the reverse charge mechanism

Documents for online GST registration

Following documents are required to be uploaded on GST official website for registration-

(1) PAN card of the applicant

(2) Aadhaar card of the applicant

(3) Cancel cheque copy or bank A/c statement

(4) Business address proof i.e. rent agreement or property tax receipt/electricity bill

(5) MOA, AOA, and certificate of incorporation in case of a company

(6) Partnership deed in case of a firm

 

Documents for online GST registration

 

GST registration fees

This section is about how much you need to pay to get registered in the GST regime. The Government GST site provides a self-registration facility. You will not be required to pay any fees if you apply for registration through the government site. However, the enrollment process on the GST site is time-consuming and required a large number of information and documents. You can register online for GST at very low prices with the help of Tax Gyata experts.

Online process

The registration process for GST is completely online which means any kind of hard copy or physical printout is not required to submit. Moreover, you are not required to visit any office or authority to enroll for GST. Application for GST number can file digitally while seating at home. If you find any difficulty at the time of applying for GST, you can approach Tax Gyata consultants for GST consultancy.

Aadhaar authentication

Aadhaar Authentication process has been introduced under GST law with effect from 21.08.2020 for the persons applying for GST registration.

Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, tax authority based on the documents produced can grant registration.

Cancellation of GST registration

Registration under GST can be canceled by the tax officer either on his own motion or on an application filed by the taxpayer or his legal heirs. Once GST canceled, the taxpayer will no longer liable to pay or collect tax in the GST regime.

Proper officer can cancel registration due to the following reasons-

  • Taxpayer has contravened any of the provisions of GST law
  • Composition dealer has not filed three consecutive returns
  • A regular taxpayer (other than composition dealer) has not filed a return for six consecutive months
  • The business has not been commenced within 6 months in case of a voluntary registration
  • GST registration has been obtained by means of fraud, willful misstatement, or by suppression of facts.
  • An invoice or bill has been issued without the supply of goods or services
  • Provisions of Rule 86B have been violated. As per Rule 86B, specified taxpayers cannot utilize input tax credit (ITC) more than 99% to pay GST dues.
  • The benefit of tax rate reduction or input tax credit has not been passed to the recipient of goods/services (violation of anti-profiteering measures)
  • No business conducted from the declared place of business.
  • ITC availed in violation of statutory provisions

GST registration validity

There are no time restrictions given in law for the validity of the GST number. GSTIN is valid for a lifetime if It has not canceled by the tax officer nor surrendered by the taxpayer. However, In the case of a casual taxpayer or non-resident taxable person, the validity of GSTIN is limited for a period of 90 days or the period mentioned in the registration application.

Steps to track GST application status

After submission of application for registration on GST portal, the status of an application can be tracked by following steps given below -

Step 1: Visit the GST portal

Step 2: Click on the “Service” tab

Step 3: Select the “Registration” tab from the dropdown menu

Step 4: Click on “Track Application Status”

Step 5: Enter ARN and click on the search button

Step 6: Status of application will be displayed

Deemed Registration

As per Section 26, the grant of registration or the Unique Identity Number (UIN) under the SGST Act or the UTGST Act shall be deemed to be a grant of registration/UIN under the CGST Act subject to the condition that the application for registration/UIN has not been rejected.

Amendment of registration

As per section 28, every registered taxpayer shall inform the proper officer of any changes in the GST certificate. The requirement for amendments in registration may arise due to several factors such as a change in address, change in contact number, change in business details, and so on. Application for amendment of registration can be categorized into two types:

  • Application for amendment of Core fields in registration - Approval of tax official is required.
  • Application for amendment of Non-Core fields in registration - Auto approved after successful filing by the taxpayer.

Revocation of cancellation of GST registration

Section 30 gives an option to taxpayer to restore his registration by making the application within 30 days from the date of service of the cancellation order. Revocation is not allowed for UIN holders, GST practitioners or, GST cancelled on taxpayer request. It is important to note that restoration application can be filed only after filing returns along with interest and penalties. If registration has been cancelled due to the non-filing of GST returns, Proper officer may reject the application only after giving an opportunity of being heard taxpayer.

Consequences of not registering under GST

if it is statutorily required to get registration under Goods and Services Tax and the same is not done yet,

  • Tax dues shall be paid with the penalty*
  • Tax cannot be collected from customers
  • Input tax credit cannot be availed
  • Input tax credit cannot be transferred
  • Goods or conveyances may be confiscated or detained

*Penalty for not obtaining GST registration would be higher of the following,-

100% of tax dues

or

Rs 10,000

For example, Mr. Subermanyam fails to register for GST, and his tax dues as assessed by authorities are Rs 50,000. In the given situation, Mr. Subermanyam shall be liable to pay tax dues with a penalty of Rs 50,000 (100%. of tax dues).

GST provisions applicable to registration

 

CGST Act

CGST Rules

Section 22 – Persons liable for registration

Section 23 - Persons not liable for registration

Section 24 - Compulsory registration in certain cases

Section 25 - Procedure for registration

Section 26 - Deemed registration

Section 27 - Special provisions relating to casual taxable person and non-resident taxable person

Section 28 - Amendment of registration

Section 29 - Cancellation or Suspension of registration

Section 30 - Revocation of cancellation of registration

Rule 8 - Application for registration

Rule 9 - Verification of the application and approval

Rule 10 - Issue of registration certificate

Rule 10A - Furnishing of Bank Account Details

Rule 11 - Separate registration for multiple places of business within a State or a Union territory

Rule 12 – Grant of registration to persons required to deduct tax at source or to collect tax at source

Rule 13 – Grant of registration to non-resident taxable person

Rule 14 – Grant of registration to a person supplying online information and database access or retrieval services from a place outside India to a nontaxable online recipient

Rule 15 – Extension in period of operation by casual taxable person and nonresident taxable person

Rule 16 – Suo-moto registration

Rule 17 – Assignment of Unique Identity Number to certain special entities

Rule 18 – Display of registration certificate and Goods and Services Tax Identification Number on the name board

Rule 19 – Amendment of registration

Rule 20 – Application for cancellation of registration

Rule 21 –  Registration to be cancelled in certain cases

Rule 21A – Suspension of registration

Rule 22 – Cancellation of registration

Rule 23 - Revocation of cancellation of registration

Rule 24 - Migration of persons registered under the existing law

Rule 25 - Physical verification of business premises in certain cases

Rule 26 – Method of authentication

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