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CHAPTER VI of CGST Act

REGISTRATION
Section-22

Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States (NE States including Sikkim), he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

Analysis:     

  • Supplier require registration
  • General - if turnover above 20 lac
  • Special category states (North east region)- if turnover above 10 lacs
  • Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

Analysis:

  • Earlier register in any law
  • From appointed day
  • Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

Analysis:

  • Transferee require fresh registration
  • Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.

Analysis: Resultant company require fresh registration from date or order

Explanation. For the purposes of this section,

  1. he 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;  
  2. 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;
  3. the expression 'special category States' shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution. (NE States including Sikkim)

Analysis: Turnover = Principal turnover + Agent Turnover + Job Worker (if any)

Section -23

The following persons shall not be liable to registration, namely:

  1. any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
  2. an agriculturist, to the extent of supply of produce out of cultivation of land.

The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.

Analysis: Registration not require in following classes

  • In case of exempt supply of goods and services
  • Agriculturist
  • Government specify the persons

Section-24

Notwithstanding anything contained in sub-section (1) of section 22 (i.e. limit not apply) , the following categories of persons shall be required to be registered under this Act,-

  1. persons making any inter-State taxable supply;
  2. casual taxable persons making taxable supply;

Analysis: As per section 2(20) of Act 'casual taxable person' means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business;

  1. persons who are required to pay tax under reverse charge;
  2. person who are required to pay tax under sub-section (5) of section 9; (electronic commerce)
  3. non-resident taxable persons making taxable supply;
  4. persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
  5. persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
  6. Input Service Distributor, whether or not separately registered under this Act;
  7. persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
  8. every electronic commerce operator;
  9. 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
  10. such other person or class of persons as may be notified by the Government on the recommendations of the Council.

Section-25

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.

Analysis:     

Time of Registration

For General - within 30 days from which he is liable to registration
For Casual Tax payer- before 5 days prior to commencement

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.

Analysis: For multiple business place require separate registration

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.

Analysis:

  •  In case of voluntary registration
  • All the provision applies accordingly

1. 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.

2. 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.

Analysis: Person who are apply for more than one registration treated as distinct person.

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.

Analysis:  Eligibility for registration

  • PAN Require
  • Tan Require (if applicable)

1. 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.

2. 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.

** As per sub clause (xi) of clause (1) of Section 122 where a taxable person who is liable to be registered under this Act but fails to obtain registration; he shall be liable to pay a penalty of ten thousand rupees or an amount equivalent to the tax evaded, whichever is higher

Notwithstanding anything contained in sub-section (1),

  1. any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and
  2. 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.

Analysis:

  • In case of
  • Specialized agency of UN’
  • Multilateral Financial Institutional and Organization notified under UN
  • Embassy of foreign countries
  • Other class of person specified
  • require UIN
  • in such manner and purpose
  • including refund on notified supplies of goods and services

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.

Analysis: Application accepted or rejected after due verification

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

Analysis: issued in such form and from such date prescribed

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.

Analysis:  If not issued in time shall deemed to be granted

Section-26

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.

Analysis:

Registration/UIN deemed to be granted - if application not rejected in specified time

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.

Analysis:

If application rejected under IGST and GST -  then deemed to be rejected under CGST Act.

Section -27

The certificate of registration issued to a casual taxable person or a nonresident 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.

Analysis:

In case of NRI and Causal taxable person

  • Registration granted for specified time mentioned in registration or 90 days whichever is earlier
  • Such person make supply after issuance of the certificate
  • Proper officer may extend time up to 90 days more

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.

Analysis:

Causal taxable person and NRI

  • Make advance payment of estimated tax liability for period mentioned in registration
  • Deposit addition amount, if time is extended

The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49.

Analysis: Amount deposited credited in Electronic cash ledger

Section-28

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.

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.

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.

Analysis:          

  • Any change in information at time of registration/UIN shall inform to proper officer.
  • Proper officer may accept or reject the change.
  • No approval requires in certain cases.
  • Rejection in SGST/UTGST shall deemed to rejection in CGST Act.

Section -29

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,--

  1. 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
  2. there is any change in the constitution of the business; or
  3. 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.

Analysis:     

  • Officer either on his own motion
  • request of registered person/legal heir of deceased
  • cancel registration
  • in manner and period specified
  • in following circumstance  
    • Discontinued of business
    • Change in Constitution
    • Person no longer liable to registered

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

  • a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
  • a person paying tax under section 10 (Composition Dealer) has not furnished returns for three consecutive tax periods; or
  • any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
  • 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
  • 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.

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.

Analysis:          

  • Cancellation of registration not affect liability under this Act for period prior to date of cancellation
  • Whether or not such tax is determined before or after cancellation.                    

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.

Analysis:          

  • Cancellation of registration under SGST/UGST
  • Deemed to be cancel under this Act

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:

In case of cancellation of registration taxable person shall pay any input in credit ledger in respect of input held in stock, semi-finished or finished goods or tax payable on such goods whichever is higher

For example if credit balance in ledger for Rs. 500000 regarding inputs of stock, semi finished goods or finished goods and payable amount of such goods is Rs. 650000 then taxable person require to pay Rs. 650000)

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.

Like CCR 2004, if capital goods transfer after used then CENVAT credit will be reverse by prescribed percentage of used period

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

Section-30

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.

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.

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.

Analysis:

  • Person whose registration cancelled
  • Apply for revocation
  • Within 30 days from cancellation order
  • Officer may accept or rejection application
  • Cancellation of revocation under SGST/UGST deemed to be cancellation under this Act.
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