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REGISTRATION UNDER GST

Relevant Sections: 22 to 25 of CGST Act

Notifications: 56/2018, 65/2017, 10/2019, 05/2017, 32/2017

Section 2(94): Registered person” means a person who is registered under section 25 but does not include a person having a Unique Identity Number;

Section 22: Persons Liable for registration under GST act

This section provides the threshold limit of amount of supply crossing which makes a person liable for registration and also specify the registration requirement in case of existing registration in earlier laws (eg. Service tax, excise, sales tax) and in case of amalgamation, demerger and transfer of business.


Sub-section

Bare Act

Explanation

1

(1) Every supplier [2(105)] 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 [2(108)] of goods or services or both, if his aggregate turnover [2(6)] 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, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. (Amendment from 01/02/2019)

Every supplier +

supplying a supply leviable to tax +

aggregate turnover (taxable supply+ exempt supply (u/s 11) + Exports+ Interstate Branch Transfer) +

during the F.Y. on PAN India basis +

exceeds Rs. 20 Lakh.

For Special category state limit is Rs. 10 Lakh (From 01-02-2019 apply only to 4 States only)

From 1st of April 2019 supplier supplying exclusively goods then limit is Rs. 40 Lakhs from any state except special category states but including Jammu and Kashmir  (Notification No. 10/2019)

State- wise Summary of threshold limit of turnover


Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand

Manipur, Mizoram, Nagaland and Tripura

For Other than special category states but including Jammu and Kashmir

  • Upto 31st Jan. 2019- Rs. 10 Lakhs
  • From 1st Feb. 2019- Rs. 20 Lakhs

From 1st July 2017- Rs. 10 Lakhs

Upto 31st March 2019- Rs. 20 Lakhs

From 1st April 2019- Rs. 40 Lakhs if engaged only in supply of goods

2

Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

Last date for applying for migration was 31st Jan. 2019 and intimating the same is 28th Feb. 2019

3

Where a business [2(17)] 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.

Registered person +

transfer business as going concern +

acquirer shall obtain registration from the date of Transfer.

As per para 4 of Schedule II transfer of business is supply of service.

As per S.No. 2 of Notification 12/2017- CGST(Rate) Transfer of business on going concern basis is exempt from tax.

4.

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.

In case of amalgamation or demerger, +

By order of High Court or tribunal +

the amalgamated company or demerged company required to be registered +

from the date of certificate of incorporation.

Explanation (i) & (II)

The 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;

(ii) 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;

Aggregate turnover includes: +

Supply by agent on behalf of principal +

in turnover of agent

Aggregate turnover excludes +

Supply by job worker after job work +

From the turnover of Job worker


Amendment by CGST amendment act 2018 w.e.f. 01-Feb-2019

Following proviso has been added after 1st proviso to Section 22(1)


Section

Provision

Explanation

2nd Proviso to Section 22(1)

“Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified."

In the Explanation, in clause (iii), after the words “State of Jammu and Kashmir”, the words “and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.”.

Via amendment to Explanation (iii), Threshold limit for registration has been increased to Rs. 20 Lakhs w.e.f. 01-02-2019

Rs. 10 Lakh threshold limit only for the following 4 states

  1. Manipur
  2. Mizoram
  3. Nagaland
  4. Tripura

For rest of the states and union territories Threshold limit is 20/40 Lakhs as the case may be.


Special category states as per Constitution article 279A

Arunachal Pradesh, Assam, Jammu & Kashmir , Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand.

Section 23: Person not liable for Registration

This section overrides section 22 and 24. Any transaction or person specified or notified under this section not required to get registered even if they required to get registered as per section 22 or 24 or both.


Section

Bare Act

Explanation

1(a)

Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt (2(47)) from tax under this Act or under the Integrated Goods and Services Tax Act;

Exclusively supplying +

wholly exempt (Nil rated, exempted u/s 11+ non-taxable supply) +

or not liable to tax +

then no registration is required

 

1(b)

An agriculturist 2(7), to the extent of supply of produce out of cultivation of land.

Only Individuals and HUF +

undertakes cultivation of land +

in own or family’s supervision +

fall within the definition

Other than above doing the same work is not an agriculturist under GST act, Hence they are not exempt for taking registration under GST but they can go for 23(1)(a).

(2)

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.

Government have notified the following.

  1. 05/2017- CGST dated 19-06-2017
  2. 32/2017- CGST dated 15-09-2017 (amended by Notification 38/2017 dated 13-10-2017). - superseded by Notification 56/2018- dated 23th Oct. 2018
  3. 65/2017- CGST dated 15-11-2017 (as amended by Notification 06/2019 dated 29-01-2019).
  4. 56/2018- CGST dated 23-10-2018
  5. 10/2019- CGST dated 07-03-2019

In case of the following GST registration is not required:

  1. Person engaged in supplying the supply total tax on which is liable to be paid on reverse charge by the recipient u/s 9(3) of CGST act. - Notification 05/2017
  2. Person engaged in inter-state supplying handicraft goods where  PAN india basis turnover does not exceed Rs. 20 Lakhs and Rs. 10 Lakhs in case of special category states except jammu and Kashmir. W.e.f. 13-10-2017 few items added. W.e.f. 23-10-2018 table inserted specifying the items.—Notification 32/2017
  3. Person engaged in supplying interstate supply of service (other than notified u/s 9(5)) if PAN India aggregate turnover is less than 20 Lakhs and for special category states upto 10 Lakh. Notification 65/2017
  4.  Person engaged exclusively in supply of goods only and aggregate turnover does not exceed 40 Lakh Rupees except: Notification 10/2019

  1. Where person required to register as per Section 24.
  2. Engaged in notified goods.
  3. Making intra state supply from Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand.
  4. Person obtaining registration voluntarily.
  1. Person engaged in supplying supply not liable to tax or exempt for tax. Section 24(1)(a).
  2. An Agriculturist as definited u/s 2(7). Section 24(1)(b)

Section 24: Compulsory registration under GST

This section specify the persons who required to be get registered under GST even if turnover is less than


Section

Bare Act

Explanation

24(i)

Persons making any inter-State taxable supply

Engaged in +

inter-state supply +

even for less than threshold limit +

required to get himself registered.

W.e.f. 15/11/2017 person supplying interstate supply of service than he is not liable for register if turnover is less than 20 Lakhs.

(ii)

Casual taxable persons 2(20) making taxable supply

Occasionally undertakes supply +

from the state from where he does not have fixed establishments +

than he will liable to be registered in than state.

(iii)

Persons who are required to pay tax under reverse charge.

Receiving supplies +

tax on which liable to be paid under reverse charge +

than he shall be liable for GST registration.

It cover only section 9(3) notified goods and services. For Section 9(4) receipt should already be registered.

(iv)

Person who are required to pay tax under sub-section (5) of section 9

U/s 9(5) 3 services has been notified i.e. Accommodation, House keeping and Travelling of passengers. If these services are provided through e-commerce operator than that E-commerce operator need get itself registered.

(v)

Non-resident taxable persons  making taxable supply

Threshold limit of Rs. 10/20/40 Lakhs does not apply on Non-resident taxable person.

(vi)

Persons who are required to deduct tax under section 51, whether or not

separately registered under this Act;

Government departments, authorities, public sector units fall in this clause.

(vii)

Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

Agent supplying  +

on behalf of his principal (only if that principal is liable to be registered) +

Than agent liable to get registered

(viii)

Input Service Distributor, whether or not separately registered under this act

There is no Threshold limit of turnover for Input Service  distributor (ISD).

(ix)

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;

Supplying goods or service +

through E-commerce operator +

that supplier required registration without any threshold limit.

Exception: Notified u/s 9(5)

  1. Accommodation service. Eg. Through OYO
  2. Travelling of Passenger Eg. Through OLA
  3. House keeping Eg. Through Urban Clap

(x)

Every electronic commerce operator;

Who is required to collect tax at source u/s 54- Inserted by CGST amendment act 2018

Every E-commerce operator +

required to be registration without any turnover threshold limit.

Upto 31-01-2019, even e-commerce operators used for providing exempt supplies are also required to get registered but w.e.f. 01-02-2019 e-commerce operators used for taxable supplies are required to get themselves registered.

(xi)

Every person supplying online information and database access or retrieval services (OIDAR) from a place outside India to a person in India, other than a registered person;

OIDAR services provided +

to unregistered person +

that provide required to take registration.

Service provider to registered person is not required registration because that registered person (Recipient of service) is required to pay tax under reverse charge.

(xii)

Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

No notification has been issued


Other Important points:

1. Separate registration can be obtain for same business vertical in same state. - Rule 11

2. There are various types of registration

  1. Regular registration
  2. Composition scheme registration
  3. Casual taxable registration (Compulsory registration)
  4. Non-resident taxable registration (Compulsory registration)
  5. Input service distributor. (Compulsory registration)
  6. Tax deduction at source registration (Compulsory registration)
  7. Tax collection at source registration (compulsory registration if used for taxable supply)
  8. Unique identification number holder (Excluded from the definition of registered person)

3. Section 25 and rules 8 onwards provide registration procedure.

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Category GST, Other Articles by - CA Robin Garg 



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