Registration under GST regime

Registration under Goods and Services Tax Act, 2017 is very simple and free from hurdles like surety bonds and other unforeseen expenses under old VAT system. The dealer will automatically get registration under GST Act after fulfilling the formalities explained in GST Rules within 3 working days from the date of submission of application as per Rule 9(1).

Every supplier is liable for registration whose aggregate turnover in the financial year exceeds twenty lakhs rupees other then special category states. Aggregate turnover for the Special category states (As per article 279A of the Constitution of India, Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttrakhand) is ten lakhs rupees. Eligible person must file an application for registration within 30 days from the date on which he becomes liable for registration.

Person making any interstate taxable supply, pay tax under reverse charge, required to deduct tax, make taxable supply whether as an agent or otherwise, causable taxable person making taxable supply, supplying on line information, Input Service Distributor, every electronic commerce operator etc., are to get compulsory registration as per Section 24 of the GST Act. Casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of the business.

Certificate of registration to a casual person or a non-resident taxable person shall be issued for 90 days only. This period can be extended by proper officer for further period not exceeding 90 days. They are to deposit advance tax on estimation basis for the period of registration sought.

Any person engaged in exclusively in the business of supplying of goods or service or both that are wholly exempt from tax and an agriculturist to the extent of supply of produce out of cultivation of land, are not liable for registration.

Where the business is transferred on account of succession or otherwise, then the transferee or the successor shall be liable for registration with effect from the date of such transfer or succession. He should apply within 30 days from the date of transfer or succession. In the case of an arrangement for amalgamation or de-merger of two or more companies, the transferee shall be liable from the date on which the Registrar of Companies issues a certificate of incorporation.

United Nations Organizations or any Multilateral Financial Institution and Consulate or Embassy of foreign countries shall be granted a Unique Identity Number for the purposes of refund of taxes.     

Registration can be cancelled on an application filed by the registered person or by his legal heirs, in case of death of such person. Change in constitution, amalgamation or demerger or discontinuation of business will cause the cancel the registration under GST Act.

Registration can be cancelled from retrospective date by proper officer in the case of contravention of any provision, not paying tax or not filing returns for three consecutive tax periods in the case of composition scheme and in other case for six months, not commenced business within six months in the case of voluntary registration, registration obtained by means of fraud, willful misstatement or suppression of facts. Proper Officer shall not cancel the registration without giving the person an opportunity of being heard.

Cancellation order can be revoked within 30 days from the date of service of the cancellation order.

Place of business can be verified by Proper Officer after grant of registration.  Verification report along with the other documents, including photographs shall be uploaded on common portal within a period of 15 working days following the date of such verification.

The author can also be reached at rkjadvocate@yahoo.co.in.

Procedural aspects in GST registration will be summed up in next article.