September 19, 2019

Registration under GST

Registration under GST

Registration Limit

Under the GST regime, tax is payable by the taxable person on the supply of goods and/or services

  • when the taxable person crosses the threshold exemption, i.e. Rs.20 lakhs
  • For some specified states, the threshold exemption is Rs. 10 lakhs for NE States(which includes 7 north Eastern states and 4 hilly states)

Mandatory registration: irrespective of threshold limits

  1. Persons making any inter-State taxable supply;
  2. casual taxable persons(Sec 2(21));
    • It means a person who occasionally undertakes transactions in a taxable territory where he has no fixed place of business.
  3. persons to pay tax under reverse charge;
  4. non-resident taxable persons (Sec 2(69));
    • 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
  5. persons who  deduct tax under section 37;
  6. persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
  7. input service distributor(Sec2(56));
    •  It is basically an office meant to receive tax invoices towards receipt of input services and
    • further distribute the credit to supplier units proportionately.
  8. persons who supply goods and/or services, other than branded services, through electronic commerce operator;
  9. every electronic commerce operator;
  10. an aggregator who supplies services under his brand name or his trade name; and
  11. 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.


Advantage of taking registration

Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:

  • Registered supplier of goods or services.
  • Claim Input Tax Credit(i.e. tax paid on purchases of goods)
  • A registered dealer is 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.

A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.

Time limit for taking 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.

Multiple business verticals in a state

If a person is having multiple business verticals in a state then he may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.

Voluntarily registration is possible under GST

  •  A person 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.

 Registration Certificates

Registration Certificate once granted to any person is permanent unless surrendered, cancelled, suspended or revoked.

 Permanent Account Number (PAN) mandatory for obtaining a Registration

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 Model GST Law.

A person required to deduct tax under section 46 shall have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number (TAN) issued under the said Act in order to be eligible for grant of registration.

PAN is not mandatory for a non-resident taxable person who is taking registration on the basis of any other document as may be prescribed.

 If a person is operating in different states, with the same PAN number

 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.

If a person liable to registration fails to obtain registration

 Where a person who is liable to be registered under this Act fails to obtain registration,

then 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.

Application for Cancellation of Registration

 The proper officer can reject an application for registration after due verification.

However, the proper officer cannot 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.