GST Registration

Chapter VI of the Central Goods and Services Tax (CGST) Act 2017 (the Act) as passed by the Indian Parliament on 6 April 2017, provides for various matters on registration under the Act (and for the purposes of registration under the IGST Act 2017 and UTGST Act 2017) including person liable, not liable and ‘compulsorily liable’ for registration (as detailed below).

Section 2 of the Central Goods and Services Tax Act 2017 (CGST Act) lists the various definitions (subject to context) to various key words, terms and phrases, some of which for the purpose of ‘registration‘ have been provided below ––

Aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess.

Agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land—
(a) By own labour, or
(b) By the labour of family, or
(c) By servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family.

Appointed day” means the date on which the provisions of the Act shall come into force.

Business vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.

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/she/it has no fixed place of business.

Electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network.

Electronic commerce operator” means any person who owns, operates or manages digital or electronic facility or platform for electronic commerce.

Fixed establishment” means a place (other than the registered place of business) which is characterised by a sufficient degree of permanence and suitable structure in terms of human and technical resources to supply services, or to receive and use services for its own needs.

Goods” means every kind of movable property other than money and securities but includes actionable claim, growing crops, grass and things attached to or forming part of the land which are agreed to be severed before supply or under a contract of supply.

Input Service Distributor” means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.

Input tax” in relation to a registered person, means the central tax, State tax, integrated tax or Union territory tax charged on any supply of goods or services or both made to him and includes—
(a) the integrated goods and services tax charged on import of goods;
(b) the tax payable under the provisions of sub-sections (3) and (4) of section 9;
(c) the tax payable under the provisions of sub-section (3) and (4) of section 5 of the Integrated Goods and Services Tax Act;
(d) the tax payable under the provisions of sub-section (3) and sub-section (4) of section 9 of the respective State Goods and Services Tax Act; or
(e) the tax payable under the provisions of sub-section (3) and sub-section (4) of section 7 of the Union Territory Goods and Services Tax Act, but does not include the tax paid under the composition levy.

Input tax credit” means the credit of input tax.

Non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.

Services” means anything other than goods, money and securities but includes activities relating to the use of money or its conversion by cash or by any other mode, from one form, currency or denomination, to another form, currency or
denomination for which a separate consideration is charged.

Supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.

Taxable supply” means a supply of goods or services or both which is leviable to tax under the Act.


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Persons Liable for Registration (section 22)

The following persons are liable to be registered under the Act —

  • Aggregate turnover> Every ‘supplier’ is liable to be registered under the Act in the State or Union Territory (other than special category States) from where he/she/it makes a taxable supply of goods and/or services and aggregate turnover in a financial year exceeds Rs.20 lacs (for special category States, such threshold quantum is Rs.10 lacs).
  • Previous Registration> Every person who is previously registered or holds a license under an existing law (immediately prior to the appointed date) is liable to be registered under the Act with effect from the appointed day of the Act.
  • Transfer of business> Where a business carried on by a taxable person registered under the Act is transferred* (on account of succession or otherwise) to another person as a going concern, the transferee or successor (as the case may be) is liable to be registered with effect from the date of such transfer or succession.

*In a case of transfer pursuant to sanction of a Scheme or an Arrangement for Amalgamation or, as the case may be, De-merger 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 (ROC) issues a Certificate of Incorporation giving effect to such order of the High Court or Tribunal.

For the above said purposes of registration under the Act ––

  • 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.
  • 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.
  • The expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution of India.

MinusTax’ legal, Taxation, Revenue and Company law professionals via the e-medium (i.e. email, skype, whatsapp etc) provide the complete spectrum of services that include —

  • GST Planning and Advisory Services
  • Registration (via e-portal) and Migration (via ACES and State VAT) to GST
  • Drafting and e-filing GST Registration e-forms (GST REG-01 etc.)
  • Response to denial/rejection of Registration
  • Application of PAN (Permanent Account Number)/TAN (Tax Deduction and Collection Account Number)
  • Other ancillary assistance and services


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Voluntary Registration

A person, though not liable to be registered under section 22 or section 24 may get registered voluntarily, and all provisions of this Act (as are applicable to a registered person) shall apply to such person.


Persons not required to Register

  • 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)
  • An agriculturist (to the extent of supply of produce out of cultivation of land)
  • Notified category of persons


Registration Obligations, Procedure and Non-Registration Issues


Section 24
of the Act lists the persons obligated to be compulsorily registered under the Act irrespective of aggregate turnover etc, whilst section 27 contains special provisions relating to ‘casual taxable person‘ and ‘non-resident taxable person‘ for the purposes of registration.

Notwithstanding anything contained above in section 22, the following categories of persons are required to be registered under the Act —

  • Persons making any inter-State taxable supply
  • Casual taxable persons making taxable supply
  • Persons who are required to pay tax under reverse charge
  • Person who are required to pay tax under section 9(5) (notified services through electronic commerce operator) Non-resident taxable persons making taxable supply
  • Persons who are required to deduct tax under section 51 (Tax Deduction at Source), whether or not separately registered under this Act
  • Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
  • Input Service Distributor, whether or not separately registered under the Act
  • Persons who supply goods or services or both (other than supplies specified under section 9(5)) through such electronic commerce operator who is required to collect tax at source under section 52
  • Every electronic commerce operator
  • Every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person
  • Such other person or class of persons as may be notified by the Government on the recommendations of the Council


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The certificate of registration issued to a ‘casual taxable person’ or a ‘non-resident taxable person’ is valid for the period specified in the application for registration or 90 days from the effective date of registration (whichever is earlier), and such person can make taxable supplies only after the issuance of the said certificate of registration.

The proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of 90 days by a further period not exceeding 90 days.

  • Such person is required at the time of submission of application for registration to 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.
  • Where any extension of time is sought as above mentioned, such taxable person is required to deposit an additional amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
  • The amount so deposited is to be credited to the ‘electronic cash ledger’ of such person and shall be utilised in the manner provided under section 49.


Definitions (section 2)

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/she/it has no fixed place of business.

Non-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.


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Every person liable to be registered under section 22 or section 24 is required to apply for registration in every such State or Union territory in which he/she/it is so liable within 30 days from the date on which liability is incurred (in such manner and subject to such conditions as may be prescribed).

  • ‘Casual taxable person’ or a ‘Non-resident taxable person’ is required to apply for registration at least 5 days prior to the commencement of business.
  • Every person who makes a supply from the territorial waters of India is required to obtain registration in the coastal State or Union territory where the nearest point of the appropriate base line is located.
  • Person seeking registration is to be granted a single registration in a State or Union territory.
  • 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.
  • A certificate of registration shall be issued in such form and with effect from such date as may be prescribed.
  • 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) will in respect of each such registration, be treated as distinct persons for the purposes of the Act.
  • 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 will be treated as establishments of distinct persons for the purposes of this Act.
  • Every such person is required to have a Permanent Account Number (PAN) issued under the Income Tax Act 1961 in order to be eligible for grant of registration (person required to deduct tax under section 51 may have, in lieu of a PAN, a Tax Deduction and Collection Account Number (TAN) issued under the said Act in order to be eligible for grant of registration).


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Input Tax Credit Unavailability

The Act entitles (subject to such conditions and restrictions as may be prescribed and in the manner specified) registered persons to take credit of ‘input tax’ charged on any supply of goods or services or both to him/her/it, which are used or intended to be used in the course or furtherance of his business, and prohibits the collection of tax by an unregistered taxable person.


Compulsory Registration

Where a person is liable to be registered under the Act fails to do so, the ‘proper officer’ may (without prejudice to any action which may be taken under the Act or under any other law for the time being in force) proceed to register such person in such manner as may be prescribed, potentially leading to the below mentioned consequences.


‘Best Judgement’ Assessment

The proper officer may proceed to assess the tax liability of a taxable person who fails to obtain registration even though liable to do so, to the best of his/her judgement for the relevant tax periods and issue an assessment order within a period of 5 years from the date specified under section 44 for furnishing of the ‘Annual Return’ for the financial year to which the tax not paid relates.


Demand and Recovery

Demand and Recovery action may also be initiated against the unregistered person for any tax assessed as not paid.


Punishment and Penalty Liability

Penalty sums (potentially an amount equivalent to the tax evaded or the tax not deducted) may also be imposed on persons who liable to be registered under the Act but fails to obtain registration or furnishes any false information with regard to registration particulars, either at the time of applying for registration, or subsequently.


Goods/Conveyance Confiscation

Any person who supplies or receives any goods in contravention of any of the provisions of the Act or the rules made there under with intent to evade payment of tax, or does not account for any goods on which he is liable to pay tax or supplies any goods liable to tax without having applied for registration etc, all such goods and/or conveyances used for such purposes are liable to confiscation and the person liable to prescribed penalty.


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The GST portal and mobile application are available for GST Registration. In order to migrate to GST for existing Central Excise and Service Tax Assessees, a provisional ID and password can be obtained by logging into ACES portal, and used for registration through the GST portal by filling up the required details and uploading the supporting documents. For State VAT etc. assessees, the concerned State Commercial Tax Department would be providing the necessary information and details for GST Registration and may be contacted for such purposes.


GST Portal and Related Links

> GST Registration Status Check
> State Enrollment Schedule
> GST Enrollment (Android) App Download
> FAQs on Using the GST Common Portal
> User Manual (Mobile Application/Web Portal)
> State VAT Websites
> Video Based Tutorial


GST Migration (Central Excise and Service Tax Assessees)

> Step By Step Guide for Taxpayers
> Communication to Taxpayers regarding GST Migration
> GST Migration ‘Seva Kendras’
> FAQs on GST Migration
> Power Point on GST Migration
> Legal provisions of Migration

 

Draft Registration Rules and Formats

The Department of Revenue, Ministry of Finance via the Central Board of Excise and Customs (CBEC) have recently released the Draft ‘Rules’ and ‘Formats’ for GST Registration and Draft Model GST Law compliance purposes 

> Draft Registration Rules


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Administrative Help

For administrative assistance and general queries, please feel free to contact via —
Telephone: +91 8800 38 1950
Email: contact@minustax.com

Alternatively, please contact for an appointment and visit our representational office in DLF Phase IV, Gurgaon (click for Google Map directions).

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