Different Aspects of Registration under GST

by Legal Suvidha



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The Government is making endless efforts to launch the GST from July 1 which is hardly two months away. Moreover 60 lakh taxpayers have migrated to GST till now and the remaining will get enrolled soon with the reopen of Enrollment window.

Now the food for thought is WHAT NEXT?

The taxpayers who have migrated to GST have to step ahead with certain compliances of GST just after the Appointed day(July 1). The task is not yet completed with migration, it has the lot more to be done after the Implementation of GST. 

In this article, we will talk about the first step ie. Registration under GST.

Advantages of Registration in GST

• Legally recognized as supplier of goods or services. 

• Proper accounting of taxes paid on the input goods or services(ITC)  which can be utilized for payment of GST due on supply of goods or services or both by the business. 

• Legally 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. 

• Getting eligible to avail various other benefits and privileges rendered under the GST laws.

Person Liable for Registration: Section 22

• Every Supplier liable to be registered under this Act in the State from where he makes a taxable supply

• If aggregate Turnover exceeds Rs. 20 lakhs 

• In case of special category states and states covered in sub – clause (g) of clause (4) of Article 279A of Constitution – Limit is Rs. 10 lakhs 

(Arunachal Pradesh, Assam, J&K, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand)

Place of Registration

Every supplier shall be liable to be registered under GST,in the State or Union Territory(UT) from where he makes taxable(placeofbusiness) supply of goods  or services or both.

Place of business” includes––

• a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or

• a place where a taxable person maintains his books of account; or

• a place where a taxable person is engaged in business through an agent, by whatever name called

Effective Date of Registration

Cases Effective Date
If Applied within 30 days From the date on which the person becomes liable to registration
If Applied after 30 days Date of grant of Registration Certificate

Persons who are not Required to be Registered

• Employee provides services to employer

• Services by any court or Tribunal established under any law.

• Services of funeral, burial, crematorium or mortuary including transportation of the deceased. 

• Basket of Petroleum products viz. Crude, HSD, Motor Spirit, Natural Gas and ATF  (LPG under GST)

• Exclusively in the business of supply which are either not taxable or wholly exempt from tax.

• Actionable Claims other than Lottery, betting and gambling

• Supply  of alcoholic liquor for human consumption

• Sale of Land and Sale of Building

• Agriculturist, to the extent of supply of produce out of cultivation of land.

Persons who Compulsory require Registration

• Persons making any inter-State taxable supply; 

• Casual taxable persons; 

• Persons who are required to pay tax under reverse charge; 

• Electronic commerce operators required to pay tax under sub-section (5) of section 9; 

• Non-resident taxable persons; 

• Persons who are required to deduct tax under section 51; 

• Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise; 

• Input service distributor (whether or not separately registered under the Act) 

• Persons who are required to collect tax under section 52; 

• Every electronic commerce operator 

• Every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and, 

• 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

Different Types of Registrations

Casual and Non-Resident Taxable person:

• Casual and Non-resident TP shall apply for registration at lease five days prior to the commencement of business.

• Such registration shall be valid for a period specified in the application or 

• 90 days; whichever is earlier 

• Can be extended by proper officer – further period not exceeding ninety days.

• Make advance deposit of tax equivalent to the estimated tax liability for the period of registration.

• If extension is sought – additional despite.

• The deposit made – credited to ECL –utilised under Sec 49 

Input Service Distributor (ISD):

• "Input Service Distributor" means an office of the supplier of goods and / or services which receives tax invoices issued under section 31 towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of CGST (SGST in State Acts) and / or IGST paid on the said services to a supplier of taxable goods and / or services having same PAN as that of the office referred to above; 

• Separate registration to be taken as Input Service Distributor

• Credit of only input service to be distributed

• Not necessarily head office. Branch office may also.

Composite Dealer Registration:

A Registered person, whose aggregate turnover in the preceding financial year did not exceed fifty lakh rupees, may opt to pay, in lieu of the tax payable by him, an amount calculated at such rate as may be prescribed, but not exceeding,–

• 1 % of the turnover in State or turnover in Union territory in case of a manufacturer,

• 2.5 % of the turnover in State or turnover in Union territory in case of persons engaged in making supplies referred to in clause (b) of paragraph 6 of Schedule II, and

• 0.5 % of the turnover in State or turnover in Union territory in case of other suppliers,

Voluntary Registration

A person, 

> though not liable to be registered under Schedule V,

> may get himself registered voluntarily, and 

> all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person. 

• This option may be feasible if the person is undertaking B2B transaction – wherein ITC can be passed on.

• Once registered – no threshold limit benefit 

Display of Certificate and GSTIN

• Display of registration certificate:

> At his principal place of business; and 

> At every additional place of business

• Display of GSTIN number in the name board exhibited at the entry of 

> principal place of business; and 

> At every additional place of business

Penalty for Non Registration

• Assessee who is required to get registered under GST, when not registered within prescribed time limit, would invite a penal consequence of Rs. 10,000/- or the amount of tax evaded /non deducted / passed on whichever is higher 

• As per section 63 – PO may undertake best judgement assessment for unregistered persons. 

 



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