Any business entity registering under the GST Law implies obtaining a unique number known as the GSTIN/UIN from the tax authorities so that the registered person can collect tax on behalf of the government and thereby avail Input tax credit for the taxes on his inward supplies. According to Section 22 (2), every person who is registered or holds a license or registration under any existing indirect tax law on the day immediately preceding the appointed day i.e. date on which the GST Act came into force, shall be liable to be registered under this Act with effect from the appointed day.
A.Liability for registration (section 22):
According to Section to 22(1) of the CGST Act, 2017, If the Supplier makes a taxable supply of goods or services from his State or Union territory and if his aggregate turnover exceeds 20 lakhs rupees in the financial year, he shall be liable to be registered. However, if such a person makes a taxable supply from any of the special categories of states, he shall be liable to be registered if his aggregate turnover exceeds 10 lakhs rupees in the financial year. However, as per Amendment act 2018, the threshold limit has been increased to 20 lakhs rupees for seven specified categories of states.
Aggregate Turnover Criteria’s:
Special category states have been mentioned below as per article 279 in the Constitution:
|Special Category states having threshold limit of 10 lakhs||Special Category states having threshold limit of 20 lakhs(After amendment)|
According to No. 10/2019- C.T. dated 7th March,2019, the threshold limit for registration for those engaged in the exclusive supply of goods has been increased to 40 lakh rupees. However, such persons who would not be permitted the threshold limit of 40 lakhs includes such persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand, any Person who is required to take compulsory registration under section 24,
A summary on the various threshold limits have been given below:-
|Supply||Threshold up to 10 lakhs||Threshold up to 20 lakhs||Threshold up to 40 lakhs|
|Supply of goods||Special Category of states as specified above||Seven Special Category of states as specified above||All other States|
|All other States||Special Category of states as specified above||All other states and Union territories||Not applicable|
B. Personal not liable for Registration(section 23):
According to section23(1) - persons who are not liable for Registration are listed below:
According to Section 23 (2)-
On the recommendations of the Council, Government may specify the category of persons who shall be exempted from obtaining registration under this Act.
As per No. 5/2017-C.T. dated 19th June 2017, the Government has exempt such persons who are engaged in making supplies of taxable goods wherein the total tax is payable by the recipient under reverse charge mechanism under section 9(3).
C. Compulsory Registration(section 24):
As per sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act:-
As per No. 10/2017- C.T. dated. 28th June 2017, Any person making an inter-state taxable supply of service and having an aggregate turnover not exceeding20 Lakhs , 10 lakhs for special category states, shall not be liable to compulsory registration under Section 24.
As per No. 08/2017- Integrated Tax dated. 14th September 2017, In case of inter-state supply of handicraft goods, where the aggregate turnover of such person does not exceed the threshold limit, they would not be liable to compulsory registration under Section 24. The same would also be applicable in case of a casual taxable person supplying handicraft goods as per N.N. 32/2017- C.T. dated. 15th September 2017.
Procedure for registration (Section 25) :
The procedure for Registration under GST Rule 8 of CGST act requires the applicant to file Form GST REG-01(Part A)
According to Section 25 (2), every person registering under this Act shall be permitted a single registration in a State or Union territory. Every person acquiring separate registration would be treated as distinct person.
As per N.N. 03/2019 – C.T. dated. 29th January 2019, any person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business in FORM REG-01 subject to the following conditions as prescribed in Rule 11:-
Amendment of registration (Section 28):
As prescribed under Rule 19, while registering if there is any change in particulars furnished, then the registered person will be required to furnish the details in FORM GST REG-14 within 15 days of time period along with all the relevant documents as it will be required for the approval of the change by the proper officer. Once the officer is satisfied regarding such an amendment, he shall permit an order in FORM REG-15.In case of amendment of the noncore field, the registration certificate would stand amended upon submission of application FORM GST REG-14.
Cancellation of registration (Section 29):
According to section 29(1), the proper officer either by his own motion or on an application filed by the registered person under Rule 20 in FORM GST REG 16 or by his legal heirs, in case of death of such person, can cancel the registration.
The Cancellation can be done in the following cases:
There are certain cases where cancellation is done by the officer
According to the section 23, A registered person whose registration is canceled by the proper officers on his own motion may submit an application for revocation of cancellation in the Form GST REG-21 .
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