Introduction to GST Registration
Goods and Services Tax, which is commonly known as GST is one of the biggest tax reforms this country has seen. Goods and Services Tax is a destination-based tax and is a single tax that subsumes previously existing taxes such as Central Excise, VAT, Entry Tax, Octroi, Service Tax, etc. So, basically GST replaces all the indirect taxes levied on goods and services by States and Central government.
GST was rolled out nationwide on July 1, 2017. GST in India follows a dual model where both the State and the Central government levy tax on goods and services.
All businesses are required to obtain a GST identification number (GSTIN) in every state the business is making outward supplies. The first step in the adoption of this new taxation regime is to assess whether the business is liable to register and accordingly obtain the GST registration.
Liability for GST Registration
The threshold limit for turnover beyond which a taxable person will be liable to apply for GST registration is as follows –
Up to March,2019
- Special category states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) – INR 10 lakhs
- Rest of India – INR 20 lakhs
From 1st April,2019
- Special category states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) – INR 20 lakhs
- Rest of India – INR 40 lakhs
In the 32nd GST council meeting held on 10th January 2019, States are given an option to opt for new registration limits or can continue with the previous threshold.
All existing dealers registered with any of the current laws (VAT/Excise/Service Tax) will also need to register under GST by default.
Important Note: The turnover considered here is the aggregate pan-India turnover (including value of taxable, exempt and export supplies) of a business entity, and not state-wise.
Mandatory GST Registration
As per the Goods & Service Tax registration guidelines, the following categories of suppliers need to mandatorily register irrespective of turnover:
- Taxable person carrying on interstate supplies
- Casual and non-resident taxable persons
- Businesses liable to pay tax under reverse charge
- Agents supplying on behalf of a taxable person
- Input service distributor
- Sellers on e-commerce platforms
- All e-commerce operators
- Person supplying online information and database access or retrieval services from outside India to an unregistered person in India
- Persons responsible to deduct TDS
GST Registration Procedure
For Dealers Registered under Existing Central and State Tax
- All the dealers registered under existing law and having a PAN, shall access the common GST portal and enrol by validating his e-mail ID and Mobile Number
- Upon enrolment for GST, a dealer will be allotted with a provisional certificate of registration in Form GST REG-25. If a dealer has obtained multiple registration on the basis of single PAN under existing law, such dealer will be granted only one provisional Registration. In case of centralized registration under Service Tax, a dealer will be granted with single provisional registration in the state or union territory in which the he was registered earlier.
- Within 3 months, dealers are required to submit Form GST REG-24in the GST Portal along with information and GST registration documents as prescribed.
- If the information provided is complete and satisfactory, final registration certificate will be issued in Form GST REG-06.
- If the details submitted are not satisfactory, a show cause notice will be issued in Form GST REG-27, and there will be a hearing before cancelling the provisional registration. If the show cause hearing is not successful, or if the details are not provided within the stipulated period, the provisional registration allotted in Form GST REG-25will be cancelled by issuing an order in Form GST REG-26.
- During transition, if a taxable person is not required to register under GST, but was previously registered (Central and State law), he has an option to cancel the provisional registration issued by submitting the Form GST REG-28.
For New Businesses / New GST Registrations
Whether one is a regular dealer or a composite tax payer, one needs to do the following for obtaining new GST registration:
- Fill Part-A of Form GST REG-01. Provide PAN, mobile number, and E-mail ID, and submit the form.
- The PAN is verified on the GST Portal. Mobile number, and E-mail ID are verified with a one-time password (OTP).
- One will receive an application reference number on one's mobile and via E-mail.
- Fill Part- B of Form GST REG-01and specify the application reference number received. Attach other required documents and submit the form. Following is the list of documents to be uploaded –
- Photographs: Photographs of proprietor, partners, managing trustee, committee etc. and authorized signatory
- Constitution of taxpayer : Partnership deed, registration certificate or other proof of constitution
- Proof of principal / additional place of business :
- For own premises – Any document in support of the ownership of the premises like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
- For rented or leased premises – copy of rent / lease agreement along with owner's (landlord) documents like latest property tax receipt or Municipal Khata copy or copy of electricity bill.
- Bank account related proof : Scanned copy of the first page of bank pass book or bank statement
- Authorization forms: For each authorized signatory, upload authorization copy or a copy of resolution of managing committee or board of directors in the prescribed format.
- If additional information is required, Form GST REG-03will be issued. One needs to respond in Form GST REG-04 with required information within 7 working days from the date of receipt of Form GST REG-03.
- If one have provided all required information via Form GST REG-01or Form GST REG-04, a certificate of registration in Form GST REG-06 will be issued within 3 days from date of receipt of Form GST REG-01 or Form GST REG-04.
- If the details submitted are not satisfactory, the registration application is rejected using Form GST REG-05.
For Other Stakeholders
Form GST REG-07
Application for Registration as Tax Deductor or Tax Collector at Source
Form GST REG-08
Order of Cancellation of Application for Registration as Tax Deductor or Tax Collector at Source
Form GST REG-09
Application for Registration for Non Resident Taxable Person
Form GST REG-09A
Application for registration for a person supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient
Form GST REG-10
Application for extension of period of operation by Casual Taxable person and Non-Resident Taxable Person
Form GST REG-12
Application for allotment of Unique ID to UN organizations or Multilateral Financial Institution or any other class of person as notified by the commissioner
Amending GST Registration Details
- Any change in details furnished at the time of registration must be submitted within 15 days from the date of such changes in Form GST REG-13.
- Specific changes in Form GST REG-11relating to the name of the business, partner details, managing committee, and so on, require approval from an officer. After verification, an approval order by the officer is sent in Form GST REG-14 to amend the details.
- Changes in business details that result in change of PAN number of the registered tax payer, require a fresh registration in Form GST REG-01.
Cancellation of GST Registration Online
Applying for Cancellation of Online GST Registration
- A registered taxable person seeking cancellation of registration, should submit Form GST REG-14along with details of closing stock (Inputs, Semi finished goods, finished goods and capital goods), tax liability and tax payment along with relevant documents within 30 days.
- A taxable person who has voluntarily registered is allowed to apply for cancellationonly after completion of 1 year of registration.
Cancellation of GST Registration by an officer
The registration granted to a taxable person will be cancelled by officer under following cases:
- Business is not conducted from the declared place of business
- Invoice or bill is issued without supply of goods or services in violation of the provisions of this Act, or the rules
- A Regular dealer has not furnished returns for consecutive 6 months / A Composition dealer has not furnished returns for 3 consecutive quarters
- Business discontinued, amalgamated with other entity, demerger
- Change in constitution of business
- Registration has been obtained by means of fraud, wilful misstatement or Suppression of facts etc.
GST Registration Cancellation process
- A notice in Form GST REG-16will be issued to the taxable person to show cause Within 7 days, the taxable person need to respond to the notice as Why his registration should not be cancelled in Form GST REG 17
- If the reply is found to be satisfactory, the officer will drop the cancellation proceedings by issuing an order in Form GST REG-19. If the details are not satisfactory, the officer will issue an order in Form GST REG 18for cancelling the registration within 30 days from the date of show cause
Revoking a Cancelled GST Registration
- In case the registration is cancelled by an officer, a taxable person can apply for revocation by submitting Form GST REG-20within 30 days from date of cancellation order
- If the officer is satisfied, the cancellation is revoked by issuing an order in Form GST REG-21within 30 days from date of such application
- If the officer is not satisfied, the revocation application is rejected in Form GST REG-5. Prior to this rejection, the taxable person will be issued a show cause notice in Form GST REG-22and the taxable person need reply within 7 working days with the details as Why the application submitted for revocation should not be rejected in Form GST REG-23