Registration under Proposed GST Regime
Dear
Readers,
With
positive signals coming from the resolution of the deadlock between the Centre
and the States over ‘dual control’ issue, the possibility of implementation of
GST in India is positively looked at 1st July 2017.
In
this backdrop, let us understand some important concepts under the GST, to
begin with Registration.
Section 23
of the revised Model GST law requires every person who is liable to be
registered under Schedule V of this
Act, to register in every such State, within 30 days from when he becomes
liable.
Schedule
V requires every supplier shall be liable to register in the State from where
he makes a taxable supply, if his aggregate turnover1 in
a financial year exceeds Rs.20 lakhs. However, if you make a taxable supply from the
North-Eastern
States, or Himachal Pradesh, or Uttarakhand, or J&K, you will have to get
registered if your aggregate
turnover1 in a financial year exceeds Rs.10 lakhs.
Further
if the Principal (Registered Taxable Person) who on intimation, supplies inputs
without payment of tax to a registered job-worker, who intern supplies goods on
completion of job-work within 1 year, with payment of tax within India or
with/without tax for Export, shall be treated as supply of goods by the
principal and shall not be included in the aggregate turnover of the registered
job-worker.
Schedule
V further lists out the persons who are required / not-required to be
registered:
Persons NOT liable to be registered:
a)
Exclusively in
business of supplying goods and/or services which are not liable to tax or
wholly exempt from tax.
b)
Agriculturist.
Persons liable to be registered irrespective of
threshold:
1)
Person making
inter-State taxable supply;
2)
Person liable to
pay tax under reverse charge;
3)
Agents;
4)
Casual taxable
person2;
5)
Non-resident
taxable persons3;
6)
Person supplying
Online information and database access or retrieval services (OIDARS) from
place outside India to un-registered person in India;
7)
E-commerce
operators;
8)
Person who
supplies goods through e-commerce operators;
9)
Input Service
Distributor (ISD)4 (separate registration);
10) Person required to deduct tax at source (separate
registration);
11) Person required to collect tax at source (separate
registration);
12) Such other person as may be notified by the Govt.
Schedule
V further states that every person who is registered under the earlier law,
shall be liable to be registered with effect from the appointed day5.
Other
requirements for registration are:
a)
For the purpose
of registration PAN is compulsory, except for non-resident taxable person for
whom any other document will be prescribed.
b)
For the purpose
of tax deduction, TAN is compulsory.
c)
Specialised
agency of UNO or organisations notified under United Nations (Privileges and
Immunities) Act, 1947, shall be granted Unique Identity Number. Any other person notified by Commissioner
shall also obtain Unique Identity Number.
d)
Voluntary
registration is permissible under the Act.
e)
Separate
registration is permissible for multiple business verticals in a same State.
The
Govt. may notify categories of persons exempted from obtaining registration.
Special
provisions for casual taxable person or a non-resident taxable person:
1)
A casual taxable
person or a non-resident taxable person shall apply for registration at least 5
days prior to commencement of business.
2)
Casual taxable
person or a non-resident taxable person can do supplies only after issuance of
certificate of registration.
3)
Casual taxable
person or a non-resident taxable person to pay advance tax for estimated tax liability at the time of application
for registration. He shall be given a
temporary identification number for the same.
4)
Certificate
issued to a casual taxable person or a non-resident taxable person shall be
valid for the period specified in the application or 90 days from the effective
date of registration, whichever is earlier, which can be extended on request by
further period not exceeding 90 days.
Certificate
of Registration shall be effective from the date person becomes liable to
register, where application is submitted within 30 days from such date, else
date of grant of registration.
Every
Registration Certificate shall be displayed at prominent location at the
principal place of business and at every additional place of business. The GSTIN (which will be 15 digit alpha
numeric structure) shall be displayed in the name board exhibited at the entry
of the principal place of business and at every additional place of business.
In the next paper we shall see the proposed draft forms prescribed under the Draft Registration Rules and cancellation of registration.
Trust the above information is found useful to the readers.
Comments, suggestions and improvements are most welcome.
Best Wishes,
Amol Mahajan.
1.aggregate turnover = All India, Taxable + Exempt
(Not Taxable + Nil Tax + Exempt u/s 11 by notification or order) + Exports +
Inter-State, supplies of goods and/or services having same PAN, but does not
include = CGST + SGST + IGST + Reverse charge supplies + Inward supplies.
2.Casual
taxable person – means a person who occasionally supply goods and/or services
in the course or furtherance of business, in a taxable territory where he has
no fixed place of business.
3. Non-resident taxable person
– means a taxable person who occasionally supply goods and/or services in
India, where he has no fixed place of business.
4.Input Service Distributor (ISD) – means Office of
the supplier of goods and/or services which receives tax invoice for receipt of
input services and issues prescribed document for distribution of credit of
CGST/SGST/IGST, to the supplier of taxable goods and/or services having same
PAN.
5.Appointed day – means the day on which section 1 of
the Act comes into effect.
