Registration under Proposed GST Regime

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 1^st 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.