Registration – CA Inter Tax Question Bank is designed strictly as per the latest syllabus and exam pattern.
Registration – CA Inter Tax Question Bank
Question 1.
Determine with brief reasons, whether the following statements are True or False :
Registration under the CGST Act, 2017 can be cancelled by the proper officer, if the voluntarily registered person has not commenced the business within three months from the date of Registration. (Nov 2018, 1.5 marks)
Answer:
(i) The said statement is False.
Registration under the CGST Act, 2017 can be cancelled by the proper officer, if the voluntarily registered person has not commenced the business within six months from the date of registration.
Question 2.
State the persons who are not liable for registration as per the provisions of Section 23 of Central Goods and Service Tax Act, 2017. (Nov 2018, 5 marks)
Answer:
As per provisions of Section 23 of CGST Act, 2017, the persons who are not liable for registration are as under-
(a) Person engaged exclusively in supplying goods/services/both that are wholly exempt from tax.
(b) Person engaged exclusively in supplying goods/services/both that are not liable to tax.
(c) Agriculturist to the extent of supply of produce out of cultivation of land.
(d) Persons only engaged in making supplies of taxable goods or services or both liable to reverse charge.
(e) Persons making inter-State supplies of taxable services up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category
States except Jammu and Kashmir).
(f) Casual Taxable Persons making taxable supplies of specified handicraft goods up to an aggregate turnover of ₹ 20 lakh ₹ 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.
(g) Persons making inter-State supplies of specified handicraft goods up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.
(h) Job workers making inter-State supply of services to a registered person up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.
(i) Persons making supplies of services through an electronic commerce operator (other than supplies specified under section 9(5) of the CGST Act) up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir).
[Note – Any 5 points may be mentioned]
Question 3.
Mr. Allan, a non-resident person, wishes to provide taxable supply of goods. He has no fixed place of business or residence in India. He seeks your advise on the following aspects, relating to CGST Act, 2017 :
(i) When shall he apply for registration?
(ii) Is PAN mandatory for his registration?
(iii) What is the period of validity of RC granted to him?
(iv) Will he be able to extend the validity of his registration? If yes, what will be the period of extension? (Nov 2018, 5 marks)
Answer:
(i) Mr. Allan, being a non-resident person, should apply for registration, irrespective of the threshold limit, at least 5 days prior to the commencement of business.
(ii) No, PAN is not mandatory for his registration.
He has to submit a self-attested copy of his valid passport along with the application signed by his authorized signatory who is an Indian Resident having valid PAN.
However, in case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its PAN, if available.
(iii) Registration Certificate granted to Mr. Allan wilt be valid for:
(a) Period specified in the registration application, or
(b) 90 days from the effective date of registration whichever is earlier.
(iv) Yes, Mr. Allan can get the validity of his registration extended. Registration can be extended further by a period not exceeding 90 days.
Question 4.
Answer the following questions with respect to casual taxable person under the CGST Act, 2017:
(i) Who is a casual taxable person?
(ii) Can a casual taxable person opt for the composition scheme?
(iii) When is the casual taxable person liable to get registered?
(iv) What is the validity period of the registration certificate issued to a *• casual taxable person?
(v) Can the validity of registration certificate issued to a casual taxable person be extended? If yes, what will be the period of extension? (May 2019, 5 marks)
Answer:
(i) Casualtaxable person means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State/UT where he has no fixed place of business.
(ii) No, a casual taxable person cannot opt for the composition scheme.
(iii) A casual taxable person (GTP) is liable to obtain registration compulsorily under GST laws, at least 5 days prior to commencement of business. However, threshold limit of ₹ 20 lakhs (₹ 10 lakhs in case of Special Category States other than Jammu & Kashmir) is available in case of CTP making taxable supplies of specified handicraft goods.
(iv) The registration certificate issued to a casual taxable person will be valid for:
(a) the period specified in the registration application, or
(b) 90 days from the effective date of registration whichever is earlier.
(v) Yes, the validity of registration certificate issued to a casual taxable person can be extended.
It can be extended by a further period not exceeding 90 days.
Question 5.
Under the provision of section 29(1) of CGST Act, 2017 read with rule 21A of CGST Rules, 2017 related to suspension of registration if the registered person has applied for cancellation of registration, what is the period and manner of suspension of registration? (Jan 2021, 5 marks)
Question 6.
Explain the circumstances under which proper officer can cancel the registration on his own of a registered person under CGST Act, 2017. (Jan 2021, 5 marks)
Question 7.
Determine the effective date of registration in the following instances:
(i) The aggregate turnover of Madhu Ltd..engaged in taxable supply of services in the state of Punjab, exceeded ₹ 20 Lakhs on 25th August, 2020. It applies for registration on 19th September, 2020 and is granted registration certificate on 29th September, 2020.
(ii) What will be your answer, if in the above scenario, Madhu Ltd. submits the application for registration on 27th September, 2020 and is granted registration on 5th October, 2020? (May 2018, 4 marks)
Answer:
(i) The registration shall be effective from the date on which the person becomes liable to registration provided that the application for registration is submitted within 30 days from such date. In the given case, since Madhu Ltd. applies for registration on 19th September 2020, within 30 days from 25th August 2020, Hence the effective date of registration will be 25th August 2020. It is irrelevant when the registration certificate is granted.
(ii) If in the case above, instead of 19th September if he applies on 27th September i.e. after the expiry of 30 days from the date of his becoming liable for registration the date of effective registration will be the date of grant of registration i.e. 5th October 2020.
Question 8.
State with brief reason, whether following suppliers of taxable goods are required to register under the GST Law:.
(i) Mr. Raghav is engaged in wholesale cum retail trading of medicines in the State of Assam. His aggregate turnover during the financial year is ₹ 9,00,000 which consists of ₹ 8,00,000 as Intra-State supply and ₹ 1,00,000 as Inter-State supply.
(ii) Mr. S.N Gupta of Rajasthan is engaged in trading of taxable goods on his own account and also acting as an agent of Mr. Rishi of Delhi. His turnover in the financial year 2019-20 is of ₹ 12 lakhs on his own account and ₹ 9 lakhs on behalf of principal. Both turnovers are Intra- State supply. (May 2019, 4 marks)
Answer:
(i) Person making any inter-State taxable supply of goods is required to obtain registration compulsorily under GST laws irrespective of the quantum of aggregate turnover.
Thus, in the given case Mr. Raghav is required to obtain registration compulsorily under GST laws even though his aggregate turnover does not exceed the threshold limit of ? 10 lakhs [since Assam is a Special Category State] in the financial year.
(ii) Persons who make taxable supply of goods on behalf of other taxable persons whether as an agent or otherwise are required to obtain registration compulsorily under GST laws irrespective of the quantum of aggregate turnover. Aggregate turnover includes all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. Since Mr. S.N Gupta is also acting as an agent of Mr. Rishi of Delhi, he is required to obtain registration compulsorily under GST laws.
Question 9.
Explain the registration requirements under GST law in the following independent cases:
(i) Mr. Ahmad of Jammu engaged in the business of supplying tobacco based Pan Masala with an aggregate turnover of ₹ 24 lacs.
(ii) Mr. Lepcha of Mizoram is engaged in the supply of papers with an aggregate turnover of ₹ 13 lacs.
Will your answer be different if Mr. Lepcha is located in Meghalaya? (Nov 2019, 5 marks)
Answer:
(i) Mr. Ahmad of Jammu is exclusively engaged in supply of tobacco based pan masala, he will not be eligible for higher threshold limit of ₹ 40 lakhs and the applicable threshold limit for registration in that given case will be ₹ 20 lakhs. Thus, in the given case, Since Mr. Ahmad aggregate turnover of tobacco based pan masala is ₹ 24 Lacs, he will be liable to get registered under GST.
(ii) The enhanced threshold limit of ₹ 40 lakh as applicable to a person engaged exclusively in intra-State supply of goods, is not applicable to Mizoram (a specified Special Category State). Instead, a lower threshold limit of ₹ 10 lakh for registration is applicable for Mizoram. Thus, in the given case, Mr. Lepcha of Mizoram is liable to register since his aggregate turnover 13 lakh) exceeds the applicable threshold limit for registration of ₹ 10 lakh.
The enhanced threshold limit of ₹ 40 lakh is also specifically not applicable in the State of Meghalaya. Instead, the normal threshold limit of ₹ 20 lakh for registration is applicable to it.
Therefore, if Mr. Lepcha is located in Meghalaya, he is not liable to register since his aggregate turnover (₹ 30 lakh) does not exceed the applicable threshold limit for registration of ₹ 20 lakh.
Question 10.
Explain in brief the conditions to be fulfilled by a registered person under GST law for availing the option to pay concessional tax @ 3% (effective rate 6%) under GST as per the provisions of notification number 2/2019 CT(R) dt. 7-3-2019 as amended, with effect from 1st April, 2019. (Nov 2019, 5 marks)
Answer:
The conditions for availing the concessional rate of tax under Notification No. 2/2019 CT (R) are primarily same as the conditions for availing the composition scheme with few exceptions. The same have been elaborated as under:
1. Supplies are made by a registered person who is:
- not engaged in making any supply which is not leviable to tax under the said Act. Under composition scheme, restriction is only on supply of goods not leviable to tax.
- not engaged in making any inter-State outward supply – neither of goods nor of services. This condition is a divergence from the composition scheme where the restriction is only on making inter-State outward supply of goods and not on inter-State outward supply of services.
- neither a casual taxable person nor a non-resident taxable person.
- not engaged in making any supply through an electronic commerce operator who is required to collect tax at source under Section 52.
- not engaged in making supplies of notified goods, namely, ice cream and other edible ice, whether or not containing cocoa [2105 00 00], Pan masala [2106 90 20] and all goods of Chapter 24, i.e. Tobacco and manufactured tobacco substitutes. Under composition scheme, condition is that the supplier should not be engaged in manufacture of notified goods.
2. The registered person shall not collect any tax from the recipient on supplies made by him nor shall he be entitled to any credit of input tax.
3. The registered person shall issue a bill of supply** instead of tax invoice. Such bill of supply will have the following words at its top- ‘taxable person paying tax in terms of Notification No. 2/2019 CT (R) dated 07.03.2019, not eligible to collect tax on supplies’.
“Order No. 3/2019 CT dated 08.03.2019 has clarified that provisions of Section 31 (3)(c) of the CGST Act, 2017 [containing provisions relating to Bill of Supply] shall also apply to a person paying tax under this notification.
Question 11.
BBD Pvt. Ltd. of Gujarat exclusively manufactures and sells product ‘Z’ which is exempt from GST vide notifications issued under relevant GST legislations. The company sells ‘Z’ only within Gujarat and is not registered under GST laws. The turnover of the company in the previous year 2019-20 was ₹ 50 lakh. The company expects the sales to grow by 10% in the current year 2020-21.
However, effective from 01.01.2021 exemption available on ‘Z‘ was withdrawn by the Central Government and GST @ 5% was imposed thereon. The turnover of the company for the nine months ended on 31.12.2020 was ₹ 42 lakh.
BBD Pvt. Ltd. is of opinion that it does not require to get registered under GST for current financial year 2020-21.
Examine the above scenario and advise BBD Pvt. Ltd. whether it needs to get registered under GST or not ? (Nov 2020, 4 marks)
Question 12.
What is the time limit for taking a Registration under GST Law?
Answer:
Every person should take a Registration, within 30 days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed. Provided casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.
Question 13.
If a person is operating in different states, with the same PAN number, whether he operate with a single Registration?
Answer:
Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Section 25(1) of GST Law.
Question 14.
Whether a person having multiple business verticals in a State can obtain different registrations?
Answer:
In terms of Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
Question 15.
Is there a provision for a person to get himself registered voluntarily though he may not be liable to pay GST?
Answer:
In terms of Sub-section (3) of Section 25 a persons, though not liable to be registered under Section 22, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
Question 16.
Is possession of a Permanent Account Number (PAN) mandatory for obtaining a registration?
Answer:
Every person shall have a Permanent Account Number issued under the income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under Section 22 of the Act.
Question 17.
Whether the department through the proper officer, Suo moto proceed with registration of a Person under this Act?
Answer:
In terms of Sub-Section 8 of Section 25, Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed Suo moto.
Question 18.
What is the validity period of the Registration certificate issued to Casual Taxable Person and non-Resident Taxable person?
Answer:
The certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period of 90 days from the effective date of registration. A proviso has been made available in this statute by enshrining a discretionary authority for the proper officer, who may at the request of the said taxable person, extend the validity of the aforesaid period of 90 days by a further period not exceeding 90 days.
Question 19.
Is there any Advance tax to be paid by Casual Taxable Person and non-Resident Taxable person at the time of obtaining Registration under this Special Category?
Answer:
Yes, it has been made mandatory in the Act, that a casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under section 27(2), make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. This provision of depositing advance additional amount of tax equivalent to the estimated tax liability of such person is applicable for the period for which the extension beyond 90 days is being sought.
Question 20.
Whether Cancellation of Registration Certificate is permissible?
Answer:
Any Registration granted under this Act may be cancelled by the Proper Officer, on various circumstances and the provisions of the law on this subject have been out lined under Section 29 of the Act. The proper officer ^nay, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed.
Question 21.
Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?
Answer:
The cancellation of registration under the CGST Act/ SGST Act shall be deemed to be a cancellation of registration under the SGST Act/ CGST Act mutually.
Multiple Choice Question
Question 1.
How the aggregate turnover of ₹ 20 Lakh is calculated?
(a) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis.
(b) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person computed for each state separately.
(c) Aggregate value of all taxable intrastate supplies, export of goods/services and exempt supplies of a person having same PAN. computed for each state separately.
(d) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis and excluding taxes if any charged under CGST Act, SGST Act and IGST Act.
Answer:
(d) Aggregate value of all taxable supplies, exempt supplies, export of goods/services and interstate supplies of a person having same PAN computed on all India basis and excluding taxes if any charged under CGST Act, SGST Act and IGST Act.
Question 2.
Whether all persons are mandatorily required to obtain registration?
(a) Yes
(b) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services and for others if specified threshold limit exceeds in a financial year.
(c) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services.
(d) No, only if specified threshold exceeds in a financial year then only need to obtain.
Answer:
(b) Not required if he is an agriculturist or person exclusively engaged in supplying exempt goods or services and for others if specified threshold limit exceeds in a financial year.
Question 3.
Which one of the following is true?
(a) A person can’t collect tax unless he is registered.
(b) Registered person not liable to collect tax till his aggregate turnover exceeds ₹ 20 lakhs/₹ 10 Lakhs as the case may be.
(c) A person can collect the tax during the period of his provisional registration.
(d) Both (a) and (b) are correct.
Answer:
(a) A person can’t collect tax unless he is registered.
Question 4.
Which of the following forms are used for registration?
(a) Form GSTR-1
(b) Form GSTR-2
(c) Form GST REG-01
(d) Form GST REG
Answer:
(c) Form GST REG-01
Question 5.
Within how many days a person should apply for registration?
(a) Within 60 days from the date he becomes liable for registration
(b) Within 30 days from the date he becomes liable for registration
(c) No Time Limit
(d) Within 90 days from the date he becomes liable for registration
Answer:
(b) Within 30 days from the date he becomes liable for registration
Question 6.
Which one of following statements are correct?
(a) Voluntary registered person not possible under GST.
(b) Voluntarily registered person not liable to comply with all the provisions of the GST.
(c) A person may get himself registered voluntarily and shall comply with all the provisions of GST.
(d) None of the above
Answer:
(c) A person may get himself registered voluntarily and shall comply with all the provisions of GST.
Question 7.
PAN issued under the Income Tax Act is mandatory for grant of registration.
(a) It is one of the documents listed.
(b) Yes, but non-resident taxable person may be granted registration on the basis of any other document.
(c) No, for persons who are required to deduct tax at source u/s 51 shall have TAN in lieu of PAN.
(d) Both (b) and (c)
Answer:
(d) Both (b) and (c)
Question 8.
An E-commerce operator should get registered irrespective of his threshold limit?
(a) Yes
(b) No, required to register only if his aggregate turnover exceeds the threshold limit
(c) Yes, if he is located in North-western states.
(d) He is required to register if he is liable to collect tax at source and his aggregate turnover exceeds the threshold limit.
Answer:
(a) Yes
Question 9.
What is the validity of the registration certificate?
(a) One year
(b) No validity
(c) Valid till it is cancelled
(d) Five years.
Answer:
(c) Valid till it is cancelled
Question 10.
Which of the following statements are correct?
(a) Persons who are required to deduct tax under section 51 shall obtain registration irrespective of the threshold specified
(b) Persons who are required to collect tax under section 52 shall obtain registration irrespective of the threshold specified.
(c) Every electronic commerce operator shall obtain registration irrespective of the threshold specified.
(d) Persons who required to pay tax under section 9 shall obtain registration irrespective of the threshold specified.
(e) All of the above statements
Answer:
(e) All of the above statements
Question 11.
A person not required to obtain registration if he is required to pay tax under reverse charge and there are no taxable supplies made by him.
(a) Incorrect, if person who are required to pay tax under reverse charge, irrespective of threshold shall obtain registration.
(b) Incorrect, if person who are required to pay tax under reverse charge obtain registration only if such value of supplies under reverse charge exceeds the threshold limit.
(c) Above statement is correct
(d) A person is required to obtain registration if he is required to pay tax under reverse charge and also he is also making taxable supplies irrespective of the threshold limit.
Answer:
(a) Incorrect, if person who are required to pay tax under reverse charge, irrespective of threshold shall obtain registration.
Question 12.
What is the validity of the registration certificate issued to casual taxable person and non-resident taxable person?
(a) 90 days from the effective date of registration
(b) Period specified in.the application for registration
(c) Earliest of (a) or (b) above
(d) 180 days from the effective date of registration.
Answer:
(c) Earliest of (a) or (b) above
Question 13.
Which of the following requires amendment in the registration certificate?
(a) Change of name of the registered person
(b) Change in constitution of the registered person
(c) Switching over from composition scheme to normal scheme or vice versa.
(d) All of the above
Answer:
(d) All of the above
Question 14.
When can a voluntarily registered person’s registration be cancelled?
(a) If the person does not start business within six months from the date of registration.
(b) Business has been discontinued or transferred for any reason.
(c) Non-filing of returns for a continuous period of six months or for three consecutive tax period in case of composite dealer.
(d) All of the above
Answer:
(d) All of the above
Question 15.
A person who has applied for registration can
(a) Provisionally collect tax till his registration is approved, on applying for registration, if he has applied for registration within prescribed time;
(b) Neither coHect tax nor claim input tax credit:
(c) Issue ‘revised invoice’ and collect tax within 1 month of grant of registration, subject to conditions;
(d) All of the above
Answer:
(c) Issue ‘revised invoice’ and collect tax within 1 month of grant of registration, subject to conditions;
Registration Notes
WHO IS LIABLE TO TAKE REGISTRATION ISEC. 22]
Persons liable to take Registration [Sec. 22(1)] amended from 01.02.2019
Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees (for new registration limit see the table after second paragraph)
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
Provided further that the Government may, at the request of a special category State kind on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.
Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.
Explanation – For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.
Explanation – For the purposes of this section, –
(i) the expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
(ii) the supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143 i.e procedure of job work, and the value of such goods shall not be included in the aggregate turnover of the registered job worker,
(iii) Explanation (iii) to section 22 the expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.
Any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, shall not be required to get registered under GST.
The new annual turnover threshold for GST registration will be effective from 1st April 2019 i.e. from F.Y. 2019-20 and onwards.
However, the above limit does not apply to following:
(a) persons required to take compulsory registration under section 24 of the said Act;
(b) persons engaged in making supplies of the goods, namely – Ice cream and other edible ice, whether or not containing cocoa, Pan Masala and Tobacco and manufactured tobacco substitutes
(c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand
(d) persons exercising option under the provisions of sub-section (3) of section 25, i.e. who have voluntarily obtained GST registration or such registered persons who intend to continue with their registration under the said Act
Important Points to be noted
- The new registration limit is only for goods and not for services
- Inter-state supply of goods shall not be covered, since persons making inter-state supplies are mandatorily required to get registered as per Section 24
- If the person has obtained registration because of Section 24; the new limit of ₹ 40 Lakhs shall not apply then.
- The new limit is applicable from 1st April 2019, i.e. Financial Year 2019-20.
Registered Under existing law is liable to be registered under this Act, [Sec. 22(2)]
Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day
Transfer of business [Sec. 22(3)]
Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
Amalgamation and demerger [Sec. 22(4)]
Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal, or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.
PERSONS NOT LIABLE FOR REGISTRATION [SEC. 23]
Supplying non taxable goods [Sec.23(1)]
The following persons shall not be liable to registration, namely:
any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
Agriculturist
(b) an agriculturist, to the extent of supply of produce out of cultivation of land.
State with threshold limit of ₹ 10 lakh for both goods and services | State with threshold limit of ₹ 20 lakh for both goods and services | State with threshold limit of ₹ 20 lakh for services and ₹ 40 lakh for goods |
Manipur | Arunachal Pradesh | Jammu and Kashmir |
Mizoram | Meghalaya | Assam |
Nagaland | Sikkim | Himanchal Pradesh |
Tripura | Uttarakhand
Puduchery Telangana |
All other States |
Notified by the Govt. [Sec.23(2)]
The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
(i) Persons not liable to registration
(ii) Specified category of persons notified by the Government exempted from obtaining registration
Following category of persons have been notified as being exempted from obtaining registration under GST law:
A. Persons making only reverse charge supplies
Persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under section 9(3) have been exempted from obtaining registration [Notification No. 5/2017 CT dated 19.06.2017].
B. Persons making inter-State supplies of taxable services up to ₹ 20,00,000 The persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all india basis, not exceeding an amount of ₹ 20 lakh in a financial year have been exempted from obtaining compulsory registration. However, the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ₹ 1o lakh in case of Special Category States other than Jammu and Kashmir [Notification No. 10/2017 IT dated 13.10.2017].
C. Persons making infer-State taxable supplies of notified goods up to ₹ 20,00,000
As we have seen earlier that as per section 24 read with Notification No. 10/2017 IT dated 13.10.2017, a person making inter-State supplies of goods is liable to be registered compulsorily under GST irrespective of the threshold limit.
However, following categories of persons have been exempted from obtaining registration:
(a) Persons making inter-State taxable supplies of HANDICRAFT GOODS notified under Notification No.21/2018 CT (R) dated 26.07.2018.
(b) Persons making inter-State taxable supplies of notified products, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process.
*Handicraft goods means goods predominantly made by hand even though some tools or machinery may also have been used in the process; such goods are graced with visual appeal in the nature of ornamentation or in-lay work or some similar work of a substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility.
Conditions to be fulfilled:
- CTPs.are availing benefits of Notification No. 03/2018 IT dated 2.10.2018
- The aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of ₹ 20 lakh ₹ 10 lakh in case of Special Category States other than the State of Jammu and Kashmir] in a FY.
- Such persons have obtained a PAN and have generated an e- way bill [Notification No. 3/2018 IT dated 22.10.2018].
Job workers making inter-State supply of services to a registered person
Job workers engaged in making inter-State supply of services to a registered person have been exempted from obtaining registration. However, nothing contained in this notification shall apply to a job- worker:
(a) who is liable to be registered under section 22(1) [i.e. aggregate value of his supplies exceeds ₹ 20 lakh (₹ 40 lakh in case of Special Category States other than Jammu and Kashmir) in a FY)
(b) who is involved in making supply of services in relation to jewellery, goldsmiths’ and silversmiths’ wares and other articles [Notification No. 7/2017 IT dated 14.09.2017].
D. Persons making supplies of services through an ECO (other than supplies specified under section 9(5) of the CGST Act) with aggregate turnover up to ₹ 20,00,000
Persons making supplies of services, other than supplies specified under Section 9(5), through an ECO who is required to collect tax at source under Section 52, and having an aggregate turnover, to be computed on all lnia basis, not exceeding ₹ 20 lakh (₹ 40 lakh in case of Special Category States other than Jammu and Kashmir) in a FY, have been exempted from obtaining compulsory registration [Notification No. 65/2017 CT dated 15.4.2017].
Therefore, all service providers, whether supplying intra-State, inter-State or through ECO, will be exempt from obtaining registration, provided their aggregate turnover does not exceed ₹ 20 lakh (₹ 10 lakh in special category states except Jammu & Kashmir).
Services provided by the commission agent for sale! purchase of agricultural produce
Registration requirements
Circular No. 57/31/2018 GST dated 04.09.2018 lays down the deciding factor to determine whether a particular principal-agent relationship falls within the ambit of the Para 3. of Schedule I to CGST Act, 2017. Said circular clarifies it further, taking the help of 4 different scenarios. Scenario 4 in said circular is as follows:
Mr. A sells agricultural produce by utilizing the services of Mr. B who is a commission agent as per the Agricultural Produce Marketing Committee Act (APMC Act) of the State. Mr. B identifies the buyers and sells the agricultural produce on behalf of Mr. A for which he charges a commission from Mr. A.
As per the APMC Act, the commission agent is a person who buys or sells the agricultural produce on behalf of his principal, or facilitates buying and selling of agricultural produce on behalf of his principal and receives, by way of remuneration, a commission or percentage upon the amount involved in such transaction.
In cases where the invoice is issued by Mr. B to the buyer, the former is an agent covered under ‘Para 3. of Schedule I. However, in cases where the invoice is issued directly by Mr. A to the buyer, the commission agent (Mr. B) doesn’t fall under the category of agent covered under Para 3.
Since services by any APMC/ board/ services provided by the commission agents for sale or purchase of agricultural produce are exempt from GST, such commission agents (even when they qualify as agent under Schedule (I) are not liable to be registered in accordance with provisions of section 23(1 )(a) [as discussed above].
Further, according to section 24(vii), a person is liable for mandatory registration if he makes taxable supply of goods or services or both on behalf of other taxable persons. Accordingly, the requirement of compulsory registration for commission agent, under the said clause shall arise when both the following conditions are satisfied, namely:
(a) the principal should be a taxable person; and
(b) the supplies made by the commission agent should be taxable.
Generally, a commission agent under APMC Act makes supplies on behalf of an agriculturist. As per provisions of section 23(1 )(b), an agriculturist who supplies produce out of cultivation of land is not liable for registration and theref&e does not fall within the ambit of the term ‘taxable person’.
Thus, a commission agent who is making supplies on behalf of such an agriculturist – not a taxable person – is not liable for compulsory registration under section 24(vii). However, where a commission agent is liable to pay tax under reverse charge, such an agent will be required, to get registered compulsorily under section 24(iii)of the CGST Act.
Compulsory Registration in Certain Cases [Sec. 24]
When threshold limit is not applicable (mandatory registration) [Sec.24]
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,-
- persons making any inter-State taxable supply of goods [Inter state supply of services is now under threshold limit w.e.f. 15.4.2017];
- casual taxable persons making taxable supply;
- persons who are required to pay tax under reverse charge;
- person who are required to pay tax under sub-section (5) of section 9 i.e electronic commerce operator;
- non-resident taxable persons making taxable supply;
- persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
Section-51 :-
CG/SG or Govt, agency or notified person to deduct .1 % from the payment made to supplier exceeds 2,50,000.
7. persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
8. Input Service Distributor, whether or not separately registered under this Act;
9. persons who supply goods or services or both, other than supplies specified under sub-section (5).of section 9, through such electronic commerce operator who is required to collect tax at source under section 52
10. every electronic commerce operator
11. every person supplying online information and database access or retrieval (QIDAR) services from a place outside India to a person in India. other than a registered person; and
12. such other person or class of persons as may be notified by the Government on the recommendations of the Council.
Procedure for Registration [Sec. 25]
Application [Sec. 25(1)] .
Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory ¡n which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
Casual Taxable person! non-resident [Proviso to section 25(1)]
Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.
Provided further that a person having a unit, as defined in the Special Economic Zones Act. 2005, in a Special Economic Zone or being a Special Economic Zone developer shall have to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory.
Supply from territorial water [Explanation to section 25(1)]
Explanation – Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.
Single or multiple registration [Sec. 25(2)]
A person seeking registration under this Act shall be granted a single registration in a State or Union territory:
Provided that a person having multiple place of business in a State or Union territory may be granted a separate registration for each PLACE OF BUSINESS business vertical, subject to such conditions as may be prescribed.
Voluntary registration [Sec. 25(3)]
A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
Person having more than one registration shall be treated as distinct person [Sec. 25(4)]
A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
Establishments of distinct persons [Sec. 25(5)]
Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act.
PAN is mandatory [Sec.25(6)]
Every person shall have a Permanent Account Number issued under the; Income-tax Act, 1961 in order to be eligible for grant of registration:
Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.
Section 51
CG/SG or Govt. agency or notified person to deduct 1 % from the payment made to supplier exceeds 2,50,000
Section 25(6A):
Every registered person shall undergo authentication, or furnish proof of possession of Aadhaar number, in such form and manner and within such time as may be prescribed.
Provided that if an Aadhaar number is not assigned to the registered person, such person shall be offered alternate and viable means of identification in such manner as Government may, on the recommendations of the Council, prescribe.
Provided further that in case of failure to undergo authentication or furnish proof of possession of Aadhaar number or furnish alternate and viable means of identification, registration allotted to such person shall be deemed to be invalid and the other provisions of this Act shall apply as if such person does not have a registration.
Section 25(6B)
On and from the date of notification, every individual shall, ¡n order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number, in such manner as the Government may, on the recommendations of the Council, specify in the said notification. Provided that ¡f an Aadhaar number is not assigned to an individual, such individual shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.
Section 25(6C)
On and from the date of notification, every person, other than an individual, shall, in order to be eligible for grant of registration, undergo authentication, or furnish proof of possession of Aadhaar number of the Karta, Managing Director, whole time Director, such number of partners, Members of Managing Committee of Association, Board of Trustees, authorised representative, authorised signatory and such other class of persons, in such manner, as the Government may, on the recommendation of the Council, specify in the said notification.
Provided that where such person or class of persons have not been assigned the Aadhaar Number, such person or class of persons shall be offered alternate and viable means of identification in such manner as the Government may, on the recommendations of the Council, specify in the said notification.
Section 25(6D)
The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the Council, specify by notification.
Explanation – For the purposes of this section, the expression“Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016
Document for non- resident [Sec. 25(7)]
Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) on the basis of such other documents as may be prescribed.
Person fails to obtain registration [Sec. 25(8)]
Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for the time being in force, proceed to register such person in such manner as may be prescribed.
**Such person shall either:
- submit an application for registration in prescribed form within 90 days from the date of grant of temporary registration, or
- file an appeal against such temporary registration.
In case (ii), if the Appellate Authority upholds the liability to registration, application for registration shall be submitted within 30 days from the date of issuance of such order of the Appellate. Tribunal.
Provisions relating to verification and issue of registration certificate [as contained in rules 9 and 10] [discussed in subsequent paras] shall, mutatis mutandis, apply to such application submitted by the person granted temporary registration. GSTIN thereafter granted shall be effective from the date of order of proper officer granting temporary registration.
UIN to Specified person [Sec. 25(9)]
Notwithstanding anything contained in sub-section (1),-
(a) any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified underthe United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and
(b) any other person or class of persons, as may be notified by the Commissioner,
shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services or both received by them, as may be prescribed.
UIN granted is a centralized UIN i.e. it shall be. applicable to the territory of India. The proper officer may, upon submission of an application h prescribed form or after filling up the said form or after receiving a recommendation from the Ministry of External Affairs, Government of India, assign a UIN to the said person and issue registration certificate within 3 working days from the date of submission of application.
Grant or rejection of registration certificate [Sec. 25(10)]
The registration or the UIN shall be granted or rejected after due verification in such manner and within such period as may be prescribed.
Issue registration certificate [Sec. 25(11)]
A certificate of registration shall be issued in such form and with effect from such date as may be prescribed.
Registration deemed to have been granted [Sec. 25(12)]
A registration or a UIN shall be deemed to have been granted after the expiry of the period prescribed under sub-section (10), if no deficiency has been communicated to the applicant within that period.
Application for Registration [Rule 8 of CGST Rules, 2017]
Procedure for registration [Rule 8(1)]
Every person,
- other than a non-resident taxable person,
- a person required to deduct tax at source under section 51,
- a person required to collect tax at source under section 52 and
- a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017)
- who is liable to be registered under sub-section (1) of section 25 and every person seeking registration under sub-section (3) of Section 25 (hereafter in this Chapter referred to as “the applicant”) shall, before applying for registration, declare his Permanent Account Number, mobile number, e-mail address, State or Union territory in Part A of FORM GST REG-01 on the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that a person having a unit(s) in a Special Economic Zone or being a Special Economic Zone developer shall make a separate application for registration as a place of business distinct from his other units located outside the Special Economic Zone:
Provided further that every person being an Input Service Distributor shall make a separate application for registration as such Input Service Distributor.
Verification of PAN, mobile no. and Email ID [Rule 8(2)]
(a) The Permanent Account Number shall be validated online by the common portal from the database maintained by the Central Board of Direct Taxes;
(b) The mobile number declared under sub-rule (1) shall be verified through a one-time password sent to the said mobile number; and
(c) The e-mail address declared under sub-rule (1) shall be verified through a separate one-time password sent to the said e-mail address.
Temporary reference number [Rule 8(3)]
On successful verification of the Permanent Account Number, mobile number and e-mail address, a temporary reference number shall be generated and communicated to the applicant on the said mobile number and e-mail address.
Submission of Application in PART B [Rule 8(4)]
Using the reference number generated under sub-rule (3), the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code, along with the documents specified in the said Form at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Acknowledgement No. [Rule 8(5)]
On receipt of an application under sub-rule (4), an acknowledgment shall be issued electronically to the applicant in FORM GST REG-02.
Advance payment by Casual taxable person [Rule 8(6)]
A person applying for registration as a casual taxable person shall be given a temporary reference number by the common portal for making advance deposit of tax in accordance with the provisions of section 27 and the acknowledgment under sub-rule (5) shall be issued electronically only after the said deposit.
Verification of the application and approval [Rule 9 of CGST Rules, 2017]
Approval of Registration [Rule 9(1)]
The application shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of three working days from the date of submission of the application.
Notice by proper officer in case of any deficiency etc. [Rule 9(2)]
Where the application submitted under rule 8 is found to be deficient, either in terms of any information or any document required to be furnished under the said rule, or where the proper officer requires any clarification with regard to any information provided in the application or documents furnished therewith, he may issue a notice to the applicant electronically in FORM GST REG-03 within a period of three working days from the date of submission of the application and the applicant shall furnish such clarification, information or documents electronically, in FORM GST REG-04, within a period of seven working days from the date of the receipt of such notice.
Explanation – The clarification includes modification or correction of particulars declared in the application for registration, other than PAN, State, mobile number and e-mail address declared in Part A of FORM GST REG-01.
Grant of registration after submission of above details [Rule 9(3)]
Where the proper officer is satisfied with the clarification, information or documents furnished by the applicant, he may approve the grant of registration to the applicant within a period of seven working days from the date of the receipt of such clarification or information or documents.
Rejection of application of registration [Rule 9(4)]
Where no reply is furnished by the applicant in response to the notice issued under sub-rule (2) or where the proper officer is not satisfied with the clarification, information or documents furnished, he shall, for reasons to be recorded in writing, reject such application and inform the applicant electronically in FORM GST REG- 05.
Deeming Approval [Rule 9(5)]
If the proper officer fails to take any action –
(a) within a period of three working days from the date of submission of the application, or
(b) within a period of seven working days from the date, of the receipt of the clarification, information or documents furnished by the applicant under sub-rule (2), the application for grant of registration shall be deemed to have been approved
Issue of Registration Certificate [Rule 10 of CGST Rule, 2017]
Issue of certificate of registration [Rule 10(1)]
Subject to the provisions of sub-section (12) of section 25, where the application for grant of registration has been approved under rule 9, a certificate of registration in FORM GST REG-06 showing the principal place of business and additional place or places of business shall be made available to the applicant on the common portal and a Goods and Services Tax Identification Number shall be assigned subject to following characters, namely:
(a) two characters for the State code;
(b) ten characters for the Permanent Account Number or the Tax Deduction and Collection Account Number;
(c) two characters for the entity code; and
(d) one checksum character.
Effective date of registration if application filed within 30 days [Rule 10(2)]
The registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within a period of thirty days from such date.
Effective date of registration if application filed after 30 days [Rule 10(3)]
Where an application for registration has been submitted by the applicant after the expiry of thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of the grant of registration under sub-rule (1) or sub-rule (3) or sub-rule (5) of rule 9.
Digitally signed [Rule 10(4)]
Every certificate of registration shall be duly signed or verified through electronic verification code by the proper officer under the Act.
Registration number in case of deemed approval [Rule 10(5)]
Where the registration has been granted under sub-rule (5) of rule 9, the applicant shall be communicated the registration number, and the certificate of registration under sub-rule (1), duly signed or verified through electronic verification code, shall be made available to him on the common portal within a period of three days after the expiry of the period specified in sub-rule (5) of rule 9,
Separate registration for multiple place of business within a state or a union territory [flULE 11 OF CGST RULES, 2017]
Separate registration for Business vertical [Rule 11 (1)]
Any person having multiple place of business within a State or a Union territory, requiring a separate registration for any of its place of business under sub-section (2) of section 25 shall be granted separate registration in respect of each of the vertical subject to the following conditions, namely:
(a) such person has more than one business as defined in clause (18) of section 2;
(b) the place of business of a taxable person shall not be granted registration to pay tax under section 10 if any one of the other place of business of the same .person is paying tax under section 9;
(c) all separately registered place of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice for such supply.
Explanation:
For the purposes of clause (b), it is hereby clarified that where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other place of business of the said person shall become ineligible to pay tax under the said section.
Separate Application [Rule 11(2)]
A registered person eligible to obtain separate registration for business verticals may submit a separate application in FORM GST REG-01 in respect of each such business.
Applicability of Rule 2 and Rule 3 [Rule 11 (3)]
The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.
Grant of registration to persons required to deduct tax at source or to collect tax at source [Rule 12 OF CGST Rules, 2017]
Application by Person required to deduct TDS and collect TCS [Rule 12(1)]
Any person required to deduct tax in accordance with the provisions of section 51 or a person required to collect tax at source in accordance with the provisions of section 52 shall electronically submit an application, duly signed or verified through electronic verification code, in FORM GST REG-07 for the grant of registration through the common portal, either directly or through a Facilitation Centre notified by the Commissioner
Issue of certificate of registration [Rule 12(2)]
The proper officer may grant registration after due verification and issue a certificate of registration in FORM GST REG-06 within a period of three working days from the date of submission of the application.
Cancellation of RC [Rule 12(3)]
Where, upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that a person to whom a certificate of registration in FORM GST REG-06 has been issued is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52, the said officer may cancel the registration issued under sub-rule (2) and such cancellation shall be communicated to the said person electronically in FORM GST REG-08:
Provided that the proper officer shall follow the procedure as provided in rule 22 for the cancellation of registration.
Grant of registration to a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient [Rule 14 of CGST Rules, 2017]
Application by person supplying
Any person supplying online information and database access or retrieval services from a place outside India
online information etc. [Rule 14(1)]
to a non-taxable online recipient shall electronically submit an application for registration, duly signed or verified through electronic verification code, in FORM GST REG-10, at the common portal, either directly or through a Facilitation Centre notified by the Commissioner.
Grant of registration [Rule 14(2)]
The applicant referred to in sub-rule (1) shall be granted registration, in FORM GST RE.G-06, subject to such conditions and restrictions and by such officer as may be notified by the Central Government on the recommendations of the Council.
Suo motu registration [Rule 16 of CGST Rules, 2017]
Registration by proper officer in case of survey, search etc. [Rule 16(1)]
Where, pursuant to any survey, enquiry, inspection, search or any other proceedings under the Act, the proper officer finds that a person liable to registration under the Act has failed to apply for such registration, such officer may register the said person on a temporary basis and issue an order in FORM GST REG-12.
Effective date of registration [Rule 16(2)]
The registration granted under sub-rule (1) shall be effective from the date of such order granting registration.
Application for registration/ Appeal against temporary registration [Rule 16(3)]
Every person to whom a temporary registration has been granted under sub-rule (1) shall, within a period of ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 8 or rule 12
Provided that where the said person has filed an appeal against the grant of temporary registration, in such case the application for registration shall be submitted within a period of thirty days from the date of the issuance of the order upholding the liability to registration by the Appellate Authority.
Other provision Apply mutatis mutandis. [Rule 16(4)]
The provisions of rule 9 and rule 10 relating to verification and the issue of the certificate of registration shall, mutatis mutandis, apply to an application submitted under sub-rule (3).
Effective date of registration pursuant to verification [Rule 16(5)]
The Goods and Services Tax Identification Number assigned pursuant to verification under sub-rule (4) shall be effective from the date of the order granting registration under sub-rule (1).
Assignment of unique identity number to certain special entities [Rule 17 of CGST Rules, 2017]
Application for UIN by certain special entities. [Rule 17(1)]
Every person required to be granted a Unique Identity Number in accordance with the provisions of sub-section (9) of section 25 may submit an application electronically in FORM GST REG-13, duly signed or verified through electronic verification code, in the manner specified in rule 8 at the common portal, either directly or through a Facilitation Centre notified by the Commissioner
Assign UIN & issue certificate of registration [Rule 17(2)]
The proper officer may, upon submission of an application in FORM GST REG-13 or after filling up the said form, assign a Unique Identity Number to the said person and issue a certificate in FORM GST REG-06 within a period of three working days from the date of the submission of the application.
Display of registration certificate and goods and services tax identification number on the name board [rule 18 CGST Rules, 2017]
Display of Registration Certificate [Rule 18(1)]
Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or places of business.
Display of GSTIN [Rule T8(2)]
Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business.
Deemed Registration [Sec. 26]
Deemed registration in SGST/ UTGST/UIN [Sec. 26 (1)]
The grant of registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a grant of registration or the Unique Identity Number under this Act subject to the condition that the application for registration or the Unique Identity Number has not been rejected under this Act within the time specified in sub-section (10) of section 25.
Deemed rejection
Notwithstanding anything contained in sub-section (10) of section 25, any rejection of application for registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a rejection of application for registration under this Act.
Registration of Casual Taxable Person or non-resident person [sec. 27]
Validity of registration Certificate [Sec. 27 (1)]
The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application for registration or ninety days from the effectivfe date of registration, whichever is earlier and such person shall make taxable supplies only after the issuance of the certificate of registration:
Provided that the proper officer may, on sufficient cause being shown by the said taxable person, extend the said period of ninety days by a further period not exceeding ninety days.
Advance deposit of tax [Sec. 27 (2)]
A casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 25, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought:
Provided that where any extension of time is sought under sub-section (1), such taxable person shall deposit an additional, amount of tax equivalent to the estimated tax liability of such person for the period for which the extension is sought.
Amount credited to Electronic cash ledger [Sec. 27(3)]
The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilised in the manner provided under section 49.
Grant of registration to non-resident taxable person [Rule 13 of CGST RULES, 2017]
Application by Non-resident taxable person [Rule 13(1)]
A non-resident taxable person shall electronically submit an application, along with a self-attested copy of his valid passport, for registration, duly signed or verified through electronic verification code, in FORM GST REG-09, at least five days prior to the commencement of business at the common portal either directly or through a Facilitation Centre notified by the Commissioner:
Provided that in the case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country or its Permanent Account Number, if available.
Temporary reference number for payment of advance tax [Rule 13(2)]
A person applying for registration as a non-resident taxable person shall be given a temporary reference number by the common portal for making an advance deposit of tax in accordance with the provisions of section 27 and the acknowledgement under sub-rule (5) of rule 1 shall be issued electronically only after the said deposit in his electronic cash ledger.
Applicability of Rule 2 and Rule 3 “mutatis mutandis” [Rule 13(3)]
The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.
Signature by authorised person [Rule 13(4)]
The application for registration made by a non-resident taxable person shall be duly signed or verified through electronic verification code by his authorised signatory who shall be a person resident in India having a valid Permanent Account Number.
Extension in period of operation by casual taxable person and non-resident taxable person [rule 15 of CGDT Rules, 2017]
Application for extension the period [Rule 15(1)]
Where a registered casual taxable person or a non-resident taxable person intends to extend the period of registration indicated in his application of registration, an application in FORM GST REG-11 shall be submitted electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner, by such person before the end of the validity of registration granted to him.
Advance Payment [Rule 15(2)]
The application under sub-rule (1) shall be acknowledged only on payment of the amount specified in sub-section (2) of section 27.
Amendment in Registration Certificate [Sec. 28]
Inform about changes [Sec. 28 (1)]
Every registered person and a person to whom a Unique Identity Number has been assigned shall inform the proper officer of any changes in the information furnished at the time of registration or subsequent thereto, in such form and manner and within such period as may be prescribed.
Approved or reject [Sec. 28(2)]
The proper officer may, on the basis of information furnished under sub-section (1) or as ascertained by him, approve or reject amendments in the registration particulars in such manner and within such period as may be prescribed:
Provided that approval of the proper officer shall not be required in respect of amendment of such particulars as may be prescribed:
Provided further that the proper officer shall not reject the’ application for amendment in the registration particulars without giving the person an opportunity of being heard.
Rejection/ approval under SGST/UTGST [Sec. 28(3)]
Any rejection or approval of amendments under the State Goods and Services Tax or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a rejection or approval under this Act.
Amendment of Registration [Rule 19 of CGST Rules, 2017]
Application for changes [Rule 19(1)]
Where there is any change in any of the particulars furnished in the application for registration in FORM GST REG- 07 or FORM GST REG- 09 or FORM GST REG-10 or for Unique Identification Number in FORM GST-REG-13 either at the time of obtaining registration or Unique Identification Number or as amended from time to time,’ the registered person shall, within a period of fifteen days of such change, submit an application, duly signed or verified through electronic verification code, electronically in FORM GST REG-14, along with the documents relating to such change at the common portal either directly or through a Facilitation Centre notified by the Commissioner.
Provided that—
(a) where the change relates to,—
(i) legal name of business;
(ii) address of the principal place of business or any additional place(s) of business; or
(iii) addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive-Officer or equivalent, responsible for the day to day affairs of the business, which does not warrant cancellation of registration under section 29, the proper officer shall, after due verification, approve the amendment within a period of fifteen working days from the date of the receipt of the application in FORM GST REG-14 and issue an order in FORM GST REG-15 electronically and such amendment shall take effect from the date of the occurrence of the event warranting such amendment;
(b) the change relating to sub-clause (i) and subclause (iii) of clause (a) in any State or Union territory shall be applicable for all registrations of the registered person obtained under the provisions of this Chapter on the same Permanent Account Number;
(c) where the change relates to any particulars other than those specified in clause (a), the certificate of registration shall stand.amended upon submission of the application in FORM GST REG-14 on the common portal;
(d) where a change in the constitution of any business results in the change of the Permanent Account Number of a registered person, the said person shall apply for fresh registration in FORM GST REG-01:
Provided further that any change in the mobile number or e-mail address of the authorised signatory submitted under this rule, as amended from time to time, shall be carried out only after online verification through the – common portal in the manner provided under the sub-rule (2) of rule 8,
SCN for rejection [Rule 19(2)]
Where the proper officer is of the opinion that the amendment sought under sub-rule (1) is either not warranted or the documents furnished therewith are incomplete or incorrect, he may, within a period of fifteen working days from the date of the receipt of the application in FORM GST REG-14, serve a notice in FORM GST REG-03, requiring the registered person to show cause, within a period of seven working days of the service of the said notice, as to why the application submitted under sub-rule (1) shall not be rejected.
Reply of SCN [Rule 19(3)]
The registered person shall furnish a reply to the notice to show cause, issued under sub-rule (2), in FORM GST REG-04, within a period of seven working days from the date of the service of the said notice
Passing of order if reply of SCN is not satisfactory [Rule 19(4)]
Where the reply furnished under sub-rule (3)is found to be not satisfactory or where no reply is furnished in response to the notice issued under sub-rule (2) within the period prescribed in sub-rule (3), the proper officer shall reject the application submitted under sub-rule (1) and pass an order in FORM GST REG-05
Deemed Amendment [Rule 19(5)]
If the proper officer fails to take any action-
(a) within a period of fifteen working days from the date of submission of the application, or
(b) within a period of seven working days from the date of the receipt of the reply to the notice to show cause under sub-rule (3),
the certificate of registration shall stand amended to the extent applied for and the amended certificate shall be made available to the registered person on the common portal.
Cancellation of Registration Certificate [Sec. 29]
Cancellation of registration [Sec. 29(1)]
The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,-
(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person, is no longer liable to be registered under section 22 ‘ or section 24 or intends to opt out of registration voluntarily made under 25(3).
Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.
Cancel the Registration by proper officer in
The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where, –
case of contravention of Act etc. [Sec. 29(2)]
(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or
(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful-misstatement or suppression of facts:
Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
Liable to pay tax [Sec. 29(3)]
The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
Auto cancellation of SGST/ UTGST [Sec. 29(4)]
The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.
Payment of tax on input held in stock and capital goods [Sec. 29(5)]
Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed:
Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher.
Rules prescribed for amount payable [Sec. 29(6)]
The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.
Application For Cancellation of Registration [Rule 20 of CGST Rules, 2017]
A registered person, other than a person to whom a registration has been granted under rule 12 or a person to whom a Unique Identity Number has been granted under rule 17, seeking cancellation of his registration under sub-section (1) of Section 29 shall electronically submit an application in FORM GST REG-16, including therein the details of inputs held in stock or inputs contained in semi-finished or finished goods held in stock and of capital goods held in stock on the date from which the cancellation of registration is sought, liability thereon, the details of the payment, if any, made against such liability and may furnish, along with the application, relevant documents in support thereof at the common portal within a period of thirty days of the occurrence of the event warranting the cancellation, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration.
Registration to be cancelled in certain cases [RULE 21 of CGST RULES, 2017]
The registration granted to a person is liable to be cancelled if the said person-
(a) does not conduct any business from the declared place of business; or
(b) issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made thereunder, or
(c) violates the provisions of section 171 of the Act or the rules made thereunder.
Cancellation of registration [Rule 22 of CGST Rules, 2017]
Issue SCN [Rule 22(1)]
Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause within a period of seven working days from the date of the service of such notice as to why his registration shall not be cancelled.
Reply of SCN Rule 22(2)]
The reply to the show cause notice issued under subrule (1) shall be furnished in FORM REG-18 within the period specified in the said sub-rule.
Issue Order for cancellation of RC [Rule 22(3)]
Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORMGST REG-19, within a period of thirty days from the date of application submitted under rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section(5) of section 29.
Issue Order for dropping the proceeding [Rule 22(4)]
Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20.
Legal heirs can also file an application [Rule 22(5)]
The provisions of sub-rule (3) shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself.
Revocation of cancellation of certificate [Sec. 30]
Application of revocation of cancellation [Sec. 30 (1)]
Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order.
Amendment of section 30
“Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,-
(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a).”.
(1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty:
Provided that no such order shall be made after the expiry of a period of five years from the date of commencement of this Act.
(2) Every order made under this section shall be laid, as soon as may be, after it is made, before each House of Parliament.
Order by proper officer [Sec. 30(2)]
The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:
Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
Revocation of cancellation of registration under SGST/ UTGST [Sec. 30(3)]
The revocation of cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a revocation of cancellation of registration under this Act.
Revocation of cancellation of registration [RULE 23 OF CGST RULES, 2017]
Application for revocation of cancellation of RC order [Rule 23(1)]
A registered person, whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation o: cancellation of registration, in FORM GST REG-21, to such proper officer, within a period of thirty days from the date of the service of the order of cancellation of registration at the common portal, either directly or through a Facilitation Centre notified by the Commissioner:
Provided that no application for revocation shall be filed if the registration has been cancelled for the failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns.
Rejection of Application/passing of order for revocation of cancellation order [Rule 23(2)]
(a) Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty days from the date of the receipt of the application and communicate the same to the applicant.
The proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG-05, reject the application for revocation of cancellation of registration and communicate the same to the applicant.
Opportunity of being heard [Rule 23(3)]
The proper officer shall, before passing the order referred to in clause (b) of sub-rule (2), issue a notice in FORM GST REG-23 requiring the applicant to show cause as to why the application submitted for revocation under sub-rule (1) should not be rejected and the applicant shall furnish the reply within a period of seven working days from the date of the service of the notice in FORM GST REG-24.
Proceeding by proper officer [Rule 23(4)]
Upon receipt of the information dr clarification in FORM GST REG-24, the proper officer shall proceed to dispose of the application in the manner specified in sub-rule (2) within a period of thirty days from the date of the receipt of such information or clarification from the applicant.
Migration of persons registered under the existing law [Rule 24 OF CGST Rules, 2017]
Provisional Registration [Rule 24(1)]
Every person, other than a person deducting tax at source or an Input Service Distributor, registered under an existing law and having a Permanent Account Number issued under the provision of Income-tax Act, 1961 (Act 43 of 1961) shall enrol on the common portal by validating his e-mail address and mobile number, either directly or through a Facilitation Centre notified by the Commissioner.
(b) Upon enrolment under clause (a), the said person shall be granted registration on a provisional basis and a certificate of registration in FORM GST REG-25, incorporating the Goods and Service Tax Identification Number therein, shall be made available to him on the common portal: Provided that a taxable person who has been granted multiple registrations under the existing law on the basis of a single Permanent Account Number shall be granted only one provisional registration under the Act:
Certificate of Registration [Rule. 24(2)]
(a) Every person who has been granted a provisional registration under sub-rule (1) shall submit an application electronically in FORM GST REG- 26, duly signed or verified through electronic verification code, along with the information and documents specified in the said application, on the common portal either directly or through a Facilitation Centre notified by the Commissioner.
(b) The information asked for in clause (a) shall be furnished within a period of three months or within such further period as may be extended by the commissioner in this behalf.
If the Information and the particulars furnished in the application are found, by the proper officer, to be correct and complete, a certificate of registration in FORM GST REG-06 shall be made available to the registered person electronically on the common portal.
Issue of SCN [Rule 24(3)]
Where the particulars or information specified in sub rule (2) have either not been furnished or not found to be correct or complete, the proper officer shall, after serving a notice to show cause in FORM GST REG-27 and after affording the person concerned a reasonable opportunity of being heard, cancel the provisional registration granted under sub-rule(l) and issue an order in FORM GST REG-28:
Provided that the show cause notice issued in FORM GST REG-27 can be withdrawn by issuing an order in FORM GST REG-20, if it is found, after affording the person an opportunity of being heard, that no such cause exists for which the notice was issued.
Deemed Registration [Rule 24(3A)]
Where a certificate of registration has not been made available to the applicant on the common portal within a period of fifteen days from the date of the furnishing of information and particulars referred to in clause (c) of sub-rule (2) and no notice has been issued under sub rule (3) within the said period, the registration shall be deemed to have been granted and the said certificate of registration, duly signed or verified through electronic verification code, shall be made available to the registered person on the common portal.
Cancellation of RC if person not liable to be registered [Rule 24(4)]
Every person registered under any of the existing laws, who is not liable to be registered under the Act may, within a period of thirty days from the appointed day, at his option, submit an application electronically in FORM GST REG-29 at the common portal for the cancellation of registration granted to him and the proper officer shall, after conducting such enquiry as deemed fit, cancel the said registration.
Physical verification of business premises in certain cases [Rule 25 of CGST Rules, 2017]
Where the proper officer is satisfied that the physical verification of the place of business of a registered person is required after the grant of registration, he may get such verification done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification.
Method of Authentication [Rule 26 of CGST Rules, 2017]
All Documents to be submitted electronic [Rule 26(1)]
All applications, including reply, if any, to the notices, returns including the details of outward and inward supplies, appeals or any other document required to be submitted under the provision of these rules shall be so submitted electronically with digital signature certificate or through signature as specified under the provision of the Information Technology Act, 2000 (21 of 2000) or verified by any other mode of signature or verification as notified by the Board in this behalf:
Provided that a registered person registered under the provisions of the Companies Act, 2013(18 of 2013) shall furnish the documents or application verified through digital signature certificate.
Notification No. 6/2017-Central Tax, dated 19-6-2017, (amended by Notification No. 11/2017, dated 28-62017) w.e.f 22-6-2017 Board notifies the following modes of verification, for the purpose of the said rule, namely:-
- Aadhaar based Electronic Verification Code (EVC);
- Electronic verification code generated through net banking login on the common portal;
- Electronic verification code generated on the common portal:
Provided that where the mode of authentication of any document is through any of the aforesaid modes, such verification shall be done within two days of furnishing the documents
Signed or verified documents [Rule 26(2)]
Each document including the return furnished online shall be signed or verified through electronic verification code-
(a) in the case of an individual, by the individual himself or where he is
absent from India by some other person duly authorised by him in this behalf, and where the individual is mentally incapacitated from attending to his affairs, by his guardian or by any other person competent to act on his behalf; –
(b) in the case of a Hindu Undivided Family, by a Karta and where the Karta is absent from India or is mentally incapacitated from attending to his affairs, by any other adult member of such family or by the authorised signatory of such Karta;
(c) in the case of a company, by the chief executive officer or authorised signatory thereof;
(d) in the case of a Government or any Governmental agency or local authority, by an officer authorised in this behalf;
(e) in the case of a firm, by any partner thereof, not being a minor or authorised signatory thereof;
(f) in the case of any other association, by any member of the association or persons or authorised signatory thereof;
(g) in the case of a trust, by the trustee or any trustee or authorised signatory thereof; or
(h) in the case of any other person, by some person competent to act on his behalf, or by a person authorised in accordance with the provisions of section 48,
All notices, certificates Etc. to be issued Electronically [Rule 26(3)]
All notices, certificates and orders under the provision of this chapter shall be issued electronically by the proper officer or any other officer authorised to issue such notices or certificates or orders, through digital signature certificate or through e-signature as specified under the provisions of the Information Technology Act, 2000 (21 of 2000) or verified by any other mode of signature or verification as notified by the Board in this behalf.