Five key aspects about GST Registration: All you need to know about

Five key aspects about GST Registration: Every supplier whose aggregate turnover in a financial year exceeds twenty lakh rupees shall be liable to be registered under the Goods and Service Tax. He will be registered in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both.

Voluntary Registration

A person who is not liable to be registered under GST may apply for registration voluntarily. Once a person gets himself registered, may be voluntarily, all the provisions of the Act shall apply accordingly.

Time period of application for registration

A person shall make an application for registration within thirty days from the date on which he becomes liable to registration under the Goods and Service Tax. But a casual taxable person and non resident taxable person shall apply for registration at least five days prior to the commencement of business.

Five key aspects about GST Registration

 Five key aspects about registration

I. What is generic threshold in GST?

As per section 22 of the CGST Act, every supplier shall be liable to be registered under CGST 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.

II. Whether there is lower threshold for NE States?

It is also 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.

III. How GST registration no. will look like?

Registration number in GST will be PAN based and hence, having PAN would be a pre-requisite for obtaining registration. Further, as registration under GST will be State-wise, thus the assesse will have to obtain separate registration for each State in which it has physical presence. Further, the GST law provides for an option to obtain separate registration for each of the ‘business vertical’ in the same State.

IV. Registration Rules

Recently CGST Rules are put in the public domain. These rules prescribe the methodology, procedure forms etc for application, cancellation, and revocation of the registration under GST.

As per these rules the persons given below are liable to take registration under GST regime:

  • A new taxable person who is not registered under any of the current indirect tax law but requires compulsory registration under GST
  • Person who intends to exercise option available for different business vertical within same state
  • Persons who is required to deduct tax at source or to collect tax at source as per section 51 and section 52
  • A non-resident taxable person
  • A person supplying online information and data base access or retrieval services from a place outside India to a non-taxable online recipient

V. What is registration requirement for Special Economic Zone?

It is provided in the 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 business vertical distinct from his other units located outside the Special Economic Zone (refer proviso to Rule 8 of CGST Rules)

Application for Registration

a) Every person who is liable to be registered (compulsory registration) and every person seeking registration (voluntary registration) shall before applying for registration declare his permanent Account Number(PAN), 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.

  • 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 business vertical distinct from his other units located outside the Special Economic Zone.
  • Every person being an Input Service Distributor shall make a separate application for registration as such Input Service Distributor.

(b) The PAN shall be validated online by the common portal from the data base maintained by the Central Board of Direct Taxes.

(c) The mobile number and e-mail address shall be verified through two separate onetime passwords (OTP) sent to the said mobile number and e-mail address.

(d) On successful verification of the PAN, 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.

(e) Using the temporary reference number the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly digitally signed or verified through electronic verification code (EVC), along with documents specified in the said Form at the Common Portal, either directly or through a Facilitation Centre notified by the commissioner.

(f) On submission of the application, the applicant shall receive an acknowledgement in Form GST REG – 02 generated electronically.

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 an amount equivalent to the estimated tax liability of such casual person for the period for which registration is sought. Acknowledgement in Form GST REG-02 shall be issued electronically to such casual person only after the said deposit of tax.

Issue of registration certificate

Where the application for grant of registration certification has been approved by the proper officer a certificate of registration in FORM GST REG-06 showing the principal place of business and additional place(s) of business shall be made available to the applicant on the Common Portal and such certificate may be downloaded by the applicant.

  • 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 30 days from such date.
  • Where an application for registration has been submitted by the applicant after 30 days from the date of his becoming liable for registration, the effective date of registration shall be the date of grant of registration.
  • Every certificate of registration shall be digitally signed by the proper officer.

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