Contributed by CA. Raman Khatuwala
Under the Proposed GST Law, the following class of person are required to be registered, which are as follows-
A) Registration required on the basis of Threshold Limit of Aggregate Turnover.
Every supplier will get itself registered under GST in the state from where it makes taxable supply of goods or services, if his aggregate turnover in a F.Y exceeds –
• RS. 10 Lakh in the state of North eastern state including Sikkim OR,
• Rs. 20 Lakh in the state except North eastern state including Sikkim.
B) Registration requirement Irrespective of Qualifying the Threshold limit of Aggregate Turnover
In the following cases, the supplier shall get itself registered under GST in the state from where it makes taxable supplies, irrespective of the fact that it has achieved the threshold limit of the aggregate turnover or not –
• Persons making any inter-State taxable supply from one state to another.
• Casual taxable persons.
• Persons who are required to pay tax under reverse charge.
• Non-resident taxable persons.
• Persons who are required to deduct tax / collect tax at source.
• Electronic Commerce operator.
• Input service distributor.
• Person supplying online information and database access or retrieval of services from outside India to a person in India.
• Other person or class of person as may be notified by Central Government or State Government on the recommendation of the GST Council.
C) Person registered under earlier laws-
Every person who, on the day immediately preceding the appointed day (i.e. introduction of GST), is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day.
D) Successor or Transferee of the registered person existing under earlier law –
On the death of the person registered under the earlier law, the successor is required to get registered under GST or in the case of sale or transfer of business, transferee is required to be registered under GST.
E) Under the schemes of Amalgamation or De-merger-
The Transferee co. in case of Amalgamation or de-merger under GST from the date of court order or the issue of certificate of Incorporation.
What is Aggregate Turnover?
The aggregate turnover includes all the supplies made by the taxable person either on his own account or as an agent of someone else including exports and exempt supplies on a pan India basis. The supply made by registered Job worker shall also be treated as supply in the hands of principal and will not to be included in calculating the turnover of such Job worker.
Person not required to be registered under the Model GST Law, 2016.
The following class of person are not required to be registered under the GST:
A) The person who is engaged in supply of goods & services which are totally exempt under the law .
B) The person engaged in agriculture.
Procedure for registration under the Model GST Law, 2016?
The following procedure is to be followed for registration-
a) For getting registered under Model GST Law, 2016, PAN is compulsory.
b) Each taxpayer will be allotted a State wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). First 2 digits will be State Code. Next 10 digits will be Income Tax PAN. 13th digit will be entity code. 14th digit will be blank for future use. 15 the digit will be check digit.
c) For obtaining registration, all the taxable persons shall interact with tax authorities through a common portal called GST Common Portal .
d) All the required documents and attachments shall be scanned and uploaded on the GST common portal along with the application for registration.
e) After the documentation process, the Verification by jurisdictional authorities will be done to judge the truthfulness of the documents.
f) When all procedure are completed, GST Department will Issue of Registration certificate.
What are the registration requirements under the Model GST Law?
The following are the Registration requirement which are listed below-
a) Income Tax Pan (Permanent Account Number)is compulsory.
b) Every person who is liable to be registered shall apply for registration in every such State in 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 under GST Model Law, 2016.
c) The person, other than an Input Service Distributor who is registered under an earlier law, shall not be required to apply for fresh registration as Migration is to be done under the Model GST Law, 2016.
d) The Input Service Distributor registered under the earlier law is required to take Fresh Registration under GST.
Provisions under Registration for Taxable persons having multiple business verticals
The provisions under Model GST Law, 2016 relating to Multiple Business Verticals are as follows-
a) 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 under GST Model Law, 2016. It means that there is no compulsion for the such businesses to take separate registration for each business verticals in the same state.
Meaning of Business vertical under Model GST Law, 2016
Business vertical means a distinguishable component of an enterprise that is engaged in supplying an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business verticals under GST Model Law, 2016.
For Example-If A Ltd. is manufacturing Shoes in Kanpur and Allahabad. Only one GST IN. will be allotted for both Kanpur an Allahabad. M/s A Ltd cannot take separate registration under GST for Kanpur and Allahabad.
But if M/s A Ltd. is manufacturing shoes in Kanpur and machinery in Allahabad Unit, then M/s A Ltd. has the option to take separate registration for Kanpur & Allahabad Unit.
Centralized Registration under Model GST Law, 2016
Under the Model GST Law, there is no such concept like Centralised Registration.
The supplier who is supplying goods / services from more than one state has to obtain registration in each such state separately. He cannot opt for Centralized Registration on PAN INDIA basis.
Registration by Non-Resident taxable person
The PAN is allotted to the Resident of India and non-resident taxable person may be granted registration under GSTon the basis of any other document (other than Income Tax PAN) as may be prescribed under the Model GST Law, 2016.
Meaning of Non- Resident Taxable Person.
Non-resident taxable person means a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India under GST Model Law, 2016.
Voluntary registration under GST
A person, though not compulsory required to be registered under GST may get himself registered voluntarily and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person under GST Model Law, 2016.
Registration by proper officer without application
Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer i.e. GST Department may proceed to register such person in the manner which will be prescribed under GST Model Law, 2016.
When a Registration deemed to have been granted?
a) A registration or an Unique Identity Number shall be deemed to have been granted after the period prescribed , if no deficiency has been communicated to the applicant by the proper officer within that period under of GST Model Law, 2016.
b) If the GST Department has rejected the application of registration or UIN under either of the one law i.e. either CGST or SGST or IGST, it shall mean rejection under other GST law also.
c) Registration under SGST means registration under CGST also and vice versa.
Amendment of registration under Model GST Law, 2016
The following steps are required to be done for amendment of registration certificate under the GST –
1) Every registered taxable person shall inform the proper officer of any changes to be done in prescribed manner within the prescribed time.
2) The proper officer may approve or reject amendments in the registration particulars.
3) The proper officer shall give proper notice and opportunity of being heard before rejecting the amendment appliction.
4) Any rejection or approval of amendments under either of the law i.e. CGST Act / SGST / IGST Act shall be deemed to be a rejection or approval of amendments under the other law.
Cancellation of GST registration under Model GST Law, 2016.
In the following conditions, registration under GST can be cancelled-
A) The proper officer may cancel the registration on the death of the registered taxable person either by himself or on the basis of application made by legal heir.
B) Suo-motu cancellation of registration under GST –The Registration is automatically done under the following circumstances –
1) If tax return has not been furnished for three consecutive tax periods by the person opting for composition scheme.
2) If the Taxable person, other than a person opted for composition scheme, failed to furnish returns for a continuous period of six months.
3) The person has taken voluntary registration and has not commenced business within six months from date of registration.
C) Cancellation of registration can be done by the GST Dept when the registration was obtained by fraud.
Views presented in this article are personal view of the author. Information presented in this article is intended for information purpose only and does not constitute any legal opinion or advice. Readers and Users are requested to seek formal legal advice prior to acting upon any of the information provided herein.