Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

GST Registration, Modification and Cancellation Procedure

The registration in GST is PAN based and State specific. Supplier has to register in each of such State or Union territory from where he effects supply. In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN”, and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal.

A given PAN based legal entity would have one GSTIN per State, that means a business entity having its branches in multiple States will have to take separate State-wise registration for the branches in different States.  But within a State, an entity with different branches would have single registration wherein it can declare one place as principal place of business and other branches as additional place of business. However, a business entity having separate business verticals in a State may obtain separate registration for each of its business verticals.

Procedure for registration is given below –

GST Registration, Modification and Cancellation Procedure
GST Registration, Modification and Cancellation Procedure

Table of Contents

1. Where and within What Time to Apply for GST Registration [Section 25(1)]

(1) Person who is liable to be registered under Section 22 or Section 24 He shall apply for GST Registration in every such State or Union territory in which he is so liable within 30 days from the date on which he becomes liable to GST Registration, in such manner and subject to such conditions as may be prescribed
(2) A casual taxable person (CTP) or a non-resident taxable person (NRTP). He shall apply for GST Registration at least 5 days prior to the commencement of business

2.   Verification before GST Registration –

Every person shall (before applying for registration) declare his PAN, mobile number, e-mail address, State/Union Territory in Part A of Form GST REG-01 on the GST portal (i.e., www.gst.gov.in). It can be done either directly or through a Facilitation Centre. 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 his mobile number and e-mail address.

3.   GST Registration Application-

Using the aforesaid reference number, 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 GST common portal. On receipt of an application, an acknowledgement shall be issued electronically to the applicant in Form GST REG-02. 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. The above acknowledgement in Form GST REG-02 shall be issued electronically only after the said deposit.

(1)   Time-Limit for GST Registration –

Every person who is liable to be registered, shall apply for registration in every such State/Union Territory in which he is so liable within 30 days from the date on which he becomes liable to registration. A casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.

(2)   Separate Application for GST Registration –

A person who owns a SEZ unit or who is SEZ developer shall make a separate application for registration as a business vertical distinct from his other units located outside SEZ.

Likewise, a person being an Input Service Distributor (ISD) shall make a separate application for registration as such ISD. Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State/Union Territory where the nearest point of the appropriate base line is located. The above procedure is also applicable in the case of a person who is required to deduct/collect tax at source, a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient and every person seeking registration under section 25(3).

4. Verification of the Application and Approval for GST Registration [Rule 9]

The application made under Rule shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same arc found to be in order, approve the grant of GST Registration to the applicant within a period of 3 working days from the date of submission of the application.

(1) Notice to be issued electronically in case of any deficiency or for any clarification [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 3 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 7 working days from the date of the receipt of such notice.

(2)   Approval to be granted on satisfaction of clarification or information, documents furnished (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 GST Registration to the applicant within a period of seven working days from the date of the receipt of such clarification or information or documents.

(3)   Rejection of application in certain circumstances [Rule 9(4)]:

Where no reply is furnished by the applicant in response to the notice issued under Rule 9(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.

(4) Deemed approval if no action is taken on application within the requisite time [Rule 9(5)] :

If the proper officer fails to take any action,—

See also  Location of Supplier and Place of Supply of Goods and Services under GST Law

(a)        within a period of 3 working days from the date of submission of the application; or

(b)        within a period of 7 working days from the date of the receipt of the clarification, information or documents furnished by the applicant under Rule 9(2), the application for grant of GST Registration shall be deemed to have been approved.

5.   GST Registration Certificate –

Where the application for grant of GST Registration has been approved, a certificate of GST Registration in Form GST REG-06 will be issued. The registration certificate shows the principal place of business and additional place or places of business and is made available to the applicant on the common portal and a Goods and Services Tax Identification Number (GSTIN) shall be assigned.

GSTIN contains the following characters –

–           2 characters for the State code

–           10 characters for PAN or TAN

–           2 characters for the entity code

–           1 checksum character.

(1).  Effective date of GST Registration [Rule 10(2) & (3)] –

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 30 days from such date. Where, however, the application for registration is submitted after the expiry of 30 days, the effective date of registration shall be the date of grant of registration.

Where the application for GST Registration has been submitted within a period of 30 days from the date on which the person becomes liable to GST Registration [Rule 10(2)] The GST Registration shall be effective from the date on which the person becomes liable to GST Registration.
Where an application for GST Registration has been submitted by the applicant after the expiry of 30 days from the date of his becoming liable to GST Registration [Rule 19(3)] The effective date of GST Registration Shall be the date of the grant of GST Registration under Rule 9(1) or Rule 9(3) or Rule 9(5)

Example:

The aggregate turnover of X Ltd. (engaged in taxable supply of services in the State of Orissa) exceeds Rs. 20 lakhs on August 25, 2018. Consider the following 2 situations –

Situation 1 – X Ltd. applies for registration on September 19, 2018 and is granted registration certificate on September 29, 2018.

Situation 2 – X Ltd. submits the application for registration on September 27, 2018 and is granted registration on October 5, 2018.

In this case, X Ltd. becomes liable for registration on August 25, 2018. The time-limit of 30 days for submitting registration application expires on September 24, 2018. If registration application is submitted on September 19, 2018 (i.e., within 30 days), effective date of registration is August 25, 2018. If, however, registration application is submitted on September 27, 2018 (i.e., after the expiry of 30 days), effective date of registration is the date on which registration is granted (i.e., October 5, 2018).

(2)   State-wise GST Registration / Distinct Person [Section 25(4)] –

A person seeking registration under GST shall be granted a single registration in a State/ Union Territory. A person having multiple business verticals in a State/Union Territory may be granted a separate registration for each business vertical. A person who has obtained more than one registration shall, in respect of each such registration, be treated as distinct persons for the purposes of GST.

Example:

X Ltd. is a paper manufacturing company. Head office and manufacturing unit of the company are situated in Kolkata. The company has 3 branches – Mumbai, Indore and Surat. The company has taken 4 registrations under GST (i.e., Kolkata head office, Mumbai branch, Indore branch and Surat branch). In this case, head office, Mumbai branch, Indore branch and Surat branch are treated as distinct persons. Supply of goods/services between head office and branches or supply of goods/ services between branches will be subject to GST, as if supplier and recipient are distinct persons. In the case of supply between distinct persons, GST is applicable even if such supply is made without any consideration.

(3)   Multiple Business Verticals within a State [Section 25(2)]–

Any person having multiple business verticals within a State/Union Territory, requiring a separate registration for any of its business verticals shall be granted separate registration in respect of each of the verticals subject to the following conditions, namely –

– The business vertical of a taxable person shall not be granted registration under Composition Scheme if any one of the other business verticals of the same person is paying tax under normal provisions.

– All separately registered business verticals of such person shall pay tax under the Act on supply made to another registered business vertical of such person and issue a tax invoice for such supply.

(4)   Voluntary GST Registration [Section 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 arc applicable to a registered person. shall apply to such person.

However, once a person obtains voluntary GST Registration, he has to pay tax even though his aggregate turnover does not exceed Rs. 20 lakh or Rs. 10 lakh. as the case may be.

(5)   PAN based GST Registration [Section 25(6)] –

Every person shall have a Permanent Account Number (PAN) issued under the Income tax Act in order to be eligible for grant of GST registration. The following are a few exceptions –

1.    A person who is required to deduct tax at source (TDS) under section 51 can get registration by using his TAN (issued under the Income-tax Act).

2.    A non-resident taxable person can apply for registration by using a valid passport (and need not have a PAN number in India). A business entity incorporated or established outside India, has to submit the application for GST registration 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).

(6)   Special Provision for GST Registration relating to Casual Taxable Person and Non-Resident Taxable Person–

The certificate of GST 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 90 days from the effective date of registration, whichever is earlier. Such person shall make taxable supplies only after the issuance of the certificate of registration. The period of 90 days may be extended by a further period of 90 days by the proper officer.

(7)   Advance deposit of GST –

A casual taxable person or a non-resident taxable person shall (at the time of submission of application for registration) make an advance deposit of GST in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought.

In case of extension of time, such taxable person shall deposit an additional amount of GST equivalent to the estimated tax liability of such person for the period for which the extension is sought.

(8)   GST Registration to Persons required to Deduct Tax at Source or to collect Tax at Source –

For these persons, application should be submitted electronically in Form GST REG-07. The proper officer may grant registration after due verification and issue a certificate of registration in Form GST REG-06 within a period of 3 working days from the date of submission of the application.

(9)   GST Registration to Non-Resident Taxable Person –

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 5 days prior to the commencement of business at the common portal. 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 PAN, if available.

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. The application for registration made by a nonresident 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 PAN.

See also  GST Liability on Composite and Mixed Supplies of Goods or Services [Section 8 of CGST Act, 2017]

(10) GST Registration to a person supplying online information and database access or retrieval services from a place outside India to a Non-taxable online recipient –

For these persons, application for GST Registration should be submitted electronically in Form GST REG-10. The applicant shall be granted GST Registration in Form GST REG-06.

(11) Suo Motu GST Registration [Section 25(8)]–

Where, pursuant to any survey, enquiry, inspection, search or any other proceedings, the proper officer finds that a person (liable to GST Registration) 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.

Every person to whom a temporary registration has been granted shall, within a period of 90 days from the date of the grant of such registration, submit an application for registration (this limit of 90 days will be counted from the date of appellate order, in case the concerned person has filed an appeal challenging the proper officer’s order of granting Suo Motu GST Registration).

(12) Unique Identity Number (UIN) in certain cases [Section 25(9)]

Notwithstanding anything contained in Section 25(1),—

(a)        any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the 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.

Such person shall file an application in a different prescribed form. UIN shall be assigned and GST Registration certificate shall be issued within 3 working days from the date of submission of application if no deficiency has been communicated to the applicant within that period.

The GST Registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed. [Section 25(10)]

6.   Amendment or Modification of GST Registration [Section 28] –

Where there is any change in any of the particulars furnished in the application for registration, the registered person shall, within a period of 15 days of such change, submit an application electronically in Form GST REG-14, along with the documents relating to such change.

>>        Within 15 days, the proper officer can issue electronically amendment order in Form GST REG-15. This amendment order is possible where the change relates to –

– Legal name of business.

– Address of the principal place of business or any additional place(s) of business.

– 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.

>>        Where a change in the constitution of any business results in the change of the PAN of a registered person, the said person shall apply for fresh registration in Form GST REG-01.

>>        Where the proper officer is of the opinion that the amendment sought is not warranted (or the documents furnished therewith are incomplete), he may, within a period of 15 working days serve a notice in Form GST REG-03. This show cause notice can be replied within a period of 7 working days (reply can be sent in Form GST REG-04).

>>        The proper officer can reject the application (if the reply not satisfactory or if there is no reply).

>>        If the proper officer fails to take action within the time-limits given above, 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.

7.   Cancellation or Suspension of GST Registration –

The proper officer may cancel GST registration. It can be done by him 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).

(1) Application for GST Registration Cancellation–

Application for cancellation of registration shall be submitted electronically in Form GST REG- 16.

(2)   Cancellation by Proper Officer on his Own Motion or on an Application filed by the Registered Person or by his Legal Heirs [Section 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, other than the person registered under section 25(3) (i.e. voluntary registration), is no longer liable to be registered under section 22 or section 24.

(3)   Cancellation or Suspension of GST Registration under Section 29(2) in case of a Default –

In the cases given below, the proper officer may cancel registration from such date (including a retrospective date) as he may deem fit –

1.    Where a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed.

2.    Where a person covered by Composition Scheme has not furnished returns for 3 consecutive tax periods.

3.    Where any registered person (not being a Composition Scheme taxpayer) has not furnished returns for a continuous period of 6 months.

4.    Where any person (who has taken voluntary registration) has not commenced business within 6 months from the date of registration.

5.    Where registration has been obtained by means of fraud, willful misstatement or suppression of facts. In these cases, the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

(4)   GST Registration to be Cancelled under Rule 21 in a few cases –

The registration granted to a person is liable to be cancelled, if –

–           The registered person does not conduct any business from the declared place of business.

–           The registered person issues invoice or bill without supply of goods/services in violation of the provisions of the Act.

–           The registered person violates the provisions pertaining to Anti-profiteering measure of section 171.

(5)   GST Registration Cancellation does not discharge liability of taxpayer [Section 29(3)]–

The cancellation of registration shall not affect the liability of the person to pay tax and other dues under GST or to discharge any obligation under GST regulations 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).

(6)   Concurrent cancellation of GST Registration under all GST Acts –

The cancellation of registration under SGST Act / UTGST Act shall be deemed to be a cancellation of registration under CGST Act.

(7)   Amount equivalent to input lax credit to be paid back on cancellation of registration [Section 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 (ax in respect of inputs held in stock and inputs contained in semifinished 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:

However, 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. (See relevant rule 44 of CGST Rules)

(8)   Procedure for Cancellation of GST Registration–

Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled, he shall issue a notice to such person in Form GST REG-17, requiring him to show cause, within a period of 7 working days, as to why his registration shall not be cancelled.

See also  Tax Invoice , Credit and Debit Notes under Section 31, 33, 34 of CGST / SGST Act, 2017

The reply to the show cause notice can be given in Form REG-18. Where the reply furnished is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in Form GST REG-20. Where, however, the person instead of replying to the notice, furnishes all the pending returns and makes full payment of tax dues (along with applicable interest and late fee), the proper officer shall drop the proceedings and pass an order in Form GST REG-20.

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 Form GST REG- 19, within a period of 30 days from the date of application or the date of the reply to the show cause notice.

8.   Revocation of Cancellation of GST Registration –

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.  Such application can be submitted in Form GST REG-21. The application has to be submitted electronically within a period of 30 days from the date of the service of the order of cancellation of registration. However, 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 tax due is deposited with interest, penalty and late fee in respect of the said returns.

>>      Where the proper officer is satisfied 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 30 days from the date of the receipt of the application. Conversely, if the proper officer is not satisfied, revocation application may be rejected by passing an order in Form GST REG-05. However, before rejecting revocation application, a show cause notice in Form GST REG-23 should be issued. Show cause notice can be replied by the taxpayer in Form GST REG-24 within 7 days. Reply to show cause notice can be disposed of within 30 days by the proper officer.

>>      The revocation of cancellation of registration under the SGST Act/UTGST Act shall be deemed to be a revocation of cancellation of registration under CGST Act.

9.   Procedure for change of eMail and Mobile Number of authorised signatories by taxpayers under GST Registration –

The email and mobile number can be updated by the concerned jurisdictional tax authority of the taxpayer as per the following procedure –

–           Taxpayer is required to approach the concerned jurisdictional Tax Officer to get the password for the GSTIN allotted to the business (jurisdiction can be checked through Search Taxpayer option available on https:// www.gst.gov.in).

–           Taxpayer would be required to provide valid documents to the Tax Officer as proof of his/her identity and to validate the business details related to his GSTIN.

–           Tax Officer will check if the said person is added as a Stakeholder or Authorized Signatory for that GSTIN in the system.

–           Tax Officer will upload necessary proof on the GST portal in support to authenticate the activity.

–           Tax Officer will enter the new email address and mobile phone number provided by the taxpayer.

–           After upload of document, Tax Officer will reset the password for the GSTIN in the system.

–           Username and temporary password reset will be communicated to the email address as entered by the Tax Officer.

–           Taxpayer need to login on GST Portal https://www.gst.gov.in/using the first-time login link.

–           After first time login with the username and temporary password that was emailed to him, system would prompt the taxpayer to change username and password. The said username and password can now be used by the taxpayer.

10. Method of Authentication towards GST Registrations –

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 shall be so submitted electronically with digital signature or through e-signature or verified by any of the following modes –

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.

However, a corporate taxpayer shall furnish documents/application verified through digital signature only.

11. Who will verify the GST Registration Application –

Each document/return furnished online shall be signed  or verified by the following persons –

Individual By the individual himself or where he is absent from India, by some other person duly  authorised by him in this behalf.

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.

Hindu undivided family By the 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.
Company By the chief executive officer or authorised signatory.
Government / Government Agency / Local Authority By an officer authorised in this behalf.

 

Firm By any partner thereof, not being a minor or authorised signatory.
AOP/BOI By any member of the association or persons or authorised signatory.
Trust By the trustee or any trustee or authorised signatory.
Any other By some person competent to act on his behalf, or by a person authorised in accordance with  the provisions of section 48.
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