GST Act 2016, REGISTRATION

[CA Akash Phophalia]

1. Background

Model GST law provides for registration of various persons in different situations. This article aims at enlightening readers about the persons who are required to take registration and other provisions related to registration.

2. Threshold Limit

In order to provide relaxation to small suppliers it is provided that every supplier shall be liable to be registered under this act in the State form where it makes a taxable supply of goods or services if its aggregate turnover in a financial year exceeds ₹ 9 lacs. However, this limit is ₹ 4 lacs for the persons conducting business in NE states including Sikkim.

Here, aggregate turnover  means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST act, as the case may be. But aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.

3. Persons requiring registration

Following are the persons required to take registration under this act -

(a) Persons making inter-state supply, irrespective of any threshold limit

(b) Casual taxable persons, irrespective of the threshold specified

(c) Persons who are required to pay tax under reverse charge

(d) Non resident taxable persons

(e) Persons who are required to deduct tax under section 37 (TDS)

(f) Agents

(g) Input service distributor

(h) Supply of goods or services through electronic commerce operator, other than branded services

(i) Every electronic commerce operator

(j) Aggregator who supplies service under his brand name or his trade name

(k) Other notified persons

In the situation other than above–

(l) Suppliers liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 9 lacs.

(m) Supplier liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 4 lacs. (for NE states including Sikkim)

(n) Persons who were already registered under the earlier law subject to point (l) and (m) above.

(o) Transferee in case where business is transferred.

4. Following table will make some situations regarding registration more clear –

Situation	Nature of supply	Registration required
1	Taxable inter-state supply	Yes
2	Exempted inter-state supply	No
3	Intra-state supply (upto ₹ 9 lacs)	No
4	Intra-state supply (exceeding ₹ 9 lacs)	Yes
5	Intra-state supply (upto ₹ 9 lacs) Exempted inter-state supply of any value	No
6	Casual Taxable person	Yes
7	Reverse charge – for personal use upto prescribed limit	No
8	Reverse charge – for personal use beyond prescribed limit	Yes
9	Reverse charge – Other than personal use	Yes
10	Non-resident persons	Yes
11	Persons required to deduct TDS providing intra state supply upto ₹ 9 lacs	Yes
12	Input service distributor	Yes
13	Agent or the like	Yes
14	Intra-state supply upto ₹ 9 lacs As an agent	Yes
15	Electronic commerce operator	Yes
16	Supply through electronic commerce operator – Branded or otherwise	Yes
17	Aggregator – supplying services	Yes
18	Intra-state supply – Exempted ₹ 5 lacs Intra-state supply – Taxable ₹ 5 lacs	Yes As the aggregate turnover exceeds ₹ 10 lacs.

5. Time limit for registration

Person liable to take registration under this act shall be liable to take registration within thirty days from the date on which he becomes liable to registration.

Input service distributor, registered in the erstwhile law is not required to re-register subject to the procedure to be followed by it as prescribed.

6. Other aspects

• Option available for separate registration for each business vertical
• Option of voluntary registration is available
• Every person applying for registration should b having PAN number
• Non resident person may be granted registration on any other documents as prescribed ion absence of PAN number.
• Unique Identity number will be allotted to the assessees.

7. Special provisions relating to casual taxable person and non-resident taxable person

• Registration certificate issued will be valid for 90 days from the date of registration.
• This period could be further extended to 90 days.
• Such taxable persons are required to deposit tax in advance on the basis of estimated tax liability.

This is just for your reference. It does not constitute our professional advice or recommendation.