INTRODUCTION - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

CHAPTER II REGISTRATION 1. INTRODUCTION 1.1. Registration is the process through which a supplier enters into the GST ecosystem. It is the most fundamental requirement of identification of the business for tax purposes and for monitoring compliance requirements. 1.2. The provisions of CGST Act, 2017 and CGST Rules, 2017, relevant to this Chapter are as under Sr. No. Section / Rules Provisions pertaining to 1. Section 2(6) Definition of Aggregate Turnover 2. Section 2(20) Definition of Casual Taxable Person 3. Section 2(47) Definition of Exempt supply 4. Section 2(77) Definition of Non-resident taxable person 5. Section 2(78) Definition of Non-taxable Supply 6. Section 2(108) Definition of Taxable supply 7. Section 7 Scope of supply 8. Section 9 Levy and collection 9. Section 11 Power to grant exemption from tax 10. Section 18(3) and Rule 41 Availability of credit in special circumstances 11. Section 22 Persons liable for registration 12. Section 23 Persons not liable for registration 13. Section 24 Compulsory Registration in certain cases 14. Section 25 and Rule 8 Procedure for registration 15. Rule 9 Verification of application and approval 16. Section 27 and Rule 15 Special provisions relating to casual taxable person and non-resident taxable person 17. Section 28 and Rule 19 Amendment of registration 18. Section 29 and Rule 20 Cancellation or suspension of registration 19. Section 30 and Rule 23 Revocation of cancellation of registration 20. Section 51 and Rule 12 Tax deduction at source 21. Section 52 and Rule 12 Collection of tax at source 22. Rule 21 Registration to be cancelled in certain cases 23. Rule 21A Suspension of Registration 24. Rule 22 Cancellation of registration 25. Rule 25 Physical verification of business premises of certain cases 1.3. The GST law provides a minimum threshold in terms of aggregate turnover on pan India basis below which a supplier is not required to obtain registration. There are different threshold limits for suppliers exclusively supplying goods and for suppliers exclusively providing services or supplying both goods and services. Therefore, the GST law has provisions to ensure that the suppliers crossing the specified turnover threshold obtain registration and pay GST to the exchequer. 1.4. 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. Area up to 12 nautical miles in the sea is considered part of the nearest coastal State where the nearest point of appropriate base line is located. Area beyond 12 nautical miles and up to 200 nautical miles, which is not covered under any Union Territory is considered as a separate Union territory for the GST law. A person registered in one State is considered unregistered person outside the State. 1.5. If a person has unit in SEZ or is a SEZ developer and also unit in domestic tariff Area (i.e. outside the SEZ) in the same State, then he has to take separate registration for his SEZ unit/ SEZ developer and DTA unit as a separate place of business of him. 1.6. If a supplier also wants to distribute credit to his same-PAN entities, then he will take separate registration as input service distributor (ISD) in addition to his registration as supplier . 1.7. In GST registration, the supplier is allotted a 15-digit GST identification number called Goods and Services Tax Identification Number (GSTIN) and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal. The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is checking code. Registration under GST is not tax specific which means that there is a single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses. 1.8. 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 a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business.