9911796707
TMI BlogRegistration under GST LawX X X X Extracts X X X X X X X X Extracts X X X X ..... Registration under GST Law - By: - niranjan gupta - Goods and Services Tax - GST - Dated:- 22-9-2016 - - Introduction The general meaning of registration is a method of officially recording something. Usually something is registered to claim more rights, or to protect ownership, or because the law says it must be registered to be used legally. Presently, to do business in India there are a list of registration under Direct Indirect Taxation law. Indirect taxation majorly covers the Customs, Central Excise, Service Tax, VAT/CST, Professional Tax, Entry Tax, Entertainment Tax, Luxury Tax, Octroi and other local taxes as applicable time to time. VAT, Professional Tax, Entry Tax, Entertainment Tax, Luxury Tax, Octroi and other local taxes are governed by the State Government and Customs, Central Excise, Service Tax and Central Sales Tax are governed by the Central Government. The Central Government and State Government adjoined their hands to bring GST for doing business in a simplified manner. The suggested GST model provides for subsuming the Central Excise Duty, Service Tax, CST, VAT and other local taxes. Definition supplier in relation to any goods and/or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services shall mean the person supplying the said goods and/or services and shall include an agent acting as such on behalf of such supplier in relation to the goods and/or services supplied; 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. Also, the aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies. Time limit for applying for Registration under GST law Every person liable to be registered under GST Act shall apply for registration within thirty days from the date on which he becomes liable to registration. [S.19] In case of a person, other than an Input Service Distributor, is registered under earlier law, it shall not be necessary for him to apply for fresh registration under the S. 19 and he shall follow the procedure as may be prescribed in this behalf. Threshold Limit under GST law Under GST model, it is propos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that every supplier shall be liable to be registered under this Act in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds ₹ 9 lakh. However, this limit is ₹ 4 lakh for the persons conducting business in North East states including Sikkim. It is also proposed in the GST model that in case the aggregate turnover consists of only goods and/or services which are not liable to tax under this Act, that supplier shall not be liable to registration. The following categories of persons shall be required to be registered under this Act, irrespective of the proposed threshold limit : persons making any inter-State taxable supply casual taxable persons persons who are required to pay tax under reverse charge non-resident taxable persons persons who are required to deduct tax under section 37 persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise Input Service Distributor persons who supply goods and/or services, other than branded services, through electronic commerce operator every electronic c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommerce operator an aggregator who supplies services under his brand name or his trade name such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council. Moreover, for calculating the taxable threshold, it shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals. The supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 43A, and the value of such goods shall not be included in the aggregate turnover of the registered job worker. Threshold Limit under Central Excise, Service Tax and respective State Laws Service Tax: Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds nine lakh rupees shall make an application for registration within a period of thirty days of exceeding the aggregate value of taxable service of nine lakh rupees. Central Excise: The exemption is provided in terms of payment of excise duty as SSI. The exemption is available for first clearance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s up to an aggregate value not exceeding one hundred and fifty lakh rupees made. VAT: Following table shows the general threshold limit under respective VAT laws: Region State Turnover WCT North Delhi ₹ 20 lakh in the current year Total contract amount received exceeds ₹ 20 lakh North Haryana ₹ 5 lakh in the current year Total contract amount received equals or exceeds ₹ 5 lakh North Punjab Voluntary Registration ₹ 5 lakh ₹ 5 Lakh North UP ₹ 5 lakh Total contract amount received equals or exceeds ₹ 5 lakh North UK ₹ 5 lakh Total contract amount received equals or exceeds ₹ 5 lakh North J K ₹ 7.5 Lakh during any period of 12 consecutive months ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 7.5 Lakh North HP ₹ 8 lakh ₹ 8 lakh West Maharashtra Turnover exceeds ₹ 5 lakh and value of taxable goods sold is ₹ 10000 or more ₹ 1 lakh in case a dealer who is Importer Rs 5 lakh in any other case West Gujarat Turnover exceeds ₹ 5 lakh and value of taxable goods sold is ₹ 10000 or more Turnover exceeds (sale or purchase) ₹ 5 lakh and value of taxable goods sold is ₹ 10000 or more West Rajasthan Total Turnover exceeds ₹ 10 lakh Total Turnover exceeds ₹ 10 lakh West Goa Turnover exceeds ₹ 5 lakh Total Turnover exceeds ₹ 5 lakh Central MP Turnover exceeds ₹ 5 lakh Turnover exceeds ₹ 5 lakh Central Bihar Turnover exceeds S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 77; 5 lakh Every contractor executing has to get registration irrespective of the turnover. Central Chhattisgarh Turnover exceeds ₹ 10 lakh If taxable turnover of the dealer equals or exceeds the limit prescribed. Central Jharkhand Turnover exceeds ₹ 5 lakh Dealer involved in Works Contract and leasing with a turnover exceeding ₹ 25,000. Central Orissa Turnover exceeds ₹ 5 lakh ₹ 50,000 South AP Turnover exceeds ₹ 50 lakh for twelve consecutive month Executing works contract of the value exceeding ₹ 7.5 lakh for Government or local authority or opted for composition South Karnataka Taxable turnover is likely to exceed ₹ 7.5 lakh at any time during the year Taxable turnover exceed ₹ 62,500 in any month. If taxable turnover of the dealer equals or exceeds the limit prescribed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... South Kerala Total Turnover during any year is greater than or equals to ₹ 10 lakh Every contractor executing has to get registration irrespective of the turnover. South Tamil Nadu Turnover greater than or equal to ₹ 5 lakh in the preceding year or Purchases and sales goods within the state and his total turnover in preceding year is greater than or equal to ₹ 10 lakh Dealer of local and interstate transactions is ₹ 5 lakh or more; or Dealer of local transactions is ₹ 10 lakh or more; East West Bengal Taxable turnover exceeds ₹ 5 lakh Contractual transfer price exceeds ₹ 5 lakh East Assam Gross turnover of sale or purchase exceeds ₹ 6 lakh Total contract amount received exceeds ₹ 2 lakh East Sikkim Taxable turnover exceeds ₹ 3 lakh Total contract amount received exceeds ₹ 1 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kh East Arunachal Pradesh Turnover exceeds ₹ 5 lakh Total contract amount received exceeds ₹ 5 lakh East Manipur Gross turnover of sale or purchase exceeds ₹ 5 lakh Total contract amount received exceeds ₹ 50,000 East Meghalaya Gross taxable turnover exceeds ₹ 1 lakh Total contract amount received exceeds ₹ 1 lakh East Mizoram Gross taxable turnover exceeds ₹ 3 lakh Total contract amount received exceeds ₹ 3 lakh East Tripura Gross taxable turnover exceeds ₹ 3 lakh during any period of 12 consecutive months Nil East Nagaland Gross taxable turnover exceeds ₹ 3 lakh Total contract amount received exceeds ₹ 3 lakh Registration under GST Every person shall have a Permanent Account Number issued u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration. [ S. 19(4) ] A non-resident taxable person may be granted registration under sub-section (1) on the basis of any other document as may be prescribed.[ S. 19(4A) ] The registration or the Unique Identity Number, shall be granted or, as the case may be, rejected after due verification in the manner and within such period as may be prescribed. [ S. 19(7) ] The proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.[ S. 19(8) ] A registration or an Unique Identity Number shall be deemed to have been granted after the period prescribed under sub-section (7), if no deficiency has been communicated to the applicant by the proper officer within that period.[ S. 19(9) ] Any rejection of application for registration or the Unique Identity Number under the CGST Act / SGST Act shall be deemed to be a rejection of application for registration under the SGST Act / CGST Act. [ S. 19(10) ] The Central or a State Government may, on the recom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mendation of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act. [ S. 19(12) ] 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. A person may get himself registered voluntarily. Following person shall require to obtain a Unique Identification Number for the purpose as notified including refund of taxes on the notified supplies of goods and/or services received by them: any specialized agency of the United Nations Organization; any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947); Consulate or Embassy of foreign countries; and any other person or class of persons as may be notified by the Board / Commissioner. Special Provision for casual taxable person and non-resident taxable person The certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid for a period of ninety days from the effective date of registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. [ S. 19A(1) ] The proper officer may, at the request of the said taxable person, extend the aforesaid period of ninety days by a further period not exceeding ninety days. [Proviso to S. 19A(1) ] Casual taxable person or a non-resident shall make an advance deposit of tax which shall be equal to the estimated tax liability for the period for which the registration sought.[ S.19A(2 )] In case of extension of registration time, such person shall deposit an additional amount of tax equivalent to the estimated tax liability for the period for which the extension is sought. [Proviso to S. 19A(2) ] The amount deposited under sub-section (2) shall be credited to the electronic cash ledger of such person and shall be utilized in the manner provided under section 35. [ S. 19A(2 )] Amendment in Registration Any change in information submitted at the time of registration or subsequently shall be intimated to the proper officer in the manner and within such period as may be prescribed. [ S. 20(1) ] The proper officer shall not reject the request for amendment in the registration particulars without giving a notice to show cause and without giving the person a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reasonable opportunity of being heard. [ S. 20(3) ] Any rejection or, as the case may be, approval of amendments under the CGST Act/SGST Act shall be deemed to be a rejection or approval of amendments under the SGST Act/CGST Act. [ S. 20(4) ] Cancellation of Registration The registration certificate shall be cancelled either on his own motion by the proper officer or on an application filed by the registered taxable person or by his legal heirs (in case of death of such person), as the case may be, under the following circumstances: Discontinuance/merger/demerger/amalgamation of business or otherwise disposed of. Change in constitution of business. The registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed. A person paying tax under section 8 has not furnished returns for three consecutive tax periods. Any taxable person, other than a person specified in point (e), has not furnished returns for a continuous period of six months; Any person who has taken voluntary registration and has not commenced business within six months from the date of registration. Where registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been obtained by means of fraud, wilful misstatement or suppression of facts. The proper officer shall not cancel the registration without giving a notice to show cause and without giving the person a reasonable opportunity of being heard. The cancellation of registration under this section shall not affect the liability of the taxable person to pay tax and other dues under the Act 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. Every registered person shall pay tax equivalent to input tax on the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher. In case of capital goods, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods reduced by the percentage points as may be prescribed in this behalf or the tax on the transaction value of such capital goods, whichever is higher. Revocation of cancellation of registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Every registered person whose registration has been cancelled by the proper officer suo motu, may apply for revocation of registration within 30 days from the date of cancellation order. The proper officer may either revoke the cancellation of the registration or reject the application for revocation for good and sufficient reasons. The proper shall require to serve a proper show cause notice or give a reasonable opportunity of being heard before rejecting the application for revocation. Revocation of cancellation of registration under the CGST Act / SGST Act shall be deemed to be a revocation of cancellation of registration under the SGST Act / CGST Act. Transitional Provisions On the appointed day, every person registered under any of the earlier laws shall be issued a certificate of registration on a provisional basis in such form and manner as may be prescribed. Such provisional registration certificate shall be valid for a period of six months. The said validity period shall be extended for such period as the Central/State Government may, on the recommendation of the Council, notify. Every person to whom provisional registration has been iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ued shall furnish information and within such time as may be prescribed. Final registration shall be granted by the Central/State Government on submission of such information. The provisional certificate of registration issued to a person may be cancelled if such person fails to furnish, within the time specified. In case a person filed the application before the proper officer that he is not liable to registration under S. 19 then provisional certificate issued shall be deemed to have not been issued. (The authors of the article are associated with M/s SS Kothari Mehta Co, Chartered Accountants, New Delhi. They can be reached at [email protected] [email protected]) - Reply By NIRANJAN PANDEY as = R/Sir When registration will be started . Regards Niranjan Dated: 26-9-2016 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
