REGISTRATION UNDER GST

• Registration under GST involves obtaining a unique number

from the tax authorities.
• This is for the purpose of collecting tax on behalf of the
government. 
• A person can only claim the credit for tax paid on their inward
supply when they are registered.
• Without registration, a person can neither collect tax from his
customers nor claim any input tax credit of tax paid by him
• Section 22 to Section 30 of the CGST Act, deals with the
registration by the every supplier of goods and services.
• For certain businesses, registration under GST is mandatory. If
the organization carries on business without registering under
GST, it will be an offence under GST and heavy penalties will
apply.
• GST registration usually takes between 2-6 working days.
 Person liable for registration: CGST Section 22 CGST
Section 22 (1)
• Every supplier shall be liable to be registered under this
Act in the State or Union territory, other than special
category States, from where he makes a taxable supply
of goods or services or both, if his aggregate turnover in
a financial year exceeds forty lakh rupees:
Provided that where such person makes taxable supplies of
goods or services or both from any of the special category
States, he shall be liable to be registered if his aggregate
turnover in a financial year exceeds twenty lakh rupees.
In the GST Regime, businesses whose turnover exceeds Rs.
40 lakhs is required to register as a normal taxable person.
This process of registration is called GST registration.
• Section 22(2): Every person who is holding a license or
registration under the earlier laws shall be liable to be
registered under this Act, with effect from 01.07.2017.
• CGST Section 22 (3)
When a business carried on by a taxable person registered under
this Act is transferred, on account of succession or otherwise, to
another person as a going concern, then the transferee or the
successor, as the case may be, shall be liable to be registered with
effect from the date of such transfer or succession.
• 22(4): In a case of transfer pursuant to sanction of a scheme or
an arrangement for amalgamation or, as the case may be,
demerger of two or more companies pursuant to an order of a
High Court, Tribunal or otherwise, the transferee shall be liable
to be registered, with effect from the date on which the
Registrar of Companies issues a certificate of incorporation
giving effect to such order of the High Court or Tribunal.
 Mandatory Registration Under GST:
Following persons shall be required to be registered under this Act compulsorily,
irrespective of turnover limits provided earlier:
• Person making any inter-state taxable supply; any person supplying goods or services
to persons outside the state in which he is carrying on business shall be liable for
registration irrespective of his turnover.
• Person who is required to pay tax under reverse charge; Persons who are required to
pay tax under reverse charge under GST, For Example Taxable services provided or
agreed to be provided by any person who is located in a non-taxable territory and
received by any person located in the taxable territory in this case recipient of service is
liable to pay tax under reverse charge.
• persons who are required to deduct tax under section 51, whether or not separately
registered under this Act; As per section 51 of CGST Act,2017 the Government may
mandate: (a) a department or establishment of the Central Government or State
Government; or (b) local authority; or (c) Governmental agencies; or (d) such persons or
category of persons as may be notified by the Government on the recommendations of
the Council to deduct tax at the rate of one percent from the payment made to the
supplier where total value of such supply under a contract exceeds two lakh and fifty
thousand rupees, so the persons, department or agency mandated by government
under section 51 shall be liable for registration under GST.
• A non-resident taxable person
• Casual taxable person making taxable supply; Person who does not have fix
place of business in the state where he is supplying goods or services
occasionally is supposed to register under GST irrespective of his turnover
• Input Service Distributor, whether or not separately registered under this
Act; input service distributor means an office of the supplier of goods or
services or both which receives tax invoices issued under section 31 towards
the receipt of input services and issues a prescribed document for the
purposes of distributing the credit of central tax, State tax, integrated tax or
Union territory tax paid on the said services to a supplier of taxable goods or
services or both having the same Permanent Account Number as that of the
said office.
• Persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise; any person
supplying goods or services on behalf of some other taxable person and it
shall include an agent, broker, dealer etc.
• Persons registered under earlier laws; Persons registered under existing
laws i.e. Service Tax, Excise & Vat Laws of respective state are required to be
registered under GST, even if they are not liable for registration under GST
u/s 22 & 24 in this case these dealers may apply for cancellation of
registration after migration to GST.
• Every electronic commerce operator; “electronic commerce
operator” means any person who owns, operates or
manages digital or electronic facility or platform for
electronic commerce.
• Every person supplying online information and database
access or retrieval services from a place outside India to a
person in India, other than a registered person.
• Persons who supply goods or services or both, through
electronic commerce operator who is required to collect
tax at source under section 52. (TCS)
• such other person or class of persons as may be notified by
the Government on the recommendations of the Council.
• Voluntary Registration can also be done when Any person
who wishes to take advantage of Input Tax Credit i.e. tax
paid by him on his purchases may get themselves registered
under GST.
After registration all provisions of GST Law shall apply to them
like other registered dealers
• separate GST registration is required for each state from
where a taxable person is making supply of any goods or
services or both.
• a single registration is sufficient for a state, may add
multiple branches
• tax to be paid on supply of goods to branch in another state
that is Integrated Goods & Service Tax and may claim Input
Tax Credit of the IGST paid when these goods are sold in that
state.
 Suo Moto Registration by a proper Officer even
without application-when a person who is liable to
be registered under the Act but fails to register.
 Persons NOT Liable For Registration Under GST:
As per section 23 of CGST Act, 2017 following persons
shall not be liable for registration;
(a) Any person engaged exclusively in the business of
supplying goods or services or both that are not
liable to tax or
(b) wholly exempt from tax under this Act or under the
Integrated Goods and Services Tax Act;
(c) An agriculturist, to the extent of supply of produce
out of cultivation of land.
Manner of Registration
Section 25 of the CGST Act, specified the manner of registration by the
various taxable person as under:
• Every person who is liable to be registered under section 22 or
section 24 shall apply for registration in every such State or Union
territory in which he is also liable within 30 days from the date on
which he becomes liable to registration.
• In case of a casual taxable person or a non-resident taxable person
shall apply for registration at least 5 days prior to the
commencement of business.
• He must have income tax PAN.
• In case of any person who makes a supply from the territorial waters
of India shall obtain registration in the coastal State or Union territory
where the nearest point of the appropriate baseline is located.
• Area upto 12 nautical miles belong to State/Union Territory at least
as far as GST is concerned.
CANCELLATION OF REGISTRATION
• Section 29 of the CGST Act, provides the procedure for
cancellation of GST registration either by the proper officer or an
application filed by the registered person or by his legal heirs in
the following 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, is no longer liable to be registered under the
Act (Except the voluntary registration)
• Cancellation of Voluntary Registration can be done but it can be
cancelled after 1 year from date of registration.
• when the proper officer considers the registration liable for
cancellation in view of certain specified defaults
Advantages of registration : Registration will confer
the following advantages to a taxpayer:
• He is legally recognized as supplier of goods or
services.
• He is legally authorized to collect tax from his
customers and pass on the credit of the taxes paid
on the goods or services supplied to the
purchasers/ recipients.
• He can claim input tax credit of taxes paid and can
utilize the same for payment of taxes due on supply
of goods or services.
• Seamless flow of Input Tax Credit from suppliers to
recipients at the national level.
Penalty for not registering under GST
• An offender not paying tax or making short
payments has to pay a penalty of 10% of the tax
amount due subject to a minimum of Rs.10,000.
• The penalty will be at 100% of the tax amount
due when the offender has deliberately evaded
paying taxes.