CBEC - GST - Registration Legal Provisions

DG Systems, CBEC, New Delhi
Overview of Legal Provisions for
Registration under GST
www.cbec.gov.in https://cbec-gst.gov.in

Course Menu
Topic 02 GST Registration procedures
Topic 01 GST Registration –Over view
Topic 03 GST Registration Legal provisions

 The Constitutional Amendment vide the Constitution (One
Hundred and First Amendment)Act, 2016
 The Central Goods and Services Tax Act, 2017
―SCHEDULE I to III of CGST Act, 2017
 The Integrated Goods and Services Tax Act, 2017
 The Union Territory Goods and Services Tax Act, 2017
 The Central Goods and Services Tax Rules,2017
 Registration Form ( As per The CGST Rules,2017)
 Respective State GST Act and GST Rules.
Legal Provisions – Statues

 Goods and Services Tax (GST) on all supply transactions of goods
and services excluding:
―Liquor [Ref.: Clause (12A) of article 366 in Constitution (122nd Amendment)
Bill, 2014]
―Petroleum crude, Petrol, HSD, aviation turbine fuel and Natural Gas for the
time being.[Ref.: Explanation in article 246A & Clause (5) of article 279A in
Constitution (122nd Amendment) Bill, 2014]
 Principles:
―On-line registration &Ease of doing business
―Time bound registration and communication
―Minimum physical interface
―State-wise registration is required (In a State from where supply is made.)
GST-Registration-Principles

 Registration is the fundamental requirement for identification of
tax payers ensuring tax compliance in the economy.
 Registration of any business entity under the GST Law implies
obtaining a unique number from the concerned tax authorities for
the purpose of collecting tax on behalf of the government and to
avail Input Tax Credit for the taxes on his inward supplies.
 Without registration, a person can neither collect tax from his
customers nor claim any input Tax Credit of tax paid by him.
Registration- Introduction

 GST being a tax on the event of “supply”, every supplier needs to get registered.
However, small businesses having all India aggregate turnover below Rupees
20 lakh (10 lakh if business is in Assam, Arunachal Pradesh, J&K, Himachal
Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland or
Tripura) need not register.
 The small businesses, having turnover below the threshold limit can, however,
voluntarily opt to register.
 The aggregate turnover includes supplies made by him on behalf of his
principals, but excludes the value of job-worked goods if he is a job worker. But
persons who are engaged exclusively in the business of supplying goods or
services or both that are not liable to tax or wholly exempt from tax or an
agriculturist, to the extent of supply of produce out of cultivation of land are not
liable to register under GST.
Liability to register

 Generally, the liability to register under GST arises when you are a
supplier within the meaning of the term, and also your aggregate
turn over in the financial year is above the exemption threshold of
20 lakh rupees.
 However, the GST law enlists certain categories of suppliers who
are required to get compulsory registration irrespective of their
turnover that is to say, the threshold exemption of 20 lakh is not
available to them.
Liability to register

 Inter-state suppliers
 A person receiving supplies on which tax is payable by recipient on
reverse charge basis
 Casual taxable person who is not having fixed place of business in
the State or Union Territory from where he wants to make supply
 Non-resident taxable persons who are not having fixed place of
business in India
 A person who supplies on behalf of some other taxable person (i.e.
an Agent of some Principal)
Person who need to register compulsorily

 E-commerce operators, who provide platform to the suppliers to
supply through it
 Suppliers who supply through an e-commerce operator
 Those ecommerce operators who are notified as liable for GST
payment under Section 9(5)
 TDS Deductor
 Those supplying online information and data base access or
retrieval services from outside India to a non-registered person in
India. (OIDAR)
Person who need to register compulsorily

Who is Liable to Register (Irrespective of threshold)
Casual taxable persons
Non-resident taxable persons
Other person or class
of persons as may be notified
by the Central Govt. or a
State Govt. on the
recommendations of the
Council.
Persons who supply goods
and/or services, other than
branded services, through
electronic commerce
operator;
Persons who are
required to pay tax under
reverse charge
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 are required to
deduct tax under section 51
Person required to collect tax
under section 52,
(E-Commerce)
Persons making any inter-
State taxable supply;
Every Electronic Commerce
(E-commerce) operator.
Person supplying
Online Information and
Database Access or
Retrieval services (OIDAR)
form a place outside India
Every e-commerce
operator rendering services
notified by CG/SG, on
recommendation of Council
Under Sec 8(4).

Topic 2
GST Registration 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.
 Registration under GST is not tax specific, which means that there is single
registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.
Registration basics

 A total of 30 forms/formats have been prescribed in the GST registration rules.
 For every process in the registration chain such as application for registration,
acknowledgment, query, rejection, registration certificate, show cause notice for
cancellation, reply, cancellation, amendment, field visit report etc, there are
standard formats.
 This will make the process uniform all over the country. The decision making
process will also be fast.
 Strict time lines have been stipulated for completion of different stages of
registration process.
Standardization of Registration procedures

 An application has to be submitted online through the common portal (GSTN) within thirty
days from the date when liability to register arose.
 The Casual and Non-Resident taxable persons need to apply at least five days prior to the
commencement of the business.
 The Proper Officer has to either raise a query or approve the grant of registration within three
working days failing which, registration would be considered as deemed to have been approved.
 The applicant would have to respond within seven working days starting from the fourth day of
filing the original application.
 The Proper Officer would have to grant or reject the application for registration within seven
working days thereafter.
Registration procedure

 Except for the changes in some core information in the registration application,
a taxable person shall be able to make amendments without requiring any
specific approval from the tax authority.
 In case the change is for legal name of the business, or the State of place of
business or additional place of business, the taxable person will apply for
amendment within 15 days of the event necessitating the change.
 The Proper Officer, then, will approve the amendment within the next 15 days.
For other changes like the name of day-to-day functionaries, e-mail IDs, mobile
numbers etc. no approval of the Proper Officer is required, and the amendment
can be affected by the taxable person on his own on the common portal.
Amendment of registration

 The GST law provides for two scenarios where cancellation of
registration can take place;
―the one when the taxable person no more requires it (voluntary
cancellation), and
―another when the Proper Officer considers the registration liable for
cancellation in view of certain specified defaults (Suo-motu cancellation) like
when the registrant is not doing business from the registered place of
business or if he issues tax invoice without making the supply of goods or
services.
Cancellation of registration

 The taxable person desirous of cancellation of registration will apply on the common portal
within 30 days of the event warranting cancellation.
 He will also declare in the application, the stock held on the date with effect from which he
seeks cancellation.
 He will also work out and declare the quantum of dues of payments and credit reversal, and the
particulars of payments made towards discharge of such liabilities.
 In case of voluntary registration (taken despite not being liable for), no cancellation is allowed
until expiry of one year from the effective date of registration.
 If satisfied, the Proper Officer has to cancel the registration within 30 days from the date of
application or the date of reply to notice (if issued, when rejection is concluded by the officer).
Cancellation by the Tax payer

 In case where registration is cancelled suo-motu by the Proper Officer, the
taxable person can apply within 30 days of service of cancellation order,
requesting the officer for revoking the cancellation ordered by him.
 However, before applying, the person has to make good the defaults (by filing
all pending returns, making payment of all dues and so) for which the
registration was cancelled by the officer.
 If satisfied, the proper officer will revoke the cancellation earlier ordered by
him. However, if the officer concludes to reject the request for revocation of
cancellation, he will first observe the principle of natural justice by way of
issuing notice to the person and hearing him on the issue.
Revocation of cancellation

 Physical verification is to be resorted to only where it is found
necessary in the subjective satisfaction of the proper officer.
 If at all, it is felt necessary, it will be undertaken only after granting
the registration, and the verification report along with the
supporting documents and photographs, shall have to be uploaded
on the common portal within fifteen working days.
Physical verification for registration

 The composition levy is an alternative method of levy of tax designed for small
taxpayers whose turnover is up to Rs. 75 lakhs ( Rs. 50 lakhs in case of few
States).
 The objective of composition scheme is to bring simplicity and to reduce the
compliance cost for the small taxpayers.
 It is optional and the eligible person opting to pay tax under this scheme can
pay tax at a prescribed percentage of his turnover every quarter, instead of
paying tax at normal rate.
 A taxable person opting to pay tax under the composition scheme is out of the
credit chain. He cannot take credit on his input supplies.
Composition levy under GST

 Following persons are not allowed to opt for the composition
scheme:
―a casual taxable person or a non-resident taxable person;
―suppliers whose aggregate turnover in the preceding financial year crossed
Rs. 75 lakhs;
―supplier who has purchased any goods or servcies from unregistered
supplier unless he has paid GST on such goods or services on reverse charge
basis;
―supplier of services, other than restaurant service;
Persons not eligible for composition scheme

 Following persons are not allowed to opt for the composition
scheme:
―persons supplying goods which are not taxable under GST law;
―persons making any inter-State outward supplies of goods;
―suppliers making any supply of goods through an electronic commerce
operator who is required to collect tax at source under section 52; and
―a manufacturer of following goods
 Ice cream and other edible ice, whether or not containing cocoa ,
 Pan masala,
 Tobacco and manufactured tobacco substitutes
Persons not eligible for composition scheme

Who has to file which form
GST -
REG-01
New Registration on account of aggregate limit above 10
Lakhs/20 Lakhs.
Voluntary Registration
Exclusive Inter State Supply
Casual Tax Payer
Input Service Distributor
Person liable to be registered under reverse charge mechanism
(RCM)

GST-
REG-07
Tax Deductor at source/Tax Deductor at Source
GST-
REG-9
Non Resident Tax payers
GST-
REG-10
Application for a person supplying online information and database access
or retrieval services from a place outside India to a non-taxable online
recipient (OIDAR)
GST-
REG-13
UN Bodies/ Embassies /any other person
GST
REG-25
Application for Enrolment/Migration of Existing Taxpayer
Who has to file which form

When to Register?
If registeration is not done within in 30 days, Input tax
credit is not available on ths stock of inputs held
30
DAYS
5
DAYS
All tax payers need to register within thirty days from the
date on which they become liable for registration
Casual tax payers or a Non-Resident Indians need to
register at least five days prior to the commencement of
the Business

Date of Submission
Seek Clarification With in 3 common
working days
Reply within 7 working days
Approve within 7 working days
If not Approved deemed to
Approved
If not Replied Rejected
Approve within 3 working days
If not Approved with in 3 Common
working deemed to Approved
Time limit for Approval Process

The registration application of a tax payer needs to be processed
within 3 working days.
Registration Approval – Turn Around Time
Date of submission of registration
application in the GST common portal.
3 working days within which the CBEC
Range SP needs to process the application.

When the tax payer fills the registration
form online, an application reference
number (ARN) is generated. This ARN
number is used as reference till the GSTIN
is issued.
When the Registrations are approved, it will
be allotted with a State wise PAN-based
15-digit GSTIN by the GSTN System.
The registration or the Unique Identity
Number, which is a State wise PAN-based
15-digit GSTIN, shall be granted or, as the
case may be, rejected after due verification
in the manner and within such period as
may be prescribed.
Goods & Services Tax Identification Number (GSTIN)
The format of GSTIN is given below:

Topic 3
GST Registration Legal provisions
 Important Sections of CGST Act, 2017
 Important Rules of CGST Rules, 2017
 Forms prescribed for Registrations

 CHAPTER I-PRELIMINARY
―2. Definitions
 CHAPTER III-LEVY AND COLLECTION OF TAX
―7.Scope of supply.
―8. Tax liability on composite and mixed supplies.
―9. Levy and collection.
―10. Composition levy.
―11. Power to grant exemption from tax.
GST Act-2017-Important Sections

 . CHAPTER VI-REGISTRATION
―22. Persons liable for registration.
―23. Persons not liable for registration.
―24. Compulsory registration in certain cases.
―25. Procedure for registration.
―26. Deemed registration.
―27. Special provisions relating to casual taxable person and non-resident
taxable person.
―28. Amendment of registration.
―29. Cancellation of registration.
―30. Revocation of cancellation of registration.
GST Act-2017-Important Sections

Some important defintions
Section
2 GST
Act,
2017
(6) “aggregate turnover”
(7) “agriculturist”
(18) “business vertical”
(20) “casual taxable person”
(26) “common portal”
(45) “electronic commerce operator”
(61) “Input Service Distributor”

Section
2 GST
Act,
2017
(77) “non-resident taxable person”
(84) “person”
(85) “place of business”
(91) “proper officer”
(94) “registered person”
(98) “reverse charge”
(107) “taxable person”
Some important Terminologies

 Chapter II- Composition rules
―3. Intimation for composition levy
―4. Effective date for composition levy
―5. Conditions and restrictions for composition levy
―6. Validity of composition levy
―7. Rate of tax of the composition levy
 Chapter III –Registration
―8. Application for registration
―9. Verification of the application and approval.
―10. Issue of registration certificate.
―11. Separate registration for multiple business verticals within a State or a
Union territory
―12. Grant of registration to persons required to deduct tax at source or to
collect tax at source
Registration-CGST-Rules-2017

―13. Grant of registration to non-resident taxable person
―14. Grant of registration to a person supplying online information and
database access or retrieval services from a place outside India to a non-
taxable online recipient
―15. Extension in period of operation by casual taxable person and non-
resident taxable person.
―16. Suo moto registration.
―17. Assignment of Unique Identity Number to certain special entities
―18. Display of registration certificate and Goods and Services Tax
Identification Number on the name board.
―19. Amendment of registration
―20. Application for cancellation of registration
―21. Registration to be cancelled in certain cases

―22. Cancellation of registration
―23. Revocation of cancellation of registration
―24. Migration of persons registered under the existing law
―25. Physical verification of business premises in certain cases
―26. Method of authentication.

Form Prescribed under Draft Rules (1/3)
Sr.
No
Form
Number
Content
1 GST REG-01 Application for Registration Part A (PAN, Mobile No etc. ) and Application for Registration Part B (using
ARN)
2 GST REG-02 Acknowledgement
3 GST REG-03 Notice for Seeking Additional Information / Clarification / Documents to Applicant
4 GST REG-04 Application with the clarification/additional information/document by the tax payer to the official
5 GST REG-05 Rejection of Application by the officer
6 GST REG-06 Registration Certificate issued to tax payer with the GSTIN.
7 GST REG-07 Application for Registration as Tax Deductor at Source under Section 51 or Tax Collector at Source
under Section 52 of the Goods and Service Tax Act
8 GST REG-08 Order of Cancellation of Application for Registration as Tax Deduct or Tax Collector at Source
9 GST REG-09 Application for Registration for Non Resident Taxable Person
10 GST REG-10 Application for a person supplying online information and database access or retrieval services from a
place outside India to a non-taxable online recipient
Registration Forms
Work flows

Form prescribed under Draft Rules (2/3)
Sr.
No
Form
Number
Content
11 GST REG-11 Application for extension in period of operation by casual taxable person and non-resident taxable
person
12 GST REG-12 Order of Allotment of Temporary Registration/Suo Moto Registration
13 GST REG-13 Assignment of unique identity number to certain special entities like UN Bodies/ Embassies/ any other
person under sub-section (9) of section 25 of the Goods and Service Tax Act
14 GST REG-14 Application for Amendment
15 GST REG-15 Order for approve the Amendment
16 GST REG-16 Application for Cancellation of Registration by the Tax payer
17 GST REG-17 Show Cause Notice By a Tax Official for Cancellation
18 GST REG-18 Response to Show Cause Notice for Cancellation of Registration
19 GST REG-19 Order of cancellation
20 GST REG-20 Order of dropping cancellation after seeking clarification
21 GST REG-21 Application for revocation of cancellation of registration
22 GST REG-22 Order of Revoking Cancellation

Form prescribed under Draft Rules (2/3)
Sr.
No
Form
Number
Content
23 GST REG-23 Show Cause Notice Raised Against Revocation
24 GST REG-24 Response to Show Cause Notice Against Revocation by tax payer
25 GST REG-25 Application for Enrolment/Migration of Existing Taxpayer
26 GST REG-26 Provisional Registration Certificate to existing taxpayer
27 GST REG-27 Show Cause Notice to Existing Tax Payer
28 GST REG-28 Cancellation of Registration of Existing Tax Payer
29 GST REG-29 Cancellation of Registration by Tax Payer
30 GST REG-30 Verification Report of Physical Verification

 We have completed the module on Legal provisions of Registration
process.

 We will now be able to:
―Identify importance of Registration in GST
―Identify the process flow between GSTN and CBEC-ACES-GST
―List the different scenarios of Registration approval
―Explain the basic process of Registration for approving
the application in CBEC-ACES-GST
Summary

CBEC - GST - Registration Legal Provisions

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