GST - Registrations: Law and Business Processes

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GST - Registrations: Law and Business Processes by Keval Shah June 14, 2017 at National Conference on GST Chennai Agenda Categories of Persons required to be registered Time limits for Registration Procedure for Registration Amendment and Cancellation of Registration 1

3 Categories of Persons required to be registered Persons liable for Registration: Section 22 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 twenty lakh rupees: Provided that where such persons makes a 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 financial year exceeds ten lakh rupees 2

Persons liable for Registration: Section 22 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 twenty lakh rupees: 2(105) Supplier in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied Persons liable for Registration: Section 22 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 twenty lakh rupees: special category States shall mean the States as specified in sub-clause (g) of clause (4) of Article 279A of the Constitution States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand 3

Persons liable for Registration: Section 22 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 twenty lakh rupees: 2(71) location of the supplier of services means, (a) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; (b) where a supply is made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; (c) where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and (d) in absence of such places, the location of the usual place of residence of the supplier; Persons liable for Registration: Section 22 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 twenty lakh rupees: 2(108) taxable supply means a supply of goods or services or both which is leviable to tax under this Act; Leviable Vs Liable Exempted Supply Services covered under Reverse Charge Mechanism 4

10 Persons liable for Registration: Section 22 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 twenty lakh rupees: 2(6) aggregate turnover means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-state supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess Migration and Special Case Registration Person registered under existing law is mandatorily required to register under GST In case of transfer of business on account of succession or otherwise, shall be liable to be registered with effect from the date of such transfer Other than above cases such as amalgamation or demerger by an order of court/tribunal, shall be liable to be registered, with effect from the date on which the ROC issues Certificate of Incorporation 5

12 11 Persons not liable for Registration: Section 23 Person exclusively engaged in supplying goods or services that are not liable to tax or are wholly exempt from tax An agriculturist to the extent of supply of produce out of cultivation of land Government may by Notification specify categories of person not required to register 2(7) agriculturist means an individual or a Hindu Undivided Family who undertakes cultivation of land (a) by own labour, or (b) by the labour of family, or (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family Compulsory Registration: Section 24 persons making any inter-state taxable supply casual taxable persons making taxable supply persons who are required to pay tax under reverse charge person who are required to pay tax under subsection (5) of section 9 non-resident taxable persons making taxable supply 6

14 13 Compulsory Registration: Section 24 persons making any inter-state taxable supply casual taxable persons making taxable supply persons who are required to pay tax under reverse charge person who are required to pay tax under subsection (5) of section 9 non-resident taxable persons making taxable supply 2(20) casual taxable person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business Compulsory Registration: Section 24 persons making any inter-state taxable supply casual taxable persons making taxable supply persons who are required to pay tax under reverse charge person who are required to pay tax under subsection (5) of section 9 non-resident taxable persons making taxable supply 2(77) non-resident taxable person means any person who occasionally undertakes transactions involving supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India 7

16 15 Compulsory Registration: Section 24 persons who are required to deduct tax under section 51 Agent supplying goods or services Input Service Distributor Person supplying goods or services through Electronic Commerce Operator Electronic Commerce Operator Compulsory Registration: Section 24 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 such other person or class of persons as may be notified by the Government on the recommendations of the Council 8

18 17 Additional Registrations Person having unit in Special Economic Zone shall make separate registration for SEZ Unit and Other Units Any person having multiple business verticals within a State or Union Territory may apply for separate registration (18) business vertical means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals. Explanation. For the purposes of this clause, factors that should be considered in determining whether goods or services are related include (a) the nature of the goods or services; (b)the nature of the production processes; (c) the type or class of customers for the goods or services; (d)the methods used to distribute the goods or supply of services; and (e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities Other parameters for Registration 9

20 19 Certain Parameters Person liable to be registered Apply within 30 days from the date when he becomes liable Person seeking registration shall be granted single registration in one State Person making supplies from territorial waters shall obtain registration in coastal State where the nearest point of baseline is located. A person may opt for Voluntary registration without crossing the prescribed limits. Separate registrations within a State or multiple establishments of same entity outside the State shall be treated as Distinct Persons. PAN is mandatory for obtaining registration under GST. (Exception Non Resident Taxable Person) TAN is mandatory for obtaining TDS Registration under GST. Casual Taxable / Non Resident Taxable Person Casual Taxable Person/Non Resident Taxable Person to Register at least 5 days prior to commencement of business Registration Certificate shall be effective for 90 days or period specified in application, whichever is earlier Further extension for additional 90 days can be applied for Advance Deposit of Tax based on estimated liability 10

22 Other Parameters Grant or Rejection of Registration under SGST/UTGST shall be deemed to be grant or rejection of registration under CGST Where a person liable fails to obtain registration, the proper officer may proceed to register Specialized Agencies of United Nations shall be granted an Unique Identity Number Display of Registration Certificate in a prominent place at principal place and additional places GSTIN should be displayed on the Name board Procedure for Registration 11

23 Procedure for Application for normal registration Applicant to declare: 1. PAN 2. Mobile No 3. Email Id Electronically fill the Application Form GST REG 01 Final Certificate of Registration GST REG 06 7 days PAN Validation through CBDT database Mobile Verification through OTP Email Verification through OTP Acknowledgment for Receipt of Application 3 days Deficiency to be communicated by Proper Officer GST REG 02 GST REG 03 No Response by Applicant/Not satisfied with response Response to be filed by the Applicant GST REG 05 GST REG 04 7 days Registration No Registration shall be effective from the date on which the person becomes liable to registration provided application is made within 30 days In case application is made after 30 days, the effective date shall be date of grant of Registration Certificate of Registration shall be digitally signed by proper officer GSTIN shall be as per under State Code PAN Vertical Check Digit 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 12

26 25 Other Registrations Person liable to deduct TDS u/s 51 Particulars Form No Non Resident Taxable Person GST REG 09 Application for Registration GST REG 07 Online Information and data base access or retrieval services GST REG 10 Grant of Registration Certificate GST REG 06 Extension by Casual Taxable Person or Non Resident Taxable Person Suo Moto Registration by proper officer GST REG 11 GST REG 12 Cancellation in case of Non - Requirement GST REG 08 Unique Identification No GST REG 13 Amendments and Cancellation of Registrations 13

Amendment in Registration Application for any changes in registration should be made within 15 days of such change Changes relate to Legal name, Address and details of Authorized Signatory, amendment to be made within 15 days from application after verification In case of any other amendments, certificate of registration is deemed to be amended In case of change in Constitution, fresh application is required Show Cause Notice and reasonable opportunity of being heard should be given by the Proper officer in case he is willing to reject the amendment application Approval or rejection in SGST/UTGST Act shall be deemed to be the approval or rejection in CGST Cancellation of Registration On his own motion for discontinuation of business or on an application filed by the registered person or by his legal heirs The business has been discontinued, transferred, amalgamated with other legal entity, demerged or otherwise disposed of; or Change in the constitution of business; or Taxable person is no longer liable to be registered u/s 22 or 24 A registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or A Person paying tax u/s 10 and has not furnished returns for 3 consecutive tax periods ; or Any other registered person has not furnished returns for a continuous period of 6 months; or Any person who has taken voluntary registration u/s 25(3) has not commenced business within 6 months from the date of registration; or Registration has been obtained by means of fraud, willful misstatement or suppression of facts: 14

Cancellation of Registration Cancellation of registration shall not affect Liability of the person to pay tax and other dues under this Act or To discharge any obligation under this Act or the rules made thereunder 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 Cancellation under SGST or UTGST Act shall be deemed to be a cancellation of registration under CGST Act Cancellation of Registration: Impact of Credits Every registered person whose registration is cancelled shall pay an amount By way of debit in the electronic credit ledger or electronic cash ledger Equivalent to the ITC in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery On the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, To be calculated in prescribed manner In case of capital goods or plant and machinery, the taxable person shall pay higher of the below amount an amount equal to the ITC taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery u/s 15 15

32 Revocation of Cancellation Person may apply for revocation of cancellation of registration to such proper officer in the prescribed manner within 30 days from the date of service of the cancellation order Proper Officer may by an order either revoke cancellation of the registration or reject the application for revocation for good and sufficient reasons Show Cause Notice and reasonable opportunity of being heard should be given in case Proper Officer is willing to reject the application for revocation of cancellation of registration Approval in SGST/UTGST Act shall be deemed to be approved in CGST Act Thank You CHK & Associates Chartered Accountants Email: keval@consultingedge.in Mob: 98674 62965 16

33 Disclaimer This material and the information contained herein prepared by CHK & Associates is intended to provide general information on a particular subject or subjects and is not an exhaustive treatment of such subject(s). CHK & Associates is not, by means of this material, providing any professional advice or services. The information is not intended to be relied upon as the sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a qualified professional adviser. CHK & Associates shall not be responsible for any loss whatsoever sustained by any person who relies on this material. 17