Registration under GST

Introduction:

GST Model Law was released by the GST Council Secretariat in the month of November’ 2016. The GST now looks a reality. We have been continuously trying to update you with respect to latest developments with regard to GST. Let us today discuss the Registration under GST Law…..

Chapter VI deals with Registration and extends from Section 23 to Section 27

Let us discuss the provision in detail:

Person liable for Registration:

  • 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 twenty lakh rupees:
  • Every supplier that makes taxable supplies of goods and/or services from any of the States specified in sub-clause (g) of clause (4) of Article 279A of the Constitution shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. (Other than Special Category States)
  • 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 ten lakh rupees: (Special Category States)
  • Persons making any inter-State taxable supply, irrespective of the threshold;
  • Casual taxable persons, irrespective of the threshold;
  • Person who are required to pay tax under reverse charge, irrespective of the threshold;
  • Persons who are required to pay tax under sub-section (4) of section 8, irrespective of the threshold;
  • Non-resident taxable persons, irrespective of the threshold;
  • Persons who are required to deduct tax under section 46, whether or not separately registered under this Act;
  • Persons who are required to collect tax under 56, whether or not separately registered under the Act;
  • Persons who supply goods and/or services on behalf of other taxable persons whether as an agent or otherwise, irrespective of the threshold specified;
  • Input Service Distributor, whether or not separately registered under the Act;
  • Persons who supply goods and/or services, other than supplies specified under sub-section (4) of section 8 , through such electronic commerce operator who is required to collect tax at source under section 56, irrespective of the threshold;
  • every electronic commerce operator, irrespective of the threshold;
  • 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 taxable person; and
  • Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendation of the Council.

Person Not liable for Registration

  • any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax under this Act;
  • an agriculturist, for the purpose of agriculture.

Time line for Registration

  • Every person is liable to get registered within 30 days from the date on which he becomes liable to registration.
  • Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day.
  • Where a business carried on by a taxable person registered under GST Act is transferred, whether on account of succession or otherwise, to another person as a going concern, 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.

Basis for grant of registration

One of the requirements for obtaining registration is that the person who seeks it should hold a Permanent Account Number (PAN) issued under the Income-tax Act, 1961. However, a person who is required under Section 46 to deduct tax shall hold in lieu of PAN, a Tax Deduction and Collection Account Number (TAN).

Further, two categories of persons have been carved out of the above requirement being, (i) Non-resident taxable persons and (ii) special category of persons.

Non-resident taxable persons may be granted registration on the basis of any other document as may be prescribed [Section 23(5)] whereas, special category of persons will have to obtain/ will be granted, a Unique Identity Number (‘UIN’) in the manner prescribed, for the purpose(s) notified, including refund of taxes on the notified supplies of goods and/ or services received by them.

References

Article 279A(4)(g) inserted by the Constitution (One hundred and first amendment) Act, 2016 provides that the GST Council shall make recommendations to the Union and the States on special provisions with respect to the States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Casual Taxable person is defined under Section 2(20) to mean a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business whether as principal, agent or in any other capacity, in a taxable territory where he has no fixed place of business.

Non-resident Taxable person is defined under Section 2(68) to mean a taxable person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity but who has no fixed place of business in India.

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