Registration under GST

Registration Under GST 

1. Threshold for Registration

Under GST, a business must register if its aggregate turnover exceeds the prescribed threshold limits. As of now, these limits are:

• For goods: ₹40 lakhs (₹20 lakhs for special category states)
• For services: ₹20 lakhs (₹10 lakhs for special category states)
• For both goods and services: ₹20 lakhs (₹10 lakhs for special category states)

2. Persons Liable for Registration

Regular Tax Payer

• A regular taxpayer is one who is required to file GST returns regularly and is entitled to input tax credit (ITC)
• In short a regular taxpayer is a person who regularly supplies goods and services and crosses the threshold limit for GST registration.
• They need to file monthly or quarterly returns depending on their turnover.

Composition Tax Payer

• A taxpayer with a turnover below ₹1.5 crore (₹75 lakhs for special category states) can opt for the Composition Scheme.
• These taxpayers pay a fixed percentage of turnover as tax and cannot claim input tax credit.
• They need to file quarterly returns.

Casual Taxable Person

• A person who occasionally supplies goods or services in a state or union territory where they do not have a fixed place of business.
• They are required to obtain temporary registration for the period during which they supply goods or services.

Non-resident Taxable Person

• A person who occasionally supplies goods or services in India but does not have a fixed place of business or residence in India.
• They need to register under GST and can avail temporary registration.

3. Persons Not Liable for Registration

• Persons engaged exclusively in supplying exempt goods/services.
• Agriculturists, to the extent of supply of produce out of cultivation of land.
• Persons whose aggregate turnover is below the threshold limit.
• Persons making supplies covered under reverse charge mechanism.
• Persons supplying goods/services that are not liable to tax or are entirely exempt from tax.
• Services by an employee to the employer in the course of or in relation to his employment.

4. Compulsory Registration in Certain Cases

Certain categories of persons are required to register under GST regardless of the threshold limit:

• Persons making inter-state taxable supply.
• Casual taxable persons.
• Non-resident taxable persons.
• Persons required to pay tax under reverse charge.
• Agents supplying goods/services on behalf of other taxable persons.
• E-commerce operators.
• Persons supplying goods/services through e-commerce operators.
• Persons required to deduct TDS under GST.
• Input Service Distributor (ISD).
• Persons making a taxable supply of goods/services on behalf of others whether as an agent or otherwise.

5. Manners for Registration under GST

• An application for registration is made using Form GST REG-01.
• For special category states, registration must be obtained within 30 days of the commencement of business.

6. Deemed Registration

If the proper officer does not take action on the registration application within three working days, the application for registration is deemed to be approved.

7. GST Registration for Casual Taxable or Non-resident Taxable Persons

• Casual taxable persons must apply for registration at least five days prior to the commencement of business using Form GST REG-01.
• A deposit equal to the estimated tax liability is required.
• Registration is valid for 90 days and can be extended for another 90 days.

8. Amendments of GST Registration

Amendments in registration details can be made by submitting Form GST REG-14, which must be approved by the proper officer within 15 days. Changes in business name, principal place of business, and details of partners/directors require approval.

9. Cancellation of GST Registration

• A taxpayer can apply for cancellation if the business is discontinued, transferred, or the turnover falls below the threshold limit.
• The proper officer can also initiate cancellation if the taxpayer contravenes provisions of GST.
• Cancellation does not affect the liability for acts done before the cancellation.

10. Revocation of Cancellation of GST Registration

If the registration is cancelled by the proper officer, the taxpayer can apply for revocation within 30 days from the date of cancellation order using Form GST REG-21.

11. Procedure for Registration

Application:

• The applicant must submit an online application using Form GST REG-01 through the GST portal (https://www.gst.gov.in/).
• Required documents include PAN, Aadhaar, proof of business address, bank account details, and photographs.

Verification:

• The application and documents are verified by GST authorities.
• Verification can be either automatic based on Aadhaar authentication or manual.

Approval:

• If verified, the GST officer issues the registration certificate (Form GST REG-06) within 3 working days.
• If further information or clarification is required, the officer may issue Form GST REG-03, and the applicant must respond using Form GST REG-04 within 7 working days.

Rejection:

• If discrepancies are found, and the applicant fails to respond or rectify them, the officer may reject the application using Form GST REG-05.

In short

• Log on to the GST portal (www.gst.gov.in).
• Fill Part-A of Form GST REG-01 and submit.
• A temporary reference number (TRN) will be generated.
• Use TRN to fill Part-B of Form GST REG-01.
• Verification of documents and approval by the proper officer.
• GSTIN is issued upon approval.

12. Unique Identification Number (UIN)

• Purpose: Assigned to entities like government bodies, UN agencies, embassies, and other notified entities to claim refunds of GST paid on inward supplies.
• Application: Entities must apply using Form GST REG-13.
• Format: Similar to GSTIN but specifically for entities eligible for tax refunds.

• UIN is a special classification of GST registration for entities such as government bodies, UN agencies, and other notified entities.
• It is used for claiming refunds of GST paid on purchases.

13. Who Can Apply for UIN under GST

• Foreign diplomatic missions and embassies.
• Consulates.
• United Nations organizations.
• Multilateral financial institutions.
• Specialized agencies of the United Nations.

14. Difference Between GSTIN and UIN

• GSTIN (Goods and Services Tax Identification Number): A unique 15-digit code assigned to regular taxpayers.
• UIN (Unique Identification Number): A unique number assigned to diplomatic missions, embassies, and other notified persons for claiming tax refunds.

15. Returns of UIN Holders

UIN holders must file GSTR-11 to claim a refund of taxes paid on inward supplies.

16. Registration Number Format

• The GSTIN (Goods and Services Tax Identification Number) is a 15-digit unique identification number assigned to each taxpayer.
• Format: 22AAAAA0000A1Z5
• The first 2 digits represent the state code.
• The next 10 digits are the PAN number of the taxpayer.
• The 13th digit is based on the number of registrations by a business entity within a state.
• The 14th digit is 'Z' by default.
• The 15th digit is a checksum digit used for error detection.