GST registration applies to all individuals and entities supplying goods or services in India. The Ministry of Finance has simplified the GST registration procedure to ease the tax filing process. In this article, let us look at the eligibility for obtaining GST registration, the documents required as well as the GST registration procedure online.
List Of Topics Covered:
Persons Liable For Registration (Section 22)
- Every supplier shall be liable to be registered under this Act in the State or Union Territory from where he makes a taxable supply of goods or services or both if his aggregate turnover in a financial year exceeds the threshold limit as given below:
- Every Registered Person under the existing law (i.e. Excise, VAT, Service Tax, etc.) shall be liable to register under this Act with effect from the appointed day.
- When business carried on by a taxable person is transferred, whether on account of succession or otherwise, then Transferee/ Successors shall take registration.
- In case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or demerger, then Amalgamated/ De-merged Companies shall apply for new registration.
Persons Not Liable For Registration (Section 23)
The following persons shall not be liable to registration:
- Any person engaged exclusively in the business of supplying goods or services or both that are either not liable to tax or wholly exempt from tax under the CGST Act or under the IGST Act.
- An agriculturist, to the extent of supply of produce out of cultivation of land.
The Government has exempted the following category of persons from obtaining registration under this Act:
- The Central Government has specified the persons who are engaged in the supply of taxable goods or services, the total tax on which is liable to be paid by the recipient of such goods/services under Section 9(3) of the CGST Act, 2017.
- Any person who is engaged from an exclusive supply of goods and whose aggregate turnover in a financial year does not exceed 40 lakh rupees except:
→ Persons required to take compulsory registration under Section 24
→ Persons engaged in making supplies of:
- Ice cream and other edible ice, whether or not containing cocoa
- Pan masala
- All goods i.e. tobacco and manufactured tobacco substitutes
→ Persons engaged in making Intra-state supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura & Uttarakhand
→ Persons exercising option under the provisions of Section 25(3) i.e. Voluntary Registration or such persons who intend to continue with their registration under the said Act.
Compulsory Registration (Section 24)
- Persons making any Inter-state taxable supply
Except: In these cases, the threshold will apply:
→ Persons making inter-state supplies of taxable services
→ Persons making inter-state taxable supplies of handicraft goods, having PAN, and following the procedure of E-way bill.
- Casual Taxable Person making taxable supply
Except: Casual Taxable Person making taxable supplies including inter-state taxable supplies of handicraft goods having PAN and following the procedure of E-way bill.
- Persons who are required to pay tax under Reverse Charge
- Persons who are required to pay tax under Section 9(5) i.e. E-commerce Operator
- Non-Resident Taxable Person making taxable supply
- Persons who are required to deduct tax under Section 51, whether or not separately registered under this Act
- Persons who make taxable supply of goods or services or both on behalf of other taxable persons, whether as an agent or otherwise
- Input Service Distributor, whether or not separately registered under this Act
- Every Electronic Commerce Operator who is required to collect tax at source under Section 52
- Persons who supply goods or services or both, other than supplies specified under Section 9(5) through such ECO who is required to collect tax at source under Section 52
Except: N/N 65/2017 – CT dated 15.11.2017 exempts from registration a person making supplies of services, other than the supplies under Section 9(5) from registration till aggregate turnover exceeds 20 lakhs / 10 lakhs.
- Every person supplying OIDAR Services from a place outside India to a person in India, other than a registered person
- Any other person notified by Central Government
Advantages Of Taking Registration Under GST
→ Legal Recognition
→ Eligibility for ITC Availment
→ Legal Authorisation to collect tax and pass on credit
→ Getting eligible to avail various other benefits & privileges under GST
Timeline For Application For Registration
→ Person liable to be registered shall apply within 30 days from the date in which he is so liable
→ A Casual Taxable Person or a Non-Resident Taxable Person to apply for registration at least 5 days prior to the commencement of business
→ Person making supply from the territorial waters of India to obtain registration in the coastal State or Union Territory where the nearest point of the appropriate baseline is located
Moreover, it is provided that a person having unit, for a SEZ developer, shall have to apply for separate registration distinct from his place of business located outside the SEZ in the same State or Union Territory.
Documents Required For Registration
→ A person shall have a PAN in order to be eligible for a grant of registration (except in case of a person liable to deduct TDS and a Non-Resident Taxable Person.
→ Valid Indian Mobile phone number
→ Valid e-mail address
→ Jurisdiction details
→ Place of Business
→ Valid bank account number from India
→ IFSC number of the same bank and branch
→ At least one proprietor/ partner/ director/ trustee/ Karta/ member with corresponding PAN
→ An authorized signatory who is resident of India with valid details, including PAN
→ Prescribed documents and information on all mandatory fields of Registration Application (like Certificate of Incorporation, Authorised signatory’s photo, Stakeholder’s photo (Promoter / Partner), Proof of business address which includes electricity bill or property tax receipt or Municipal Khata Copy or legal ownership document, Copy of Resolution passed by BoD/ Managing Committee and Acceptance letter or letter of Authorisation, Proof bank accounts details which includes a copy of your bank statement, canceled cheque, or the first page of your Pass Book, etc.)
GST Registration Procedure
The applicant can process the GST registration procedure through the GST Portal. After submission of the application, the portal generates GST ARN immediately. Using the GST ARN, the applicant can check the application status and post queries if necessary. Within 7 days of ARN generation, the taxpayer shall receive a GST registration certificate and GSTIN.
STEP 1 – GO TO THE GST PORTAL
Access the GST Portal > https://www.gst.gov.in/ > Services > Registration > New Registration option.
STEP 2 – FILL REGISTRATION DETAILS
- Select the Taxpayer type from the options provided.
- Choose the state and district.
- Enter the legal name of the business entity as mentioned in the PAN. The portal verifies the PAN automatically, so the applicant should provide details as mentioned in the card.
- In the Permanent Account Number (PAN) field, enter PAN of the business or PAN of the Proprietor. GST registration is linked to PAN. Hence, in the case of a company or LLP, enter the PAN of the company or LLP.
- Provide the email address of the Primary Authorized Signatory. The same will be verified in the next step.
- Click the PROCEED button.
STEP 3 – VERIFY OTP & GENERATE TRN
- Enter OTP in the mobile OTP field.
- Enter OTP in the Email OTP field.
STEP 4 – TRN GENERATED
On successfully completing OTP verification, a TRN will be generated. TRN will now be used to complete and submit the GST registration application.
STEP 5 – LOGIN WITH TRN
Upon receiving TRN, the applicant shall begin the GST registration procedure. In the Temporary Reference Number (TRN) field on the GST Portal, enter the TRN generated and enter the captcha text as shown on the screen. Complete the OTP verification on mobile and email. Click on the icon marked in red to start the GST registration process.
STEP 6 – FILL IN THE BUSINESS DETAILS
- In Entering the trade name of the business in the Trade Name field.
- Pick the Constitution of the Business from the drop-down list.
- Enter the District and Sector/ Circle / Ward / Charge/ Unit from the drop-down list.
- In the Commissionerate Code, Division Code, and Range Code drop-down list, select the appropriate choice.
- Opt for the Composition Scheme, if eligible and required.
- Enter the date of the commencement of the business.
- Select the Date on which liability to register arises. (This is the day the business crossed the aggregate turnover threshold for GST registration. Taxpayers are required to file the application for new GST registration within 30 days from the date on which the liability to register arises.)
STEP 7 – SUBMIT PROMOTER INFORMATION
The next tab asks for details of the promoters and directors. In the case of proprietorship, the proprietors’ information must be submitted. Details of up to 10 Promoters or Partners can be submitted in a GST registration application. Following details of the promoters are to be submitted:
- Personal details of the stakeholder (like name, date of birth, address, mobile number, email address and gender)
- Designation of the promoter.
- DIN of the Promoter, only in case of- Private Limited Company, Public Limited Company, Public Sector Undertaking, Unlimited Company or Foreign Company registered in India
- Details of citizenship
- PAN & Aadhaar
- Residential address
In case the applicant provides Aadhaar, the applicant can use Aadhaar e-sign for filing GST returns instead of a digital signature.
STEP 8 – SUBMIT AUTHORISED SIGNATORY INFORMATION
An authorized signatory is a person nominated by the promoters of the company. The nominated person shall hold responsibility for filing GST returns of the company. Further, the person shall also maintain the necessary compliance of the company. The authorized signatory will have full access to the GST Portal. The person shall undertake a wide range of transactions on behalf of the promoters.
STEP 9 –INFORMATION ABOUT PLACE OF BUSINESS
In this section, the applicant shall provide the details of the principal place of business. The Principal Place of Business acts as the primary location within the State where the taxpayer operates the business. It generally addresses the books of accounts and records. Hence, in the case of a company or LLP, the principal place of business shall be the registered office.
The following details are required:
- Address of the principal place of business.
- Official contact such as Email address, telephone number (with STD Code), mobile number field, and fax number (with STD Code).
- Nature of possession of the premises.
If the principal place of business is located in SEZ or the applicant acts as SEZ developer, necessary documents/certificates issued by the Government of India are required to be uploaded by choosing ‘Others’ value in Nature of possession of premises drop-down and the document is to be uploaded.
Proof of ownership or occupancy of the property has to be documented as follows:
- If Own premises: Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- If Rented or Leased premises: A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
- If Premises not covered above: A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties also, the same documents may be uploaded.
STEP 10 –INFORMATION ABOUT ADDITIONAL PLACE OF BUSINESS
Upon having an additional place of business, enter details of the property in this tab.
STEP 11 – DETAILS ABOUT GOODS AND SERVICES
In this section, the taxpayer must provide details of the top 5 goods and services supplied by the applicant. For goods supplied, provide the HSN code and for services, provide SAC code.
STEP 12 – BANK ACCOUNT DETAILS
In this section, enter the number of bank accounts held by the applicant. If there are 5 accounts, enter 5. Provide details of the bank account like account number, IFSC code, and type of account. Finally, upload a copy of the bank statement or passbook in the place provided.
STEP 13 – VERIFICATION OF APPLICATION
In this step, verify the details submitted in the application before submission. Once the verification is complete, select the verification checkbox. In the Name of Authorized Signatory drop-down list, select the name of the authorized signatory. Enter the place where the form is filled. Finally, digitally sign the application using Digital Signature Certificate (DSC)/ E-Signature or EVC. Digitally signing using DSC is mandatory in the case of LLP and Companies.
STEP 14 – ARN GENERATED
On signing the application, the success message is displayed. The acknowledgment shall be received in the registered e-mail address and mobile phone number. Application Reference Number (ARN) receipt is sent to the e-mail address and mobile phone number. Using the GST ARN Number, the status of the application can be tracked.
|Application from Liability Date||Registration Effective from|
|Within 30 days||Date on which the person becomes liable to registration|
|Not within 30 days||Date of grant of registration|
As per Section 25(3), a person who is not liable to be registered under previous sections may get himself registered voluntarily. In case of voluntary registration, all provisions of this Act as are applicable to a registered person shall apply to voluntarily registered person.
A person seeking registration under this Act shall be granted a single registration in a State or Union Territory. Any person having multiple places of business within a State or Union Territory may be granted a separate registration for each such place of business subject to the following conditions:
- Such a person has more than one place of business
- Such person shall not pay tax under Section 10 (Composition Scheme) for any of his places of business if he is paying tax under Section 9 for any other place of business
- All separately registered place of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or bill of supply, as the case may be, for such supply.
In respect of such a registered place, they will be treated as a distinct person.
When a Proper Officer finds that a person liable for registration has failed to apply for such registration, temporary registration shall be ordered in Form GST REG-12. It shall be effective from the date of the grant of registration.
Application for registration is to be made within 90 days from the date of the grant of such registration. In case of an appeal against the grant of temporary registration, the application shall be submitted within 30 days from the date of issuance of order upholding the liability to registration.
As per Section 25(9) and (10) read with Rule 17, Unique Identification Number (UIN) is to be obtained from the GSTN Portal by the following persons:
- Any specialized agency of the United Nations Organization
- Any Multilateral Financial Institution and organization as notified under the United Nations
- Consulate or embassy of foreign countries
- Any other person notified by the Commissioner
UIN shall be assigned and registration certificate shall be issued within 3 working days from the date of submission of application. UIN is applicable to the territory of India (unlike State-wise registration).
Registration under GST is not tax specifically. There is a single registration for all the taxes i.e. CGST, SGST/ UTGST, and IGST along with cesses. Grant of registration / UIN under one will be deemed to be registration / UIN granted under all of the above, provided that the application has not been rejected. Further, rejection of application for registration / UIN under any one act will be deemed to be rejection under all the above acts.
- Both, CTP and NRTP have to compulsorily get registered under GST irrespective of the threshold limit, at least 5 days prior to the commencement of business.
- Every person must have a PAN to be eligible to be registered. Since NRTP generally do not have PAN of India, they are granted registration on the basis of other prescribed documents.
- Registration Certificate granted to a CTP/ NRTP will be valid for the period specified in the registration application or 90 days from the effective date of registration (which can be extended by further 90 days on an application before the end of validity period), whichever is earlier.
- Both are required to make an advance deposit of tax in an amount equivalent to the estimated tax liability (calculated on estimated net liability and not gross tax liability as per Circular No. 71/45/2018) of such person for the period for which registration is sought.
- Intimation of any changes in the information furnished to be made to proper officer within 15 days
- Amendments in non-core fields can be made directly on the common portal but approval is required for amendments in core fields
- The proper officer may accept or reject amendments in the registration particulars
- Any rejection or approval of amendments under the SGST or UTGST Act shall be deemed to be rejection or approval under the CGST Act
Circumstances where registration is liable to be canceled:
- Business discontinued or
- Transferred fully for any reason including death of the proprietor
- Amalgamated with other legal entity
- Demerged or
- Otherwise disposed of
- Change in the constitution of business
- A taxable person who is no longer liable to registration under Section 22 or 24.
Cancellation by Proper Officer:
- Contraventions by a registered person (eg. Dummy invoices, violates provisions of Section 171, etc.)
- Non-filing of returns by a registered person for continuous 6 months (3 tax periods in case of composition levy)
- A voluntarily registered person has not commenced business within 6 months from the date of registration
- Registration by fraud, willful misstatement or suppression of facts
Consequences of Cancellation of Registration:
- Does not impact liability. Tax still has to be paid.
- Deemed cancellation under CGST Act if cancellation is made under SGST or UTGST Act
- ITC availed for stock and capital goods on the day immediately preceding the date of cancellation should be reversed or paid.
Where a registered person applies for the cancellation of registration under Rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which cancellation is sought, whichever is later.
- Issue: Whether transfer or change in the ownership of a business to include transfer or change in the ownership of business due to the death of the sole proprietor?
(Circular No. 96/15/2019 GST dated 28.03.2019)
Clarification: The reason for the transfer of business includes the death of the sole proprietor.
- Issue: Whether homestays providing accommodation through ECO below threshold limit are exempt from taking registration?
(Circular No. 27/01/2018 dated 04.01.2018)
Clarification: ECO is liable for GST in case of accommodation services provided by hotels, inns, guest houses, or any other commercial places meant for residential or lodging purposes provided by a person having turnover below 20 lakhs (or 10 lakhs in special category states) per annum. Thus, they are not required to take registration under Section 22(1) of the CGST Act. Such persons, even though providing services through ECO, are not required to take registration.