Registration Under GST- Procedure, Validity, Cancellation

Persons liable for Registration

1. Every supplier have to be registered in each state/UT where he makes taxable supplies if the aggregate turnover in a FY exceeds 20 lacs

2. Every registered person under current laws are liable to be registered under GST.

Note:

- Aggregate turnover includes all taxable supplies, exempt supplies, exports, and inter-State supplies of persons having the same PAN but but it doesn’t include (i) the value of supplies on which tax is levied on reverse charge basis  (ii) supply of goods by job worker to the principal  (iii) the value of inward supplies and (iv) taxes 

- Supply of goods by job worker after job work shall be the supply of goods by principal and not to be included in aggregate turnover of job worker

Compulsory Registration

1. Persons making any inter-State taxable supply;

2. Casual taxable persons making taxable supply;

3. Persons who are required to pay tax under reverse charge;

4. Non-resident taxable persons making taxable supply;

5. Persons required to deduct tax under section 51, whether or not separately registered under this Act;

6. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

7. Input Service Distributor, whether or not separately registered under this Act;

8. Persons who supply goods or services or both through such electronic commerce operator who is required to collect tax at source under section 52;

9. Every electronic commerce operator;

Time Limit for Registration

1. Every person who is liable to be registered under any of above sections shall apply for registration within 30 days from the date on which he becomes liable to registration.

2. Provided, that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of business.

Points to be observed:

- Person having multiple business verticals in a state may obtain separate registration for each business vertical subject to certain conditions.

- A person may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.”

- Separate registrations of a person within one or more than one state/UT shall be treated as distinct persons.

- PAN is mandatory for GST registration.

Documents Required for GST Registration

1. PAN of the Applicant

2. Aadhaar card

3. Proof of business registration or Incorporation certificate

4. Identity and Address proof of Promoters/Director with Photographs

5. Address proof of the place of business

6. Bank Account statement/Cancelled cheque

7. Digital Signature

8. Letter of Authorization/Board Resolution for Authorized Signatory

Validity of Registration for CTP/NR taxable persons

1. COR issued to Casual taxable person/ NR taxable person shall be valid for period specified in application, Or 90 days (which can be extended further up to 90 days); Whichever is earlier

2. Casual/ NR taxable person shall make an advance deposit of estimated tax liability for the period of registration at the time of application and it shall be credited to electronic cash ledger of such person and utilized in the manner prescribed.

Penalty for not registering under GST

A Person not paying tax or making short payments has to pay a penalty of 10% of the tax amount due subject to a minimum of Rs.10,000/. The penalty will at 100% of the tax amount due when the person has deliberately evaded paying taxes.

Cancellation of Registration

1. Proper officer may cancel the registration in the prescribed manner, within the prescribed period with regard to circumstances where, -

- The business has been discontinued, transferred; or

- Any change in constitution of the business; or

- Taxable person is no longer liable to be registered

2. An assesse can apply for cancellation of registration electronically but voluntarily registered person shall not apply for cancellation of registration before the expiry of 1 year from the effective date of registration.

3. Every assesse whose registration is cancelled shall pay an amount, by way of debit in the electronic credit or cash ledger, equivalent to–

 - The ITC in respect of inputs held in stock, semi-finished & finished goods held in stock on the day immediately preceding the date of such cancellation; or

 - Output tax payable on such held goods,

Whichever is higher.

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