Faculty of Law

B.A.LLB. (H.)
Tax Law II Assignment
Topic – Registration under GST

Submitted by: Submitted to:

Mirza Azhar Hussain Dr. Eakramuddin Malik,
(Associate professor)
IV Year (7th Sem.)
TABLE OF CONTENTS

S. no. Title Page no.

1. Introduction.............................................................................................. 3

2. Needs and Advantages of Registration................................................. 3

3. Person liable for registration under GST ............................................. 6

4. Persons not liable for GST registration ............................................... 8

5. Compulsory GST registration in certain cases .................................... 8

6. Manner of registration under GST....................................................... 9

7. Deemed registration under GST ........................................................ 10

8. GST Registration for casual taxable or non-resident taxable person . 10

9. Amendment of GST Registration .....................................................11

10. Cancellation of GST registration ...................................................... 11

11. Revocation of cancellation of GST registration .............................. 13

12. Conclusion ...................................................................................... 13

13. Bibliography ................................................................................... 15

1. INTRODUCTION

In any tax system registration is the most fundamental requirement for

identification of tax payers ensuring tax compliance in the economy.
Registration of any business entity under the GST Law implies obtaining a
unique number from the concerned tax authorities for the purpose of collecting
tax on behalf of the government and to avail Input tax credit for the taxes on his
inward supplies. Without registration, a person can neither collect tax from his
customers nor claim any input tax credit of tax paid by him.

The provision of GST registration has been prescribed under chapter VI of

the CGST Act, 2017 and Section 22 to Section 30 of the CGST Act, deals with the
registration by every supplier of goods and services.

2. NATURE OF REGISTRATION

The registration in GST is PAN based and State specific. 3 Supplier has to
register in each of such State or Union territory from where he effects supply. In
GST registration, the supplier is allotted a 15-digit GST identification number
called “GSTIN” and a certificate of registration incorporating therein this GSTIN
is made available to the applicant on the GSTIN common portal. The first 2 digits
of the GSTIN is the State code, next 10 digits are the PAN of the legal entity, the
next two digits are for entity code, and the last digit is check sum number.
Registration under GST is not tax specific which means that there is single
registration for all the taxes i.e. CGST, SGST/UTGST, IGST and Cess.

A given PAN based legal entity would have one GSTIN per State, that
means a business entity having its branches in multiple States will have to take
separate state wise registration for the branches in different States. But within a
State an entity with different branches would have single registration wherein it
can declare one place as principal place of business and other branches as
additional place of business. However, a business entity having separate business
verticals (as defined in section 2 of the CGST Act, 2017) in a state may obtain
separate registration for each of its business verticals. Further a unit SEZ or a
SEZ developer needs to necessarily obtain separate registration.

 Generally, the liability to register under GST arises when you are a supplier
within the meaning of the term, and also if you aggregate turn over in the
financial year is above the exemption threshold of 20 lakh rupees (10 lakh
rupees in special category states except J & K). However, the GST law
enlists Registration under GST Law 4 GST FLYERS certain categories of
suppliers who are required to get compulsory registration irrespective of
their turnover that is to say, the threshold exemption of 20 lakh rupees or
10 lakh rupees as the case may be is not available to them. Some of such
suppliers who need to register compulsorily irrespective of the size of their
turnover are those who are, -

 Inter-state suppliers; However, persons making inter-state supplies of taxable

services and having an aggregate turnover, to be computed on all India basis,
not exceeding an amount of twenty lakh rupees (ten lakh rupees for special
category States except J & K) are exempted from obtaining registration vide
Notification No. 10/2017-Integrated Tax dated 13.10.2017.

 A person receiving supplies on which tax is payable by recipient on

reverse charge basis.

 Casual taxable person who is not having fixed place of business in the
State or Union Territory from where he wants to make supply. However
casual taxable persons making supplies of specified handicraft goods need
not take compulsory registration and are entitled to the threshold
exemption of Rs. 20 Lakh. Handicraft goods are specified in Notification
no. 33/2017-Central Tax dated 15.09.2017 amended by Notification no.
38/2017-Central Tax dated 13.10.2017.

 Non-resident taxable persons who is not having fixed place of business in India

 A person who supplies on behalf of some other taxable person (i.e. an

Agent of some Principal)

 E-commerce operators, who provide platform to the suppliers to make

 supply through it

 Suppliers of goods who supply through such e-commerce operator who are
liable to collect tax at source. Persons supplying services through e-
commerce operators need not take compulsory registration and are entitled
to avail the threshold exemption of Rs. 20 Lakh as per Notification No.
65/2017-Central tax dated 15.11.2017.

 Those ecommerce operators who are notified as liable for GST payment
under Section 9(5) of the CGST Act, 2017

 TDS Deductor

 Input service distributor

 Those supplying online information and data base access or retrieval

services from outside India to a non-registered person in India.
A casual taxable person is one who has registered business in some State
in India, but wants to effect supplies from some other State in which he is not
having any fixed place of business. Such person needs to register in the State
from where he seeks to supply as a casual taxable person. A non-resident taxable
person is one who is a foreigner and occasionally wants to effect taxable
supplies from any State in India, and for that he needs GST registration. GST
Registration under GST Law 6 GST FLYERS law prescribes special procedure
for registration, as also for extension of the operation period of such casual or
nonresident taxable persons. They have to apply for registration at least five
days in advance before making any supply. Also, registration is granted to them
or period of operation is extended only after they make advance deposit of the
estimated tax liability.

In respect of supplies to some notified agencies of United Nations

organization, multinational financial institutions and other organizations, a
centralized unique identification number (UIN) is issued.
3. PERSONS LIABLE FOR REGISTRATION UNDER GST

Section 22 of the CGST Act, specified that “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”

But the person makes 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 a financial year exceeds ten lakh rupees.

Every person who is holding a license or registration under the earlier laws
shall be liable to be registered under this Act, with effect from 01.07.2017.

When a business carried on by a taxable person registered under this Act

is transferred on account of succession or otherwise, to another person as a going
concern, the transferee or the successor as the case may be liable to be registered
with effect from the date of such transfer or succession.

In a case of transfer pursuant to sanction of a scheme or an arrangement

for amalgamation or, as the case may be, demerger of two or more companies
pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall
be liable to be registered, with effect from the date on which the Registrar of
Companies issues a certificate of incorporation giving effect to such order of the
High Court or Tribunal.

For the purposes of this section there are certain points has been
clarified as under, ––

(i) the expression “aggregate turnover” shall include all supplies made by the
taxable person, whether on his own account or made on behalf of all his
principals;

(ii) the supply of goods, after completion of job work, by a registered job worker
shall be treated as the supply of goods by the principal referred to in section 143,
and the value of such goods shall not be included in the aggregate turnover of
the registered job worker;

(iii) the expression “special category States” shall mean the States as specified in
sub- clause (g) of clause (4) of article 279A of the Constitution.

Thus, from the above analysis there are two terms are very important needs
to be defined before proceeding to further analysis of the topic and the two words
are namely “supplier” and “aggregate turnover”

Section 2 (105) of the CGST Act, defines “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;

Section 2(6) of the CGST Act, defines “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;

TIME LIMIT FOR REGISTRATION

Person liable to take registration under this act shall be liable to take
registration within 30 days from the date on which he becomes liable to
registration.

Input service distributor, registered in the erstwhile law is not required

to re- register subject to the procedure to be followed by it as prescribed.

4. PERSONS NOT LIABLE FOR GST REGISTRATION

Section 23 of the CGST Act, specified that the following persons shall not
be liable to registration, namely-

(a) any person engaged exclusively in the business of supplying goods or

services or both that are not liable to tax or wholly exempt from tax under this
Act or under the Integrated Goods and Services Tax Act;

(b) an agriculturist, to the extent of supply of produce out of cultivation of land.

The Government may, on the recommendations of the Council, by

notification, specify the category of persons who may be exempted from
obtaining registration.

5. COMPULSORY GST REGISTRATION IN CERTAIN CASES

Section 24 of the CGST Act, specified that the following categories of

persons compulsorily shall be required to take registration under GST:

i) persons making any inter-State taxable supply;

(ii)casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under sub-section (5) of section 9;

(v) non-resident taxable persons making taxable supply;

(vi) persons who are required to deduct tax under section 51, whether or not
separately registered under this Act;

(vii) persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registered under this Act;

(ix) persons who supply goods or services or both, other than supplies specified under
sub-section (5) of section 9, through such electronic commerce operator who is
required to collect tax at source under section 52;

(x) every electronic commerce operator;

(xi) 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; and

(xii) such other person or class of persons as may be notified by the Government
on the recommendations of the Council.

6. MANNER OF REGISTRATION UNDER GST

Section 25 of the CGST Act, specified the manner of registration by the

various taxable person as under:

1) Every person who is liable to be registered under section 22 or section 24 shall

apply for registration in every such State or Union territory in which he is also
liable within 30 days from the date on which he becomes liable to registration.

In case of a casual taxable person or a non-resident taxable person shall apply for
registration at least 5 days prior to the commencement of business.

In case of any person who makes a supply from the territorial waters of India
shall obtain registration in the coastal State or Union territory where the nearest
point of the appropriate baseline is located.

2) Any person who is seeking registration under GST shall be granted a single
registration in a State or Union territory.

In case a person having multiple business verticals in a State or Union territory

may be granted a separate registration for each business vertical.

3) A person, though not liable to be registered under section 22 or section 24 of

the CGST Act, may get himself voluntarily and comply the all provisions of
GST Act as applicable to a registered person.

4) A person who has obtained or is required to obtain more than one registration,
whether in one State or Union territory or more than one State or Union territory
shall, in respect of each such registration, be treated as distinct persons for the
purposes of the GST Act.

5) Where a person who has obtained or is required to obtain registration in a

State or Union territory in respect of an establishment, has an establishment in
another State or Union territory, then such establishments shall be treated as
establishments of distinct persons for the purposes of the GST Act.

6) Every person shall have a Permanent Account Number issued under the
Income-tax Act, 1961 in order to be eligible for grant of registration.

7) Where an eligible person fails to obtain registration, the proper officer may
take suitable action as per law.

8) Any specialized agency of the UNO or any other organization as notified

by the commissioner shall be granted Unique Identity Number for all purposes
including refund of taxes.

9) The registration or Unique Identity Number shall be issued as per procedure or

shall be deemed to have been granted within period of 7 days.

7. DEEMED REGISTRATION UNDER GST

Section 26 of the CGST Act, specified that once the grant of registration
or issuance of the Unique Identity Number to a person or applicant under the GST
Act, and shall to be deemed to be granted or rejected within 30 days either the case
may be.

8. GST REGISTRATION FOR CASUAL TAXABLE OR NON-RESIDENT TAXABLE PERSON

Section 27 of the CGST Act, specified that the certificate of registration

issued to a casual taxable person or non-resident taxable person shall be valid for
90 days from the effective date of registration. The registration certificate can be
extended further period of 90 days by the proper officer on sufficient reasons
shown by the taxable person. The casual or non-resident taxable persons have to
make an advance deposit of tax liability and make additional deposit of tax for
extension period if so.

9. AMENDMENT OF GST REGISTRATION

Section 28 of the CGST Act, specified the provision of amendment of

GST registration, every registered person or a person to whom a Unique Identity
Number has been issued shall inform the proper officer of any changes in the
information of registration within 15 days of the said changes.

The proper office may approve or reject the amendment in the registration
of such particulars but the proper officer shall not reject the application for
registration without giving the person an opportunity of being heard.

10. CANCELLATION OF GST REGISTRATION

Section 29 of the CGST Act, provides the procedure for cancellation of

GST registration either by the proper officer or an application filed by the
registered person or by his legal heirs in the following circumstances where, -

(a) the business has been discontinued, transferred fully for any reason including
death of the proprietor, amalgamated with other legal entity, demerged or
otherwise disposed of; or

(b) there is any change in the constitution of the business; or

(c) the taxable person, other than the person registered as voluntarily, is no longer
liable to be registered under section 22 or section 24.

(2) The proper officer may cancel the registration of a person from such date,
including any retrospective date, as he may deem fit, where, ––

(a) a registered person has contravened such provisions of the Act or the rules
made thereunder as may be prescribed; or
(b) a person paying tax under section 10 (composition levy scheme) has not
furnished returns for three consecutive tax periods; or

(c) any registered person, other than a person specified in clause (b), has not
furnished returns for a continuous period of six months; or

(d) any person who has taken voluntary registration under sub-section (3) of
section 25 has not commenced business within six months from the date of
registration; or

(e) registration has been obtained by means of fraud, willful misstatement or

suppression of facts:

Provided that the proper officer shall not cancel the registration without
giving the person an opportunity of being heard.

(3) The cancellation of registration under this section shall not affect the 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.

(4) The cancellation of registration under the State Goods and Services Tax Act
or the Union Territory Goods and Services Tax Act, as the case may be, shall be
deemed to be a cancellation of registration under this Act.

(5) 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 credit of input tax 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,
calculated in such manner as may be prescribed:

Provided that in case of capital goods or plant and machinery, the taxable
person shall pay an amount equal to the input tax credit 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 under section 15, whichever is higher.

(6) The amount payable under sub-section (5) shall be calculated in such
manner as may be prescribed.

11. REVOCATION OF CANCELLATION OF GST REGISTRATION

Section 30 of the CGST Act, specified the provision of revocation of

cancellation of registration as per the following conditions:

1. Any registered person whose registration is cancelled by the proper officer;

he can apply to such officer for revocation of cancellation of the registration
within 30 days from the date of service of the cancellation order.

2. The proper officer either revokes cancellation of the registration or rejects

the application, but before rejection of application the proper officer should
be given an opportunity of being heard by the applicant.

3. The revocation of cancellation of registration under SGST Act, and UTGST

Act, as the case may be shall be deemed to be a revocation of cancellation of
registration under section 30 of the CGST Act.
13. CONCLUSION

Before the advent of GST, we had 72 different taxes to be paid at different

level of business chain. More the complex taxation system more the scope for
administration to harass honest tax payers. Similarly, more the scope for
dishonest traders to beat the system. Inspectors can interpret statutes to suit their
whims leading to litigation. Ambiguity would be prevalent at every stage. It
would be difficult to settle genuine disputes with 72 taxes. Now GST will be the
only one tax. So, interpretation of statute would be state forward with little room
for ambiguity.

Central government is the only authority that will draft the act. Less
background work to move goods across the state. Sharing of revenue between
Central Government and State Government would become smooth. It is
expected to bring more transparency. State governments cannot levy excessive
taxes or reduces taxes to achieve political goals.

It is a bold step. There may be some flaws or inconsistencies but we can

iron them out as we move with the time.

In a nutshell, in the present-day economic scenario, it is desirable to all

persons dealing with taxable goods or services or both to take registration under
GST to avoid penalty/ litigation and make their product and services more
competitive in the market. With due registration only one can enjoy the benefit
of cascading effects of taxes and meet the requirement of Customers. Certainly,
a registered person can only able to enhance his scope of business with due
compliance under GST.
14. BIBLIOGRAPHY

Statutes referred

1. The Central Goods and Service Tax Act, 2017.

2. The Integrated Goods and Service Tax Act, 2017.

3. The Constitution of India.

Books referred

1. Datey, V.S., GST Ready Reckoner, as amended by CGST(Amdt.)

Act,2018/IGST (Amdt.) Act,2018/UTGST (Amdt.) Act,2018/GST
(Compensation to States) Amdt. Act,2018, 8th ed., 2018.
2. Singhania, Aditya, GST Refunds, as amended by CGST(Amdt.)
Act,2018/IGST (Amdt.) Act,2018/UTGST (Amdt.) Act,2018/GST
(Compensation to States) Amdt. Act,2018, 3rd ed., 2018.

Reports/Articles

1. Seventy Third Report of Standing Committee on Finance (2012-2013),

available at http://www.prsindia.org/
uploads/media/C
onstitution%20115/GST%20SC%20Repo rt.pdf
2. Thirteenth Finance Commission (2009): “Report of the Task Force on
Goods and Services Tax”, Government of India.
3. Jain, Anshu (2013), “An Empirical Analysis on GST in India: Possible
impacts, implications and policies”, International Journal of
Reviews, Surveys and Research, Vol. 2, Issue 1.

Websites referred

1. www.gstindia.com

2. www.onlinegst.in