FAQs on Registration
Q1.What’s the benefit of registering a business under GST?
A: Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:
- Legally recognized as supplier of goods or services.
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business.
- Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients.
Q 2.Can a person without GST registration claim ITC and collect tax?
A: No. A person without GST registration can neither collect GST from his customers nor claim any input tax credit of GST paid by him.
Q 3. What will be the effective date of registration?
A: Where the application for registration has been submitted within thirty days from the date on which the person becomes liable to registration, the effective date of registration shall be date of his liability for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.
In case of suomoto registration, i.e. taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective date of registration shall be the date of order of registration.
Q 4. Who are the persons liable to take a Registration under the Model GST Law?
A: Any supplier who carries on any business at any place in India and whose aggregate turnover exceeds threshold limit as prescribed in a year is liable to get himself registered. However, certain categories of persons mentioned in Schedule V of Model GST Law are liable to be registered irrespective of this threshold.
An agriculturist shall not be considered as a taxable person and shall not be liable to take registration.
Q 5. What is aggregate turnover?
A: As per section 2 (6) of the Model GST Law, aggregate turnover includes the aggregate value of:
(i) all taxable and non-taxable supplies,
(ii) exempt supplies, and
(iii) exports of goods and/or service of a person having the same PAN.
The above shall be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act.
Aggregate turnover does not include value of supplies on which tax is levied on reverse charge basis, and value of inward supplies.
Q 6. Which are the cases in which registration is compulsory?
A: As per Schedule V of Model GST Law, the following categories of persons shall be required to be registered compulsorily irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services, other than branded services, through electronic commerce operator;
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name or his trade name; and
k) such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.
Q 7. What is the time limit for taking a Registration under Model GST Law?
A: Any person should take a Registration, within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.
Q 8. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration?
A: No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Sub-section (1) of Section 23 of Model GST Law.
Q 9. Whether a person having multiple business verticals in a state can obtain for different registrations?
A: Yes. In terms of Sub-Section (2) of Section 23, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed.
Q 10. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
A: Yes. In terms of Sub-section (3) of Section 23, a person, though not liable to be registered under Schedule V, may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
Q 11. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
A: Yes. Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for grant of registration under Section 23 of the Model GST Law. However as per section 23 (5) of Model GST Law, PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed.
Q 12. Whether the Department through the proper officer, can suo-moto proceed with registration of a Person under this Act?
A: Yes. In terms of sub-section (6) of Section 23, where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action that is, or may be taken under the Model GST Law, or under any other law for the time being in force, proceed to register such person in the manner as may be prescribed.
Q 13. Whether the proper Officer can reject an Application for Registration?
A: Yes. In terms of sub-section 7 of Model GST Law, the proper officer can reject an application for registration after due verification. However, it is also provided in sub-section 8 of Section 23, the proper officer shall not reject the application for registration or the Unique Identity Number without giving a notice to show cause and without giving the person a reasonable opportunity of being heard.
Q 14. Whether the Registration granted to any person is permanent?
A: Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
Q 15. Is it necessary for the UN bodies to get registration under Model GST Law?
A: As per sub section 7(a) of the section 23 of the Model GST Law all UN bodies Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States. This UIN will be needed for claiming refund of taxes paid by them and for any other purpose as may be prescribed in the GST Rules.
Q 16. What is the responsibility of the taxable person supplying to UN bodies?
A: The taxable supplier supplying to these organizations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier.
Q 17. Is it necessary for the Govt. organization to get registration?
A: A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities / PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases.
Q 18. Who is a Casual Taxable Person?
A: Casual Taxable Person has been defined in Section 2 (20) of Model GST Law. It means a person who occasionally undertakes transactions in a taxable territory where he has no fixed place of business.
Q 19. Who is a Non-resident Taxable Person?
A: A taxable person residing outside India and coming to India to occasionally undertake transaction in the country but has no fixed place of business in India is a non-resident taxable person in terms of Section 2 (68) of the Model GST Law.
Q 20. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non Resident Taxable person?
A: The certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for a period of ninety days from the effective date of registration. However, the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of ninety days by a further period not exceeding ninety days.
Q 21. Is there any Advance tax to be paid by a Casual Taxable Person and Non-resident Taxable Person at the time of obtaining registration under this Special Category?
A: Yes. While a normal taxable person does not have to make any deposit of money to obtain registration, a casual taxable person or a non-resident taxable person shall, at the time of submission of application for registration under sub-section (1) of section 23, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. If registration is to be extended beyond the initial period of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought.
Q 22. Whether Amendments to the Registration Certificate is permissible?
A: Yes. In terms of Section 25, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars in the manner and within such period as may be prescribed. It is to be noted that permission of the proper officer for making amendments will be required for only certain core fields of information, whereas for the other fields, the registrant can himself carry out the amendments.
Q 23. Whether Cancellation of Registration Certificate is permissible?
A: Yes. Any Registration granted under this Act may be cancelled by the Proper Officer, in circumstances mentioned in Section 26 of the Model GST Law. The proper officer may, either on his own motion or on an application filed, in the prescribed manner, by the registered taxable person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed.
Q 24. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?
A: Yes. The cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under the other Act (i.e. SGST Act). (Section 26 (6)).
Q 25. Can the proper Officer Cancel the Registration on his own?
A: Yes, in certain circumstances specified under section 26(2), the proper officer can cancel the registration on his own. Such circumstances include not filing return for a continuous period of six months (for a normal taxable person) or three months (for a compounding taxpayer), and not commencing business within six months from the date of registration. However, before cancelling the registration, the proper officer shall not cancel and without giving the person a reasonable opportunity of being heard. (Section 26 (4))
Q 26. What happens when the registration is obtained by means of willful misstatement, fraud or suppression of facts?
A: In such cases, the registration may be cancelled with retrospective effect by the proper officer. Section 26(3).
Q 27. If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each such vertical in the state?
A: No. However the taxpayer has the option to register such separate business verticals independently in terms of Section 23(2).
Q 28. Whether all assessee/dealers who are already registered under existing central excise/service tax/ vat laws will have to obtain fresh registration?
A: No. GSTN shall migrate all such assessee/dealers to the GSTN network and shall issue GSTIN number and password. They will be asked to submit all requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in cancellation of GSTIN number. The service tax assessee having centralized registration will have to apply afresh in the respective states wherever they have their businesses.
Q 29. At the time of registration will the assessee have to declare all his places of business?
A: Yes. The principal place of business and place of business have been separately defined under section 2(77) and 2(74) respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form.
Q 30: If XYZ Ltd.(Manufacturer) is registered with both Central Excise and VAT, he need to separately approach to Excise department and Sales Tax department and take two separate GST Registrations or need to approach any one authority i.e. either Excise or Sales Tax and to take one GST Number?
A: The enrollment process for GST was released and updated by the Goods and service Tax network (GSTN) and in the first phase of enrollment, it enrolled assessee registered with the State VAT authorities.
But the dealers who have enrolled in the first phase, as a VAT dealer, would not require any enrollment again for Excise.
Therefore, XYZ Ltd has to approach State Tax Department of State where he seeks registration for obtaining provisional ID. The assessee has to submit duly filed FORM GST REG – 20 along with prescribed documents.
Q 31: Whether construction service provider is required to add the site address as "Additional Place of Business" while making enrollment application under GST regime?
A: The person applying for registration or enrolling to GST will be provided with the one registration in one State for which he has to mention principal place of business. The term Principal place of business is defined as a place which is mentioned in registration certificate.
Apart from principal place of business, all other places would be called as additional place of business. In case an administrative office is provided at the site, you will need to register it as an additional Place of Business.