Complete Overview of GST Registration

PERSON LIABLE FOR GST REGISTRATION OR NOT

Provisions on persons responsible for registering for GST are provided for.  Under Section 22 & Section 24 the Central Goods and Service Tax Act (CGST) 2017, are provide and made the provision for GST registration explained by this article.

• Personal persons registered under Pre-GST law
• Business having a turnover above the Rs. 40 lakhs threshold* (Rs. 10 Lakhs for North-Eastern States, J&K, Himachal Pradesh, and Uttarakhand)
• Taxable non-resident person/ non-resident
• Provider and ISDs Those who pay tax under the reverse charge mechanism.
• The person providing the aggregator via e-commerce.
• Every eCommerce aggregator person providing an individual in India other than an individual registered taxable person with online data and database access or recall service from a place outside India
• The threshold turnover increases from RS 20 lakhs to Rs 40 lakhs were notified by CBIC.

PERSON LIABLE FOR GST REGISTRATION

• A person shall be liable to get registered under GST Act in the State or Union territory if he makes a taxable supply of goods or services or both and his  aggregate turnover exceeds twenty lakh rupees in that financial year.
• In case such person makes taxable supplies of goods or services or both from the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
• Registration is given based on state wise. One registration for a state. In case a person has more than one business in a state then he will get registration for each state.

IN CASE OF TRANSFER OF BUSINESS GST REGISTRATION

• Is business is transferred by a GST taxable person which is registered under GST Act, whether by way of succession or otherwise, to another person as a going concern, the transferee of business shall need to be registered from the date of such transfer or succession.

IN CASE OF MERGER AMALGAMATION GST REGISTRATION

Registration in a case of arrangement or amalgamation of business, as the case may be, the demerger of two or more companies to an order of a High Court, Tribunal then, in that case, persons shall be liable for registration.

PERSON NOT LIABLE FOR GST REGISTRATION

1. all goods or services or both that are not liable to tax or wholly exempt from tax under GST Act or under the Integrated Goods and Services Tax Act then in that case person need not get registration.
2. The agriculturist for his supply of produce out of cultivation of land.

For example- a farmer produces goods by cultivation from his land and supplies the same to traders. Then the goods so supplied during the year aggregates to Rs 22 lacs. He is not liable to get the registration.

DEEMED GST REGISTRATION

• There is a single registration for all the taxes i.e CGST, SGST/UTGST, IGST, and cesses under GST.
• If a person gets registration/UIN under any SGST act/UTGST act is deemed to be registration/UIN granted under CGST act provided an application for registration has not been rejected under CGST act.
• It is deemed to be a rejection of application for rejection under the CGST act if the rejection of application for registration/UIN under the SGST Act/UTGST Act is made.

COMPULSORY GST REGISTRATION

1. Every such person who is making any inter-State taxable supply of goods. There are 2 exceptions for this-

• Every such person who is making any inter-State taxable supply of taxable services.
• The person making inter-state taxable supplies of handicraft goods having pan and following the procedure of E-way bill.

1. Casual taxable persons making taxable supply. There are 2 exceptions for this-

• Every casual taxable person making a taxable supply of handicraft goods

1. Every person who is required to pay tax under reverse charge;
2. Every person who is required to pay tax under sub-section (5) of section 9;
3. non-resident taxable persons making taxable supply;
4. every such person who is required to deduct tax under section 51, whether or not separately registered.
5. If a person is an agent or otherwise persons who make taxable supply of goods or services or both on behalf of other taxable persons.
6. Compulsory registration for Input Service Distributor, whether or not separately registered under GST.
7. Every such person need compulsory registration who supplies goods or services or both, except specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
8. Compulsory registration is an electronic commerce operator who is required to collect tax at source under section 52.
9. Every such person need compulsory registration who is supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person
10. In addition to the above, the Government may notify other person or class of persons, as may be notified by the Government on the recommendations of the Council, who shall be required to be registered mandatorily.

IMPORTANT FORMS FOR GST REGISTRATION

• GST REG-01 Is given for the application for registration
• GST REG-02 Is for the acknowledgment
• GST REG-03 Is for getting additional information
• GST REG-04 Is given for any clarification, document for registration, amendment and cancellation
• GST REG-05 Is given for the order of rejection of application for registration
• GST REG-06 Is given for the registration certificate.

DISADVANTAGES FOR NOT GETTING REGISTRATION

1. Cannot collect GST from the customers.
2. Cannot take the input tax credit.
3. If fails to get registration even then he is required to be taken under the provisions of the CGST Act, he shall be liable to penal provisions.

GST Registration Documents Requirement.

Pvt Ltd Company

• Copy of Certificate of Incorporation
• Company PAN Card copy
• MOA and AOA
• Copy of Certificate of Incorporation
• Company PAN Card copy
• Copy of Resolution signed by board members
• Copy of Identity and address proof of directors
• Copy of DSC (Digital Signature)

Below can be shown as proof of address of a director:-

• Copy of Telephone or Electricity Bill
• Copy of Aadhar Card
• Copy of Driving License/ Ration Card/ Voter Identity Card/ Passport
• Copy of Bank Account Statement

Add in what is proof of identity, A PAN Card, Aadhar Card, can be used to prove your identity. Each of the directors can display their elector ID, passport, telephone bill, bill of electricity, and telephone bill for proof of address.

Limited liability partnership

• Partners’ names and address proof
• PAN Card of LLP
• LLP Agreement

Proprietorship Concern

• Copy of PAN Card & Address proof of proprietor

Now we can add Additional Trade Name under same GSTIN can now be added at GST Common Portal from Dashboard>Services>Registration>Amendment of Registration Core fields.

REQUIRED REGISTRATION IN DIFFERENT BUSINESS STRUCTURE IN CASE:

PPF, Bank interest to be included for calculating GST registration threshold

• An individual had submitted a case with the Gujarat bench of the AAR, requesting that interest from savings banks, PPFs, and loans and advances to family be taken into account for computing the threshold limit of 20 lakh for GST registration.
• When determining the threshold limit for acquiring GST registration, the value of exempted income, such as interest on PPF, savings bank accounts, and loans made to family/friends, would be included alongside taxable supplies, according to the Authority for Advance Ruling (AAR).
• Businesses and individuals are required to register for the Goods and Services Tax (GST) if their total revenue exceeds 20 lakhs threshold.
• An individual who was not engaged in any company filed a plea with the Gujarat bench of the AAR, requesting that interest collected from savings banks, PPF, and loans and advances to family be taken into account for determining the threshold limit of 20 lakh for GST registration.
• In his application, the individual stated that his total receipts for the 2018-19 fiscal year were around 20.12 lakh, with rent receipts of 9.84 lakh and interest on bank, PPF, and personal loans extended to friends and family accounting for the remainder.
• While the AAR ruled that interest income would be factored into the registration threshold calculation, it also stated that the applicant must evaluate the value of both taxable and nontaxable supplies. i.e. "renting of immovable property" and "exempted supply of service" given by extending deposits, loans, or advances for which he earned interest revenue, to arrive at "aggregate turnover" for the purpose of determining the threshold limit for obtaining registration under the GST Act.

“We decide that the Applicant must combine the amount of exempted interest income received by extending deposits in PPF and Bank Savings accounts, as well as loans and advances made to his family and friends, with the value of the taxable supply. i.e. "Renting of immovable property" for the purpose of determining the Rs.20 lakh threshold limit for acquiring GST registration, according to the AAR.

According to RJA, this ruling could lead to homemakers, retirees, and freelancers registering for GST.

Non-filling of electricity bill receipt is not a ground of rejection of GST Registration application

Big Update on GST Registration!

• GST Council may take into consideration raising the ₹40 lakh to ₹60 lakh GST registration threshold, according to FM Sitharaman Nirmala
• The Finance Minister Sitharaman Nirmala suggested raising GST Registration threshold from Rs. 40,00,000/- to Rs. 60,00,000/-. "It's up to the GST Council to determine, but it's also true that most small businesses should ideally join in as well," the Finance Minister Sitharaman Nirmala stated.

FAQ ON GST REGISTRATION

Q1- what is the tax period?

Ans.- it is the period for which the return is required to be furnished by the taxpayer.

Q2-  ITC can be claimed without making GST Registration?

Ans. No, without GST no person can claim any input tax credit of GST paid by him.

Q3- can a person take multiple GST Registrations for different businesses in a state?

Ans. Yes, a person having multiple businesses in a State can obtain a separate registration for each business.

Q4- can a person get voluntary GST Registration under the GST Act?

Ans. Yes, a person may get himself GST Registered voluntarily under Section 22 and all provisions apply to a registered taxable person, shall apply to such person.

Q5. – what are the Document required for GST Registration?

Ans. Generally required following document for GST registration.

• Copy of Identity & Address proof of Promoters/Director with Photographs
• ScanCopy of Address Proof of the place of business
• Copy of Aadhaar card
• ScanCopy of Bank Account statement/Cancelled cheque
• DSC (Digital Signature Certificate)
• Copy of PAN of the Applicant
• ScanCopy of Proof of business registration or incorporation certificate.
• Copy of Letter of Authorization/Board Resolution for Authorized Signatory. 

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