Registration under Revised Model GST Law
Registration Structure under GST – Sec 23
- Three Acts applicable on every Person under GST – Central GST Act, (State) GST Act, Integrated GST Act.
- Registrations required by every person:
- Simultaneous registration under CGST, SGST & IGST
- Separate registration required for each State
- Total possible registrations for one PAN
- Possible separate registrations for each business vertical within a State as defined u/s 2(18)
- PAN based Registration: PAN will be mandatory (except for Non-Resident)
- Place of Registration – “from where” Supplier makes a taxable supply of goods and/ or services
- Provision for Voluntary Registration
- Central/State Government specify persons exempted from obtaining registration
- Auto generation of provisional registration for existing assessee based on enrolment
- Proper officer has powers for suo moto registrations in case of unregistered persons
Process to obtain Registration – Sec 23
- Schedule V provides for persons liable for registration
- Application to be filed online within 30 days
- Application can also be filed through TRP or FC
- Scanned documents to be attached
- Status of the Application – Acceptance / Query
- Rejection only after giving opportunity of being heard
- Rejection of Application under CGST will be a deemed rejection under SGST and vice-versa
- Deemed Approval, if no query
Registration Special Provisions
Failure to Register
If person newly applying for registration fails to apply for registration within 30 days from the date on which he becomes liable to registration – ITC credit in respect of goods held in stock or contained in finished or semi-finished goods held in stock will not be available.
Casual Taxable Person
Person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, in a taxable territory where he has no fixed place of business.
Registration Provisions, Non-Resident Taxable Person – Sec 24
Person who occasionally, undertakes transactions involving supply of goods and services, and who has no fixed place of business in India.
Certificate of Registration issued to such persons shall be valid only for a period of 90 Days. [Can be extended maximum by further 90 days]
They shall be required to make advance deposit of estimated tax liability net tax at the time of registration.
Amendment in Registration – Sec 25
- Any change in registration has to be informed
- Proper officer may approve/reject amendment
- No rejection without giving an opportunity of being heard
- Rejection of amendment under CGST will be a deemed rejection under SGST and vice-a-versa
Cancellation of Registration – Sec 26
Reasons for cancellation
- Transfer of business or discontinuation of business
- Change in the constitution of business. (Partnership Firm may be changed to Sole Proprietorship due to death of one of the two partners, leading to change in PAN )
- Persons no longer liable to be registered under Schedule V (Except when he is voluntarily registered)
- Where registered taxable person has contravened provisions of the Act
- A composition supplier has not furnished returns for 3 consecutive tax periods/ any other person has not furnished returns for a continuous period of 6 months
- Non-commencement of business within 6 months from date of registration by a person who has registered voluntarily.
- Where registration has been obtained by means of fraud, willful statement or suppression of facts, the registration may be cancelled with retrospective effect.
Cancellation of Registration
- Cancellation can be done by Proper Officer suo motu or on application made by the registered taxable person
- Retrospective cancellation in case of fraud, wilful misstatement or suppression of fact
- Liability to pay tax before the date of cancellation will not be affected
- Cancellation under CGST Act will be deemed cancellation under SGST Act and vice-versa
- Substantial penalty in case registration obtained with fraudulent intentions
- Notice of hearing and opportunity of being heard is a MUST before cancellation.
- Application for revocation or cancellation of registration shall be made within 30 days of date of service of cancellation order. (Sec 27)
That’s all for Registration under Revised Model GST Law. Keep Sharing.