Threshold of registration and date of submitting registration
Every supplier becomes liable to registration if his turnover exceeds the applicable threshold limit [` 40 lakh in this case] in a finacial year [Section 22 read with Notification No. 10/2019 CT dated 07.03.2019].
Further, since the application for registration has been submitted within 30 days from such date, the registration shall be effective from the date on which the person becomes liable to registration [Section 25 read with rule 10]. Therefore, the effective date of registration is 1st September.
Threshold of registration and date of submission of registration
Since in the given case, the turnover of Mehta Teleservices exceeds the applicable threshold limit [` 20 lakh] on 25th October, it becomes liable to registration on said date.
Further, since the application for registration has been submitted after 30 days from the date such person becomes liable to registration, the registration shall be effective from the date of grant of registration. Therefore, the effective date of registration is 5th December.
PAN and non registered taxable person
Permanent Account Number is mandatory to be eligible for grant of registration. One exception to this is a non-resident taxable person. A non- resident taxable person may be granted registration on the basis of other prescribed documents instead of PAN. He has to submit a self-attested copy of his valid passport along with the application signed by his authorized signatory who is an Indian Resident having valid PAN and application will be submitted in a different prescribed form [Section 25(6) & (7)].
Revocation of cancellation
In case where registration is cancelled suo-motu by the proper officer, the taxable person can apply within 30 days of service of cancellation order, requesting the officer for revoking the cancellation ordered by him.
However, before so applying, the person has to make good the defaults (by filing all pending returns, making payment of all dues and so) for which the registration was cancelled by the officer.
If satisfied, the proper officer will revoke the cancellation earlier ordered by him.
However, if the officer concludes to reject the request for revocation of cancellation, he will first observe the principle of natural justice by way of issuing notice to the person and hearing him on the issue.
Cancellation of registration and tax obligation of person whose registration is so cancelled
Yes, as per section 29(5) of the CGST Act, every registered taxable person whose registration is cancelled shall pay an amount, by way of debit in the 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.
Declaration of all places of business
Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST Act 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.
Liabilities of registration in transfer of business
The transferee or the successor shall be liable to be registered with effect from such transfer or succession and he will have to obtain a fresh registration with effect from the date of such transfer or succession [Section 22(3)].
Option to take centralized registration for services under GST
No, the tax paper has to take separate registration in every State from where he makes taxable supply of services.
Responsibility of person making supply to un bodies
The taxable supplier making supplies to UN bodies is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B).
Necessary for un bodies to get registered under GST
In terms of section 25(9) of the CGST Act, all notified 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 on notified supplies of goods and services received by them, and for any other purpose as may be notified.
Registration is permanent?
Yes, the registration certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.
Can department through proper officer proceed registration
Yes. In terms of sub-section (8) of section 25, where a person who is liable to be registered under GST law fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under CGST Act, or under any other law for the time being in force, proceed to register such person in the manner as is prescribed in the CGST Rules.
Can person with multiple place of business in a state obtain separate registration for each place
Yes. In terms of the proviso to sub-section (2) of section 25, a person having multiple places of buiness in a State may obtain a separate registration for each place of business, subject to such conditions as may be prescribed.
Yes. In terms of sub-section (3) of section 25, a person, though not liable to be registered under sections 22 or 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person.
Person making taxable supplies from different states with same pan number operate with single registration
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 making taxable supplies) provided his aggregate turnover exceeds applicable threshold limit.
Person without gst registration collect gst and clam credit
No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him.
Advantages of Regis
Registration will confer following advantages to the business:
Legallyrecognizedassupplierofgoodsorservices.
Properaccountingoftaxespaidontheinputgoodsorserviceswhichcan 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.
Become eligible to avail various other benefits and privileges rendered under the GST laws.
Where and by when to apply for registration
Person who is liable to be registered under section 22 or section 24
•in every such State/UT in which he is so liable
•within 30 days from the date on which he becomes liable to registration
A casual taxable person or a nonresident taxable person
•in every such State/UT in which he is so liable
•at least 5 days prior to the commencement of business
Persons liable to registration
Those who exceed threshold limit
In case of transfer of
business on account of succession, etc.
In case of amalgamation/ demerger by an order of High Court etc.
•Threshold limit elaborated separately in the diagram below.
- Transferee liable to be registered from the date of succession of business
- Transferee liable to be registered from the date on which Registrar of Companies issues incorporation certificate giving effect to order of High Court etc.
