GST Registration Online – What is GST Registration, GST Eligibility & Advantages

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  • Last Updated on 4 February, 2021

GST Registration:

What is GST Registration? 

Every supplier who is making a taxable supply of goods or services or both shall register in every State/Union Territory from where he makes taxable supply if his aggregate turnover exceeds 20 lac (10 lac for north eastern states) in a financial year.

Aggregate turnover means value of all taxable supplies (excluding value of inward supplies liable to tax on reverse charge basis), exempt supplies, exports of goods and services or both and inter-state supplies of persons having the same Permanent Account Number [PAN] to be computed on all India basis, but excludes Central sales tax, State tax, Union Territory Tax, Integrated Tax and Cess.

GST Made Easy - Answers to all your queries

 

Advantages of taking registration in GST:

1. Legally recognized as suppliers of goods or services

2. Tax paid on the input goods or services which can be utilized for payment of GST, i.e., ITC allowed to registered persons.

3. Legally authorized to collect tax from his purchasers

4. Eligible to avail various other benefits and privileges rendered under the GST laws.

Mandatory GST Registration Criteria:

The following person are required to take registration under GST irrespective of turnover:

ü Person making interstate supplies

ü casual taxable persons

ü Persons who are required to pay tax under RCM

ü Person who are required to pay tax under sub-section (5) of section 9

ü Non-resident taxable persons making taxable supply

ü Persons who are required to deduct tax under section 51

ü Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise

ü Input Service Distributor

ü 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

ü Every E-commerce operator

ü Every person supplying OIDR services from a place outside India to a person in India, other than a registered person

ü Notified Persons

Persons not required to obtain GST Registration:

ü an agriculturist, to the extent of supply of produce out of cultivation of land

ü Person making supplies of goods or services that are not liable to tax under GST or wholly exempt under GST.

ü Individual advocates (including senior advocates)

ü Individual sponsorship service providers (including players)

Multiple Registration Under GST:

A taxable person who has been granted multiple registrations under the earlier law on the basis of a single PAN shall be granted only one provisional registration under GST.

PAN is mandatory for GST Registration. One person would be allotted a single registration in a State or Union territory. However, there is an exception to the said provision which provides that if a person is having multiple business verticals in a State or Union territory, he may be granted separate registration for each business vertical.

Here’re some questions related to GST Registration Process:

 

Whether a person can himself registered under the Act without having a Permanent Account Number?

A person should be mandatorily have Permanent Account Number issued under the Income Tax Act in order to be eligible for grant of registration.

Is there any exception for a person being registered under the Act without having a Permanent Account Number?

Following persons would not be required to have a Permanent Account Number for being registered under the Act:

a)      Non-resident taxable person

b)      A persons required to deduct tax under section 51 of the CGST Act.

     They would have to submit such other document as may be prescribed under the Act. 

What is GSTIN?

Currently, any service provider who is registered under service tax law is assigned a ST registration number by CBEC. Similarly, when any dealer registered under VAT laws a unique TIN number is issued by state authorities.

Now, in the GST regime all the business entities registering under GST will be provided a unique identification number known as GSTIN or GST Identification Number. The government will allot a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Also, existing taxpayers have to migrate into GST and a unique GSTIN will also be allotted to them.

GSTIN Number Format:

 

GSTIN contains 15 digits which will be assign to each registered person and it is a state-wise PAN-based Number.

· First two digits of GSTIN will represent the state code     

· Next ten digits of GSTIN will belongs the PAN number registered person.

· Next two digits will be assigned based on the number of registration within a state.

· Last digit will be for check code

There is no fee applicable for enrolment under GST and obtaining GSTIN.

Is there any different time limit for submission of application for registration for Casual Taxable Person and Non-Resident Taxable Person?

Yes, a person who is a non-resident taxable person or casual taxable person shall apply for registration at least five days prior to the date of commencement of business.

What would be the effective date if registration for a person applying for new registration?

a)Application for registration has been submitted within thirty days from the date on which the person becomes liable for registration: The registration shall be effective from the date on which the person becomes liable for registration.

b) Application for registration has been submitted after thirty days from the date on which the person becomes liable for registration:

Where an application for registration has been submitted by the applicant after thirty days from the date of being liable to registration, the effective date of registration shall be the date of grant of registration.

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Migration to GST:

The process by which persons registered under the earlier laws i.e. sales tax, service tax, excise etc., would be successfully migrated to GST.

The Common questions related to migration as follows:

Whether every person under the earlier laws would be required to migrate to GST?

Every person registered under earlier law has to enroll on the Common Portal by validating his e-mail address and mobile no. Therefore, either the person has to get his registration cancelled before the appointed date or has to enroll under GST.

There cannot be a situation wherein a person is registered under the earlier laws but chooses not to enroll in GST as on the appointment date.

What is the procedure for Provisional Registration?

Upon validating e-mail address & mobile no. on Common Portal, person would be granted on provisional basis & a certificate of registration incorporating GSTIN would be issued. This is normally called Primary Migration.

What is the procedure for Secondary Migration?

Once a provisional registration has been granted to the person, he would be required to submit an application electronically, duly signed, along with the information and documents specified in the said application. This is what we are calling as Secondary Migration.

If the information and the particulars furnished in the application are found, by the proper officer, to be correct and complete, certificate of registration shall be made available to the registered person.

Time Period for Submission of information required for Secondary Migration in GST:

The information as required above for Secondary Migration has to be submitted within a period of 3 months or such other period as may be extended in this behalf.

Author Bio: CA Vishal Raheja is a writer and editor for GST Research and Development Department of Taxmann. He is also alumni of Shree Ram College of Commerce and qualified UGC-NET

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