UNIT IV: REGISTRATION

TOPIC 1

PrOCess Of GsT reGIsTraTIOn

Goods and Services Tax (GST) registration is mandatory for every assessee whose aggregate
turnover exceeds the prescribed threshold limit, or who falls under the compulsory registration
categories under the GST Act. The registration process is fully online and is carried out through
the official GST portal.

Process of GST Registration

Step 1: Accessing the GST Portal

 The assessee must visit the official GST website: [Link].

 On the home page, click on the ‘Register Now’ option under the ‘Taxpayers’ tab.

Step 2: Filling Part A of the Registration Form

In Part A of the form, the assessee must provide the following details:

 PAN (Permanent Account Number) of the business or individual

 Mobile number and Email ID (for OTP verification)

 Select the State and District

 After submitting, the portal will send two OTPs (One Time Passwords) — one to the
mobile number and another to the email ID for verification.

After successful OTP validation, the portal generates a Temporary Reference Number (TRN).

Step 3: Filling Part B of the Registration Form

Using the TRN, the assessee can log in and proceed to fill Part B of the application. The
following information is required:

 Legal name and trade name of the business

 Constitution of business (e.g., proprietorship, partnership, company)

 Details of promoter/partners/directors

 Details of authorized signatory

 Principal place of business (with address proof)

 Additional place(s) of business (if any)

 Bank account details (account number, IFSC code, and bank proof)

 Goods and services dealt with

 State-specific information, such as professional tax, etc.

Step 4: Uploading Required Documents

The assessee must upload scanned copies of documents, including:

 PAN card of the business or individual

 Photograph of proprietor/partners/directors
 Proof of principal place of business (electricity bill, rent agreement, etc.)
 Bank account proof (cancelled cheque or bank statement)
  Authorization letter or board resolution for authorized signatory

Step 5: Verification and Submission

After completing the form and uploading the necessary documents, the assessee must verify and
submit the application using:

 Digital Signature Certificate (DSC) for companies/LLPs

 Electronic Verification Code (EVC) for other entities

Upon successful submission, the system generates an Application Reference Number (ARN)
for tracking the application.

Step 6: Processing by GST Officer

 The application is reviewed by a GST officer.

 If all details and documents are in order, the application is approved within 7 working
days.

 If any clarification or additional documents are required, a notice will be sent to the
assessee using Form GST REG-03, and the assessee must reply in Form GST REG-04
within 7 working days.

 If no reply is received or the officer is not satisfied, the application may be rejected via
Form GST REG-05.

Step 7: Issue of GSTIN and Certificate

 Once approved, the assessee receives a GSTIN (Goods and Services Tax Identification
Number).

 The Certificate of Registration is issued in Form GST REG-06, which can be

downloaded from the GST portal.

TOPIC 2

PROVISIONS RELATING TO COMPULSORY REGISTRATION

Provisions Relating to Compulsory Registration under GST

Under the Goods and Services Tax (GST) regime, registration is mandatory for certain
categories of persons, irrespective of their turnover. These provisions are outlined in Section 24
of the CGST Act, 2017.

Persons Required to Obtain Compulsory Registration under Section 24

The following categories of persons are mandatorily required to obtain GST registration
irrespective of turnover:

1. Inter-State Supplier
 Every person making inter-state taxable supply of goods (not applicable to service
providers with turnover below ₹20 lakhs under exemption notification).

2. Casual Taxable Person

 A person who occasionally undertakes taxable supply in a state/UT where he has no fixed
place of business.

3. Persons Required to Pay Tax Under Reverse Charge

  Any person who is liable to pay tax under Reverse Charge Mechanism (RCM), as per
Section 9(3) or 9(4) of CGST Act.

4. Non-Resident Taxable Person (NRTP)

 A person residing outside India and occasionally supplying goods or services in India.

5. Persons Required to Deduct Tax (TDS Deductor)

 Persons required to deduct TDS under Section 51 (e.g., government departments,
agencies)

6. Persons Required to Collect Tax at Source (TCS Collector)

 E-commerce operators like Amazon or Flipkart, liable to collect tax at source under
Section 52.

7. E-Commerce Operator
 Any person operating an electronic commerce platform through which others supply
goods/services.

8. Supplier through E-Commerce Operator

 Any person who supplies goods/services through an e-commerce operator liable to
collect TCS.

9. Input Service Distributor (ISD)

 Offices that distribute input tax credit to branches having separate GSTINs.

10. Agents of a Supplier

 Persons acting as agents or brokers and supplying goods/services on behalf of another
taxable person.

11. Persons Supplying Online Information and Database Access (OIDAR Services)
 Providers of online services from outside India to unregistered persons in India must
register under GST.

12. Any Other Category Notified by the Government

 The government may notify other persons who shall obtain compulsory registration under
specific circumstances.
Compulsory registration under GST ensures that certain types of high-risk or high-volume
transactions are always under the tax net under Section 24 of the CGST Act

TOPIC 3

Deemed Registration under GST

Deemed registration refers to a situation where the GST registration is considered
automatically granted due to no action by the tax officer within the prescribed time.

 If the proper officer fails to take action (approve, reject, or seek clarification) on the
application within 7 working days,
 The registration is deemed to be granted.
 In case a clarification is sought and the assessee replies, but the officer doesn't respond
within 7 working days,The registration is also deemed approved.
 A GSTIN is automatically generated and made available on the portal.
 TOPIC 4
CanCellaTIOn Of GsT reGIsTraTIOn
 Goods and Services Tax (GST) is a unified indirect tax system applicable across India.
 Once an assessee is registered under GST, they are bound by various compliance
requirements.
 However, there may arise situations where a registered person no longer needs to be
under GST.
 In such cases, cancellation of GST registration becomes necessary.
The provisions related to cancellation are covered under Section 29 of the CGST Act, 2017,

Who Can Apply for Cancellation?

GST registration can be cancelled by:

🔹 1. The Registered Person (Voluntary Cancellation)

A taxpayer can apply for cancellation under the following circumstances:

 Business discontinued, transferred, or amalgamated,

 Change in constitution of the business,

 Taxpayer is no longer liable to be registered (e.g., turnover below threshold),

 Voluntary registration was taken but the business is not operating.

🔹 2. The Proper Officer (Suo Motu Cancellation)

The GST officer may cancel registration in the following cases:

 The assessee does not conduct business from the declared place,

 Issues invoices without actual supply (fake billing),

 Violates provisions of the Act or Rules,

 Non-filing of returns for a continuous period (e.g., 6 months for normal taxpayer or 3
quarters for composition dealer),

 Utilization of Input Tax Credit fraudulently.

🔹 3. Legal Heirs (in case of death of sole proprietor)

Legal heirs can apply for cancellation on behalf of the deceased.

Procedure for Cancellation

🔹 Voluntary Cancellation:

1. Assessee must file Form GST REG-16 on the GST portal.

2. Include details of stock, liability, tax payable, and ITC reversal.

3. The proper officer verifies and may issue cancellation order in Form GST REG-19
within 30 days.

🔹 Suo Motu Cancellation:

1. A show cause notice (Form GST REG-17) is issued by the officer.

2. The assessee must reply in Form GST REG-18 within 7 working days.
 3. Based on the reply, the officer may drop the proceedings or pass cancellation order in
Form GST REG-19.

Effective Date of Cancellation

 The effective date is either the date applied by the assessee or the date determined by
the officer, as per the case.

 Once cancelled, the assessee must file a final return (Form GSTR-10) within 3 months
of cancellation.

TOPIC 5

Tax Invoice, Debit Note, and Credit Note

Tax Invoice, Debit Note, and Credit Note are the most essential documents used for recording
and reporting taxable transactions. These documents not only facilitate tax compliance but also
help in maintaining proper records for audit and input tax credit (ITC) claims.

1. Tax Invoice
A Tax Invoice is a document issued by a registered supplier to the recipient when a taxable
supply of goods or services is made. It contains key details such as the description, quantity,
value, tax charged (CGST, SGST, IGST), and the GSTIN of both parties.

Tax Invoice:
 Legal Evidence of the supply made

 Mandatory for claiming ITC by the recipient

 Forms the basis for filing GST returns

 Helps in maintaining accurate books of accounts
 Assists in avoiding disputes between buyer and seller

 Required for transportation of goods (along with E-Way Bill)

Credit Note
A Credit Note is issued by the supplier to the recipient when the original invoice value is higher
than the actual amount payable. This may occur due to:

 Return of goods

 Reduction in price after supply

 Overcharged tax or incorrect quantity

Need of Credit Note:

 Allows correction of excess tax paid
 Ensures adjustment in GST liability of the supplier

 Must be reported in GST returns (GSTR-1 and GSTR-3B)

 Maintains proper transparency and audit trail

Debit Note
A Debit Note is issued by the supplier when the value of goods or services charged in the
original invoice was less than the actual amount. It is also used for increasing tax liability due
to:
 Underbilling
  Additional charges post-supply (freight, packaging, etc.)

Need of Debit Note:

 Corrects the understatement of tax liability

 Ensures compliance with accurate tax reporting

 Helps the supplier avoid penalties and interest

 Forms part of the monthly GST return filing