Registration under GST – Complete

provisions with Analysis

The provision of GST registration has been prescribed under chapter VI of
the CGST Act, 2017 and Section 22 to Section 30 of the CGST Act, deals
with the registration by the every supplier of goods and services.

Page Contents

• 1. Person liable for registration under GST

• 2. Persons not liable for GST registration
• 3. Compulsory GST registration in certain cases
• 4. Manner of registration under GST
• 6. GST Registration for casual taxable or non-resident taxable person
• 7. Amendment of GST Registration
• 8. Cancellation of GST registration
• 9. Revocation of cancellation of GST registration
1. Person liable for registration under GST
Section 22 of the CGST Act, speci ed that “ Every supplier shall be liable
to be registered under this Act in the State or Union territory , other than
special category States, from where he makes a taxable supply of goods
or services or both , if his aggregate turnover in a nancial year exceeds
twenty lakh rupees”

But the person makes taxable supplies of goods or services or both from
any of the special category States; he shall be liable to be registered if his
aggregate turnover in a nancial year exceeds ten lakh rupees.
fi
fi
fi
 Every person who is holding a license or registration under the earlier laws
shall be liable to be registered under this Act, with e ect from 01.07.2017.

When a business carried on by a taxable person registered under this Act

is transferred on account of succession or otherwise, to another person as
a going concern, the transferee or the successor as the case may be liable
to be registered with e ect from the date of such transfer or succession.

In a case of transfer pursuant to sanction of a scheme or an arrangement

for amalgamation or, as the case may be, demerger of two or more
companies pursuant to an order of a High Court, Tribunal or otherwise, the
transferee shall be liable to be registered, with e ect from the date on
which the Registrar of Companies issues a certi cate of incorporation
giving e ect to such order of the High Court or Tribunal.

For the purposes of this section there are certain points has been clari ed
as under,––

(i) the expression “aggregate turnover” shall include all supplies made by
the taxable person, whether on his own account or made on behalf of all
his principals;

(ii) the supply of goods, after completion of job work, by a registered job
worker shall be treated as the supply of goods by the principal referred to
in section 143, and the value of such goods shall not be included in the
aggregate turnover of the registered job worker;

(iii) the expression “special category States” shall mean the States as
speci ed in sub-clause (g) of clause (4) of article 279A of the Constitution.

Thus, from the above analysis there are two terms are very important
needs to be de ned before proceeding to further analysis of the topic and
the two words are namely “supplier” and “aggregate turnover”

Section 2 (105) of the CGST Act, de nes “Supplier” in relation to any

goods or services or both, shall mean the person supplying the said goods
or services or both and shall include an agent acting as such on behalf of
such supplier in relation to the goods or services;

Section 2(6) of the CGST Act, de nes “aggregate turnover” means the
aggregate value of all taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on reverse charge basis),
exempt supplies, exports of goods or services or both and inter-State
supplies of persons having the same Permanent Account Number, to be
fi
ff
fi
ff
fi
fi
fi
ff
ff
fi
 computed on all India basis but excludes central tax, State tax, Union
territory tax, integrated tax and cess;

2. Persons not liable for GST registration

Section 23 of the CGST Act, speci ed that the following persons shall not
be liable to registration, namely-

(a) any person engaged exclusively in the business of supplying goods or

services or both that are not liable to tax or wholly exempt from tax under
this Act or under the Integrated Goods and Services Tax Act;

(b) an agriculturist, to the extent of supply of produce out of cultivation of

land.

The Government may, on the recommendations of the Council, by

noti cation, specify the category of persons who may be exempted from
obtaining registration.

3. Compulsory GST registration in certain cases

Section 24 of the CGST Act, speci ed that the following categories of
persons compulsorily shall be required to take registration under GST:

i) persons making any inter-State taxable supply;

(ii) casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge;

(iv) person who are required to pay tax under sub-section (5) of section 9;

(v) non-resident taxable persons making taxable supply;

(vi) persons who are required to deduct tax under section 51, whether or
not separately registered under this Act;

(vii) persons who make taxable supply of goods or services or both on

behalf of other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registered under

this Act;
fi
fi
fi
 (ix) persons who supply goods or services or both, other than supplies
speci ed under sub-section (5) of section 9, through such electronic
commerce operator who is required to collect tax at source under section
52;

(x) every electronic commerce operator;

(xi) every person supplying online information and database access or

retrieval services from a place outside India to a person in India, other than
a registered person; and

(xii) such other person or class of persons as may be noti ed by the

Government on the recommendations of the Council.

4. Manner of registration under GST

Section 25 of the CGST Act, speci ed the manner of registration by the
various taxable person as under:

1) Every person who is liable to be registered under section 22 or section

24 shall apply for registration in every such State or Union territory in
which he is also liable within 30 days from the date on which he becomes
liable to registration.

In case of a casual taxable person or a non-resident taxable person shall

apply for registration at least 5 days prior to the commencement of
business.

In case of any person who makes a supply from the territorial waters of
India shall obtain registration in the coastal State or Union territory where
the nearest point of the appropriate baseline is located.

2) Any person who is seeking registration under GST shall be granted a

single registration in a State or Union territory.

In case a person having multiple business verticals in a State or Union

territory may be granted a separate registration for each business vertical.

3) A person, though not liable to be registered under section 22 or section

24 of the CGST Act, may get himself voluntarily and comply the all
provisions of GST Act as applicable to a registered person.

4) A person who has obtained or is required to obtain more than one

registration, whether in one State or Union territory or more than one State
fi
fi
fi
 or Union territory shall, in respect of each such registration, be treated as
distinct persons for the purposes of the GST Act.

5) Where a person who has obtained or is required to obtain registration in

a State or Union territory in respect of an establishment, has an
establishment in another State or Union territory, then such establishments
shall be treated as establishments of distinct persons for the purposes of
the GST Act.

6) Every person shall have a Permanent Account Number issued under the
Income-tax Act, 1961 in order to be eligible for grant of registration.

7) Where an eligible person fails to obtain registration, the proper o cer

may take suitable action as per law.

8) Any specialized agency of the UNO or any other organisation as noti ed

by the commissioner shall be granted Unique Identity Number for all
purposes including refund of taxes.

9) The registration or Unique Identity Number shall be issued as per

procedure or shall be deemed to have been granted within period of 7
days.

5. Deemed Registration under GST

Section 26 of the CGST Act, speci ed that once the grant of registration or
issuance of the Unique Identity Number to a person or applicant under the
GST Act, and shall to be deemed to be granted or rejected within 30 days
either the case may be.

6. GST Registration for casual taxable or non-

resident taxable person
Section 27 of the CGST Act, speci ed that the certi cate of registration
issued to a casual taxable person or non-resident taxable person shall be
valid for 90 days from the e ective date of registration. The registration
certi cate can be extended further period of 90 days by the proper o cer
on su cient reasons shown by the taxable person. The casual or non-
resident taxable persons have to make an advance deposit of tax liability
and make additional deposit of tax for extension period if so.

7. Amendment of GST Registration

fi
ffi
ff
fi
fi
fi
ffi
ffi
fi
Section 28 of the CGST Act, speci ed the provision of amendment of GST
registration , every registered person or a person to whom a Unique
Identity Number has been issued shall inform the proper o cer of any
changes in the information of registration within 15 days of the said
changes.

The proper o ce may approve or reject the amendment in the registration

of such particulars but the proper o cer shall not reject the application for
registration without giving the person an opportunity of being heard.

8. Cancellation of GST registration

Section 29 of the CGST Act, provides the procedure for cancellation of
GST registration either by the proper o cer or an application led by the
registered person or by his legal heirs in the following circumstances
where,-

(a) the business has been discontinued, transferred fully for any reason
including death of the proprietor, amalgamated with other legal entity,
demerged or otherwise disposed of; or

(b) there is any change in the constitution of the business; or

(c) the taxable person, other than the person registered as voluntarily , is
no longer liable to be registered under section 22 or section 24.

(2) The proper o cer may cancel the registration of a person from such
date, including any retrospective date, as he may deem t, where,––

(a) a registered person has contravened such provisions of the Act or the
rules made thereunder as may be prescribed; or

(b) a person paying tax under section 10 ( composition levy scheme ) has
not furnished returns for three consecutive tax periods; or

(c) any registered person, other than a person speci ed in clause (b), has
not furnished returns for a continuous period of six months; or

(d) any person who has taken voluntary registration under sub-section (3)
of section 25 has not commenced business within six months from the
date of registration; or

(e) registration has been obtained by means of fraud, wilful misstatement

or suppression of facts:
ffi
ffi
fi
ffi
ffi
fi
fi
ffi
fi
 Provided that the proper o cer shall not cancel the registration without
giving the person an opportunity of being heard.

(3) The cancellation of registration under this section shall not a ect the
liability of the person to pay tax and other dues under this Act or to
discharge any obligation under this Act or the rules made thereunder for
any period prior to the date of cancellation whether or not such tax and
other dues are determined before or after the date of cancellation.

(4) The cancellation of registration under the State Goods and Services Tax
Act or the Union Territory Goods and Services Tax Act, as the case may
be, shall be deemed to be a cancellation of registration under this Act.

(5) Every registered person whose registration is cancelled shall pay an

amount, by way of debit in the electronic credit ledger or electronic cash
ledger, equivalent to the credit of input tax in respect of inputs held in
stock and inputs contained in semi- nished or nished 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, calculated in such manner as may be prescribed:

Provided that in case of capital goods or plant and machinery, the taxable
person shall pay an amount equal to the input tax credit taken on the said
capital goods or plant and machinery, reduced by such percentage points
as may be prescribed or the tax on the transaction value of such capital
goods or plant and machinery under section 15, whichever is higher.

(6) The amount payable under sub-section (5) shall be calculated in such
manner as may be prescribed.

9. Revocation of cancellation of GST registration

Section 30 of the CGST Act, speci ed the provision of revocation of
cancellation of registration as per the following conditions:

1. Any registered person whose registration is cancelled by the proper

o cer, he can apply to such o cer for revocation of cancellation of the
registration within 30 days from the date of service of the cancellation
order.

2. The proper o cer either revokes cancellation of the registration or

rejects the application, but before rejection of application the proper o cer
should be given an opportunity of being heard by the applicant.
ffi
ffi
ffi
ffi
fi
fi
fi
ff
ffi
3. The revocation of cancellation of registration under SGST Act, and
UTGST Act, as the case may be shall be deemed to be a revocation of
cancellation of registration under section 30 of the CGST Act.

Conclusion: In a nutshell, in the present day economic scenario, it is

desirable to all persons dealing with taxable goods or services or both to
take registration under GST to avoid penalty/ litigation and make their
product and services more competitive in the market. With due registration
only one can enjoy the bene t of cascading e ects of taxes and meet the
requirement of Customers. Certainly a registered person can only able to
enhance his scope of business with due compliance under GST.
fi
ff