Registration under GST in a simplified way
Goods and Services Tax is a very old idea and it was to come long before but ultimately the Narendra Modi Government succeeded in enacting the act finally and it is going to be enforced from 1stJuly,2017 all over India. Now though every part of the Act should be read very carefully but according for the time-being the registration part is the most important one because everybody should be knowing that who should be registered and when. A brief idea of the registration is given here below.
Registration (Section 22)
Under section 22 it has been said that every supplier shall be registered under the act in the state or Union Territory but there is other provisions made for special category states, form where the person makes a taxable supply of goods or services and when his aggregate turnover in a financial year exceeds twenty lakhs rupees, he has to get himself registered under the act.
Every person who on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.
Where the business carried on by a taxable person has been transferred to another person as going concern then such person to whom the business is transferred is liable to get registration under the act with effect from the date of the transfer.
When there is amalgamation the transferee should get registered when the Registrar of companies gives the certificate of incorporation to such court order in respect to the amalgamation.
Persons not liable for registration( Section 23)
The following persons shall not be liable to registration, namely:
·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;
·An agriculturist, to the extent of supply of produce out of cultivation of land.
·The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
Compulsory registration in certain cases (Section 24)
The following categories of persons shall be required to be registered under this Act:
·Persons making any inter-State taxable supply.
·Casual taxable persons making taxable supply.
·Persons who are required to pay tax under reverse charge.
·Person who are required to pay tax under sub-section (5) of section 9.
·Non-resident taxable persons making taxable supply.
·Persons who are required to deduct tax under section 51, whether or not separately registered under this Act
·Persons who make taxable supply of goods or services or both on behalf of other taxable Persons whether as an agent or otherwise
·Input Service Distributor, whether separately registered under this Act or not
·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.
·Every electronic commerce operator.
·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.
·Such other person or class of persons as may be notified by the Government on the recommendations of the Council.
Procedure for the Registration for GST (section 25)
1)The person should get himself registered under section 22 or 24 of the Act within thirty days in every State and Union territory from the date when he becomes liable to get registered under the Act in the manner prescribed in the Act.
The proviso though mentions that a casual taxable person or non-resident taxable person should go for the legislation 5 days prior to their commencement of business.
Every 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) A person seeking registration under this Act shall be granted a single registration in a State or Union territory.
The proviso though says that a person who is having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditions as may be prescribed.
3) The section also says that the person who is not liable to register under the applied provisions of this act, if gets registered voluntarily then all the provisions of this act will be applied on him as it would have been applied upon a person who got registered because he was liable to do so.
4) The person who is required to get registered for more than once in same state or in the same union territory or in different state or different union territory then he will be considered as different persons in that respect for the purposes of this act.
5) Where a person who has obtained or is required to obtain a registration under the Act in a State or Union territory has set up an establishment in a different state or union territory then such an establishment will be treated as the establishment of distinct person.
6)Every person who is required to get registered or wants to register himself under the provisions of this act should have a pan card.
The proviso says of that sub-section says that a person required to deduct tax under section 51 of the Act may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.
7) A non-resident may also be granted registration under sub-section 1 on providing the documents as needed.
8) When the person who is required to get registered under the act fails to get the registration under the act then actions according to this act or any other act for the time being in force, proceed to register such person in such manner as may be prescribed by the law.
9) Now in the sub-section 9 of the section it is said that for any specialized agency of the United Nations Organisations or any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges and Immunities) act,1947, Consulate or Embassy of Foreign countries or any other person or class of persons, as may be notified by the commissioner will be given an Unique Identity Number and also refund of taxes will be given on notified supply of goods or services or both received by them , as may be prescribed.
10) The registration will be granted on verifications as may be prescribed and it should be done within a period as it is prescribed and it may also get rejected after verification.
11) The registration has to be granted under such form and manner and with effect from such date as may be prescribed.
The registration certificate will be deemed to have been granted if there is some deficiency and such deficiency if not communicated within the period as prescribed