[ As Amended by Finance Act 2024 and updated till 22-2-2024 ]
Price : ` 3595/(for a set of two vols.)
ISBN : 978-93-91055-63-9
Printed at :
Tan Prints (India) Pvt. Ltd.
44 Km. Mile Stone, National Highway, Rohtak Road Village Rohad, Distt. Jhajjar (Haryana) India E-mail : sales@tanprints.com
Disclaimer
Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may creep in. Any mistake, error or discrepancy noted may be brought to our notice which shall be taken care of in the next edition. It is be responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom. It is suggested that to avoid any doubt the reader should cross-check all the facts, law and contents of the publication with original Government
No part of this book may be reproduced or copied in any form or by any means [graphic, electronic or mechanical, including photocopying, recording, taping, or information retrieval systems] or reproduced on any disc, tape, perforated media or other information storage device, etc., without the written permission of the publishers. Breach of this condition is liable for legal action.
For binding mistake, misprints or for missing pages, etc., the publisher’s liability is limited to replacement within seven days of purchase by similar edition. All expenses in this connection are to be borne by the purchaser. All disputes are subject to Delhi jurisdiction only.
GST — LAW & PROCEDURE — AT A GLANCE
GST READY RECKONER
GST law provides for threshold exemption from registration based on turnover i.e., where turnover of a person is below the threshold, he may undertake supplies without registering himself with the authorities. This is also referred as small-scale exemption and it helps to reduce compliance burden of smaller entities. There is no bar on a person making taxable supplies registering himself even when his turnover has not exceeded the threshold limit but when the threshold is exceeded, it becomes mandatory.
Statutory provisions regarding registration are contained in Sections 22 to 30 of Central Goods and Services Tax Act, 2017 (CGST Act) and respective State Goods and Services Tax Act, 2017 (SGST Act) Rule 8 to Rule 26 of Central Goods and Services Tax Rules, 2017 (CGST Rules) are the procedural provisions on this subject. Registration and related processes under GST being mostly an online process, various forms/ formats numbering 30 have been prescribed under CGST Rules relating to registration. All applications
Scope and nature of registration under GST.
A supplier has to register in each of such State or Union territory from where he effects supply. In GST
next 10 digits are the PAN of the legal entity, the next two digits are for entity code, and the last digit is check sum number.
taxes i.e., CGST, SGST/UTGST, IGST and Cesses. A given PAN based legal entity would have one GSTIN per State which means a business entity having its branches in multiple States will have to take separate State wise have single registration wherein it can declare one place as principal place of business and other branches as additional place of business. As per Section 25 of CGST Act (as amended), a person having multiple places of business in a State or Union territory can be granted a separate registration for each such place of business, subject to conditions prescribed under Rule 11 of CGST Rules, 2017. One of the main conditions prescribed is that such dealers would not be entitled to Composition Levy Scheme. Further, SEZ unit or developer has to apply for a separate registration, as distinct from his place of business located outside the Special Economic Zone in the same State or Union territory.
WHO SHOULD REGISTER
A person making a taxable supply of goods or services or both shall register himself with the respective authority in the State or Union Territory from where he makes taxable supply if the aggregate engaged in making non-taxable supply say petrol is not liable for registration under GST law. The thresh-
(1.5)
of goods or provision of services) are made.
States, from where he makes a taxable supply of goods or services or both. In special category states this initially migrate for provisional GSTIN and then take regular registration under the new law if liable for -
tered job worker, shall not be included in the aggregate turnover of the registered job worker but it shall be included in the aggregate value of principal.
g) of clause (4) of Article 279A of
special category States, Central Government on recommendation of GST Council can extend this limit of INR 10 lakhs to a maximum of INR 20 lakh. GST Council in its meeting on 10-1-2019 had recommended that there would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e., INR 40 lakhs and INR 20 lakhs. States were given option to decide on one of the limits. The threshold for registration for service providers would continue to be INR 20 lakhs and in case of Special 10/2019-C.T., dated 7-3-2019 where under w.e.f. 1-4-2019, threshold limit for dealers exclusively engaged in intra-State supply of goods has been increased to INR 40 lakhs across all States and Union Territories except in 10 States, namely, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand. Out of these 10 States, only four States, namely, Manipur, Mizoram, Nagaland and Tripura are Special Category States in terms of amended proviso to Section 22 of CGST Act which would retain threshold limit of INR 10 lakhs while other six States would have this limit at INR 20 lakhs.
11.Jharkhand
12.Karnataka
13.Kerala
14.Madhya Pradesh
15.Maharashtra
16.Meghalaya
17.Odisha
18.Punjab
19.Rajasthan
20.Sikkim
21.Tamil
22.Telangana
23.Uttar Pradesh
24.Uttarakhand
25.
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
lakhs
@ Goods would not include Ice cream and other edible ice whether or not containing Cocoa, Pan Masala, Tobacco and manufactured tobacco substitutes.
The extended limit of INR 40 lakhs would not be applicable to persons engaged in supply of Ice Cream and other edible ice, whether or not containing Cocoa, Pan Masala, Aerated Water (w.e.f. 1-10-2019),
tration under section 24 of CGST Act and persons taking voluntary registration.
— Any person engaged exclusively in the business of supplying to take registration. Similarly, an agriculturist is also exempt from registration to the extent of supply of undertakes cultivation of land either by own labour or of the family or by engaged hired persons and wages may be paid in cash or kind. The person or his family will supervise hired labour. Goods at present not liable to GST are crude oil, petrol (motor spirit), diesel (high speed diesel), aviation turbine fuel (ATF) and natural
w.e.f. 1-4-2019, any person, who is engaged exclusively supply of goods and whose aggregate turnover in
(ii) Persons engaged in making supplies of Ice cream and other edible ice, whether or not containing cocoa, Pan masala, Aerated Water (w.e.f. 1-10-2019) and Tobacco and manufactured not violative of Article 14 of Constitution. — Per Allahabad High Court reported in [2020] (32) G.S.T.L. 338/[2020] 115 taxmann.com 57/80 GST 350 (All)].
(iii) Persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, and
(iv)Persons voluntarily obtaining registration under section 25(3) or such registered persons who intend to continue with their registration under the CGST Act.
—Persons making inter-State taxable supplies of handicraft goods as
by hand even though some machinery may also be used in the process are the categories of casual taxable the aggregate value of such supplies does not exceed the threshold limit i.e. the aggregate turnover is less
3/2018-Integrated Tax dated 22-10-2018.
www.gst.gov.in as the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of IGST and e-way bill.
and documents were asked for) and all necessary documents can be scanned and uploaded. If there are no
— Central Government vide No. 7/2017-Integrated Tax, dated 14-9-2017 has exempted job workers engaged in making inter-State suptaking voluntary registration and also to suppliers of services in relation to goods covered under Sl. No. 5 of Annexure to Rule 138 of CGST Rules relating to e-way bill. These goods are jewellery, goldsmiths’ and silversmiths’ wares and other articles of Chapter 71.
COMPUTATION OF TURNOVER TO DETERMINE THRESHOLD Explanation
(a)
(b)
(c)
(d)
As per Section 2(6) of the CGST Act, 2017 the following shall not be taken into consideration while computing the Annual Aggregate Turnover.
(a)
(b)
(c)
GST LAW MANUAL
— Persons registered under Central Excise Act, Finance Act, 1994 (Service tax) date i.e., 1-7-2017.
— In cases where the business carried on by a person is transferred either on account of succession or as a going concern, the transferee or successor should register himself from the
COMPULSORY REGISTRATION IRRESPECTIVE OF THRESHOLD
While Section 22 prescribes a threshold, Section 24 provides for certain situations where registration is compulsory irrespective of threshold. In other words, the small- scale exemption is not available in such cases.
i.Person making inter-State supply is liable to pay IGST and no small-scale exemption is available. Therefore, even if only one transaction is made, he has to register himself.
ii.As per Section 2(19) a causal taxable person is one who occasionally undertakes supply of place of business in the State or Union Territory where he engages in supply. Such casualgaging in exhibition sum sale at a fair.
iii. Persons paying tax under reverse charge are deemed to be suppliers and have to undertake all compliances including payment of tax and hence registration is compulsory.
commerce operators are liable to register themselves irrespective of threshold of transactions undertaken or supplied by them.
v.Non-resident taxable person as per Section 2(17) means any person who occasionally undertakes supply of goods or services or both either as principal or agent but does notpulsory registration. Experts from foreign countries visiting India and providing advice or consultancy are covered under this category.
vi.Certain persons liable to deduct tax - Department or establishment of Central or State deduct tax under section 51 at the rate of 1% when the contract value is more than INR 2.5 for TDS purpose. The obligation to register under section 24 operates whether or not such recipient is registered otherwise registered under GST law.
vii.Any person making taxable supplies on behalf of another whether as agent or otherwise is
or services or both which receives tax invoices for inputs and other services and issues prescribed document for distributing credit of tax to a supplier of taxable services having
PAN. Registration is compulsory for a person acting as ISD irrespective of whether he is registered or not.
ix.Any person supplying goods or services or both through e-commerce operator who is
suppliers making intra-State supplies through such operators subject to threshold limit and
x.Registration by e-commerce operator obliged to collect tax at source. As per Section 52 every e-commerce operator not being an agent is mandated to collect tax at the rate of 2% on supplies.
xi. Supply of online information and database access or retrieval services (OIDAR) to unregisIndia.
TIME LIMIT AND PROCEDURE TO APPLY FOR REGISTRATION
Any person who is liable to register on crossing the threshold (under Section 22) or compulsorily register as per Section 24 should apply for registration within 30 days from the date on which he became liable for registration. A causal non-taxable person or a non-resident has to apply for registration at least 5 days prior to commencement of business. A person having a unit in SEZ or an SEZ developer will have to apply for a separate registration from his place of business located outside the SEZ within the same State of Union Territory.
A person making supply from territorial waters of India has to apply for registration from the State of Union Territory nearest to the baseline. A person shall be granted single registration in a State or Union
VOLUNTARY REGISTRATION
registration and accordingly carry out all compliances and he will be treated as a person registered under tax invoice for availing input tax credit of the GST charged on the supply.
DISTINCT PERSONS
(s)or Union Territory (s) will be treated as a distinct person in respect of each registration. The concept of distinct person means they are treated as separate entities and transactions between them will be liable to in a State or Union Territory has an establishment in any State or Union Territory, such establishments shall be treated as establishments of distinct persons.
— Persons who are liable to get registered (other than a non-resident
Permanent Account Number (PAN), mobile number, e-mail address, State or Union territory in Part A of address, a temporary reference number shall be generated and communicated to the applicant. Using this
will issue an acknowledgement in FORM GST REG-02. The registration has to be applied for within 30 days 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. If a person has more than one business vertical within a State or a Union Territory, he has to apply for separate registration for each business vertical in FORM GST REG-01.
A company incorporated in India and a body corporate incorporated by or under law of a country outside India (foreign company) are separate persons under CGST Act and thus, are separate legal entities. Therefore, supply of services by a subsidiary/sister concern/ group concern of a foreign company which is incorporated in India to the establishments of the said foreign company located outside India cannot be considered as supply between mere establishments of distinct person under Explanation 1 of Section 8 of IGST Act, 2017. Similarly, supply of service by an Indian company to its related establishments outside India which are incorporated under the laws outside India will not be treated as supply between mere establishments of distinct person under said Explanation.— Circular No. 161/17/2021-GST dated 20-9-2021.
PERMANENT ACCOUNT NUMBER /TAX DEDUCTION ACCOUNT NUMBER
In order to be eligible for registration every person should have a PAN issued under Income-tax may provide the Tax Deduction and Collection Account Number (TAN) in lieu of PAN.
— Such person
REG-06. When such person no longer remains liable to deduct tax at source or collect tax at source, proper such a person applying for registration to deduct or collect tax at source, in a State or Union territory where he does not have a physical presence has been prescribed in the newly inserted sub-rule (1A) in Rule 12 of CGST Rules, 2017.
vide Circular No. 1/1/2017, dated 26-6-2017) will examine the application and the accompanying documents and in case these are in order, grant the registration to the applicant within in FORM GST REG-03 will be issued within seven working days from the date of submission of applicaor documents electronically, in FORM GST REG-04, within seven working days from the date of receipt of
AUTHENTICATION
If a person fails to undergo authentication or furnish proof of possession of Aadhaar Number, the registration number will be deemed to be invalid and the person will be treated as an unregistered person under CGST Act.
From 1-1-2020 vide persons other than individual, the Karta, Managing Director, Director, Whole Time Director, Partners (as
The following procedure has been prescribed for aforesaid purpose under CGST Rules by amending Rules 8, 9 and 25 initially vide 62/2020-C.T. dated 20-8-2020. –
(i) With effect from 21st August, 2020, while submitting the application under sub-rule (4) of Rule 8 of CGST Rules applicant shall undergo authentication of Aadhaar number.
(ii)The date of submission of the application in such cases shall be the date of authentication FORM GST REG-01 under sub-rule (4), whichever is earlier.
(4A) of rule 8 or does not opt for authentication of Aadhaar number, the registration shall be of the place of business within 30 days in the manner provided under Rule 25.
(4A) of Rule 8 or does not opt for authentication of Aadhaar number, the notice in FORM GST REG-03 may be issued not later than twenty one days from the date of submission of the application.
A non-resident taxable person may furnish other documents as may be prescribed.
Application in FORM GST REG-09 has to be submitted in the GST portal (www.gst.gov.in) along case of a business entity incorporated or established outside India, the application for registration has to authorized signatory of such person who shall be a person resident in India having a valid PAN. A non-resgenerated and given to such person to enable him to deposit advance tax. Only after deposit of advance tax, his application will be further processed. For seeking extension of registration, an application in FORM
— Observing that certain the old/cancelled registration are not applying for revocation of cancellation of registration, but are applying
submitted by the taxpayers, where the taxpayer is seeking another registration within the State although he has an existing registration within the said State or his earlier registration has been cancelled. — C.B.I. & C. Circular No. 95/14/2019-GST, dated 28-3-2019.
information or documents furnished by the assessee the application for grant of registration shall be deemed to have been approved.
- In following cases, the application for grant of regis-
(i)Within a period of seven working days from the date of submission of the application in
(ii) Within the time period prescribed under the proviso to sub-rule (2) of Rule 9, in cases where
(iii) Within a period of thirty days from the date of submission of the application in cases where -
formation or documents furnished by the applicant under sub-rule (2) of Rule 9.
- CGST Rules have been amended to provide for biometric based Aadhaar Authentication and this is being implemented in Gujarat on pilot basis, prescribing
opted not to get Aadhaar authentication done, of the applicant where the applicant is an individual or of such individuals in relation to the applicomplete only after completion of the process laid down.
who take suo motu registration under Rule 16. The details are to be provided within 45 days of grant of cancellation of registration.
— Grant of registration under the respective State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act is deemed to be a registration under the CGST Act. -
displayed at a prominent place of business.
