Registration under GST: A Brief and FAQs

Answer: A person can obtain a single registration in each State or a Union territory on a single Permanent Account Number.

Answer: Vide CGST Amendment Act, 2018, effective from 1st February 2019; a person having multiple places of business in a State or Union Territory could be granted separate registration on a single PAN for each place of business. Previously a person had to satisfy condition of two businesses being business verticals before being granted separate registration but now no such condition would be required to be fulfilled by the applicant and he may be granted two separate registrations in respect of multiple places of business on a single PAN. Definition of business vertical as contained under clause (18) of section 2 of CGST Act, 2017 has been omitted by CGST Amendment Act, 2018 effective 1st February 2019.

Answer: Yes, A person who has obtained or is required to obtain more than one registration in one State or Union territory or more than one State or Union territories under the same PAN would be treated as distinct/separate persons under GST.

Answer: All these businesses registered separately whether in same State or Union territory or different States or Union territories would be treated as distinct/separate persons under GST and would have to charge tax on the supply of goods or services or both amongst themselves, in the same manner as tax is charged by them on supply of goods or services or both to a third person.

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

Answer: 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.

Answer: Unique Identity Number in GST would be granted to agencies like specialized agencies of United Nation Organization, Consulate or Embassy of foreign countries, etc., or any other person or class of persons, as may be notified by the Commissioner.

Answer: An application for registration has to be submitted within thirty days from the date on which the person becomes liable to registration.

Answer: 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.

Answer: He will not be allowed benefit of Input Tax Credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock as on the date when he became liable for registration.

The Act only provides for the allowability of Input Tax Credit in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock, for person applying for registration within thirty days from the date on which he becomes liable for registration or person applying for voluntary registration.

Answer: Yes, any approval/rejection of registration under one Act  say CGST Act shall be deemed to be approval/rejection under other Acts say SGST Act and vice versa.

Answer: Goods and Services Tax Identification Number would be of 15 Characters and such characters would be assigned in following format:

(a) Two characters for the State Code;

(b) Ten characters for the PAN or the Tax Deduction and Collection Account Number;

(c) Two characters for the entity Code; and

(d) One checksum character.

Answer: The answer to the above question can be divided into two separate categories:

(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.

Answer: As per the provisions of Rule 9(1) of CGST Rules, 2017 it has been provided that application for registration made by the taxable person shall be examined and if the same is found to be in order, registration has to be granted to the applicant within a period of seven working days from the date of submission of the application.

However proviso to sub-rule (1) of Rule 9 of CGST Rules provide that registration is required to be granted within a period of thirty days after physical verification of the place of business in the presence of the said person, in the manner provided under rule 25 and verification of such documents as the proper officer may deem fit wherein—

(a) a person, other than a person notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does not opt for authentication of Aadhaar number; or

(b) the proper officer, with the approval of an officer authorised by the Commissioner not below the rank of Assistant Commissioner, deems it fit to carry out physical verification of places of business.

The application for grant of registration shall be deemed to have been approved if the proper officer fails to take any action—

(a) within a period of seven working days from the date of submission of the application in cases where the person is not covered under proviso to sub-rule (1); or

(b) within a period of thirty days from the date of submission of the application in cases where a person is covered under proviso to sub-rule (1); or

(c) within a period of seven working days from the date of the receipt of the clarification, information or documents furnished by the applicant under sub-rule (2).

Answer: A person, who is required to obtain registration under CGST Act and is required to deduct tax under section 51 of the CGST Act, may provide Tax Deduction and Collection Account Number in lieu of Permanent Account Number issued under Income-tax Act, 1961, in order to be eligible for grant of registration.

Answer: A person, who is required to obtain registration under CGST Act, as a Non-Resident taxable person would be required to submit a copy of valid passport along with the application for registration and the application for registration made by a non-resident taxable person shall be signed by his authorized signatory who shall be a person resident in India having a valid PAN.

Answer: Casual Taxable Person and Non-Resident Taxable person will have registration valid for a period specified in the application for registration or for a maximum period of ninety days effective from the date of registration whichever is earlier.

This period can be further extended for a period not exceeding ninety days on the application of the taxable person. In no case period of registration should exceed 180 days.

Answer: CBEC Circular No. 71/45/2018, dated 26th October 2018 has clarified in case of long running exhibitions (for a period more than 180 days), the taxable person cannot be treated as a CTP and thus such person would be required to obtain registration as a normal taxable person.

Answer: CBEC Circular No. 71/45/2018, dated 26th October 2018 has clarified that while applying for normal registration, said person should upload a copy of the allotment letter granting him permission to use the premises for the exhibition and allotment letter/consent letter shall be treated as the proper document as a proof for his place of business.

Answer: Vide CGST Amendment Act, 2018, effective from 1st February 2019; a person having multiple places of business in a State or Union Territory could be granted separate registration for each such place of business. Previously a person had to satisfy the condition of two businesses being business verticals before being granted separate registration but now no such condition would be required to be fulfilled by the applicant and he may be granted two separate registrations in respect of multiple places of business. Definition of business vertical as contained under clause (18) of section 2 of CGST Act, 2017 has been omitted by CGST Amendment Act, 2018 effective from 1st February 2019.

Answer: Yes, vide insertion of Rule 10A of CGST Rules, 2017 it has been made mandatory that after certificate of registration in FORM GST REG-06 has been made available and GSTIN has been assigned to the taxpayer, he has to furnish information with respect to details of bank account, or any other information, as may be required on the common portal in order to comply with any other provision.

This information is not required to be submitted by those registered persons who have been granted registration under rule 12 or, as the case may be rule 16 of CGST Rules, 2017.

Registered person shall submit the details as soon as may be, but not later than forty-five days from the date of grant of registration or the date on which the return required under section 39 is due to be furnished, whichever is earlier.

Further, Rule 21 has also been amended to provide that in case above information are not submitted by the registered persons as required above, registration granted to the registered person shall be liable to be cancelled.

Answer: Every registered person is required to inform about any changes in the information furnished at the time of registration or subsequently, within fifteen days of such change.

Answer: Following changes in the information furnished at the time of registration or subsequently would have to be approved by the proper officer:

(i) Legal name of business;

(ii) Address of the principal place of business or any additional place of business; or

(iii) Addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible for day-to-day affairs of the business.

Answer: Yes, if the change relates to any particulars other than those specified above, then, certificate of registration shall stand amended upon submission of the application.

However, if there is any change in the mobile number or e-mail address of the authorised signatory submitted, as amended from time to time, it shall be carried out only after online verification through the Common Portal.

Answer : The change relating to

(i) legal name of business;

(ii) addition, deletion or retirement of partners or directors, Karta, Managing Committee, Board of Trustees, Chief Executive Officer or equivalent, responsible for the day to day affairs of the business,

in any State or Union territory shall be applicable for all registrations of the registered person obtained under the provisions of this Chapter on the same Permanent Account Number.

Answer: Where a change in the constitution of any business results in the change of the Permanent Account Number of a registered person, the said person shall apply for fresh registration.

Answer: If the proper officer fails to take action,—

(a) within a period of fifteen working days from the date of submission of the application, or

(b) within a period of seven working days from the date of the receipt of the reply to the notice to show cause,

the certificate of registration shall stand amended to the extent applied for and the amended certificate shall be made available to the registered person on the common portal.

Answer : As per provision of Rule 20 of CGST Rules, 2017 a person has to apply for cancellation of registration within thirty days of the occurrence of event warranting cancellation and within thirty days from the submission of application for cancellation of registration, appropriate action has to be taken by the proper officer.

Vide CGST Amendment Act, 2018 effective from 1st February 2019; once an application for cancellation of registration has been submitted, during pendency of proceedings relating to cancellation of registration filed by registered person, registration may be suspended for such period and in such manner as may be prescribed. Further such registration may be suspended by the proper officer during pendency of proceedings relating to cancellation of registration, for such period and in such manner as may be prescribed. This amendment would provide relief to the persons who have filed application for cancellation but the application is yet to be approved by the officer.

Answer : CBEC has vide Circular No. 69/43/2018-GST dated 26th October 2018 clarified that Rule 20 of CGST Rules provides that tax-payer applying for cancellation of registration shall submit the application in FORM GST REG-16 on the common portal within a period of 30 days of the occurrence of the event warranting the cancellation. It might be difficult in some cases to exactly identify or pinpoint the day on which such an event occurs. For instance, a business may be transferred/disposed over a period of time in a piece meal fashion. In such cases, the 30-day deadline may be liberally interpreted and the taxpayers‟ application for cancellation of registration may not be rejected because of the possible violation of the deadline.

Therefore, it has been advised that the 30 days deadline may be liberally interpreted.

Answer: The registered person has to submit an application electronically for cancellation of registration containing following details:

(a) Inputs held in stock or inputs contained in semi-finished or finished goods held in stock and capital goods on the date from which cancellation of registration is sought.

(b) Tax due to be paid on Inputs held in stock or inputs contained in semi-finished or finished goods held in stock and on capital goods.

(c) Details of the payment, if any, made against such liability.

(d) Relevant documents in support of the application for cancellation of registration.

Answer: Legal heir of the registered person can file an application for cancellation of registration.

Answer: Registration may be cancelled by proper officer on an application filed by the registered person in following scenarios:

(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