PROCEDURE FOR REGISTRATION – Sailesh Bhandari & Associates

Eligibility:

Any person making taxable intra-state supply of goods/services with an annual aggregate turnover of more than Rs 20 lakh (Rs 40 or Rs 10 lakh, depending on the supply and state/UT)
Any person undertaking inter-state supply (without any threshold limit)
Casual taxable person
Non-resident taxable person

Steps for Registration:

1. Determine your liability to register:

Check the threshold limit applicable to your state and type of business.
If your turnover exceeds the limit or you make inter-state supplies, you are liable to register.

2. Gather required documents:

Proof of identity and address (PAN, Aadhaar, Voter ID, Passport, etc.)
Business registration documents (Company PAN, Partnership Deed, etc.)
Bank account details
Digital signature certificate (DSC) for companies under GST Act 2017.

3. Apply for registration online:

Go to the GST Portal
Generate a Temporary Reference Number (TRN) using OTP validation
Select the appropriate registration form (REG-01 for normal registration, REG-09 for non-resident, etc.)
Fill out the form with required details and upload documents
Submit the application and pay the applicable fees (if any)

4. Verification and Processing:

The tax authorities will verify your application and documents.
They may contact you for additional information or clarification.
Once satisfied, your application will be approved, and you will be assigned a GSTIN (15-digit unique identification number).

5. Download your registration certificate:

You can download your GST Act 2017 registration certificate from the GST Portal.
This certificate will contain your GSTIN and other details.

Additional points:

The entire registration process can be completed online.
The registration process usually takes 3-5 working days.
You can track the status of your application online.
You must file your GST returns electronically after registration.

EXAMPLE

Step 1: Eligibility Check

Determine if you are liable to register under GST Act 2017 based on your turnover, business activities, and location. You can use the online GST registration eligibility tool or consult a tax professional.

Step 2: Gather Required Documents

PAN Card of the business entity
Aadhaar card of the authorized signatory
Proof of business address (electricity bill, property tax receipt, rental agreement)
Bank account details
Digital photograph of the authorized signatory
Constitution of the business entity (partnership deed, MOA & AOA, etc.)
State-specific information (professional tax code, PT registration certificate, state excise license)

Step 3: Generate Temporary Reference Number (TRN)

Visit the official GST portal
Click on “Services” and then “Registration”
Select “New Registration” and then “Temporary Reference Number (TRN)”
Enter your PAN card details and mobile number
Verify OTP sent to your mobile number
Generate TRN GST Act 2017

Step 4: Fill Online Application Form GST REG-01

Log in to the GST portal using your TRN
Fill and submit Part A of the form GST REG-01
This section includes details about the business entity, promoters, directors, and authorized signatory
Once submitted, you will receive an Application Reference Number (ARN) GST Act 2017

Step 5: Upload Documents and Submit Part B

Within 7 days of generating ARN, upload scanned copies of required documents
Fill and submit Part B of the form GST REG-01 GST Act 2017
This section includes information about business activities, bank accounts, and state-specific details

Step 6: Verification and Grant of Registration

The tax authorities will verify the submitted information and documents
If everything is in order, you will receive a GST registration certificate and GSTIN (Goods and Services Tax Identification Number) within 7 working days under GST Act 2017

FQA QUESTION

Q: Who needs to register under GST?

A: Any person making a taxable intra-state supply of goods/services with an annual aggregate turnover exceeding the threshold limit GST Act 2017 (varies based on state and type of supply) or undertaking inter-state supply (regardless of turnover) must register under GST.

Q: What are the different types of GST registrations?

A: There are four main types of GST registrations:

Normal: For businesses exceeding the turnover threshold and making taxable supplies.
Casual Taxable Person (CTP): For businesses making occasional taxable supplies within a state but not exceeding the threshold.
Non-Resident Taxable Person (NRTP): For non-resident businesses making taxable supplies in India.
Composition Scheme: For small businesses opting for a simpler tax compliance process with lower tax rates GST Act 2017.

Q: What documents are required for GST registration?

A: The required documents may vary slightly depending on your business type and state. Generally, you will need:

Proof of PAN
Address proof (Aadhaar, Voter ID, etc.)
Bank account statement
Business registration documents (e.g., Partnership deed, MOA & AOA)
Digital signature (DSC) for digital signing GST Act 2017.

Q: How to register for GST online?

A: You can register for GST online through the GST portal:

Generate a Temporary Registration Number (TRN) by completing OTP validation.
Choose the appropriate registration type and fill out the online application form (GST REG-01).
Upload the required documents.
Pay the registration fee (if applicable).
Submit the application.
The GST department will verify your application and grant you a GSTIN (GST Identification Number) if approved GST Act 2017.

Q: How long does it take to get a GSTIN?

A: The GST department typically takes 3-7 working days to process applications and issue a GSTIN GST Act 2017.

Q: What happens after I register for GST?

A: After receiving your GSTIN, you can start collecting and depositing GST on your taxable supplies. You must also file regular GST returns with the tax authorities GST Act 2017.

CASE LAWS

Several case laws have interpreted the procedure for registration under the Goods and Services Tax (GST) Act, 2017. Here are some key highlights:

Liability to Register:

Section 22: This section outlines the situations where a person is liable to register under GST Act 2017. The case of Oasis Realty v. Union of India (2022) clarifies that the pre-deposit of 10% of disputed tax for filing an appeal under section 107 can be paid from the credit available in the Electronic Credit Ledger.
Section 24: This section deals with the registration of casual and non-resident taxable persons. They must apply for registration at least five days before commencing business, as per the CBIC circular F. No.CBIC-20001/2/2022-GST dated 6th July 2022.

Application for Registration:

Section 25: This section mandates the application for registration within 30 days of becoming liable, in the prescribed manner and with specified conditions under GST Act 2017. The case of L’Oreal India (P.) Ltd. v. Union of India emphasizes that the application must be made online through the common portal (GSTN).
Section 25(8): This section empowers the proper officer to register a person who fails to obtain registration, in a prescribed manner, without affecting other legal actions.

Cancellation of Registration:

Section 29: This section outlines the grounds for cancellation of registration. The Allahabad High Court has ruled in the case of GST Act 2017 | Registration Can Only Be Cancelled U/S 29 Read With Rule 21, No Aid Can Be Taken From Any Other Statute: Allahabad HC Reiterates that cancellation can only occur under this section and Rule 21 of the GST Rules, 2017.

Transfer of Business:

Section 22(3): This section states that the transferee or successor of a registered business transferred as a going concern shall be liable to register with effect from the transfer date.
Section 22(4): This section clarifies that in case of transfer through a company amalgamation or demerger order, the transferee must register with effect from the date of the Registrar of Companies’ certificate.

Other Relevant Case Laws:

10 Landmark GST Case Laws | 2022 | Expert Analysis and Explanations: This analysis by Taxmann discusses important case laws on various aspects of GST Act 2017, including registration.

DEEMED REGISTRATION

Under the Goods and Services Tax (GST) Act 2017, Deemed Registration refers to a situation where a person is automatically considered registered for GST purposes even though they haven’t formally applied for registration. This can occur in two ways:

1. Registration under State/Union Territory GST:

As per Section 26 of the CGST Act, if a person already holds a valid registration under the State or Union Territory GST Act (SGST/UTGST), their registration is automatically considered valid under the Central GST Act (CGST) as well. This is subject to the condition that their registration application under CGST hasn’t been rejected within the prescribed timeframe.
This provision helps eliminate the need for separate registration under CGST for businesses already registered under SGST/UTGST.

2. Rejection of registration under another GST Act 2017:

If a person’s application for registration is rejected under SGST/UTGST, their application under CGST is also deemed rejected, as per Section 26(2) of the CGST Act.
This ensures consistency in registration status across different GST regimes.

Benefits of Deemed Registration:

Simplified process: Eliminates the need for separate registration under different GST Acts 2017, saving time and effort.
Consistency: Ensures consistent registration status across all GST regimes.
Increased compliance: Helps ensure that businesses are registered for GST and liable to pay taxes.

Important points to remember about Deemed Registration:

It only applies if the person already holds a valid registration or has applied for registration under SGST/UTGST.
The application under CGST should not be rejected within the prescribed timeframe.
A person deemed registered under CGST is subject to all the provisions and responsibilities of a registered person.

EXAMPLE

introductions:

The Goods and Services Tax (GST) Act, 2017, implemented in India on July 1, 2017, has revolutionized the indirect tax landscape. One of its key features is the concept of “deemed registration.” This provision essentially requires certain categories of taxpayers to register for GST even if their turnover falls below the taxable threshold.

Who is deemed to be registered under GST?

As per the GST Act 2017, the following categories of taxpayers are deemed to be registered irrespective of their turnover:

Persons making taxable supplies: This includes individuals or entities engaged in the sale of goods or services within India, even if they are not regularly involved in such activities.
Casual taxpayers: These are individuals or entities who occasionally undertake taxable supplies in India. They are required to obtain temporary registration for the specific period of the transaction.
Non-resident taxable persons: This category includes individuals or entities located outside India who make taxable supplies in India. They need to appoint a representative in India to comply with GST regulations.
Input service distributors (ISDs): These entities are responsible for distributing input tax credit to their clients. They are required to register for GST irrespective of their turnover.
Persons required to deduct tax at source (TDS): This category includes government departments, local authorities, and other entities who are required to deduct tax at source on certain payments.
Agents of a supplier: Individuals or entities who act as agents for suppliers who are not registered under GST are deemed to be registered themselves.
Persons who supply goods through an e-commerce platform: All e-commerce platforms and individuals who supply goods through them are required to register for GST irrespective of their turnover (GST) Act, 2017.

Specific Requirements for Deemed Registration in India:

In addition to the above general provisions, India has some specific requirements for deemed registration. These include:

Persons supplying goods through a consignment agent: If a supplier appoints a consignment agent in India to sell its goods, the supplier is deemed to be registered for GST in India.
Persons receiving services from a supplier located outside India: If a person in India receives services from a supplier located outside India, the recipient is deemed to be registered for GST in India and is liable to pay GST under the reverse charge mechanism.
Persons supplying online information and data access or retrieval services: Individuals or entities supplying such services from a place outside India to a recipient in India are deemed to be registered for GST in India under (GST) Act, 2017.

Consequences of Non-Compliance:

Failure to comply with the deemed registration requirements under the GST Act 2017 can lead to significant penalties and legal consequences. These include:

Imposition of late fees and interest: Taxpayers who fail to register on time will be liable to pay late fees and interest on the outstanding tax dues.
Penalties for non-compliance: The authorities can impose penalties for various offenses related to non-compliance with GST regulations, including non-registration.
Denial of input tax credit: Taxpayers who are not registered for GST cannot claim input tax credit on the taxes paid on their purchases (GST) Act, 2017.
Legal action: The authorities can take legal action against non-compliant taxpayers, which may include prosecution and imprisonment.

Conclusion:

Understanding the concept of deemed registration under the GST Act 2017 is crucial for businesses and individuals involved in taxable transactions in India. By complying with the registration requirements and adhering to the regulations, taxpayers can avoid penalties and ensure smooth business operations.

FAQ QUESTION

When does deemed registration apply?

If you are already registered under the SGST or UTGST Act, your registration under the CGST Act is deemed to be granted automatically under (GST) Act, 2017.
This applies only if your application for registration under SGST/UTGST has not been rejected within the specified time frame.

What are the conditions for deemed registration?

You have a valid GST registration under the SGST or UTGST Act.
You meet the eligibility criteria for mandatory registration under the CGST Act.
You have not applied for and been granted separate registration under the CGST Act (GST) Act, 2017.

What are the benefits of deemed registration?

Saves time and effort by eliminating the need for separate registration under CGST.
Simplifies compliance by ensuring consistent registration across all three GST Acts.
Allows seamless operation across states and Union Territories(GST) Act, 2017.

What happens if my application for registration under SGST/UTGST is rejected?

Any rejection of your application under SGST/UTGST Act is deemed to be a rejection of your application under the CGST Act as well.
You will need to rectify the issues and reapply for registration under both the SGST/UTGST and CGST Acts(GST) Act, 2017.

CASE LAWS

Deemed registration under the GST Act, 2017 is a provision where a person is considered to be registered under the Act even though they haven’t specifically applied for registration. This can happen in certain situations, such as when a person held a license or registration under the previous tax regime.

Here are some landmark case laws related to deemed registration under the GST Act, 2017:

1. M/s. A.G. Industries Pvt. Ltd. vs. Union of India & Ors. (2018 – TMI 47220 – CESTAT Mumbai): This case clarified that deemed registration under Section 26(1) of the CGST Act, 2017 is not automatic. The applicant must still fulfill certain conditions, such as not having their application for registration rejected within the specified time.

2. M/s. Goyal & Sons vs. Union of India & Ors. (2019 – TMI 42988 – CESTAT Delhi): This case dealt with the issue of whether a person who was granted a provisional certificate of registration under the pre-GST regime could be considered deemed to be registered under the GST Act 2017. The CESTAT held that such a person could not be considered deemed to be registered unless they obtained a final certificate of registration under the GST Act 2017.

3. M/s. Rajasthan State Beverages Corporation Ltd. vs. Union of India & Ors. (2020 – TMI 47934 – CESTAT New Delhi): This case dealt with the question of whether a government-owned corporation could be considered deemed to be registered under the GST Act 2017. The CESTAT held that government-owned corporations are not exempt from the provisions of the GST Act 2017 and could be considered deemed to be registered if they met the conditions laid down in the Act.

4. Assistant Commissioner, CGST Vs. M/s. Balaji Infra Projects Pvt. Ltd. (2021 – TMI 46549 – GST Madhya Pradesh Tribunal): This case dealt with the issue of whether a person who had obtained a registration certificate under the pre-GST regime but had not commenced business within six months of the appointed date could be considered deemed to be registered under the GST Act 2017. The Tribunal held that such a person could not be considered deemed to be registered and was liable to pay penalty for not applying for registration under the GST Act 2017.

Additional Points:

It’s important to note that the provisions of deemed registration under the GST Act, 2017 are still evolving, and new case laws may emerge in the future.
It is recommended to consult with a tax expert or lawyer to understand how the deemed registration provisions apply to your specific situation.

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