This post has been updated on 3rd May 2017 to incorporate latest changes.
With each passing day, we are moving one step closer to the GST regime. The four GST Bills (CGST, UTGST, IGST and Compensation bill) have been passed by Lok Sabha and Rajya Sabha and are approved by the President. As businesses begin their preparation towards the new taxation system, obtaining your GST registration is the first step in GST transition process.
Liability for Registration in GST
Special category states (Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand)
|Rs 10 Lakhs|
|Rest of India||Rs 20 Lakhs|
All existing dealers registered with any of the current laws (VAT/Excise/Service Tax) will also need to register under GST by default.
Important Note: The turnover considered here is the aggregate pan-India turnover (including value of taxable
non-taxable, exempt and export supplies) of a business entity, and not state-wise.
Let us take an example to illustrate the liability of a business to register under GST.
Super Cars Ltd. is a car manufacturing unit in Karnataka. They also have service units located in Karnataka and Delhi. Additional details are furnished in the table below:
|Business Unit||Location||PAN Number||Turnover (Rs)|
|Super Cars Ltd.||Karnataka||AEHCS3476M||125 Lakhs|
|Super Cars Ltd.||Karnataka||AEHCS3476M||20 Lakhs|
|Super Cars Ltd.||Delhi||AEHCS3476M||10 Lakhs|
As per the example,
- All 3 units are registered under the same PAN AEHCS3476M
- To arrive at the aggregate turnover, the turnover of all the 3 units (Super Cars Ltd. located in Karnataka and Delhi) will be considered.
- Therefore, the aggregate turnover will be Rs 155 Lakhs. Manufacturing unit of Karnataka Rs 125 Lakhs + service unit of Karnataka Rs 20 Lakhs + services unit of Delhi Rs 10 Lakhs) and are required to register under GST.
For Whom is Registration Mandatory?
The following categories of suppliers need to mandatorily register irrespective of turnover:
- Taxable person carrying on interstate supply
- Casual and non-resident taxable persons
- Businesses liable to pay tax under reverse charge
- Agents supplying on behalf of a taxable person
- Input service distributor
- Sellers on e-commerce platforms
- All e-commerce operators
- Person supplying online information and database access or retrieval services from outside India to an unregistered person in India
Aggregator supplying services under his brand name
- Persons responsible to deduct TDS
Registration Forms for Dealers Registered under Existing Central and State Tax
- All the dealers registered under existing law and having a PAN, shall enrol on the common portal by validating his e-mail ID and Mobile Number
- Upon enrolment, a dealer will be allotted with a provisional certificate of registration in Form GST REG-25. If a dealer has obtained multiple registration on the basis of single PAN under existing law, such dealer will be granted only one provisional Registration. In case of centralized registration under Service Tax, a dealer will be granted with single provisional registration in the state or union territory in which the he was registered earlier.
63 months, dealers are required to submit Form GST REG-24 in the GST Portal along with information and documents as prescribed.
- If the information provided is complete and satisfactory, final registration certificate will be issued in Form GST REG-06.
- If the details submitted are not satisfactory, a show cause notice will be issued in Form GST REG-27, and there will be a hearing before cancelling the provisional registration. If the show cause hearing is not successful, or if the details are not provided within the stipulated period, the provisional registration allotted in Form GST REG-25 will be cancelled by issuing an order in Form GST REG-26.
During transition, if a taxable person is not required to register under GST, but was previously registered (Central and State law), he has an option to cancel the provisional registration issued by submitting the Form GST REG-28.
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