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A Guide to GST Registration

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The basic composition of GST stands on the foundation of the registration system, for it is a registered person who is liable to pay tax and who is eligible to avail the benefits of the input tax credit mechanism. A registered person can also collect GST from his recipients. An unregistered person is not taxed and is also kept outside the input tax credit mechanism. The GST law gives a limited option to certain categories of persons to avoid registration and thus avoid the tax liability lawfully. However, if one falls within the reach of an extensive list of statutorily prescribed criteria requiring compulsory registration, the supplier must get registered.

So who are liable for GST Registration then. The following persons listed below are liable  for GST Registration :

  • The supplier of goods and or Services or both operating in a state or union territory has to get registered under GST if his aggregate turnover in the preceding financial year Exceeds Rs. 20 lacs
  • In case of special category states namely AP, J&K, Assam, Nagaland, Mizoram, Sikkim, Uttrakhand, etc., the person shallbe liable to be registered if his turnover exceeds Rs.10 lakhs.

[Note : Aggregate turnover includes value of all taxable supplies, exempt supplies, Exports, and inter-State supplies of persons having the same PAN but excludes taxes.]


  • Any person who is registered before the appointed day i.e. 1st July 2017 is liable to be registered under the CGST Act.
  • Where a registered business by a taxable person is transferred to another person, then such a person, be it successor or a transferee, shall be liable to be registered under the Act.
  • A transfer due to sanction of a scheme or an arrangement for amalgamation or when a demerger takes place of two or more companies in accordance with the order of the High Court or Tribunal, the transferee shall be liable to be registered.

However the following persons are not liable or GST Registration :

  • Any person who is engaged exclusively in supply of those goods or services which are wholly exempted from tax or are not liable to pay tax under CGST or under IGST Act.
  • An agriculturist for only those supply only which is produced out of cultivation of land.
  • Those categories of persons which the government on the recommendation of the GST council may issue notification & specify special category of persons who are not liable for registration.

GST Registration procedure Guide : The GST registration process consists of filling up of two parts – A and B of the Form GST REG-01.

Part A Form GST REG-01 is to be filled and submitted by using the PAN, mobile number and e-mail ID. Post the PAN verification, at the GST portal, the mobile number and the e-mail ID will consequently be verified using a one-time password [OTP], sent on your registered mobile number.

After verification, an application reference number [ARN] will be generated and sent on your registered e-mail ID and mobile number.

Part B From the ARN no generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code (EVC), along with documents specified in the form.

 

What are these specified documents we are talking about in Part B?  This could be divided into following categories :

Category A : Documents required for Private Limited Company, Public Company (limited company) / One Person Company (OPC):

•         Company Documents : PAN card of the company, Registration Certificate of the company, Memorandum of Association (MOA)/ Articles of Association (AOA), Copy of Bank Statement, Declaration to comply with the provisions, Copy of Board resolution.

•         Director related documents : PAN and ID proof of directors

•         Registered Office documents : Copy of electricity bill/ landline bill, water bill, No objection certificate of the owner, Rent agreement (in case premises are rented)

Category B : Documents required for Limited Liability Partnerships (LLPs):

•         LLP Documents : PAN card of the LLP, Registration Certificate of the LLP, LLP Partnership agreement, Copy of Bank Statement of the LLP, Declaration to comply with the provisions, Copy of Board resolution

•         Designated Partner related documents : PAN and ID proof of designated partners

•         Registered Office documents : Copy of electricity bill, landline bill, water bill, No objection certificate of the owner, Rent agreement (in case premises are rented)

 

Category C : Documents required for Normal Partnerships

•         Partnership documents : PAN card of the Partnership, Partnership Deed, Copy of Bank Statement, Declaration to comply with the provisions

•         Partner related documents : PAN and ID proof of designated partners

•         Registered Office documents : Copy of electricity bill / landline bill, water bill, No objection certificate of the owner, Rent agreement (in case premises are rented), Documents required for Sole proprietorship / Individual

•         Individual documents : PAN card and ID proof of the individual, Copy of Cancelled cheque or bank statement, Declaration to comply with the provisions

•         Registered Office documents : Copy of electricity bill/ landline bill, water bill; No objection certificate of the owner; Rent agreement ( in case premises are rented)

 

Clarifications about Multiple GST registrations for different states : The registration allotted in GST is a PAN India based and state specific. A supplier has to register in each of such state / union territory, from where he affects supply. In GST, the supplier is allotted a 15-digit GST identification number called GSTIN and a certificate of registration incorporating this GSTIN. The GSTIN’s first two digits denotes the state code, next 10 digits are the PAN of the legal entity, the next two digits are for entity code and the last digit is the checksum number. Registration under GST is not tax specific, which means that there is a single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cess.

PAN based legal entity states that One GSTIN would be allotted per state that mean that a business entity having its branches in multiple states will have to take separate state wise registrations for the branches in different state. It’s important to note that for an intra-state entity with different branches it’s just enough if it holds one single registration wherein it can declare one place as principal place of business and other branches as additional place of business. However the case differs slightly for a business entity having separate business verticals in a state, where it may obtain separate registration for each of its business verticals.

After registration on GST Portal do we get a receipt or acknowledgment? Yes, we do get a receipt on application of GST registration on GST Portal and this is issued as, an acknowledgement to the applicant in FORM GST REG-02.

Is it possible that we encounter different registration statuses on GST Portal while making GST application for Registration : Yes it is possible if so then how to interpret it. There following  different types of registration statuses, which may pop up during the different stages of a GST registration process like Provisional ;Validation against error ;Pending for verification; Migrated  and Cancelled. Let’s have an briefing over this from the following table.

Statuses Interpretation
Provisional When the Provisional ID is issued and the application for enrollment of existing taxpayer is still to be filed with the digital signatures, a provisional status pops up, asking you to register.
Validation against error Should the PAN given does not match with the CBDT database, a validation error would up pop asking you to resubmit the correct PAN.
Pending for verification It denotes that the registration application submission has been successful and the same is under process by the agencies. Once verified, the status will get updated.
Migrated It denotes that the registration application has been consumed by the system and no further changes can now be made.
Cancelled When the existing registration is cancelled leading to the cancellation of the provisional ID, a cancelled status shows up.

So after making the application for generation and successfully generating the ARN now you can check the status of your GST Registration application status by logging into http://gst.gov.in with your credentials and pinning down the service tab section selecting Registration services and then Track application status. Here you have two choices for tracking your application status (a)  Through your ARN generated : Select ARN and fill in the ARN in the ARN field and click on Search. Your GST application registration status gets displayed. (b) Through Submission period : Select Submission period of the application using the calendar and click on Search. Your GST application registration status gets displayed.

Once your application is received and accepted by the department. You will get a notification for the same via registered email id of yours and you can then download your GST certificate at the GST Portal by clicking on the user services section and then selecting view or download certificate page.

Conclusion : I have tried to provide you with a complete guide on GST registration right from filling up of the form to downloading the GST certificate. You can have more access to information at Tally.ERP 9 which itself is a GST Knowledge cyclopedia containing interactive Community forums, blog pages on GST topics, Webinars on GST

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