GST – GST FAQ 3rd Edition – December, 2018 – 03 – 3. Registration Q 1. What is advantage of taking registration in GST? Ans. Registration under Goods and Service Tax (GST) regime will confer following advantages to the business: Legally recognized as supplier of goods or services. Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business. Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients. Getting eligible to avail various other benefits and privileges rendered under the GST laws. Q 2. Can a person without GST registration claim ITC and collect tax? Ans. No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid by him. Q 3. What will be the effective date of registration? Ans. Where the application for regist
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be liable to register himself in the State or the Union territory of Delhi or Puducherry from where he makes the taxable supply. In case of eleven special category states (as mentioned in Art.279A(4)(g) of the Constitution of India), this threshold limit for registration liability is ten lakh rupees. Besides, Section 24 of the Act mentions certain categories of suppliers, who shall be liable to take registration even if their aggregate turnover is below the said threshold limit of 20 lakh rupees. On the other hand, as per Section 23 of the Act, an agriculturist in respect of supply of his agricultural produce; as also any person exclusively making supply of non-taxable or wholly exempted goods and/or services under GST law will not be liable for registration. Q 5. What is aggregate turnover? Ans. As per section 2(6) of the CGST/SGST Act aggregate turnover includes the aggregate value of: (i) all taxable supplies, (ii) all exempt supplies, (iii) exports of goods and/or service, and, (i
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ired to pay tax under reverse charge; iv) persons who are required to pay tax under sub-section (5) of section 9; v) non-resident taxable persons making taxable supply; vi) persons who are required to deduct tax under section 51; vii) persons who make taxable supply of goods or services on behalf of other registered taxable persons whether as an agent or otherwise; viii) Input service distributor (whether or not separately registered under the Act); ix) persons who supply goods, other than supplies specified under Section 9(5), through such ecommerce operator who is required to collect tax at source under section 52; x) every electronic commerce operator who is required to collect tax at source under section 52 xi) every person supplying online information and data base retrieval services from a place outside India to a person in India, other than a registered person; and, In addition, the Government may notify other person or class of persons who shall be required to be registered man
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y days from the date on which he becomes liable to registration, in such manner and subject to such conditions as is prescribed under the Registration Rules. A Casual Taxable person and a non-resident taxable person should however apply for registration at least 5 days prior to commencement of business. Q 9. If a person is operating in different states, with the same PAN number, whether he can operate with a single Registration? Ans. No. Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation and is liable to pay GST in terms of Section 22(1) of the CGST/SGST Act. Q 10. Can a person obtain multiple registrations in a State? Ans. Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple place of businesses in a State or UT may obtain a separate registration for each such place of business, subject to such conditions as prescribed in the registration rules. As per the C
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egistered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person. The person, once registered, will have to pay GST irrespective of his aggregate turnover. Q 13. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration? Ans. Yes. As per Section 25(6) of the CGST/SGST Act every person shall have a Permanent Account Number issued under the Income Tax Act,1961(43 of 1961) in order to be eligible for grant of registration. However as per the proviso to the aforesaid section 25(6), a person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration. Also, as per Section 25(7) PAN is not mandatory for a nonresident taxable person who may be granted registration on the basis of self-attested copy of valid passport. Q 14. Whether the Department through th
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ions be final registrations? Ans. No. Every person to whom a suo-moto (temporary) registration has been granted under rule 16(1) of the CGST Rules, 2017, shall, within ninety days from the date of the grant of such registration, submit an application for registration in the form and manner provided in rule 8 (normal taxable persons) or rule 12 (TDS/TCS deductors) unless the said person has filed an appeal against the grant of temporary registration, in that case the application for registration shall be submitted within thirty days from the date of issuance of order upholding the liability to registration by the Appellate Authority. Q 18. Whether the proper officer can reject an Application for Registration? Ans. Yes. In terms of section 25(10) of the CGST Act, the proper officer can reject an application for registration after due verification. Where the application submitted under rule 8 is found to be deficient, the proper officer may issue a notice to the applicant electronically i
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of registration. Wherever the proper officer feels so, he may get such verification done and the verification report along with other documents, including photographs, shall be uploaded in FORM GST REG-30 on the Common Portal within fifteen working days following the date of such verification. Q 21. Is it necessary for the UN bodies to get registration under GST? Ans. Yes. In terms of Section 25(9) of the CGST/SGST Act, all notified UN bodies, Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States. This UIN will be needed for claiming refund of taxes paid on notified supplies of goods and services received by them, and for any other purpose as may be notified. Q 22. Certain entities are required to obtain Unique Ident
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asual Taxable Person has been defined in Section 2 (20) of the CGST/SGST Act meaning a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, whether as principal, or agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. Q 25. Who is a Non-resident Taxable Person? Ans. In terms of Section 2(77) of the CGST/SGST Act, a nonresident taxable person means any person who occasionally undertakes transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India. Q 26. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident Taxable person? Ans. In terms of Section 27(1) read with proviso thereto, the certificate of registration issued to a casual taxable person or a non-resident taxable person shall be valid f
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iod of ninety days, an advance additional amount of tax equivalent to the estimated tax liability is to be deposited for the period for which the extension beyond ninety days is being sought. Q 28. A casual taxable person/non-resident taxable person has to make advance deposit of tax. Will such persons have to wait till grant of registration to deposit Advance Tax? Ans. No. A person applying for registration as a casual taxable person/non-resident taxable person shall be given a temporary reference number by the Common Portal for making advance deposit of tax in accordance with the provisions of section 27 and the acknowledgement under rule 8 (5), for submission of registration application, shall be issued electronically only after the said deposit in the electronic cash ledger. Q 29. What is the difference between casual and nonresident taxable persons? Ans. Casual and Non-resident taxable persons are separately defined in the CGST/SGST Act in Sections 2(20) and 2(77) respectively. So
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n ISD? Ans. ISD stands for Input Service Distributor and has been defined under Section 2(61) of the CGST/SGST Act. It is basically an office meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units (having the same PAN) proportionately. Q 31. Will ISD be required to be separately registered other than the existing tax payer registration? Ans. Yes, the ISD registration is for one office of the taxpayer which will be different from the normal registration. Q 32. Can a tax payer have multiple ISDs? Ans. Yes. Different offices of a tax payer can apply for ISD registration. Q 33. What could be the liabilities (in so far as registration is concerned) on transfer of a business? Ans. The transferee or the successor shall be liable to be registered with effect from such transfer or succession and he will have to obtain a fresh registration with effect from the date of such transfer or succession. (Section 22(3)). Q 34. Whether all asse
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to take registration only when his turnover crosses the prescribed threshold of 20/10 Lakhs. Q 36. Whether the goods will be permitted to be supplied from the place of business of a job worker? Ans. Yes. But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker as his additional place of business. Q 37. At the time of registration will the assessee have to declare all his places of business? Ans. Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the CGST/SGST Act respectively. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form. Q 38. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure? Ans. In order to cater to the needs of tax payers who are not IT savvy, following facilities shall be made available: – GST Practi
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duly signed by the Authorized Signatory. Q 39. Is there any facility for digital signature in the GSTN registration? Ans. Tax payers would have the option to sign the submitted application using valid digital signatures. There will be two options for electronically signing the application or other submissions- by e-signing through Aadhar number, or through DSC i.e. by registering the tax payer s digital signature certificate with GST portal. However, companies or limited liability partnership entities will have to sign mandatorily through DSC only. Only level 2 and level 3 DSC certificates will be acceptable for signature purpose. Q 40. How will a person desirous of becoming a GST Practitioner apply? Ans. A person desirous of becoming GST Practitioner has to submit an application in the form GST PCT-1. The application shall be scrutinized and, if found eligible, the GST practitioner certificate shall be granted in the form GST PCT-2. Q 41. Whether a GST Practitioner need to register se
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icant if any query is raised in the online application? Ans. If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be communicated to the applicant and to the other tax authority through the GST Common Portal within 3 common working days. The applicant will reply to the query/rectify the error/ answer the query within a period of seven days from the date of receipt of deficiency intimation. On receipt of additional document or clarification, the relevant tax authority will respond within seven common working days from the date of receipt of clarification. Q 44. What is the process of refusal of registration? Ans. In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. As per sub-section (2) of section 26 of the CGST Act, any rejection of application for registration by
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