GST – GST FAQ 2nd Edition – June 2017 as Updated as on 1.1.2018 – 03 – 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 r
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shall 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, an
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and services; ii) casual taxable persons except persons making supply of certain handicraft goods; iii) persons who are required 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 e-commerce operator who is required to collect tax at source under section 52; x) every electronic commerce operator; 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
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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 Sub-section (1) of Section 22 of the CGST/SGST Act. Q 9. Whether a person having multiple business verticals in a state can obtain different registrations? Ans. Yes. In terms of the proviso to Sub-Section (2) of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each business vertical, subject to such conditions as prescribed in the registration rules. Q 10. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST? Ans. Yes. In terms of Sub-section (3) of Section 25, a person, though not liable to be registered under Section 22 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered taxable person, shall apply to such person. Q 11. Is possession of a Permanent Account Number (PAN) manda
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h may be taken under this Act, or under any other law for the time being in force, proceed to register such person in the manner as is prescribed in the Registration rules. Q 13. Whether the proper officer can reject an Application for Registration? Ans. Yes. In terms of sub-section 10 of section 25 of the CGST/SGST Act, the proper officer can reject an application for registration after due verification. Q 14. Whether the Registration granted to any person is permanent? Ans. Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked. Q 15. 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
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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 19. Who is a Non-resident Taxable Person? Ans. In terms of Section 2(77) of the CGST/SGST Act, a non-resident 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 20. 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 for a period specified in the application for reg
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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 22. Whether Amendments to the Registration Certificate is permissible? Ans. Yes. In terms of Section 28, the proper officer may, on the basis of such information furnished either by the registrant or as ascertained by him, approve or reject amendments in the registration particulars within a period of 15 common working days from the date of receipt of application for amendment. It is to be noted that permission of the proper officer for making amendments will be required for only certain core fields of information, whereas for the other fields, the certificate of registration shall stand amended upon submission of application in the GST common portal. Q 23. Whether Cancellation of Registration Certificate is permissible? Ans. Yes. Any Registration granted under this Act may be cancelled by the Proper Officer, in circumstances mentioned in Sec
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his own? Ans. Yes, in certain circumstances specified under section 29(2) of the CGST/SGST Act, the proper officer can cancel the registration on his own. Such circumstances include contravention of any of the prescribed provisions of the CGST Act or the rules made there under, not filing return by a composition dealer for three consecutive tax periods or non-furnishing of returns by a regular taxpayer for a continuous period of six months, and not commencing business within six months from the date of voluntary registration. However, before cancelling the registration, the proper officer has to follow the principles of natural justice. (Proviso to Section 29(2) (e)) Q 26. What happens when the registration is obtained by means of willful mis-statement, fraud or suppression of facts? Ans. In such cases, the registration may be cancelled with retrospective effect by the proper officer. (Section 29(2) (e)) Q 27. Is there an option to take centralized registration for services under GST L
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le ISDs? Ans. Yes. Different offices of a tax payer can apply for ISD registration. Q 32. 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 33. Whether all assesses / dealers who are already registered under existing central excise/service tax/ vat laws will have to obtain fresh registration? Ans. No, GSTN shall migrate all such assessees/dealers to the GSTN network and shall issue a provisional registration certificate with GSTIN number on the appointed day, which after due verification by the departmental officers within six months, will be converted into final registration certificate. For converting the provisional registration to final registration the registrants will be asked to submit all requis
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efined 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 37. 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 Practitioners: A taxable person may prepare his registration application /returns himself or can approach the GST Practitioner for assistance. GST Practitioner will prepare the said registration document / return in prescribed format on the basis of the information furnished to him by the taxable person. The legal responsibility of the correctness of information contained in the forms prepared by the GST Practitioner will rest with the registered person only and the GST Practitioner shall not be liable for any errors or incorrect information. Facilitat
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y. Only level 2 and level 3 DSC certificates will be acceptable for signature purpose. Q 39. What will be the time limit for the decision on the on line registration application? Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within three common working days. If they communicate any deficiency or discrepancy in the application within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such communication. Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have 7 days from the date when the taxable person communicates removal of deficiencies. In case no response is given by the departmental authorities within the said time line, the portal shall automatically generate the registration. Q 40. What will be the time of response by the applicant if any query is raised in the online applicat
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shall be deemed to be a rejection of application for registration by the other tax authority (i.e. under the SGST Act / UTGST Act/ CGST Act). Q 42. Will there be any communication related to the application disposal? Ans. The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the GST common portal. Jurisdictional details would be intimated to the applicant at this stage. Q 43. Can the registration certificate be downloaded from the GSTN portal? Ans. In case registration is granted; applicant can download the Registration Certificate from the GST common portal. Q 44. Can cancellation of registration order be revoked? Ans. Yes, but only in cases where the initial cancellation has been done by the proper officer suo moto, and not on the request of the taxable person or his legal heirs. A person whose registration has been cancelled suo moto can apply to the proper officer for revocation of cancellation of registratio
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al and non-resident 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. Some of the differences are outlined below: Casual Taxable Person Non-resident Taxable Person Occasional undertakes transactions involving supply of goods or services in a state or UT where he has no fixed place of business. Occasional undertakes transactions involving supply of goods or services but has no fixed place of business residence in India. Has a PAN Number Do not have a PAN Number; A non-resident person, if having PAN number may take registration as a casual taxable person Same application form for registration as for normal taxable persons viz GST REG-01 Separate application form for registration by non-resident taxable person viz GST REG-9 Has to undertake transactions in the course or furtherance of business Business test absent in the definition Has to file normal GSTR-1, GSTR-2 and GSTR-3 returns Has to f
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