COMPLETE PROCESS OF GST REGISTRATION
|DOCUMENTS| PROCESS| REQUIREMENTS
The introduction of the law/Act called Goods and Services Tax (“GST”) in India was put forward by former Prime Minister Mr. Atal Bihari Vajpayee, and after various committee discussions, it was passed by the parliament on 29th March 2017with effect from 1st July 2017. GST was one of the most needed tax reforms in India. Prior to the introduction of GST, there existed a multiplicity of taxes with no uniformity among the states. With the advent of GST, numerous central and state-level taxes have been integrated into one. It supports the notion of one nation and one tax. Registration of GST in any tax system is the most primary obligation for the identification of taxpayers safeguarding tax compliance within the economy. The Registration enables a person to collect tax from his customers and also to claim any input tax credit of tax paid by him. The digitization of the Indian economy has aided GST by providing an easy and effortless way of payment of taxes with three electronic ledgers, namely E-cash Ledger, E-credit Ledger & E-liability Ledger. The registered person is obligated to maintain proper accounts and records and keep them at his principal registered place of business. To expedite digitization, there is a provision to preserve accounts and other records in electronic form under GST. The Registration under GST law implies securing a unique number from the concerned tax authorities for the function of collecting tax on behalf of the Government and to avail Input Tax Credit for the taxes on his inward supplies every person so registered is given a 15-digit GSTIN (GST – Identification Number). The Registration under GST is based on a person’s permanent Account Number (PAN).
PERSONS ELIGBLE TO REGISTER UNDER GST
The GST registration is explained in sections 22, 23, and 24 of the Central Goods and Services Act, 2017. Section 22 talks about the person liable for GST registration. Section 23 provides a list of persons not liable for GST registration. Last but not least, Section 24 provides for mandatory Registration of a certain set of persons.
SECTION 22 OF CGST ACT, 2017: Section 22 can be explained with the help of the following-
Section 22 also provides that in some cases mentioned below, Registration under GST is compulsory irrespective of aggregate turnover,
1. In case of migrating Assessee;
2. In case of amalgamation;
3. In case of succession;
SECTION 23 OF CGST ACT, 2017 The following persons, shall not be liable to Registration, namely: –
“(1) (a) any person who is engaged exclusively in the business of supplying any goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
(b) any agriculturist, to the extent of supply of produce out of cultivation of land.
(2) The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining Registration under this Act.”
In summary, Section 23 provides that A person shall not be liable to take Registration under the Act if he is an agriculturist, is engaged in the supply of goods or services or both which are exempted either under the CGST Act or IGST Act,
SECTION 24 OF CGST ACT, 2017
Section 24 of CGST provides a list of persons who are compulsorily liable for Registration under the Act irrespective of their aggregate turnover.
The list is as follows-
(i) a person engaged in inter-State taxable supply;
(ii) casual taxable persons making a taxable supply-A person is said to be a casual taxable person when he undertakes supply of goods and services in the taxable territory where he does not have a fixed place of business.
(iii) persons that are require to pay tax under reverse charge under sub section (3) and (4) of section (9)
(iv) Supplier who supplies through an Economic, commercial operator.
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51 of the CGST, Act.
(vii) persons engaged in the taxable supply of any goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor
(ix) Economic Commercial Operator under Sub-section (5) of section (9)
(x) every electronic commerce operator;
(xi) every person engaged in the supply of online Information and Database Access or Retrieval services (OIDAR) from a place outside India to a person in India, other than a registered person; an
(xii) such other person or class of persons as may be notified by the Government from time to time.
PROCEDURE FOR GST REGISTRATION
Following documents are necessary for GST Registration:
- A Proprietorship requires submission of Address proof of proprietor and PAN card
- An LLP requires submission of the LLP Agreement, Partners Names, PAN Card of LLP, and Address proof of LLP.
- A Private Limited Company requires submission of PAN Card of Company, Certificate of Incorporation Articles and Memorandum of Association, an original copy of Resolution signed by the Directors, IDs (PAN Card of directors) and Address proof (Passport, Aadhar Card) of Directors and digital signatures of required professionals.
Procedure of GST Registration:
- Open the official GST portal.
- Click on the services tab and thereafter select the registration tab.
- Under Registration, there will have two drop-down options, select New Registration.
- Then one is required to fill in the necessary details like mobile no., email id, and PAN no. which is mandatory for GST Registration. The PAN number is required in case of the Registration of companies and LLPs.
- An OTP ie., One time password will be sent on the given Mobile no and Email-id for verification.
- Post this a Temporary identification number that will be used for the further registration process.
- Then Documents will be uploaded based on the kind of business, and other information is to be filed.
- The officer takes three to four working days to review the application, if approved, the certificate will be granted within 7 days of time along with the GST identification number. If it is pending, one has to submit further documents to authenticate the application, post which the officer will make a decision on the application.
PREREQUISITES FOR REGISTRATION
1. The application for Registration should be made within 30 days when such a person becomes liable under the provisions of the Act.
2.A person will be treated as distinct persons for each GST registration for the purposes of this. It means two or more units of the same person will be treated as distinct.
3.If a person fails to register, even though is liable under the Act, strict action shall be taken by the proper officer.
4. GST registration mandates having of Permanent Account Number.
BENEFITS OF GST REGISTRATION
- Legal recognition– A person registered under GST obtains lawful recognition as a supplier of goods or services.
- Proper accounting of taxes and availing of Input Tax credit – a person registered can claim GST paid on the input goods or services which can be utilized for in respect of payment of GST unpaid on supply of goods or services or both by the business by the registered persons.
- Other benefits- A person becomes eligible to avail various other benefits and privileges under the GST laws.
Continuing growth is a symbol of a developing Nation, a country like India has demonstrated its position in the world by growing its economy. This growth is observed more after the implementation of the Goods and Services Tax Act. The above discussion highlights the importance of GST registration in India. The GST registration is a prerequisite after the enforcement of the Act of 2017 for any person who wants to carry business within the country. GST has made the taxation system of the country simple as GST acts as a single tax umbrella and computes taxes at several phases of the supply chain. GST has enabled both the manufacturers and customers to get a logical idea of the tax amount and its basis on which they are charged. It has also reduced the complexities which prevailed in the pre-GST era. Hence, Registration under GST is of paramount importance.
 Section 23 Of the CGST ACT, 2017