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2022

Registration Requirements under GST

Registration Requirements under GST Blog Post 2

GST Registration is a process by which a taxpayer gets himself registered under GST. Once a business is successfully registered, a unique registration number is assigned to them known as the Goods and Services Tax Identification Number (GSTIN). This is a 15-digit number assigned by the Central Government after the taxpayers obtain registration. GSTIN represents a unique identity of a tax payer in the records of the GST Department.

Meaning of ‘Taxable Person’ under GST:

The term ‘Person’ includes:

  • Individuals;
  • HUF;
  • Company;
  • Firm;
  • LLP;
  • AOP/ BOI;
  • Any Corporation or Government Company;
  • Body Corporate incorporated under laws of foreign country;
  • Co-Operative Society;
  • Local Authority, Government;
  • Trust;
  • Artificial Juridical Person.

Taxable Person’: Following persons are considered as ‘Taxable Person’ under GST:

  1. A Person Registered under GST:Any person who has been registered under GST,either compulsorily or voluntarily, is considered a ‘Taxable Person’ under GST.
  2. A Person Liable to be Registered under GST:

A person who is liable to get himself registered under GST due to qualifying certain conditions for registration is also a ‘Taxable Person’ under GST. Following persons are required to get registered under GST:

  1. Registration required based on Aggregate Turnover:
  • A personis engaged in aneconomic activity at any taxable territory in India involving supply of goods or services or both; and any or all of such goods or services or both are taxable under GST; and the aggregate turnover of his business in a financial year exceeds the threshold limit prescribed under GST, then such person is liable to registered under GST.
  1. Compulsory Registration under GST:
  • Certain personsare liable to get themselves registered under GST irrespective of aggregate turnover or nature of goods or services or both being supplied by them under the provisions of GST. Such persons are also ‘taxable person’ under GST.

Aggregate Turnover under GST:

  • Aggregate Turnover” includes the aggregate value of all
    • Taxable Supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis); and
    • Exempt Supplies; and
    • Exports of Goods or Services or Both; and
    • Interstate supplies by the business to its sister concern under the same PAN or interstate stock transfer or supplies between distinct persons under the same PAN.
  • Aggregate Turnover” excludesfollowing values:
  • The tax components such as the Central tax, State tax, Union territory tax, Integrated tax and Cess.
  • Purchases where the person is required to pay tax under reverse charge.

Notes:

  • Annual Aggregate Turnover: The aggregate turnover computed for the entire financial year between April to March is called annual aggregate turnover.
  • Aggregate Turnover is always computed as a sum of the aggregate turnovers of all businesses registered under the same PAN.
  • Sales that are subject to reverse charge must continue to form part of the taxable supplies in aggregate turnover.

Threshold Limit for Registration under GST:

  • Threshold Limit of aggregate turnover for registration under GST was the same for suppliers of goods and suppliers of services. However, with effect from 1st April 2019, the threshold limit is raised for suppliers of goods. State wise threshold limits are given in below table.

State wise Threshold Limits:

  • The states have an option to opt for a higher limit or continue with the existing limits. Currently, following threshold limits are applicable to different states/UT in India.

 

State/UT Name

Aggregate Turnover Threshold Limit

For Supply of Goods only

For Supply of Service or Goods and Service Both

Manipur, Mizoram, Nagaland, Tripura

Rs. 10 Lakhs

Rs. 10 Lakhs

Uttarakhand, Meghalaya, Sikkim, Arunachal Pradesh, Puducherry, Talangana

Rs. 20 Lakhs

Rs. 20 Lakhs

States and UT other than stated above

Rs. 40 Lakhs

Rs. 20 Lakhs

 

Notes:

  • If you are operating from more than one state, then you will have to take separate registration for each state you are operating from.
  • If you are liable for registration under GST in one state, you have to obtain registration for all the states you are operating in irrespective of the turnover in different states.

Mandatory Registration under GST:

It is mandatory for certain class of persons to register under GST irrespective of the turnover threshold limit. This means they have to register under GST from the day one of the commencement of the business. Following is the list of such persons:

  • Casual Taxable Person;
  • Input Service Distributor (ISD);
  • Non-Resident Taxable Person;
  • Inter-State Supplier of Goods and Services;
  • Supplier of goods through an e-commerce portal;
  • Liable to pay tax under the reverse charge mechanism;
  • TDS/TCS deductor;
  • Online data access or retrieval service provider.
  • When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer.
  • Agents of a supplier

Special Notes pertaining to GST Registration:

  • Every person has to apply for registration in every State in which he is liable, within thirty days from the date on which he becomes liable to registration.
  • Casual / non-resident taxable persons should apply at least five days before the commencement of business.
  • Registration number in GST will be PAN based and hence, having PAN would be a prerequisite for obtaining registration.
  • The assessee must obtain separate registration for each State, as registration under GST will be State-wise.
  • The assessee has an option to obtain a separate registration for each of the ‘business vertical’ in the same State.

Threshold Limit for Composition Scheme:

  • In case if a dealer wishes to opt for composition scheme, the threshold of annual turnover is Rs. 1.5 Crore. The threshold limit for composition scheme was increased to Rs.1.5 Crores from 1st April 2019.
  • The taxpayers registered under the scheme have to pay tax quarterly and file returns annually from 1st April 2019.
  • The limit remains unchanged at Rs.75 Lakhs for North Eastern states &Uttarakhand.

Composition Scheme for Service Providers:

  • Earlier, the composition scheme under GST was limited to suppliers of goods only. However, later on the Government devised a composition scheme for services providers as well.
  • Scheme introduces a fixed tax rate of 6% i.e. 3% CGST and 3% SGST. Independent service providers, as well as mixed suppliers of goods and services with an annual turnover of up to Rs.50 lakhs in the preceding financial year can opt for this scheme.

Documents required for GST Registration:

 

Documents required for Registration in case of Different type of Persons:

Individual / Sole proprietor:


  • PAN card of the owner;

  • Aadhar card of the owner;

  • Passport size photo of Sole Proprietor (in JPEG format, maximum size – 100 KB);

  • Bank account details;

  • Registered Office Address proof.

 

Hindu Undivided Family:


  • PAN card of HUF;

  • PAN card and Aadhar card of Karta;

  • Passport size photo of Owner/Karta (in JPEG format, maximum size – 100 KB);

  • Proof of Appointment of Authorized signatory- Photo and Letter of Authorization;

  • Bank account details;

  • Registered Office Address proof.

 

Partnership Firm:


  • PAN card of all partners (including managing partner and authorized signatory);

  • PAN card of Firm;

  • Copy of partnership deed;

  • Passport size photo of all partners and authorized signatories (in JPEG format, maximum size – 100 KB);

  • Address proof of partners (Passport, driving license, Voter identity card, Aadhar card, etc.);

  • Aadhar card of authorized signatory;

  • Proof of appointment of authorized signatory;

  • Bank account details;

  • Registered Office Address proof.

Limited Liability Partnership(LLP):


  • PAN card of all designated partners (including managing partner and authorized signatory);

  • PAN card of LLP;

  • Copy of Registration Certificate of the LLP;

  • Copy of Board Resolution;

  • Copy of LLP agreement;

  • Proof of appointment of authorized signatory (Digital Signature Certificate of any one of the designated partner);

  • Passport size photo of designated partners and authorized signatories (in JPEG format, maximum size – 100 KB);

  • Address proof of designated partners (Passport, driving license, Voter identity card, Aadhar card, etc.);

  • Aadhar card of the designated partner;

  • Bank account details;

  • Registered Office Address proof.

 

Society or Trust or Club:


  • Pan Card of society/Trust/Club;

  • Registration Certificate of society or club;

  • Passport size Photograph and PAN Card of Promoter/ Partners;

  • PAN card and Aadhaar card of the authorized signatory, Promotors/Partners;

  • Board Resolution or any other proof of appointing authorized signatory;

  • Registered Office Address proof:


  • Self-owned property – Copy of electricity bill, landline bill, water bill, municipal khata copy, property tax receipt;

  • Rented property – Rent agreement and No objection certificate (NOC) from the owner of the rented property.


  • Bank account details;

  • Registered Office Address proof.

 

Company (Public, Private and One person) (Indian and foreign):


  • PAN Card of Company;

  • Certificate of incorporation given by Ministry of Corporate Affairs (MCA);

  • Memorandum of Association / Articles of Association;

  • PAN card and Aadhar card of the authorized signatory. The authorized signatory must be an Indian even in case of foreign companies/branch registration;

  • PAN card and address proof of all directors of the Company;

  • Photograph of all directors and authorized signatory (in JPEG format, maximum size – 100 KB);

  • Board resolution appointing authorized signatory / Any other proof of appointment of authorized signatory (in JPEG format / PDF format, maximum size – 100 KB);

  • Bank account details;

  • Registered Office Address proof.

 

GST Practitioner: For enrolling as a GST Practitioner:


  • Photo of the applicant (in JPG format, maximum size – 100 KB);

  • Address proof of place where professional practice takes place;

  • Proof of qualifying degree (Degree certificate);

  • Pension certificate (only in case of retired Government officials).

 

TDS Registration - For Deducting Tax at Source:


  • Photo of drawing and disbursing officer (in JPG format, maximum size – 100 KB);

  • PAN and TAN number of the person being registered;

  • Photo of authorized signatory (in JPG format, maximum size – 100 KB);

  • Proof of appointment of authorized signatory;

  • Address proof of tax deductor.

 

TCS Registration – For collecting Tax at Source(E-commerce operators):


  • PAN number of the person being registered;

  • Photo of authorized signatory (in JPG format, maximum size – 100 KB);

  • Proof of appointment of authorized signatory;

  • Address proof of tax collector

 

A non-resident OIDAR service provider – For online service providers not having any place of business in India:


  • Photo of authorized signatory (in JPG format, maximum size – 100 KB);

  • Proof of appointment of authorized signatory;

  • Bank account in India;

  • Proof of non-resident online service provider (eg: Clearance certificate issued by Government of India, License issued by the original country, or certificate of incorporation issued in India or any other foreign country).

 

Non-resident taxable person (NRTP) – For non-residents occasionally undertaking the taxable supply of goods / or services in India:


  • Photo and Proof for the appointment of an Indian authorized signatory;

  • In the case of individuals, a scanned copy of the passport of NRTP with VISA details. In the case of a business entity incorporated outside India, a unique number on the basis of which the Country is identified by the Government of that country;

  • Bank account in India;

  • Address proof.

 

Casual taxable person – For non-registered domestic persons occasionally undertaking the taxable supply of goods / or services in India:


  • Photo and Proof for the appointment of an Indian authorized signatory;

  • Proof of constitution of business;

  • Bank account in India;

  • Address proof

 

UN bodies/embassy – For obtaining a Unique Identification Number to claim the refund of taxes paid on goods/services:


  • Photo of authorized signatory;

  • Proof of appointment of authorized signatory;

  • Bank account in India.

 

Address Proof for Registered Office:

  • Self-owned property: Copy of electricity bill, landline bill, water bill, municipal khata copy, property tax receipt.
  • Rented/ Leased property: Rent/ Lease agreement and No objection certificate (NOC) from the owner of the rented property.
  • Consent Arrangement/ Shared Property: Consent Letter/ NOC from the Owner.

Bank Account Details:

  • A copy of the cancelled cheque, the front page of the passbook or bank statement (in JPEG format, maximum size – 100 KB).

 

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