Section 22 of the CGST Act, 2017 deals with registration under GST law. The following person are required to get registered under GST Law:-

1.  Every supplier is required to get Registration under GST Law in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs.20 Lacs (Rs.10 lacs in special category States).

The expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.

2. The assessee which are registered under Service Tax, Central Excise and respective VAT Law on the day immediately preceding the appointed day (i.e. 01-07-2017), is required to get themselves registered under GST Law with effect from the appointed day.

The CGST Notification No. 10/2019-Central Tax dated 07-03-2019 [w.e.f. 01-04-2019] has amended the Threshold Exemption Limit for Suppliers engaged exclusively in Supply of Goods to ₹ 40 Lacs. Further, the Finance (No. 2) Act, 2019 inserted third proviso to section 22(1) of the CGST Act, 2017 to support such amendment.

Persons not liable for registration (Section 23): Following person are not required to get themselves registered under GST:-

(a) A person whose aggregate turnover in a financial year is below the prescribed threshold limit (i.e. 20 lacs / 10 lacs).

(b) A person exclusively engaged in the business of supplying non-taxable goods/services or supplies that are wholly exempt from GST.

(c) An agriculturist, to the extent of supply of produce out of cultivation of land.

(d) Any Class of Person notified by Government who is exempted from obtaining registration in GST Law.

Compulsory registration in certain cases (Section 24): Following category of persons are required Registration in GST irrespective of their Threshold Turnover Limit:-

  • Inter State suppliers
  • Persons who are required to pay tax under reverse charge
  • Casual taxable persons
  • Non resident taxable persons
  • Electronic commerce operators (Section 9 (5) of CGST Act, 2017)
  • Notified persons who are required to make TDS
  • Persons who supply goods on behalf of other persons whether as an agent or otherwise
  • Input service distributor
  • Persons who are supplying goods/services through electronic commerce operators
  • Every electronic commerce operator
  • Every person supplying online information & database access or retrieval services from a place outside India to a unregistered person (consumer) in India
  • Any other class of persons notified by Government

Procedure for Registration (Section 25): Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration. For details procedure of Registration following Rules has been prescribed under the Central Goods and Services Tax Rules 2017:

 

Points to be kept in Mind for Registration under GST:

(a) Every person shall have a PAN in order to be eligible for grant of registration. However a person require to deduct tax under section 51 may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.

(b) A casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.

(c) Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.

(d) A person shall be granted a single registration in a State or Union territory. However in case a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical.

(e) Any person can get himself registered voluntarily under GST Law after that all provisions of this law would be applicable to such person.

(f) The person who has obtained more than one registration, in respect of each such registration, be treated as distinct persons for the purposes of GST Law.

Voluntary Registration

Section 25 (3) of the CGST Act, 2017 provides that a person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.

It may be noted that once a person is registered under GST law, he have to pay GST on his all the taxable supplies and under Reverse Charge irrespective of monetary limit of aggregate turnover. Further, respective GST returns are to be filed.

GST Registration in case of Transfer of Business

(i) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession. [Section 22 (3) of CGST Act, 2017]

(ii) In a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal. [Section 22 (4) of CGST Act, 2017]

Cancellation of GST Registration

The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,-

(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or

(b) there is any change in the constitution of the business; or

(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of section 25 :]

[Provided that during pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.]

The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where, —

(a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or

(b) a person paying tax under section 10 has not furnished returns for three consecutive tax periods; or

(c) any registered person, other than a person specified in clause (b), has not furnished returns for a continuous period of six months; or

(d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or

(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts :

Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.

[Provided further that during pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.]

The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.

The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.

Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed.