Registration Procedure | Taxation for CA Intermediate PDF Download

Maximum Time Allowed For Registration [Section 25(1)]

1. Under section 22 or section 24, person who is liable to be registered in every State and Union Territory in which he is so liable within 30 days from the date on which he becomes liable to registration, in such a manner and subject to such conditions as may be prescribed. 

2. At least 5 days prior to the commencement of business a casual person or a non resident taxable person shall apply for registration. 

3. Steps of Registration 

Step1: Rule 8(1) of the CGST rules states that:

(i) Under section 25(1), every person is liable to be registered other than

• a non-resident taxable person, 
• a person required to deduct tax at source under section 51, 
• a person required to collect tax at source under section 52 and 
• a person supplying online Information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017), and

(ii) Under section 25(3), every person seeking registration shall, before applying for registration, declare his

• E-mail address, 
• Mobile Number, 
• Permanent Account Number (PAN), 
• State or Union territory

In Part A of FORM GST REG-01 on the common portal, either directly or through a facilitation Centre notified by the Commissioner.

Step 2: Rule 8(2) states that

• The Central Board of Direct Taxes shall validate the Permanent Account Number by the online portal from the maintained database. 
• By sending one time password to the said mobile number the mobile number will be verified. 
• By sending one time password to the said e-mail address the email address will be verified.

Step 3: Rule 8(3): A temporary reference number shall be generated and communicated to the applicant on the said mobile number and e-mail address after successful verification of the Permanent Account Number. 

Step 4: Rule 8(4): The applicant shall electronically submit an application in Part B of FORM GST REG-01 by using the reference number generated under sub rule (3), duly signed or verified through electronic verification code, along with documents specified in the said form at the common portal, either directly or through a facilitation Centre notified by the Commissioner. 

Step 5: Rule 8(5): An acknowledgement shall be issued to the applicant in the FORM GST REG-02, after receipt of an application under sub-rule (4).

Step 6: Verification of the application and approval [Rule 9] 

• Rule 9(1): The application shall be examine by the proper officer and accompanying the documents and approve the grant of registration to the applicant within a period of 3 working days from the date of submission of the application, if the documents are found to be in order. 
• Rule 9(2): The officer may issue a notice to the applicant electronically in FORM GST REG-03 within a period of 3 working days from the date of submission of the application and the applicant shall furnish such clarification, information or documents electronically, in FORM GST-04, within a period or 7 working days from the date of the receipt of such notice, if the application submitted is found to be deficient, either in terms of any information or any document required to be furnished under the said rule, or where the proper officer requires any clarification with regard to any information provided in the application or documents furnished therein. 
• Rule 9(3): The officer may approve the grant of registration to the applicant within a period of 7 working days from the date of receipt of such clarification or information or documents, if the proper officer is satisfied with the clarification, information or documents. 
• Rule 9(4): The proper officer shall reject application and inform applicant electronically in FORM GST REG-05, if the applicant does not reply in response to the notice issued under sub-rule (2) or if proper officer is not satisfied with the clarification, information or documents furnished.
• Rule 9(5): If the proper officer does not take any action, 
• From the submission of the application within 3 days, or 
• The application for grant of registration shall be deemed to have been approved, if the proper officer fails to take action within 7 working days from the date of the receipt of the clarification, information or documents furnished by the applicant under sub-rule (2).

Step 7: Issue of Registration Certificate- Rule 10

• Rule 10(1): (a) Under Rule 9, if the application for grant of registration has been approved under rule 9, a certificate of registration in FORM GST REG-06 issued. 
  • FORM GST REG-06 shows the principal place of business and additional place or places of business shall be made available to the applicant on the common portal 
  • A Goods and Services Tax Identification shall be assigned to the applicant 
• Rule 10(2): (a) Where the application for registration has been submitted within a period of 30 days, the registration shall be effective from the date on which the person becomes liable to registration. 
• Rule 10(3): (a) If the applicant submit an application after the expiry of 30 days from the date of his becoming liable to registration,
  • Under Rule 9(1) or 9(3) or 9(5), the grant of registration shall be the effective date of registration. 
• Rule 10(4): (a) The proper officer under this act every certificate of registration shall be duly signed or verified through electronic verification code. 
• Rule 10(5): (a) Under rule 9(5), where registration has been granted, the applicant shall be communicated the registration number, and the certificate of registration under 10(1). 
  • The application shall be made available to the applicant on the common portal, within a period of 3 days after the expiry of the period specified in rule 9(5) after the duly signed or verified through electronic verification code.

Single Registration per State [Section 25(2)]

• A person shall be granted a single registration in a State or Union Territory after seeking registration under this Act. 
• A person may be granted a separate registration for each business vertical with having multiple business verticals in a State or Union Territory. 
• Under section 2(18), business verticals means an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is different from those of other business verticals and is subject to risks and returns. 
• Rule 11(1) of the CGST Rules states that under section 25(2) shall be granted separate registration in respect to the each of the verticals to a person having multiple business verticals within a State or Union territory to the following conditions: 
  • Person has more than one business vertical as defined in section 2(18); 
  • If any of the other business verticals of the person is paying tax under section 9, then the business vertical of a taxable person shall not be granted registration to pay tax under section 10; 
  • All separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business vertical of such person and issue a tax invoice for such supply.
• Rule 11(2): (a) In FORM GST REG-01, a registered person eligible to obtain separate registration for business verticals may submit a separate application in respect of each vertical, The application submitted under Rule 11(3) shall apply the provisions of rule 9 and rule 10 relating to the verification and grant of registration.

Voluntary Registration [Section 25(3)]

A person who is not liable to be registered under section 22 or section 24 may get registered himself and all the provisions of this act shall be applicable to such person as applicable to a registered person.

Treatment as a Distinct Person and Establishment of a Distinct Person [Section 25(4) & 25(5)]

• Section 25(4) states that for the purpose of this Act, a person treated as distinct persons to obtain more than one registration whether in one State or Union territory or more than one State or Union territory is required to obtain more than one registration.
• Section 25(5) states that for the purpose of this Act an establishment shall be treated as establishments of distinct persons, where a person who has obtained or is required to obtain registration in State or Union territory in respect of an establishment, has an establishment in another State or Union territory.

PAN: Requirement of Registration [Section 25(6) & (7)]

• To be eligible for grant of registration, every person shall have a Permanent Account Number issued under the Income Tax Act, 1961. 
• In order to be eligible for the grant of registration, a person is required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act. 
• Section 25(7) states that a non-resident person may be granted registration in section 25(1) on the basis of such other documents as may be prescribed but notwithstanding anything contained in section 25(6). 
• Rule 13 provides the rules for Grant of registration to non-resident taxable person. 
• Rule 13(1): (a) In FORM GST REG-09, a non-resident taxable person shall electronically submit an application, along self-attested copy of his valid passport, for registration, duly signed or verified through electronic verification code, 
• This submission shall be done at least 5 days prior to the commencement of business at the common portal either directly or through a facilitation a Centre notified by the Commissioner. 
• Rule 13(2): (a) Under the provisions of section 27, a non-resident applying for registration shall be given a temporary reference Number by a common portal for making an advance deposit of tax (b) Under rule 8(5), the acknowledgement shall be issued electronically only after the said deposit in electronic cash ledger. 
• Rule 13(3): Under this rule, the provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall apply to an application, 
• Rule 13(4): If a non-resident person made application for registration shall be duly signed or verified through electronic verification code by his authorized signatory who shall have a Permanent Account Number and shall be a resident in India.

 Suo-moto Registration by Proper Officer [Section 25(8)]

• The proper officer may without prejudice to any action shall be taken under this Act or under any other law for a person who is liable to be registered under this Act fails to obtain registration in such a manner as may be prescribed. 
• Rule 16 provides rules for Suo-moto registration 
• Rule 16(1): Under this Act, the proper officer finds that a person liable to registration has failed to apply for such registration with the pursuant to any survey, enquiry, inspection, search or any other proceedings under this Act, such officer may register the said person on a temporary basis and issue an order in FORM GST REG12. 
• Rule 16(2): Under Rule 16(1), the registration granted shall be effective from the date of such order granting registration. 
• Rule 16(3): Under Rule 16(1), person who gets a temporary registration shall submit an application for registration in the form and manner provided in rule 8 or rule 12, within a period of 90 days from the date of grant of such registration. 
• Rule 16(4): To verification and issue of the certificate of registration to an application submitted under Rule 16(3) relating to the provision of rule 9 and rule 10. 
• Rule 16(5): Under Rule 16(4), to application submitted for verification assigned the Goods and Services Tax Identification Number, shall be effective from the date of the order granting registration under Rule 16(1).

Unique Identity Number [Section 25(9); 25(10); 25(11); & 25(12)]

• Notwithstanding anything contained in Section 25(1), provides in section 25(9)- (i) any specialized agency of the United Nations organization or any Multilateral financial Institution and organization notified under the United Nations Act 1947, Consulate or embassy of foreign countries; and (ii) any person or class of persons shall be granted a Unique Identity number in such a manner and for such purpose including refund of taxes on the notified supplies of goods or services or both received by them, as may be prescribed. 
• Rule 17 of CGST rules provides that (i) In accordance with the provision of section 25(9), every person required to be granted a Unique Identity Number may submit an application electronically in FORM GST REG-13, in the manner specified in rule 8 at the common portal, either directly or through a facilitation Centre notified by the Commissioner. (ii) The Government of India assign a Unique Identity Number, when the proper officer may, upon submission of an application in FORM GST REG-13 or after filling up the said form or after receiving a recommendation from the Ministry of Affairs, within a period of 3 working days from the date of submission of the application. 
• Section 25(10) states that after due verification, the registration or Unique Identity Number shall be granted or rejected in such a manner or within such period as may be prescribed [as per Rule 9]. 
• Section 25(11) states that as may be prescribed, the certificate of Registration shall be issued in such form and with effect from such date [as per Rule 10(2) & 10(3)] 
• Under section 25(10), a registration or Unique Identification Number shall be deemed to have been granted after expiry of the period, if there is no deficiency communicated to the applicant within that period.

Deemed Registration [Section 26]

• Under the State Goods and Services Act or the Union Territory Goods and Services Tax Act shall be deemed to be a grant of registration or the Unique Identity Number under this Act subject to the condition that the application for registration or Unique Identity Number has not been rejected under this Act within the time specified in Section 25(10). 
• Any rejection of application for registration or the Unique Identity Number under the State Goods and Service Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be rejection of application for registration under this Act, if notwithstanding anything contained in section 25(10).

Casual Taxable Person and Non-Resident Taxable Person [Section 27]

• Section 27(1) the issued registration certificate to a casual person or a nonresident taxable person shall be valid 
  • For the period specified in the application for registration OR 
  • 90 days from the effective date of registration, Whichever is earlier and only after the issuance of the certificate of registration such person shall make taxable supplies. On the sufficient cause being shown by the said taxable person, the proper officer extend the said period of 90 days by a further period not exceeding 90 days. 
• Section 2(20) of the CGST Act 2017 a person whether by being a principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business supply goods or services or both in the course or furtherance of business who occasionally undertakes transactions is known as casual taxable person. 
• Section 2(77) of the CGST Act 2017 states a person whether being a principal or agent or in any other capacity but who has no fixed place of business or residence in India, who occasionally undertakes transactions involving supply of goods or services or both is known as non-resident taxable person. 

Difference Between Casual Taxable Person and Non Resident Taxable Person

• Section 27(2) provides that at the time of submission of application for registration under section 25(1) by a casual taxable person or a non-resident taxable person, make an advance deposit of tax in an amount equivalent to the estimated tax liability of such person for a period for which the registration is sought, as per the section 25(1), such taxable person for the estimated tax liability deposit an additional amount for which extension is sought. RULE 8(6) states that the common portal shall give a temporary reference number to a casual taxable person for making advance deposit of tax in accordance with the provisions of section 27 and the acknowledgement under Rule 8(5) shall be issued electronically only after the said deposit.
• Section 27(3) states that amount deposited as per section 27(2) shall be credited to the electronic cash ledger of such person and shall be utilized in the manner provided under section 49.