CHAPTER 9

GST – REGISTRATION
1) Introduction

 GST Registration is PAN based and State specific.

 No tax specific Registration is required. Single registration for all taxes i.e. CGST / SGCT / UTGST / IGST /
Cess.
 One registration per state / UT. However, Voluntary separate registration can be taken for separate POB
in same state.

Summary
 Registration PAN based Hota hai
 State Specific
GST Reg.
(Har State ka Alag-Alag Reg.)
(Ek State mae Agar Separate POB H, Alag-Alag Registration karana ya apki choice H)
 Ek GST Mae Registered Matlab sab mae Registered.
E.g.- If CGST mae Registered matlab SGST,UTGST, IGST mae bhi Registered.

2) Relevant Definition

 Place of business [Sec.2(85)]:-

a place from where the business is ordinarily carried on, and includes a
warehouse, a godown or any other place where a taxable person stores his
goods, supplies or receives goods or services or both; or

a place where a taxable person maintains his books of account; or

a place where a taxable person is engaged in business through an agent, by

whatever name called.

 Registered person: means a person who is registered u/s 25, but does not include a person having UIN
(Unique identity Number)

 Taxable person: A person who is registered or liable to be registered u/s 22/24.

Example: Unregistered person, but threshold limit crossed or below threshold limit but taken voluntary
registration. Both of above are taxable person.

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 Fixed establishment [Section 2(50)]: means a place (other than the registered place of business)
which is characterised by a sufficient degree of permanence and suitable structure in terms of
human and technical resources to supply services, or to receive and use services for its own needs.

 Principal place of business [Section 2(89)]: means the place of business specified as the principal
place of business in the certificate of registration.

 Tax period [Section 2(106)]: means the period for which the return is required to be furnished.

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 AN OVERVIEW

SECTION 22: Person liable for registration SECTION 25: Procedure for registration
SECTION 24: Compulsory Registration SECTION 26: Deemed Registration
SECTION 27: Special provision for CTP & NRTP

SECTION 28: Amendment of Registration

SECTION 29: Cancellation & Suspension of Reg.
SECTION 30: Revocation of cancellation of Reg.

SECTION 23: Persons not liable for Registration

3) Section 22: Persons liable for registration

Every – Supplier of goods/ services/ both is required to obtain Registration

Where – State or Union territory where taxable supply is made

When – If Aggregate Turnover (T/O) exceeds specified limit on a F.Y.

“Aggregate Turnover”
All India basis of person having same PAN

Total of Outward Supply of Includes Excludes

 Taxable Supplies  Outward supply under - CGST/ SGST/ UTGST/
 Exempt Supplies RCM IGST/ Cess
 Inter-state Supplies  Supplies between - Value of inward supply
 Exports of Goods/ Services distinct person on which tax is payable
 Supply made on behalf under Reverse Charge
of principal

Excludes
A. Inward supplies under which tax is payable under RCM.

Example 1: Raghubir Private Ltd. pays GST on sitting fees paid to its director for the services rendered by
them, under reverse charge. Value of services provided by the directors to Raghubir Private Ltd. will form
part of the aggregate turnover of the directors and not of Raghubir Private Ltd.

B. Aggregate turnover excludes the element of CGST, SGST, UTGST, and IGST and compensation cess.

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Notes:
Goods Send
Principal Registered Job Worker
For Job Work

Goods supplied post

Completion of job work
T/O included in Principal’s T/O
Not Job worker Buyer

Value of goods, after completion of job work, supplied directly from the premises of job worker shall from
part of aggregate t/o of Principal, not job worker even if job worker is registered)

C. Aggregate turnover to include total turnover of all branches under same PAN

Example 2: A dealer ‘X’ has two offices – one in Delhi and another in Haryana. In order to determine
whether ‘X’ is liable for registration, turnover of both the offices would be taken into account and only if the
same exceeds the applicable threshold limit, X isliable for registration.

D. Value of exported goods/services, exempted goods/services, inter-State supplies between distinct

persons having same PAN, to be included in aggregate turnover.

Example 3: Madhur Oils, Punjab is engaged in supplying machine oil as well as petrol. Supply of petrol is
not leviable to GST, but supply of machine oil is taxable, In order to determine whether Madhur oil is liable
for registration, turnover of both non-taxable as well as taxable supplies would be taken into account and if
the same exceeds the applicable threshold limit, Madhur Oils is liable for registration.

E. Aggregate turnover to include all supplies made by the taxable person, whether on his own account or
made on behalf of all his principals.

Example 4: Mohini Enterprises M/s Ram & Associates as its agent. M/s Ram & Associates makes supply of
goods on its own account as well as on behalf of Mohini Enterprises.
All the supplies of goods made by M/s Ram & Associates as agent of Mohini Enterprises as well as on its
own account will be included in the aggregate turnover of M/s Ram & Associates.

F. Registration required only for a POB where taxable supplies takes place.
G. No liability to obtain registration in State/ UT from where exempt /non-taxable supplies made.

Specified threshold limit for Registration:

MT NAGMANI  Uttrakand All other state / UT’s

 Mizoram  Sikkim  Only Services: 20 lakhs
 Tripura  Arunachal Pradesh  Both goods /services: 20
 Nagaland  Puducherry lakhs
 Manipur  Telangana  Interstate goods: 20 lakhs
₹ 10 lakhs  Meghalaya  Only supplying intrastate
₹ 20 lakhs goods: 40 lakhs*(PN. 4)

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Example 5: Prithiviraj of Assam is exclusively engaged in intra-State supply of shoes. His aggregate
turnover in the current financial year is ₹ 22 lakh. In view of the discussion in the above paras, the
applicable threshold limit for registration for Prithviraj in the given case is ₹ 40 lakh. Thus, he is not liable to
get registered under GST.
If in above example, all other things remaining the same, Prithiviraj is exclusively engaged in supply of pan
masala instead of shoes, he will not be eligible for higher threshold limit of ₹ 40 lakh and the applicable
threshold limit for registration in that given case will be ₹ 20 lakh. Thus, Prithiviraj will be liable to get
registered under GST.
If instead of pan masala, Prithiviraj is exclusively engaged in supply of taxable services, the applicable
threshold limit for registration will still be ₹ 20 lakh. Thus, Prithiviraj will be liable to get registered under
GST.
Further, if Prithiviraj is engaged in supply of both taxable goods and services, the applicable threshold limit
for registration will be ₹ 20 lakh only. Thus, Prithiviraj will be liable to get registered under GST.

Example 6: Shivaji of Telangana is exclusively engaged in intra-State supply of toys. Its aggregate
turnover in the current financial year is ₹ 22 lakh. Since Shivaji is making taxable supplies from Telangana, he
will not be eligible for higher threshold limit available in case of exclusive supply of goods. The applicable
threshold limit for registration for Shivaji in the given case is ₹ 20 lakh. Thus, he is liable to get registered
under GST.
If in above example, all other things remaining the same, Shivaji is exclusively engaged in supply of taxable
services instead of toys, the applicable threshold limit for registration will still be ₹ 20 lakh. Thus, Shivaji will
be liable to get registered under GST.
Further, if Shivaji is engaged in supply of both taxable goods and services, the applicable threshold limit for
registration will be ₹ 20 lakh only. Thus, Shivaji will be liable to get registered under GST.

Example 7: Ashoka of Manipur is exclusively engaged in intra-State supply of paper. Its aggregate
turnover in the current financial year is ₹ 12 lakh. Since Ashoka is making taxable supplies from Manipur
which is a Special Category State, the applicable threshold limit for registration for Ashoka in the given case
is ₹ 10 lakh. Thus, he is liable to get registered under GST.
If in above example, all other things remaining the same, Ashoka is exclusively engaged in supply of taxable
services instead of paper, the applicable threshold limit for registration will still be ₹ 10 lakh. Thus, Ashoka
will be liable to get registered under GST.
Further, if Ashoka is engaged in supply of both taxable goods and services, the applicable threshold limit for
registration in that given case will be ₹ 10 lakh only. Thus, Ashoka will be liable to get registered under GST.

Example 8: Raghav of Assam is exclusively engaged in intra-State supply of readymade garments. Its
turnover in the current FY from Assam showroom is ₹ 28 lakh. It has another showroom in Tripura with a
turnover of ₹ 11 lakh in the current FY. Since Raghav is engaged in supplying garments from a Special
Category State as per section 22, the applicablethreshold limit for him gets reduced to ₹ 10 lakh. Further,
Raghav is liable to get registered under GST in both Assam and Tripura on his aggregate turnover crossing
the threshold limit of ₹ 10 lakh.

Points to be considered for threshold

1. Persons considered making supply of goods even supply of services provided by way of such as interest
/discount on loan /advance.

2. *Following are not eligible for 40 lakhs threshold even if engaged exclusively in supply of goods. [20 /10
lakhs]
a). Person required to take compulsory registration [Sec.24]

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 b). Person engaged in supply of Next items:
 Ice-cream /edible oil
 Pan masala /tobacco products and substitute
 Fly ash bricks/ aggregates/ blocks (ye sab building material h)
 Building bricks
 bricks of Fossil meals or similar siliceous earths( Bricks ki jaisa)
 Earthen /roofing tiles

3. If > 1 place of business covering > 1 state

Lowest threshold applicable to any of those states will be relevant

However, state make exclusively exempt supply won’t be considered

4. Registration is required to made only in states from where taxable supply is made

Example 9: Uday Enterprises is engaged in supply of taxable goods in Maharashtra. It also supplies
alcoholic liquor for human consumption from Nagaland. Its turnover in the current financial year is ₹ 34
lakh in Maharashtra and ₹ 8 lakh in Nagaland.
Since Uday Enterprises is exclusively engaged in making taxable supplies of goods from Maharashtra, the
applicable threshold limit for obtaining registration is ₹ 40 lakh. However, the threshold limit will not be
reduced to ₹ 10 lakh in this case, as supply of alcoholic liquor for human consumption from Nagaland (one
of the Special Category States) are non-taxablesupplies.
In the given case, since the aggregate turnover of Uday Enterprises exceeds the applicable threshold
limit of ₹ 40 lakh, it is liable to obtain registration. It will obtain registration in Maharashtra, but is not
required to obtain registration in Nagaland as he is not making any taxable supplies from said state

Summary
Sec.22 Person liable for Registration.
Agar Aggregate Turnover (PAN Based) (All Branches ka)
(Whole India)

Condition-1 Ek Limit ka Cross kar de

Condition-2 Jis State se “taxable” Supply de rahe H, waha Registered Compulsory Hoga
Aggregate Turnover :
T+E+I+E+O+D+A
(RCM)
 Exclude: GST
Inward (RCM Apna de Rahe)

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 Turnover ki Limit

T Tripura Uttarakand Other States

E Mizoram Sikkim
E Nagaland Arunachal
N Manipur Puduchery
Telangana
Meghalaya
10 lac 20 lac .
Teen USA mae PTM

Only Services Services + Goods Inter State Goods Inter State SOG

20 lac 20 lac 20 lac 40 lac

Lakin Agar app inki SOG karte H, Limit = 20 lac/10 lac

 ICE Cream/ Edible Oil
 Pan masala / tobacco Products
 Fly ash bricks / Blocks
 Building Bricks
 Bricks of Fossil meals
 Earthen / Roofing tiles

5. Section 22(3):- In case business transfer due to Succession /death / Change in ownership

To another person as a going concern

Transferee /Successor to be registered from date of transfer /Succession.

6. Section 22(4):- Business transfer two company’s amalgamation due to courts order

Transferee to be registered to be date of certificate of incorporation by ROC.

Example 10: Sharma traders has one shop in Nagaland (T/O 11 lakhs) & another shop in Haryana (T/O
28 lakhs) for supply of bags
 As on shop in Nagaland making taxable supplies, entire limit will fall to 10 lakhs. So, registration
required in both states.

Example 11: Kabir Enterprises supplies taxable intra state in Punjab (T/O 28 lakhs) and has a shop for
Alcohol liquor for human consumption in Mizoram (T/O 14 lakhs)
 Since taxable Supply not made from Mizoram, threshold limit will not fall to 10 lakhs.
 Applicable limit 40 lakhs in this case.
 So, registration required in Punjab (Aggregate T/O 28+14 = 42 lakhs) but no registration in Mizoram
as taxable supply not made from here)

Example 12: Mr. A is located in Delhi. He provides the following information:

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 Particulars ₹
Value of taxable supply of goods in Delhi 22,00,000
Value of supply of Renting of immovable property Services in Delhi 19,00,000
Does Mr. A require any registration?
Solution:
In this case, Mr. A requires registration under CGST Act and Delhi SGST Act since “Aggregate Turnover” shall
exceed the threshold limit of ₹ 40, 00,000 by including the value of taxable supply of goods and value of
services.

Example 13: Mr. Ram is located in Punjab. He provides the following information:

Particulars ₹
Value of taxable supply of goods in Punjab 24,00,000
Value of supply of exempt supply 14,00,000
Export of goods to China 3,00,000
Does Mr. Ram require any registration?
Solution:
Yes, the aggregate turnover of Mr. Ram in the financial year is ₹ 41,00,000 (₹ 24,00,000 + ₹ 14,00,000 + ₹
3,00,000), hence Mr. Ram is liable to obtain registration under CGST and Punjab SGCT Act.

4) Section 24: Compulsory Registration

1. Persons making taxable supply of Goods (Other than Notified Handicraft/

Handmade goods)

 However, if a Person making interstate supply of Notified Handicraft / handmade goods, he

shall be liable to Register if Aggregate Turnover exceeds Specified limit of 10 / 20 / 40 lakhs as
per sec. 22(1)
and
 Such persons shall be required to obtain a PAN and generate an e-way bill in case of inter-
state movement of goods even if not liable to register
2. Person required to pay tax u/s ECO

3. Casual taxable person (CTP) making taxable supply

 However, if a Person making supply of Notified Handicraft / handmade goods as CTP, he shall
be liable to Register if Aggregate Turnover exceeds Specified limit of 10 / 20 / 40 lakhs as per
sec. 22(1)
and
 Such persons shall be required to obtain a PAN and generate an e-way bill in case of inter-
state movement of goods even if not liable to register

4. Persons liable to pay under (inward supply)

5. ECO required to collect tax at source (TCS) u/s 52

Person supplying goods & service through ECO where ECO required to collect tax u/s 52 (other
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 than 9(5).
[No Separate Registration required if such ECO is already registered as a supplier of own goods or
services]

6. Persons acting as (issuing own invoice)

7. Person who is required to deduct tax u/s 51, whether or not separately registered under this act.

8. Input Service Distributor (ISD) whether or not separately registered under this act

9. Supplier OIDAR (Online information and database access or retrieval) services from place outside
India e.g.Face Book,insta,Google

10. Non-resident taxable person (NRTP) making taxable supply

11. Every person supplying online money gaming from a place outside India to a person in India.

12. Other services as such notified-

Summary
Sec. 24 Compulsory Registration

1. Inter State SOG*

2. ECO u/s 9(5)
3. CTP*
4. RCM
5. ECO Required to collect TCS u/s 52
6. Agent (issuing Own Invoice)
7. TDS u/s 51
8. ISD
9. OIDAR
10. NRTP
11. OMG (Online Money Gaming)

 Agar koi Inter State supplier/ CTP as inter state supplier Handicraft goods/ Handmade goods Supply kare than
Limit 20L / 10L wali dekho (Pan hone chahiye + E-way Bill Generate kare)
 Agar app Inter State Supply of service karte H, to Limit 20L / 10L ki dekhenge.
 ECO agar SOS (9(5) k alawa) Limit 20 L / 10L

5) Section 23: Persons not liable for registration

1. Person engaged exclusively in i.e. Alcohol

Example 14: Bhavyajyoti Foundation, a charitable trust u/s 12AA of the income tax Act, 1961, is
exclusively engaged in supply of services by way of charitable activities. Services by an entity registered
under section 12AA of the Income-tax Act, 1961 by way of charitable activities are exempt from GST. Thus,
Bhavyajyoti Foundation is not liable for registration as it is exclusively engaged in supplying services exempt
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from tax.

2. Agriculturist, to the extent of supply of produce from

The term agriculturist has been defined u/s 2(7) as an individual /HUF who undertakes Cultivation of land -
1) By own labour, or
2) By the labour of the family, or
3) By servants on wages payable in cash or kind or
4) by hired labour under personal supervision or the personal /family supervision.

From the above definition, it is clear that the benefit of not being liable to registration is only
restricted to the agriculturists who are individualsor HUFs. Further, if an agriculturist is also engaged
in making any supply other than supply of produce out of cultivation of land, he shall be liable to
registration based on applicable threshold limit.

Example 15: Deshbandhu is an agriculturist engaged in cultivation of wheat in his field in the State of
Punjab. He was exclusively engaged in supply of wheat cultivated in his field in the previous year. Thus, he
was not liable to registration as he was exclusively engaged in supply of produce out of cultivation of land.
In the current year, he decides to start trading in rice apart from supplying his wheat produce. His turnover
in the current year is ₹ 32 lakh from supply of wheat produced and ₹ 9 lakh from trading of rice.
Since he is engaged in trading of rice also, he is not covered u/s23 above. The threshold limit for registration
applicable to a person exclusively engaged in supply of goods in the State of Punjab is ₹ 40 lakh. The
aggregate turnover of Deshbandhu in the current year is ₹ 41 lakh [₹ 32 lakh + ₹ 9 lakh] which exceeds the
threshold limit. Thus, he will be liable to registration.

3. Specified category of persons notified by Government

Persons making only RCM supplies

Example 16: Karan transporters is a Goods Transport Agency (GTA) engaged exclusively in supplying
GTA services liable to tax under reverse charge [since tax is paid on GTA services @ 5% in the given case].
Thus, it is exempt from registration as it is engaged exclusively in making supplies, tax on which is liable
to be paid on reverse charge basis.
Further, Manikaran Transporters supplies said service to Diwakar Manufacturing Pvt. Ltd. whose aggregate
turnover does not exceed the applicable threshold limit. However, since Diwakar Manufacturing Pvt. Ltd.
has to pay tax on GTA services [@ 5%] under reverse charge, it is required to obtain registration
mandatorily irrespective of its aggregate turnover.

Persons making inter-state supplies of taxable services up to ₹ 20 /10 lakhs.

Example 17: Dhola & Com, located in Delhi, is engaged in supply of taxable goods in the neighbouring
States of Punjab and Haryana. Its aggregate turnover in current FY is ₹ 10 lakhs. it is engaged in making inter-
State taxable supply of goods, it is required to register mandatorily under GST irrespective of its aggregate
turnover.
However, if in the above case, Dhola & Co. is engaged in inter- State supplyof taxable services instead of goods,
it will be eligible for exemption fromregistration till its aggregate turnover does not exceed ₹ 20 lakh.

Persons /Casual taxable person making interstate supplies of handicraft /handmade goods up to 20 /10
lakhs.
Conditions to be fulfilled:-

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Persons have obtained a PAN & generated a E-way bill.

Example 18: Ariza Pvt. Ltd located in M.P., is a supplier of taxable and notified handicraft goods. It
supplied these goods in neighbouring States of U.P. and Odihsa. Its aggregate turnover in the month of April
is ₹ 15 lakh. Although Ariza Pvt.Ltd. is engaged in making inter-State supplies of taxable goods, it is not liable
to obtain registration till its aggregate turnover does not exceed ₹ 20 lakh as it has availed the
exemption from registration under GST when Aziza Pvt. Ltd. Has obtained PAN and generated an E-way
bill.

4. Persons making supplies services through ECO [other than u/s 9(5)] upto 20 /10 lakhs.

Summary
Sec 23 not Liable for Registration
1. Only Exempt / non Taxable Suppply
2. Agriculturist ,Agriculturist ka Commission Agent(Agricultural Produce Marketing Committee Act)
3. Outward Supply on Which RCM
4. Inter State SOS < 20L / 10L
5. CTP / koi aur Inter State Handicraft < 20L/10L (Pan holder + E-way Bill generates)

Example 18:
Registration required or not ?
1. Agriculturist engaged in Cultivation of wheat + Trading of Rice YES
2. Agriculturist engaged in Cultivation of wheat + run a dairy YES
3. Agriculturist takes land on rent & Cultivation done by servants on wages NO
4. Petrol pump selling engine oil with petrol YES

Person engaged exclusively in the Person engaged exclusively in the

business of supplying goods/ services/ business of supplying goods/ services/
both not liable to tax both wholly exempt from tax

Persons not liable for

registration

Specified category of persons notifiedby

Agriculturist to the extent of supply of the Government on GST Council
produce out of cultivation of land recommendation

Example 20: Examine whether the liability to register compulsorily under section 24 arises in each of
the independent cases mentioned below:
1) Meenu, a supplier in Maharashtra, is exclusively engaged in supply of potatoes produced out of
cultivation of her own land, within Maharashtra and also outside Maharashtra.
2) Jinu Oils, Gujarat, is engaged in supplying machine oil as well as petrol. Further, it provides services
of refining of oil to customers. Total turnover of supply of machine oil is ₹ 10 lakh, supply of petrol is
₹ 5 lakh and supply of services is ₹ 6 lakh.
3) Tilu is working as an agent, he is supplying taxable goods as an agent of Tiku (who is registered
taxable person) and its aggregate turnover does not exceed ₹ 20 lakh during the financial year.

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Answer:
(1). Section 24 provides that person making any inter-state supply of goods is required to obtain
registration compulsorily under GST laws irrespective of quantum of aggregate turnover.
However, as per sec.23, an agriculturist, to the extent of supply of produce out of cultivation land, is not
liable to registration.
Meenu is exclusively engaged in cultivation and supply of potatoes. Thus, she is not liable to registration
irrespective of the fact that she is engaged in making inter-State supply of goods. Further, Meenu will
not be liable to
Registration, in the given case, even if her turnover exceeds the threshold limit.

(2) Section 24 specifies the categories of persons who are required to be mandatorily registered under
GST irrespective of the quantum of their aggregate turnover.
In the given case, Jinu Oils does not fall in any of the specified categories. Therefore, it is not required to
obtain registration compulsorily under GST.
However, as per section 22 a supplier is liable to be registered in the State/Union territory from where he
makes a taxable supply of goods and/or services, if his aggregate turnover in a financial year exceeds the
threshold limit. The threshold limit for a person making supply of both goods and services is ₹ 10
lakh for the States of Mizoram, Tripura, Manipur and Nagaland and ₹ 20 lakh for the rest of India.
Thus, the applicable threshold limit for the State of Gujarat is ` 20 lakh for supply of both goods and
services. Further, aggregate turnover includes exempted turnover of goods or services.
Accordingly, Jinu Oils is liable obtain registration since its aggregateturnover [₹21 lakh (including turnover
of exempt supply of petrol)] exceedsthe threshold limit of ₹20 lakh.

(3). Section 24 provides that persons who make taxable supply of goods and/or services on behalf of other
taxable persons whether as an agent or otherwise are required to obtain registration compulsorily under
GST laws irrespective of the quantum of aggregate turnover.
Therefore, Tilu will be mandatorily required to obtain registration.

6) Section 25: Procedure for Registration

1. Section 25(1): Where and by when to apply for Registration?

S. Who WHERE WHEN

no.
1. Person liable for registration In every such state/ UT in which
u/s he is so liable Within 30 days from date on
which becomes liable.

2. In every such state / UT in which At least 5 days prior to

he is so liable. commencement of business.

Example 21: Sugam services Ltd. is engaged in taxable supply of services in Delhi. The T/O of Sugam
services Ltd. exceeded ₹ 20 lakhs on 1st November. It is liable to apply for registration by 1st December in
Delhi.

 SEZ unit /developers shall have to apply for separate Registration.

Example 22: Suvarna Industries is engaged in manufacturing activities in U.P. It has two manufacturing
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unit in U.P. one in SEZ and another outside SEZ. Under GST, one registration per state is required. However,
since in this case, one of the two units of Suvarna Industries is located in SEZ, SEZ unit will have to
compulsorily make a separate application for registration as a place of business distinct from unit located
outside SEZ in the same State.

2. Section 25(2): State wise Registration(read with rule 11)

 Registration required State wise [not a centralized registration]

> 1 place in a state

 Separate registration Single registration

Separate GSTIN Declare a place as Principal place of business (PPOB) &

other as additional place of business (APOB)

Example 23: Meethalal & Sons - a supplier in Maharshtra - has three branches in Mumbai, Pune and
Mahabaleshwar. Mumbai and Pune branches are engaged in supply of garments and Mahabaleshwar
branch engaged in supply of shoes. Either it can obtain single registration for Maharashtra declaring one of
the branches as PPOB (let’s say Mumbai) and other two branches (Pune and Mahabaleshwar) as APOB or it
can obtain separate GST registration for each of the three branches in Mumbai, Pune and Mahabaleshwar as
separate places of business.
In case Meethalal & Sons opts to have separate registrations for its all three branches and Mumbai branch
sends some garments [subject to GST] for sale to Pune branch, Mumbai branch must raise a tax invoice
and pay tax on such transfer of garments to Pune branch.

 If a person opts for Composition levy, he has to apply same for all registrations under same PAN
(whether same or different State /UT).

3. Section 25(3): Voluntary Registration

A person, though not liable, may obtain voluntary registration and all provisions of the Act shall apply to
such person.

4. Section 25(4): Distinct Person

Person having multiple registrations, such person w.r.t. each registration treated as distinct person.

5. Section 25(5): Establishment of distinct person

Registration in one State /UT  Establishment in other State /UT (Registered or unregistered), shall be
treated as Establishment of distinct person.

6. Section 25(6)& (7) : PAN must for obtaining Registration

 TSD deductor u/s 51 may use TAN.

 NRTP May be granted Registration on basis of other prescribed documents (eg. self-attested copy of his
valid passport along with the application signed by his authorized signatory who is an Indian Resident
having valid PAN)

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7. Section 25(3): Suo-moto Registration by proper Officer r.w. rule 16

If a person liable but fails to get registered, PO may Suo-moto register on temporary basis.
Within 90 days

Submit application for File Appeal

Registration
In favour Against
No registration Apply in 30 days*

*Registration effective from date of order by PO granting Registration.

8. Section 25(9)& (10): Unique Identity Number (UIN) r.w. rule 17l

UIN to Whom  Any Specialised agency of the United Nations Organisation

 Any Multilateral Financial Institution and Organisation notified under the United Nations (Privileges
and Immunities) Act, 1947
 Consulate or Embassy of foreign countries
 Other Notified Person

Purpose of 1. Refund of GST on the Notified supplies of goods or services or both Received by them
allotment of UIN

Application Form GST REG -13

Applicability of UIN applicable to the territory of India

UIN
Allotment of UIN  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 External Affairs, GOI,
 Assign a UIN to the said person and issue a certificate in FORM GST REG-06
 within a period of 3 working days from the date of the submission of the application

Example 24: In order to be eligible for grant of registration, a person must have a Permanent
Account Numberissued under the Income- tax Act, 1961. State one exception to it. (IMP.)
Solution:
A Permanent Account Number is mandatory to be eligible for grant of registration. One exception to this is a
non-resident taxable person. A non- resident taxable person may be granted registration on the basis of
other prescribed documents instead of PAN. He has to submit a self-attested copy of his valid passport along
with the application signed by his authorized signatory who is an Indian Resident having valid PAN and
application will be submitted in a different prescribed form [Section 25(6) & (7)]

Example 25: Is it necessary for the UN bodies to get registration under GST?

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Solution:
In terms of section 25(9), 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 GSTIN structure and the
same will be common for the Centre and the States. This UIN will be needed for claiming refund of taxes
paid on notified supplies of goods and services received by them, and for any other purpose as may be
notified.

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 7) PROCEDURE FOR REGISTRATION

Procedure for Registration 

PART I

Every person liable to get registered and person seeking voluntary registration shall, before applying for
registration, declare his Permanent Account Number (PAN), Mobile No., e-mail address and State/UT in Part
A of FORM GST REG-01 on GST Common Portal.

PAN is validated online by Common Portal from CBDT database and is also be verified through
separate OTPs sent to the PAN linked mobile number and e-mail address linked to the Permanent
Account number (PAN)

Temporary Reference Number (TRN) is generated and communicated to the applicant on

the validated mobile number and e-mail address.

Using TRN, applicant shall electronically submit application in Part B of application

form, along with specified documents at the Common Portal.

Part B of application contains the details, such as, constitution of business,

jurisdiction, option for composition, date of commencement of business, reason to
obtain registration, address of PPOB and nature of activity carried out therein,
details of APOB, details of bank account(s), details of authorized signatory, Aadhaar
authentication, etc.

On receipt of such application, an acknowledgement in the prescribed form shall be issued

to the applicant electronically. A Causal Taxable Person (CTP) applying for registration
gets a TRN for making an advance deposit of tax in his electronic cash ledger and an
acknowledgement is issued only after said deposit.*

Then acknowledgement generated & application forward to proper officer.

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Rule 10A:- Bank Account may be furnished after obtaining Registration Certificate (RC)*
o Within 45 days from grant of RC (in ICAI module)
Or Amendment:- now 30 days
o Due date of furnishing return u/s 39
Whichever is earlier

*Not for TDS /TCS /Suo Moto registration they have to furnished at the time of registration

Summary
Procedure for Registration :-
Step 1 - Every registered person jo register hone ke liye liable hai ya voluntary registration karwana chahta hai, wo
person GST ke common portal (www.gst.gov.in) par PART A ke FORM GST REG - 01 m apna PAN no. Or state/UT
ka declaration dega.

Step 2 - PAN ka validation 2 trike se hoga ek to CBDT ke Database se or dusra OTP Jo mobile no. or e-mail address
par aayega Jo PAN se linked hai.

Step 3 - fir TRN generate hoga or TRN ko applicant ke sath communicate kiya jayega.

Step 4 - TRN ko use karte hue applicant PART B ko fill karega specified documents ke sath.
PART B m details cover hongi jese ki constitution of business, jurisdiction, option for composition, date of
commencement of business, reason to obtain registration, address of principal place of business, details of bank
account, details of authorised signatory, Aadhar Authentication etc.

Step 5 - Application ke receive hone ke baad ek acknowledgement applicant ko electronically issue kiya jayega
lekin yadi causal taxable person hai to wo advance tax deposit karayega in his electronic cash ledger

Step 6 - Fir ek acknowledgement generate hoga or application Proper Officer (P.O.) ko forward kar di jayegi.

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 8) Aadhar Authentication
AADHAR AUTHENTICATION [AA] 


Sec 25(6A) For New Registration 25(6D)

Registered person Non-applicability of AA

Existing registered Individual Other than individual  Person not a

person shall undergo citizen of India
authentication of Himself  Department/
Aadhaar number for • Karta (HUF) establishment
these purposes: • Managing of SG/CG
Director/whole time  Local authority
I. Application for Director (Co.)  Statutory body
revocation of • Partners (Firm)  Public Sector
cancellation of • Members of Undertaking
registration Managing  A person
Committee (AOP) applying for
II. For filling • Board of Trustees Unique Identity
refund (Trust) (UIN) Number
application • authorized u/s 25(9)
III. Refund on IGST representative
paid on goods
exported
outside
RRR

Under AA

Failure to furnish
 Physical verification
 fit documents as per AO

Note:-
Applicant opted for Aadhar Authentication (AA):
 Date of Application:
 Date of AA
 15th day from submission of Part B
Whichever is earlier

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Note:-
If Aadhaar number has not been assigned to the person required to undergo authentication of the
Aadhaar number, such person shall furnish the following identification documents, namely: –
(1). his/ her Aadhaar Enrolment ID slip; and
(2). (a) Bank passbook with photograph; or
(b) Voter identity card issued by the Election Commission of India; or
(c) Passport; or
(d) Driving license issued by the Licensing Authority

However, once Aadhaar number is allotted to such person, he shall undergo the authentication of
Aadhaar number within a period of 30 days of the allotment of the Aadhaar number.

Note:-
**Applicant who opted for AA & identified on common portal, based on data analysis
and risk parameters (amended)
shall be followed by

(Pilot project in Gujarat)

1) biometric-based Aadhaar authentication &
2) taking photograph
 of individual applicant or
 of such individuals where applicant is not individual (refer list on prev. page)
3) along with verification of original copy of documents uploaded with application in Form GST
REG-01at one of notified Facilitation Centres.
Application deemed to complete only after completion of biometric based authentication.
Aadhar Authentication (AA) :-

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21 | P a g e
Summary:-
If we opted AA:-
PART B m Aadhar Authentication ke liye puchenge. If we opted Aadhar Authentication than date of
application (PART B ka application) hogi -
Date of AA or,
15th day from submission
W/e is earlier

PART B fill karte time AA ke liye opt kiya or authentication successful ho gya - fir isme 2 case

Case 1. Yadi application m koi deficiency nahi hai to 7 working days m Registration certificate (RC) grant ho
gya. if 7 days m nahi hua than deemed registered maan liya jayega

Case 2. Yadi application m koi deficiency hai to 7 working days m P.O. notice dega REG 03 m and applicant
7 working days m REG 04 m clarification dega -

Ab fir 2 situation
1. Yadi P.O. satisfied ho gya than 7 working days m RC grant kar diya jayega otherwise from deemed
registered maan liya jayega
2. Yadi P.O. satisfied nahi hota hai to application ko REG 05 m reject kar diya jayega

*yadi AA successful ho gya to Sara kaam 7 working days m ho jayega or yadi AA hi fail ho gya to fir thoda
time lagega isliye phle 30 days fir 7 days*

Yadi authentication fail ho gya ya 15 days m authentication nahi hua to ye mana jayega ki starting se AA ke
liye opt nahi kiya tha to same AA not opted wali situation aayegi which is given under

If we not opted AA:- 2 case

Case 1. If no deficiency in application - phle physical verification hoga place of business ka or P.O.
documents ko verify krega yadi sab thik hai to RC 30 days m grant kar diya jayega otherwise within 30 days
m deemed registered maan liya jayega.

**Case 2. If deficiency in application - P.O. REG 03 within 30 days m notice dega fir applicant 7 working
days m REG 04 m clarification dega fir 2 Situations

Situation 1. Yadi P.O. satisfied hai to 7 working days m RC grant kar diya jayega otherwise 7 working days
m deemed registered maan liya jayega

Situation 2. Yadi P.O. satisfied nahi hai to application ko reject kar diya jayega

Normally OTP based Aadhar Authentication hota hai but risk parameters ke base par pilot project ke basis
Gujarat or puducherry m biometric based Aadhar Authentication hota hai along with photo and physical
document verification kuch notified facilitation centres par.

Aadhar Authentication
Individual ke case m individual ka AA
Other than individual m - Karta/MD/WTD/Partner/Borad of trustees/Authorised signatory

Aadhar Authentication kuch following persons par applicable nahi hoga

1. Persons not citizens of India
2. Department establishment of Govt.
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3. Local authority
4. Statutory body
5. Public sector undertaking
6. UIN holder

Rule10: Effective date of Registration

Where an applicant submits application for Effective date of registration is

registration
Within 30 days from the date he becomes The date on which he becomes liable to
liable to registration registration
After 30 days from the date he becomes Date of grant of registration
liable to registration

Goods and service tax identification Number [GSTIN]

Issued within 3 days after grant of Registration Certificate

GSTIN Format
State Code PAN Entity Check sum
Code character

02 10 02 01 = 15

Display of registration certificate and GSTIN on the name board

[Rule 18]

Every registered person shall display his registration certificate in a prominent location at
his PPOB and at every APOB. Further, his GSTIN also has to be displayed on the name board
exhibited at the entry of his PPOBand at every APOB.

Example 26: Sugam Services Ltd. is engaged in taxable supply of services in M.P. The T/O of
Sugam services Ltd. is exceeded ₹ 20 lakhs on 1st Nov. It is liable to get registered by 1st
December [30 days] in the State of Madhya Pradesh. It applies for registration on 28th
November and is granted registration certificate on 5th December. The effective date of
registration of Sugam Services Ltd. is 1st November.

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Example 27: In above example, if Sugam services Ltd. applied for registration on 3 rd Dec. and is grant
registration certificate on 10th Dec. The effective date of registration of Sugam services Ltd. is 10th Dec.

Example 28: Determine the effective date of registration under CGST Act in respect of thefollowing
cases with proper explanation:
(i) The aggregate turnover of Varun Industries of Mumbai has exceeded ₹ 40 lakh on 1stAugust. Varun
Industries manufactures LED TVs inMumbai and sells them in Pune. It submits the application for
registration on 20th August. Registration certificate granted on 25th August.

(ii) Sweta InfoTech Services is the provider of internet services in Pune. Its aggregate turnover exceeds ₹ 20
lakh on 25th September. It submits the application for registration on 27th October. Registration certificate is
granted on. 5th November.

Answer: As per section 22 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier is liable to
be registered in the State/Union territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnoverin a financial year exceeds the threshold limit. The threshold limit for a
person making exclusive intra-State taxable supplies of goods is as under:-
(a) ₹ 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(b) ₹ 20 lakh for the States of States of Arunachal Pradesh, Meghalaya,Puducherry, Sikkim, Telangana
and Uttarakhand.
(c) ₹ 40 lakh for rest of India. However, the higher threshold limit of
(d) ₹ 40 lakh is not available to persons engaged in making supplies of ice cream and other edible ice,
whether or not containing cocoa, Pan Masala and Tobacco and manufactured tobacco substitutes.
The threshold limit for a person making exclusive taxable supply of servicesor supply of both goods and
services is as under:-
(a) ₹ 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(b) ₹ 20 lakh for the rest of India.
As per rule 10, where a person submits the application for registrationwithin 30 days of becoming liable
for registration, the effective date of registration is the date on which the person becomes liable to
registration; otherwise it is the date of grant of registration.
In the light of the above provisions, in the given cases, the applicable turnover limit for registration will be
₹ 40 lakh and ₹ 20 lakh respectively in case (i) and (ii).
I. Since Varun Industries applied for registration within 30 days of becoming liable to registration,
the effective date of registration is 1st August.
II. Since Sweta InfoTech Services applied for registration after the expiryof 30 days from the date of
becoming liable to registration, the effective date of registration is 5th November.

11) Section 26: Deemed Registration

Registration under GST is not tax specific, which means that there is single registration for all the taxes i.e.
CGST, SGST/UTGST, IGST and cesses.

 Registration under SGST /UTGST deemed to be registration under CGST.

 Cancellation /Rejection under SGST /UTGST deemed to be Cancelation /Rejection under CGST.

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12) Section 27: Special provisions for Casual Taxable Person (CTP)
& Non-Resident Taxable Person (NRTP)

Meaning: - A person who occasionally undertakes transactions involving supply of Goods / Services / both as
Principal / Agent / Other capacity.

In a state / UT where he has no No fixed place of business or

Fixed place of business residence in India

In the course or furtherance

Of business

Causal Taxable Person [CTP] Non-Resident Taxable Person [NRTP]

Causal Taxable Person [CTP] Non-Resident Taxable Person [NRTP

REGISTRATION REGISTRATION
 Compulsory Regn u/s 24  Compulsory Regn u/s 24
 Apply for Regn at least 5 days in  Apply for Regn at least 5 days in
advance before making any supply advance before making any supply
 Form REG 01  Form REG 01
 PAN required  Valid Passport required, self-attested
copy of his valid passport along with the
application signed by his authorized
signatory who is an Indian Resident
having valid PAN

Registration Certificate valid till:

 Period specified in application
 90 Days
Whichever is earlier.

PO may extend the period for further 90 days. In such case, application has to be made before
Original registration expires.

 Composition Scheme: Not applicable  Composition Scheme: Not applicable

 ITC on Input /input services /capital  ITC only on imported goods
goods: - Available

At the time of submission of application, At the time of submission of application,

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make an advance deposit of tax in an make an advance deposit of tax in an
amount equivalent to the estimated tax amount equivalent to the estimated tax
liability. Regn shall be granted only after such liability. Regn shall be granted only after such
payment. payment.

Note:

 Period cannot be extended more than 180 days (90 + 90), in such obtain registration as normal
person and surrender when exhibition is over.

Example 29: Krishnadev & Com., engaged in supplying taxable goods, is registered in Rajasthan. It
wishes to participate in 5 days business exhibition being held in Delhi. However, it does not have a fixed
place of business in Delhi. In this case, Krishnadev & Co. has to obtain registration as a casual taxable person
in Delhi.

13) Section 28: Amendment of Registration

Core Field Non- Core Field Change in PAN or State/UT

Approval not required directly New Registration

Apply within
Submit 15 days
application & of
such changes RC stands amended

PO to take action within

Core Changes
15 working days
 Legal name of business;
If notice reply within 7  Address of the principal place of business or
working days any additional place(s) of business;
 Addition/deletion/retirement of partners or
PO take action within 7 directors, Karta, Managing Committee, Board
working days/reply is not of Trustees, CEO or equivalent, responsible for
satisfactory, application is the day to day affairs of the business
rejected
Non-core fields: Mobile No./e-mail Ids

Situation for Deemed Amendment

If PO fails to take action:
a) Within 15 working days from submission of application, or
b) Within 7 working days from date of reply to Notice
Deemed to be amended

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Example 30: Varun Enterprises, a sole proprietorship firm, is engaged in supplyof electrical goods in
Delhi. The firm is registered under GST. Varun is the proprietor of the firm. He wishes to expand his
business and his Friend – Arun - approaches him to provide additional capital for his business if he is
made a partner in Varun’s business.
Varun agrees and changes the constitution of his business and form a partnership firm – Varun Arun & Co.
Since the change in constitution of business from sole proprietorship firm to partnership firm results in
change in PAN of the registered person, the partnership firm has to apply for fresh registration. The reason
for the same is that GSTIN is PAN based. Any change in PAN would warrant a new registration.

14) Section 29: Cancellation / Suspension of Registration

Voluntary cancellation by SUO MOTO cancellation

Registered person by Department

Where the Where the proper officer

registered person considers the registration of a
no requires the person liable for cancellation
registration in view of certain defaults

For example, when the registrant is

For example, in case Not doing business from the
of death of
registered place of business or if he
registered person,
issues tax invoice without making
the legal heirs can
apply for cancellation the supply of goods or services

1. Circumstances where Regn is liable to be cancelled [Sec. 29(1)]

(a) Business discontinued/transferred for any reason incl. Death/amalgamated/demerged/disposed off

(b) Change in constitution of business
(c) No longer liable to registered u/s 22/24
(d) Intend to opt out of voluntary registration

2. Circumstances to cancel Regn by Department (PO) [Sec.29 (2)]

(i). Registered person has contravened [Rule 21]:
(a) Does not conduct any business from the declared place of business.
(b) Issues invoice/bill without supply of goods/services in violation of provisions/rules of the Act.
(c) Violates Anti-profiteering provisions u/S171.
(d) Violates the provision of rule 10A (Bank a/c details)
(e) Avails input tax credit in violation of Sec.16 of the CGST Act or the rules made thereunder
(f) Furnishes the details of outward supplies in u/s (GSTR 1) in excess of outward supplies
declared by him u/s 39 (GSTR 3B) for one / more tax periods.
(g) Violates the provision of rule 86B [1%ECL se Payment Restriction on ITC Utilisation]

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 (h) Being a RP required to file return u/s 39(1) for each month or part thereof, has not
furnished returns for a continuous period of 6 months.
(i) Being RP required to file return under proviso to sec 39(1) for each quarter or part
thereof, has not furnished returns for a continuous period of 2 tax period.(QRMP)

(ii). Composition supplier not furnished return for a F.Y. beyond 3 months from due date
of furnishing return.

(iv).Taken voluntary Regn u/s 25(3) – Not commenced business within 6 months from the
date of registration.

(v). Regn has been obtained by means of fraud, willful misstatement or suppression of facts
 PO shall not cancel without opportunity of being heard.
 PO may suspend registration till cancellation.

Summary:-
Cancellation of Registration :-
1. Voluntary Cancellation (By registered person)
2. Suo Moto Cancellation [By department with show cause notice (SCN)]

∆ Circumstances jahan registration cancel ho skta hai -

* Business discontinued ya transfer ho gya ho, death, amalgamation, demerger, dispose ho gya ho
* Business ke constitution m change ho gya ho
* Sec. 22/24 m liable hi nahi rahe
* voluntary registration se opt out kar liya ho

∆ Circumstances jahan department registration cancel karta hai - Registered person ne Rule 21 ka
contravention kiya ho
* Declared place of business se business nahi kiya ho
* Bina supply kiye invoice ya bill issue kar diya ho
* Anti profiteering ke Provisions ko violate kiya ho
* Bank Alc Details within time provide nahi karwayi ho
* Sec 16 ke provisions ko violate karke ITC Avail kar li ho
* Rule 86B (Restriction on ITC utilisation) ko violate kiya ho (99% liability to be paid through ITC)
* Continous 6 months ke liye Monthly Retun furnish nahi ki ho
* Continuous 2 tax period ke liye quarterly return furnish nahi ki ho

- Composition supplier ne F.Y. ke liye return filing ki due date se 3 months se jada time ke liye return
furnish nahi ki ho.
- Fraud/ wilful misstatement/ Suppression of facts ke through registeration obtain kiya ho
- Voluntary registered person ne date of registration ke months se jada hone par business start nahi kiya
ho.

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 3. Suspension of Registration [Rule 21A]:

CASE Effective Date of Suspension

1). RP applied for  Date of Submission

Cancellation 29(1) or
 Date from which cancellation sought
Whichever is later.

2). Cancellation initiated with effect from date to be determined

By Department 29(2) by PO

3). While registration has been suspended registered Person shall not
 Make any taxable supply (can’t issue tax invoice)
 Required to furnish any return

4). Suspension deemed to be revoked: Upon of cancellation proceedings. Revocation effective

from the date on which suspension came into effect.

5). Where registration suspended due to non-filing of return shall be deemed to be revoked
upon furnishing of all pending returns.

Summary:-
Suspension of Registration :-

Jab Voluntary cancellation ke liye apply Kiya ya department registration cancel kar raha ho to tab tak wo
registration cancel nahi ho jata ya jab tak uski proceeding chal rahi hai to utne time ke liye registration
suspend kar diya jayega.

Effective date of suspension:-

Case 1. Registered person ne apply Kiya ho - Date of submission

Or
Date jis din se registeration cancel karna hai
W/e is later
Eg. Suppose cancellation ki application 1 July or submit ki par 25th July se registration cancel kar dena to
effective date of suspension 25th July hogi.

Case 2. Cancellation initiated by Department - date determined by P.O.

Suspension ke period m koi bhi taxable supply nahi kar sakte na hi return furnish kar skte.

Sec.29 (3): Person liable to pay tax and other dues for any period prior to cancellation:
Whether or not such dues are determined before /after date of cancellation.

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4. Revocation of Suspension:-

Revocation of
Suspension Auto Revocation of Revocation of Suspension
Suspension by Proper Officer

Situation Situation
Upon completion of the Any time during the pendency
proceedings of of the proceedings for
Cancellation Cancellation

Revocation w.e.f. the date on Revocation date shall be

Which the Suspension had decided by Proper Officer
come

Effect of Following Sections shall apply

Revocation of in respect of the supplies made during the period of suspension –
Suspension  Section 31(3)(a) [i.e. Revised Tax invoice]
and
 Section 40 [i.e. First Return]

Summary:- Suspension ko revoke karna ka trika-

 Ya to cancellation ki proceedings khatam ho jaye

 P.O. ko hi lagta hai usse koi mistake ho gayi hai to wo hi revoke kar de
 Ya fir compliances karne lag jaaye (Eg. Returns file kar di jaaye)

15) Procedure for Cancellation [Rule 20 & 22]

(a) Voluntary cancellation by registered person

Application

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  Registered person shall electronically submit the application for cancellation of registration in
prescribed form (REG 16] within 30 days of occurrence of the event.
 Details to be submit
 inputs held in stock or inputs contained in semi-finished/finished goods held in stock and of
capital goods held in stock on the date from which cancellation of registration is sought, liability
thereon, details of the payment, relevant documents to be furnished.

Order

When application made where person no longer liable to be registered, PO shall issue cancellation order
within 30 Days of application

(b). Suo Moto cancellation by Department

PO shall not cancel without issuing Show Cause Notice (SCN) and reasonable opportunity of being heard.

RP  Reply to SCN within 7 days

Satisfactory Non-Satisfactory No reply when failure to

Reply furnish returns

PO shall drop the Cancel within 30 RP to furnish all returns

Proceedings days from reply with all dues and then
PO shall drop proceedings

Where registration of a person is liable to be cancelled, proper officer shall issue the order of cancellation of
registration within 30 days from the date of reply to SCN.

(C). Effective date of Cancellation

 Determined by PO and mentioned in cancellation order.

4. Amount payable on cancellation of Regn [Sec.29 (5) & (6)]

 Amount to be reversed for Inputs:

(a) ITC Computed proportionately on corresponding invoices** W/e is

(b) Output tax payable on such goods Higher

**If tax invoices are not available, the ITC to be reversed will be based on prevailing market price (MP) of
such goods on date of cancellation.

 Amount to be reversed for capital goods / Plant & machinery

(a) Reduced ITC [for remaining life taking life of 60 months (5years) – ignore part of month & consider

31 | P a g e
 full month used only]
(b) Tax on transaction value u/s 15
Whichever is higher

Example 31: Capital goods have been in use for 4 years, 6 month and
15 days. The useful remaining life in months = 5 months ignoring a part of the month.
ITC taken on such capital goods = C
ITC attributable to remaining useful life = C x 5/60

5. Other points about cancellation

 Intimation of cancellation – On mail & Mobile.
 UIN Holder cannot apply for cancellation of registration.
 Not allowed to file returns after cancellation date – Returns pertaining to period prior to
cancellation can be filed.
 Registration may be cancelled by PO form retrospective date.

Example 32: The proper officer cancelled the registration of Naman Associates on 11th Oct. The tax dues
of Naman Associates for July – Sep quarter (determined by proper officer on 16 th Dec.) are ₹ 50,000. The
cancellation of registration of Naman Associates shall have no effect on his liability of tax dues of ₹
50,000 even though the tax dues are determined after the cancellation of registration.

Summary:-
Procedure for cancellation:-

(A). Voluntary Cancellation by registered person -

•Registered person form REG 16 m within 30 days m ek cancellation ki application submit karega.
* Kuch details bhi submit karni padegi - inputs held in stocks, semi furnished or finished goods and capital goods or
liability bhi, details of payment and relevant documents etc.
* order- P.O. within 30 days of application m cancellation order issue kar dega.

(B). Suo moto cancellation by Department -

P.O. with SCN or opportunity of being heard diye Bina registration cancel nahi kar sakta. Registered person ko 7 days m
SCN ka reply kar hoga fir 3 situations

Situation 1 - Reply satisfactory then P.O. shall drop tha proceedings

Situation 2 - Non - Satisfactory reply then cancel with 30 days from reply

Situation 3 - No reply when failure to furnish Returns - Registered person all dues ke sath sari returns furnish karega
then P.O. proceedings ko drop kar dega

Order- P.O. SCN ke reply ke with 30 days m cancellation order issue kar dega.

Effective date of cancellation - as determined by P.O. or cancellation order m mentioned ho

** Amount payable on cancellation of Registration:-

Inputs ka amount reverse kiya jayega - amount will be calculated in following manner:-
(a). ITC computed proportionately on corresponding invoices*
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b). Output tax payable on such goods
W/e is higher
* Yadi invoices available nahi ho to cancellation ke din Jo goods ka market price hai uske base par reverse ho jaayegi

Amount reversed for capital goods/ plant and machinery -

(a). Reduced ITC
(b). Tax on transaction u/s
15 W/e is higher

16) Section 30: Revocation of Cancellation of Registration

Case 1. Procedure for revocation of cancellation

Procedure for Revocation when Suo Moto cancelled by PO within 30 days**

**Said period of 30 days(ICAI Module) (Amended 90 days)
may, on sufficient cause being shown and for reasons to be
recorded in writing, be extended for a period not exceeding
30 days by Additional/Joint Commissioner and by further
period not exceeding 30 days (ICAI Module) (amended 180
days) by Commissioner.

Apply for Revocation to PO

30 Days

Po Satisfied PO not satisfied

7 Days
Revoke Registration Issue SCN
When Regn was cancelled due to failure to
30 days
furnish returns: Clarification by TP
Person has to file all pending returns along
with all the dues before applying Regn. PO to accept /dispose the application

Case 2. Where registration was cancelled for failure of registered person to furnish return

Where registration was cancelled for failure of registered person to furnish returns, before applying for
revocation, the person has to make good the defaults, i.e. the person needs to file such returns and pay any
amount due as tax along with any amount payable towards interest, penalty and late fee in respect of the said
returns. However, the registration may have been cancelled by the proper officer either from the date of order
of cancellation of registration or from a retrospective date.

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 Summary:-

Case 1:- Cancellation ko revoke karwana chahte hai to –

 Yadi P.O. ne suo moto registration cancel kiya hai to cancellation ka order aane ke 90 days (30 days) me
cancellation ko revoke karne ki application de denge or yadi sufficient reason hai to additional
commissioner 180 days (30 days) ka time mil jayega.
 Yadi proper officer satisfied hai to ki revocation ke reason sufficient hai to to revocation ke aaplication
receive hone ke 30 days m cancellation ko revoke kar dega.
 Yadi P.O. satisfied nahi hai to 7 days m SCN issue kar dega or taxablr person ko 30 days m clarify karna
hoga yadi P.O. ko lagta hai to revoke kar dega otherwise application reject kar dega.

`
Case 1: Date of order is effective cancellation date:

Returns for this period is returns for this period to

be Filed before applying be filed within 30 days
for Revocation from revocation order

Date from which Date of order of Date of order of

Returns not furnished Cancellation revocation of Cancellation
(Effective date of
Cancellation)

Example 33: The registration of Naman Associates was cancelled by the proper officer by an order
dated 1st June for its failure to furnish returns. The Regn was cancelled w.e.f. 1st June itself. It applied for
revocation of cancellation of registration and the order for revocation of cancellation of Naman Associates
is passed on 31st July, In this case, Naman Associates shall be required to furnish all returns for the period
from 1st June to 31st July within a period of 30 days from 31st July i.e. 30th August.

Case 2: Registration cancelled with Retrospective effect:

Return for entire period to be filled within 30 days form revocation order

Date from which Date of order of Date of order of

Returns not furnished Cancellation revocation of Cancellation
(Effective date of
Cancellation)

In case where registration is cancelled on request of taxpayer or his legal heir, one cannot apply for
revocation of registration.

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Summary:-

Yadi cancellation isliye hua ki return time par furnish nahi ki –

Ab is situation m cancellation 2 trike se ho sakta hai ya to effective date se (matlab ki apan kop ta hai
registration kab cancel hoga) ya fir retrospectively (yadi ki P.O cancel phle ki koi date se kar de i.e. apan ko date
nahi pta ki kab cancel hoga)

 Yadi cancellation effective date se hua (yani cancellation order m date mention ho) to –
Jab se return file nahi ki or jis din cancellation ka order aaya to is period ke bich ka return phle file karenge
revocation ke liye apply karne se phle or fir jese hi cancellation revoke ho jata hai us din se 30 days m baki
ki sari return file kar denge.
 Lekin yadi cancellation retrospectively hua hai to saare return jese hi P.O. revocation ke liye yes kar de tab
se 30 m sare return file kar denge.

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 Test Your Knowledge 

Question.1: Determine the effective date of registration in following cases:

The aggregate turnover of Dhampur Footwear Industries of Delhi hasexceeded the applicable threshold limit
of ₹ 40 lakh on 1st September. It submits the application for registration on 20 th September. Registration
certificate is granted to it on 25th September.
Mehta Teleservices is an architect in Lucknow. Its aggregate turnover exceeds ₹ 20 lakh on 25 th October. It
submits the application for registration on 27th November. Registration certificate is granted to iton 5 th
December.

Answer: (a) every supplier becomes liable to registration if his turnover exceeds the applicable
threshold limit [₹ 40 lakh in this case] in a financial year. Since in the given case, the turnover of Dhampur
Industries exceeded ₹ 40 lakh on 1st September, it becomes liable to registration on said date.
Further, since the application for registration has been submitted within 30 days from such date, the
registration shall be effective from the date on which the person becomes liable to registration
[Section 25 read with rule 10]. Therefore, the effective date of registration is 1st September.

(b) Since in the given case, the turnover of Mehta Teleservices exceeds the applicable threshold limit [`
20 lakh] on 25th October, it becomes liable to registration on said date.
Further, since the application for registration has been submitted after 30 days from the date such person
becomes liable to registration, the registration shall be effective from the date of grant of registration.
Therefore, the effective date of registration is 5th December.

Question.2: State which of the following suppliers are liable to be registered:

(a) Agent supplying taxable goods on behalf of some other taxable person and its aggregate turnover
does not exceed the applicable threshold limit during the financial year.
(b) An agriculturist who is only engaged in supply of produce out of cultivation of land and its aggregate
turnover exceeds the applicable threshold limit during the financial year.

Answer: (a) Section 22 stipulates that every supplier becomes liable to registration if his turnover
exceeds the applicable threshold limit in a financial year. However, as per section 24, a person making
taxable supply of goods/services or both on behalf of other taxable persons whether as an agent or not is
liable to be compulsorily registered even if its aggregate turnover does not exceed the applicable threshold
limit during the financial year.
(b) As per section 23, an agriculturist who is only engaged in supply of produce out of cultivation of land is
not required to obtain registration even if his turnover exceeded the applicable threshold limit for
registration.

Question.3: Pure Oils, Delhi has supplied machine oil and high-speed diesel in the month of April as per
the details given in table below. Pure Oils is not yet registered
S. No. Particulars Amount(₹)*
1. Supply of machine oil in Delhi 15, 00,000
2. Supply of high speed diesel in Delhi 10, 00,000
3. Supply of machine oil made in Punjab by Pure Oils from 10, 00,000
its branch located in Punjab
*excluding GST
Determine whether pure supply is liable for Registration.

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Answer: As per section 22, a supplier is liable to be registered in the State/Union territory from where he
makes a taxable supply of goods and/or services, if his aggregate turnover in a financial year exceeds the
threshold limit. The threshold limit for a person making exclusive intra-State taxable supplies of goods is as
under:-
(a) ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ₹ 20 lakh for the States, namely, States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana
and Uttarakhand.
(c) ₹ 40 lakh for rest of India except persons engaged in making supplies of ice cream and other edible ice,
whether or not containing cocoa, Pan masala and Tobacco and manufactured tobacco substitutes.
The threshold limit for a person making exclusive taxable supply of services or supply of both goods and
services is as under:-
(a) ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ₹ 20 lakh for the rest of India.

As per section 2(6), aggregate turnover includes the aggregate value of:
(i) all taxable supplies,
(ii) all exempt supplies,
(iii) exports of goods and/or services and
(iv) all inter-State supplies of persons having the same PAN.
The above is computed on all India basis. Further, the aggregate turnover excludes central tax, State tax,
Union territory tax, integrated tax and cess. Moreover, the value of inward supplies on which tax is payable
under reverse charge is not taken into account for calculation of ‘aggregate turnover’.

Section 9(2) provides that CGST is not leviable on five petroleum products i.e. petroleum crude, motor spirit
(petrol), high speed diesel, natural gas and aviation turbine fuel. As per section 2(47), exempt supply
includes non- taxable supply. Thus, supply of high speed diesel in Delhi, being a non- taxable supply, is an
exempt supply and is, therefore, includible while computing the aggregate turnover.
In the backdrop of the above-mentioned discussion, the aggregate turnover of Pure Oils for the month of
April is computed as under:
S. No. Particulars Amount(₹)
1. Supply of machine oil in Delhi 15, 00,000
2. Supply of high speed diesel in Delhi 10, 00,000
3. Supply of machine oil made in Punjab by Pure Oils from 10, 00,000
its branch located in Punjab
Aggregate Turnover 35,00,000

Pure Oils is making exclusive supply of goods and hence the threshold limit for registration would be ₹ 40,
00,000. Since the aggregate turnover does not exceed ₹ 40, 00,000, Pure Oils is not liable to be registered.

Question.4: What will be your answer if in question 8 above, in S.No. (ii), Pure Oils supplies the high
speed diesel in Delhi in the capacity of an agent of Mixed Oils Ltd.?

Answer: In case Pure Oils makes the supply in capacity of an agent of Mixed Oils Ltd.:
Section 24 provides that an agent, who is engaged in making taxable supplying of goods on behalf of other
taxable persons, shall be liable to obtain registration irrespective of the threshold turnover limit. However, in
the present case, if Pure Oils supply high speed diesel on behalf of Mixed Oil Ltd. in Delhi as its agent, it shall
still not be liable to obtain registration in Delhi since section 24 comes into play only when agent is making

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taxable supply of goods on behalf of principal whereas in the given case, Pure Oils is supplying non-taxable
goods on behalf of Mixed Oils Ltd.

Question.5: Examine whether the supplier of goods is liable to get registered in the following
independent cases:-
(i) Raghav of Assam is exclusively engaged in intra-State taxable supply of readymade garments. His turnover
in the current financial year (FY) from Assam showroom is ₹ 33 lakh. He has another showroom in Tripura
with a turnover of ₹ 11 lakh in the current FY.
(ii) Pulkit of Panjim, Goa is exclusively engaged in intra-State taxable supply of shoes. His aggregate turnover
in the current financial year is ₹ 22 lakh.
(iii) Harshit of Himachal Pradesh is exclusively engaged in intra-State supply of pan masala. His aggregate
turnover in the current financial year is ₹ 24 lakh.

Answer: As per section 22 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier is liable to
be registered in the State/Union territory from where he makes a taxable supply of goods and/or services, if
his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for a person
making exclusive intra-State taxable supplies of goods is as under:-
(a) ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ₹ 20 lakh for the States, namely, States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana
and Uttarakhand.
(c) ₹ 40 lakh for rest of India except persons engaged in making supplies of ice cream and other edible ice,
whether or not containing cocoa, Pan Masala and Tobacco and manufactured tobacco substitutes.
In the light of the afore-mentioned provisions, the answer to the independent cases is as under:-
(i) Raghav is eligible for higher threshold limit of turnover for registration, i.e. ₹ 40 lakh as he is exclusively
engaged in intra-State supply of goods. However, since Raghav is engaged in supplying readymade garments
from a Special Category State i.e. Tripura, the threshold limit gets reduced to ₹ 10 lakh. Thus, Raghav is liable
to get registered under GST as his turnover exceeds ₹ 10 lakh. Further, he is required to obtain registration in
both Assam and Tripura as he is making taxable supplies from both the States.

(ii) The applicable threshold limit for registration for Pulkit in the given case is ₹ 40 lakh as he is exclusively
engaged in intra-State taxable supply of goods in Goa. Thus, he is not liable to get registered under GST as
his turnover is less than the threshold limit.
(iii) Harshit being exclusively engaged in supply of pan masala is not eligible for higher threshold limit of ₹
40 lakh. The applicable threshold limit for registration in this case is ₹ 20 lakh. Thus, Harshit is liable to get
registered under GST.

Question 6: Examine whether the supplier is liable to get registered in the following independent cases:-
(i) Ankit of Assam is exclusively engaged in intra-State supply of taxable services. His aggregate turnover in
the current financial year is ₹ 25 lakh.
(ii) Sanchit of Assam is engaged in intra-State supply of both taxable goods and services. His aggregate
turnover in the current financial year is ₹ 30 lakh.

Answer: As per section 22 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier is liable to
be registered in the State/Union territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnoverin a financial year exceeds the threshold limit. The threshold limit for a
person making exclusive taxable supply of services or supply of both goods and services is as under:-
(a) ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ₹ 20 lakh for the rest of India.

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 I. Though Ankit is dealing in Assam, he is not entitled for higher threshold limit for registration as the
same is applicable only in case of exclusively supply of goods and he is exclusively engaged in
providing services. Thus, the applicable threshold limit for registration in this case is ₹ 20 lakh
and hence, Ankit is liable to get registered under GST.

II. Since Sanchit is engaged in supply of both taxable goods and services, the applicable threshold limit
for registration in his case is ₹ 20 lakh. Thus, Sanchit is liable to get registered under GST as his
turnover ismore than the threshold limit.

Question 7: What are the advantages of taking registration in GST?

Answer: Registration will confer following advantages to the business:

o Legally recognized as supplier of goods or services.
o 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.
o 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.
o Become eligible to avail various other benefits and privileges rendered under the GST laws.

QuesTion 8: Can a person without GST registration collect GST and claim ITC?

Answer: 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.

Question.9: If a person is making taxable supplies from different States, with the same PAN number,
can he operate with a single registration?
Answer: No. Every person who is liable to take a registration will have to get registered separately for
each of the States where he has a business operation (and making taxable supplies) provided his aggregate
turnover exceeds applicable threshold limit.

Question.10: Can a person having multiple places of business in a State obtain separate registrations
for each place of business?
Answer: Yes. In terms of the proviso to sub-section (2) of section 25, a person having multiple places of
business in a State may obtain a separate registration for each place of business, subject to such conditions
as may be prescribed.

Question.11: Is there a provision for a person to get himself voluntarily registered though he may not
be liable to pay GST?

Answer: Yes. In terms of sub-section (3) of section 25, a person, though not liable to be registered under
sections 22 or 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a
registered taxable person, shall apply to such person.

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Ques.tion 12: Can the Department, through the proper officer, Suo-Moto proceed to register a person
under GST?

Answer: Yes. In terms of sub-section (8) of section 25, where a person who is liable to be registered
under GST law fails to obtain registration, the proper officer may, without prejudice to any action which may
be taken under CGST 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 CGST Rules.

Question.13: Whether the registration granted to any person is permanent?

Answer: Yes, the registration certificate once granted is permanent unless surrendered, cancelled,
suspended or revoked.

Question.14: Is it necessary for the UN bodies to get registration under GST?

Answer: In terms of section 25(9), 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 GSTIN structure and the
same will be common for the Centre and the States. This UIN will be needed for claiming refund of taxes
paid on notified supplies of goods and services received by them, and for any other purpose as may be
notified.

Question.15: What is the responsibility of the taxable person making supplies to UN bodies?

Answer: The taxable supplier making supplies to UN bodies is expected to mention the UIN on the
invoices and treat such supplies as supplies to another registered person (B2B).

Question.16: What is the validity period of the registration certificate issued to a casual taxable person
and non- resident taxable person?

Answer: 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 registration or 90 days from the effective date of registration, whichever is earlier. However,
the proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period
of 90 days by a further period not exceeding 90 days.

Question.17: What happens when the registration is obtained by means of willful mis- statement, fraud
or suppression of facts?

Answer: In such cases, the registration may be cancelled with retrospective effect by the proper officer
[Section 29(2)(e)].

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Question.18: Is there an option to take centralized registration for services under GST Law?

Answer: No, the tax paper has to take separate registration in every State from where he makes taxable
supply of services.

Question.19: What could be the liabilities (in so far as registration is concerned) on transfer of a
business?

Answer: 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)].

Question.20: At the time of registration, will the assessee have to declare all his places of business?

Answer: Yes. The principal place of business and place of business have been separately defined under
section 2(89) & 2(85) 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.

Question.21: Does cancellation of registration impose any tax obligations on the person whose
registration is so cancelled?

Answer: Yes, as per section 29(5), 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.

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