Brief on GST registration provisions including business process and Composition scheme as per Model GST Law

1. GST – Registration Provisions
including Business Process
CA LGopal Shah
Bhubaneswar, Odisha
il l h h@ ilEmail: ca.lgshah@gmail.com
M: 9437124361

2. Area to be Cover
d lGST Registration Provision as per Model GST Law: June 2016
Schedule‐ III: Liability to be Registered
Sec 19: RegistrationSec 19: Registration
Business Process: On GST registration as per Joint Committee
Report July 2015p y
Sec 142: Transitional Provisions on Registration:
Migration of existing Tax payers to GST
Sec 19A: Special Provision relating to Casual Taxable
person and non‐resident taxable person
S 20 A d t f i t tiSec 20: Amendment of registration
Sec 21: Cancellation of registration
Sec 22: Revocation of Cancellation of registrationSec 22: Revocation of Cancellation of registration
Sec 8: Composition Scheme Registration

3. Who is required to be registered
under GST as per Schedule‐III of Model GST Law
Every supplier shall be liable to be registered under this Act in the State from
which he makes a taxable supply of Goods and/or Services.
Registration is required if the aggregate turnover (to be calculated all India basis)
in a financial year exceeds Rupees Nine Lakhsin a financial year exceeds Rupees Nine Lakhs
Such Threshold limit will be Rupees Four Lakhs if the taxable person conduct his
business from North Eastern state (including Sikkim)
A Supplier shall not be liable for Registration if his aggregate turnover consists ofA Supplier shall not be liable for Registration if his aggregate turnover consists of
only such Goods and /or Services which are not liable to Tax under this Act
Aggregate turnover means the aggregate value of all taxable supplies, exempt
supplies and exports of goods and/or services of a person having the same Pan tosupplies and exports of goods and/or services of a person having the same Pan, to
be computed on all India basis and excludes taxes, if any, charged under the CGST
Act , SGST Act and the IGST Act, as the case may be.
I h t t th t bl ill h t t k t i t tiIn each state the taxable person will have to take separate registration even
though the taxable person may be supplying goods and / or services or both from
more than one State as a Single entity.

4. Who is required to be registered
under GST as per Schedule‐III of Model GST Law
If the person have multiple business verticals in one state there is an option to
apply separate registration for each of the business verticals. Upto 35 business
verticals of the same legal entity can be registered within a State.
As per revised Model GST law (Nov 2016)
Business Verticals means a distinguishable component of an enterprise that is
engaged in providing an individual product or service or a group of related
d i d h i bj i k d h diff fproducts or services and that is subject to risks and returns that are different from
those of other business segments :
Explanations : Factors that should be considered in determining whether products
or services are related include:or services are related include:
a) the nature of the products or services
b) the nature of the production processes ,
c) the type or class of customers for the products or servicesc) the type or class of customers for the products or services
d) the methods used to distribute the products or provide the services and
e) If applicable , the nature of the regulatory environment , for example , banking ,
insurance, or public utilities.insurance, or public utilities.

5. Transfer of Business and Registration
In case of transfer of business on account of Succession or
otherwise then the transferee or the Successor shall be
liable to be take registration from the date of transfer org
Succession.
In case of amalgamation or de‐merger , the transferee shall
be liable to registered with effect from ROC issue
certificate of incorporation giving effect to such order ofcertificate of incorporation giving effect to such order of
High court.
This means GST Registration Certificate issued under this
Act is not transferable to any other person.y p

6. Categories of persons who shall be required to be
registered irrespective of the threshold
1. Persons making any inter‐ State taxable Supply.
2 l bl2. Casual taxable persons
3. Persons who are required to pay tax under reverse
hcharge
4. Non‐resident taxable persons
h d d d / (5. Person who are required to deduct TDS U/S 37 (Tax
Deducted at Source)
6 P h l d d i b h lf f6. Persons who supply goods and service on behalf of
other registered taxable persons whether as an
agent or otherwiseagent or otherwise.

7. Categories of persons who shall be required to be
registered irrespective of the threshold (Cont )registered irrespective of the threshold (Cont.)
7. Input service distributor7. Input service distributor
8. Person who supply goods and/or services, other
than branded services, through electronic, g
commerce operator
9. Every electronic commerce operatory p
10. An aggregator who supplies services under his
brand name or his trade name and
11. Such other person or class of persons as may be
notified by the Central Government or a State
Government on the recommendations of the
Council.

8. Sec: 19‐ Registration including Business Process as per
Joint Committee Report July 2015Joint Committee Report July 2015
Every person who, on the day immediately preceding the
appointed day, is registered under earlier law, shall bepp y, g ,
liable to be registered under this Act with effect from the
appointed day.
PAN based Registration: PAN will be mandatory and in case
of registration of NRI , UNO, Central / State Government or
local Authority or other notified bodies who does not havelocal Authority or other notified bodies who does not have
PAN , on the basis of any other document as may be
prescribed.
Unified application to both State and Central tax authorities
A li i f i i h b d i hi 30 dApplication for registration has to be done within 30 days
after the supplier crosses the threshold limit

9. Structure of GSTIN (Taxpayer Unique Identification
Number)Number)
Each taxpayer will be allotted a state wise PANac ta paye be a otted a state se
based ‐15 digit Goods and Service Tax
Identification Number (GSTIN)
PAN based 15 digit alphanumerical number
1st two digit state code
Next 10 digits PAN No. of person
13th digit is verticals of entities based on PAN No.
14th digit left blank for future use
15th digit is checksum

10. UID (Unique Identification Number)
State wise UID will be given Government authorities
who are not making outwards supplies of GST and not
liable to obtain GST registration.
UID ill b i t UN b di E b f f iUID will be given to UN bodies , Embassy of foreign
countries, any other person as notified. The registration
is to claim refund of taxed paid by them on the notified
supplies of goods and /or services received by them.
Th li l i t th i ti i i dThe suppliers supplying to these organization is required
to mention the UID on the invoices and treat such
supplies as B2B supplies and invoices of the same will be
uploaded by the supplier.

11. Sec 142: Transitional Provision‐ Migration of Existing
Tax Payers to GST
All the existing registered persons whether with Centre or State
under any of the earlier laws shall be issued a certificate of
registration on a provisional basis state wiseregistration on a provisional basis state wise.
Such provisional certificate of registration is valid for 6 months
from the date of its issue, such validity may be increased as perfrom the date of its issue, such validity may be increased as per
recommendation of council.
Final certificate of registration shall be issued after furnishing of
the required information by the existing registered dealers
within time period as mention above.
S h tifi t h ll b ll d if th i d d t tSuch certificate shall be cancelled if the required document not
submitted within time period as mention above.
The Provisional certificate issued shall deemed to have notThe Provisional certificate issued shall deemed to have not
been issued if the existing registered persons filed an
application that it not covered under Schedule III and Sec 19.

12. Procedure for Obtaining Registration
Online application form through Common Portal for bothOnline application form through Common Portal for both
State and Central through Facilitation Centers (FCs) or
through Tax Return Preparers (TRPs)
Documents to be filed for new registration
– Constitution of Business
– Principal Place of Business
Bank Acco nts– Bank Accounts
– Authorized Signatory
– Photograph
Applications not submitted through Digital Signature to be
supported by sending a signed copy of summary extract of
the form
P i f li i d f i iProcessing of application and grant of registration even
before signed copy received
Cancellation to be initiated if no signed copy received
Email and SMS based alerts to the applicants

13. Approval process of Registration
l f f d l l k kOnline verification of certain details like PAN, CIN, Bank
Account (if possible) and Adhaar
3 common working days for tax authorities to respond and3 common working days for tax authorities to respond and
Deemed approval after 3 days
Mostly post registration visits by the department based on
b i i k filbusiness risk profile
Log‐in id and temporary password communicated to the
tax payer state wisetax payer state wise.
Downloadable Registration Certificate to be provided by
GSTN
Refusal to register by one tax authority deemed as refusal
by both
C i ti f f f l f i t ti bCommunication of reason for refusal of registration by
giving an opportunity of being heard.

14. Sec 19A : Special Provision relating to Casual Taxable
person and Non‐Resident taxable person
Taxpayers who occasionally undertake transactions involving the supply of
goods and/or services as a principal, agent or in any other capacity. They
do such transactions at a place where they do not have any fixed place of
business There are two categories of such taxpayersbusiness. There are two categories of such taxpayers
Casual Taxable person:
If such taxpayers are Resident in India but do not have a fixed place of
business in the state where they are doing supplies of goods and/or
services for a short duration say One week to 12 weeks but not more than
90 days are known as Casual taxable persons Eg: Traders coming for90 days are known as Casual taxable persons. Eg: Traders coming for
supply of goods and/or services in trade fares. –
Non‐Resident Taxable person:
If such taxpayers are not Resident of India and also do not have a fixedIf such taxpayers are not Resident of India and also do not have a fixed
place of business in India then they are known as Non‐Resident taxable
persons. Eg: Consultants with specialized skills coming for designing the
Residential/commercial projects for Builders.
Such both taxable persons are not allowed to opt for Composition Scheme.
Such taxpayer has to self assess there tax liability and deposit it as
Advance Tax along with the application of Registration.

15. Registration of Casual Taxable person and non‐resident
taxable person
l d fValidity of registration
Extended aforesaid period of 90days but
not exceeding extended 90 days
90 d
not exceeding extended 90 days
90 days
Additional advance tax
deposited amount of tax equal
to the estimated tax liability for
the period for which the
Such deposit shall
be credited to the
electronic cash
ledger
Make an advance
deposit of tax in an
amount equivalent to
the estimated tax p
extension is sought
ledger
liability

16. Sec 20: Amendment of Registration
Any amendment by any registered taxable person shall inform to
the proper officer
The proper officer may approve or reject the amendments by
furnishing the information provided by registered taxable person.
The proper officer shall not reject the request for amendment in
the registration particulars without giving SCN and without giving
th bl t it f b i h dthe person a reasonable opportunity of being heard.
Any rejection or, approval of amendments under the CGST
Act/SGST Act shall be deemed to be a rejection or approval ofAct/SGST Act shall be deemed to be a rejection or approval of
amendments under the SGST Act/CGST Act.

17. Sec 21: Cancellation of registration
GST registration can be cancelled by the proper officer GS eg st at o ca be ca ce ed by t e p ope o ce
when taxable person furnish the following information:
Business discontinued.
Transferred fully for any reason including death of Proprietor
Amalgamated with other legal entity
dDemerged
Disposed of
Change in constitution of businessChange in constitution of business
The taxable person, is no longer liable to be registered under
schedule III

18. Cancellation of Registration by the proper officer by
his own motion in following situations: g
The registered taxable person Contravened provision of the
Act or the rules made there under or
Any taxable person who has not furnished returns for a
continuous period of six months or
A person paying tax under Composition scheme has notA person paying tax under Composition scheme has not
furnished returns for three consecutive tax periods or
Not commenced the business with in six month by the person y p
of voluntary registration or
Where registration has been obtained by means of fraud,
willful misstatement or suppression of factswillful misstatement or suppression of facts.
The proper Officer shall not cancel the registration without
giving a show cause notice and without giving the person a
reasonable opportunity of being heard.

19. Sec 22: Revocation of cancellation of registration
The tax payer whose registration is canceled by the proper
officer by his own motion, the tax payer may apply to such
officer for revocation of cancelation of the registration in the
prescribed manner within 30 days form the date of such
cancellation.
The proper officer either revoke cancellation of the
i i j h li i f i f dregistration or reject the application for revocation for good
and sufficient reasons.
The proper officer shall not reject the application forThe proper officer shall not reject the application for
revocation of cancellation of registration without giving a
SCN and without giving the person a reasonable opportunity
of being heardof being heard

20. Composition Scheme under GST – Sec 8 of Model GST Lawp
Only taxable person whose aggregate turnover does not
exceed Rs 50 Lakhs in the preceding year will be eligible to opt
for payment of tax under the composition scheme.
R t f T h ll b 1 %Rate of Tax shall be 1 %
Good and /or services on which composition tax has been
paid is not eligible for Input Tax Creditpaid is not eligible for Input Tax Credit.
Applicable only of intra state supplies.
h d h ll d hd f h dthe permission granted shall stand withdrawn from the day on
which his aggregate turnover during a year excess fifty lakhs
of rupees.

21. Composition Scheme not permissible to following
persons
who is engaged in the manufacture of goods or supply ofg g g pp y
services; or
who makes any supply of goods which are not leviable to taxy pp y g
under the Act; or
Who makes any inter‐State outward supplies of goods or
who makes any supply of goods through an electronic
commerce operator who is required to collect tax at source

22. Registration under Composition SchemeRegistration under Composition Scheme
•Normal dealer
TOOnly in the beginning
of financial year
•Composition Dealer
of financial year
•Composition Dealer
TO
During the year also
with a condition not
TO
•Normal dealer
to switch again under
composition scheme
in the same FY

23. Input tax credit under Composition SchemeInput tax credit under Composition Scheme
• When a person creases to pay
composition tax and liable to
f pay tax as an regular taxable
person then he is eligible to
take input tax credit in respects
Transfer
from
Composition
of inputs held in stock as on
the day immediately preceding
the date from which he
p
Dealer to
Normal
becomes liable to pay tax
under regular scheme
dealer

24. Input tax credit under Composition SchemeInput tax credit under Composition Scheme
• When a person liable to pay tax
as a regular taxable person
it h t blswitches over as a taxable person
for paying tax under composition
scheme then he shall pay an
amount by way of debiting in the
Transfer
from Normal
l amount by way of debiting in the
electronic credit ledger
equivalent to input tax credit in
respects of inputs held in stock
Dealer to
Composition
dealer respects of inputs held in stock
as on the day immediately
preceding the date of such switch
over to regular scheme
dealer
g

25. Thank You
Email: ca.lgshah@gmail.com
M 9437124361M: 9437124361