Unit – II: Registration

1. Persons Liable for Registration:

• Threshold Limit: Individuals or businesses with an aggregate turnover exceeding the prescribed threshold limit are liable for GST registration.

• Inter-State Supply: Entities engaged in inter-state supply, irrespective of turnover, are required to register.

• E-commerce Operators: Those operating e-commerce platforms facilitating the supply of goods or services are liable for registration.

• Casual Taxable Persons: Individuals or businesses involved in occasional taxable transactions are required to register.

• Reverse Charge Mechanism: Recipients of goods or services under the reverse charge mechanism are also liable for registration.

2. Taxable Supplier:

• Definition: A taxable supplier is an entity that makes taxable supplies of goods or services and is required to register under GST.

• Taxable Supplies: These include supplies attracting GST, excluding exempt supplies.

• Compliance: Taxable suppliers need to follow GST regulations, including filing regular returns and collecting taxes from customers.

• Input Tax Credit: Taxable suppliers can claim input tax credit on taxes paid for inputs and services.

• Threshold Limit: The liability for registration arises when the aggregate turnover exceeds the specified threshold.

3. Exempted Suppliers:

• Definition: Exempted suppliers are those whose supplies fall under the category of exempt supplies, attracting zero-rated GST.

• Nature of Supplies: Exempt supplies may include certain essential goods, healthcare services, and specific agricultural products.

• No Tax Liability: Exempted suppliers do not collect GST on their supplies, but they are not eligible for input tax credit on their inputs.

• Registration Requirement: While exempted suppliers are not required to register, they may opt for registration voluntarily.

• Voluntary Registration: Opting for voluntary registration allows them to claim input tax credit on their inputs.

4. Exports:

• Definition: Export of goods or services refers to the supply of goods or services outside the territory of India.

• Zero-Rated Supply: Exports are considered zero-rated under GST, meaning that the supplier can claim a refund for the input taxes paid.

• Export Procedure: Exporters need to follow specific procedures to benefit from zero-rated supplies and claim input tax refunds.

• Documentation: Proper documentation, including shipping bills and invoices, is crucial for claiming export benefits.

• Export Incentives: Zero-rated exports promote international trade and make Indian goods and services more competitive globally.

5. Inter-State Supplier:

• Definition: An inter-state supplier is one whose business involves the supply of goods or services from one state to another.

• Applicable Taxes: Inter-state supplies attract Integrated Goods and Services Tax (IGST) under the GST regime.

• Registration Requirement: Inter-state suppliers are required to obtain GST registration, irrespective of the turnover threshold.

• Invoice and Place of Supply Rules: Inter-state transactions follow specific invoice and place of supply rules to determine the tax liability.

• Input Tax Credit: IGST paid on inter-state supplies can be utilized as input tax credit.

6. Inter-State vs. Intra-State Supply:

• Inter-State Supply: Involves the movement of goods or services from one state to another, attracting IGST.

• Intra-State Supply: Relates to the supply of goods or services within the same state, attracting both CGST and SGST.

• Place of Supply: The key differentiator is the location of the supplier and the place of supply.

• Tax Calculation: Inter-state transactions involve IGST, while intra-state transactions involve both CGST and SGST.

• Compliance: Different compliance procedures apply to inter-state and intra-state suppliers.

7. Compulsory Registration in Certain Cases:

• Inter-State Supply: Entities engaged in inter-state supply, regardless of turnover, must register for GST.

• Casual Taxable Persons: Individuals conducting occasional transactions are required to register, even if their turnover is below the threshold.

• Reverse Charge Mechanism: Recipients under the reverse charge mechanism must register, irrespective of their turnover.

• E-commerce Operators: E-commerce operators facilitating supplies must register, regardless of turnover.

• Non-Resident Taxable Persons: Non-resident entities making taxable supplies in India must register for GST.

8. Persons not Liable for Registration:

• Below Threshold: Individuals or businesses with an aggregate turnover below the prescribed threshold are not liable for compulsory registration.

• Exclusively Exempt Supplies: Entities exclusively dealing with exempt supplies may choose not to register, but they forfeit input tax credit.

• Agriculturists: Those engaged in the cultivation of land are not required to register, even if their turnover exceeds the threshold.

• Special Category States: Certain special category states have higher threshold limits for registration.

• Composition Scheme Opt-Out: Small taxpayers under the composition scheme may opt not to register for regular GST.

9. Procedure for Registration (Steps - 15 Points):

• Step 1: Online Portal: Visit the GST online portal for registration.

• Step 2: Part A of Form GST REG-01: Fill in basic details, including PAN, mobile number, and email ID.

• Step 3: OTP Verification: Verify mobile and email through OTP.

• Step 4: Part B of Form GST REG-01: Fill in details, including business name, nature, address, and bank account.

• Step 5: Submission: Submit the application through the online portal.

• Step 6: ARN Generation: Application Reference Number (ARN) is generated after submission.

• Step 7: Verification: The application is verified by a GST officer.

• Step 8: Clarifications/Additional Documents: If required, provide clarifications or additional documents.

• Step 9: Approval or Rejection: The application is either approved or rejected within a specified timeframe.

• Step 10: Registration Certificate: If approved, a registration certificate containing the GSTIN is issued.

• Step 11: Business Commencement: Start business activities with the assigned GSTIN.

• Step 12: Periodic Compliance: Fulfill periodic compliance requirements, including filing returns and payment of taxes.

• Step 13: Changes in Information: Update the GST portal in case of any changes in business information.

• Step 14: Cancellation if Applicable: Cancel registration if the business ceases operations or undergoes a change in structure.

• Step 15: Renewal: Periodically renew the registration as required.

10. Types of Registration:

• Regular Registration: Standard registration for businesses with regular compliance requirements.

• Composition Scheme Registration: Opted by small taxpayers for simplified compliance and fixed tax rates.

• Casual Taxable Person Registration: Applicable for those conducting occasional transactions in a different state.

• Non-Resident Taxable Person Registration: For non-residents making taxable supplies in India.

• Voluntary Registration: Entities below the threshold can voluntarily register to avail input tax credit.

11. Cancellation of Registration:

• Voluntary Cancellation: Businesses can apply for voluntary cancellation if they cease operations or no longer meet the threshold.

• Closure of Business: If a business ceases to exist, the registration can be canceled.

• Transfer of Business: In case of business transfer, the old entity may apply for cancellation, and the new entity must register separately.

• Taxable Person Turned Exempt: If a taxable person becomes exclusively engaged in exempt supplies, they can apply for cancellation.

• Death of Sole Proprietor: In the case of a sole proprietor's death, the legal heirs can apply for cancellation.

12. Steps for Cancellation of Registration (Steps - 15 Points):

• Step 1: Online Portal: Access the GST online portal.

• Step 2: Login: Log in using credentials.

• Step 3: Select Services: Choose the "Services" tab.

• Step 4: Application for Cancellation: Click on "Application for Cancellation of Registration."

• Step 5: Fill Form GST REG-16: Complete the form with required details.

• Step 6: Verification: Verify the information provided.

• Step 7: Supporting Documents: Attach necessary documents supporting the cancellation.

• Step 8: Submit Application: Submit the application through the online portal.

• Step 9: ARN Generation: Application Reference Number (ARN) is generated.

• Step 10: Acknowledgment: Acknowledgment of the cancellation application is provided.

• Step 11: GST Officer Verification: The GST officer verifies the application.

• Step 12: Clarifications/Additional Documents: If required, provide any additional clarifications or documents.

• Step 13: Approval or Rejection: The GST officer approves or rejects the cancellation application.

• Step 14: Cancellation Certificate: If approved, a cancellation certificate is issued.

• Step 15: Compliance: Ensure compliance with any remaining obligations and conclude business activities.

13. Revocation of Registration:

• Revocation Application: A registered person, whose registration has been canceled by the proper officer, can apply for revocation.

• Reasons for Cancellation: Revocation is possible if the cancellation was initiated suo-motu by the tax authorities.

• Form GST REG-21: Application for revocation is made through Form GST REG-21.

• Additional Documents: The applicant may need to provide additional documents or clarifications as requested.

• GST Officer's Decision: The GST officer reviews the application and either approves or rejects the revocation.

• Communication: The decision is communicated to the applicant, and if approved, a revocation order is issued.

• Compliance Post-Revocation: The taxpayer must comply with all obligations post-revocation of registration.

14. Steps in Revocation of Registration:

1. Application for Revocation:

   • The registered person whose GST registration has been canceled must initiate the process by applying for revocation.

2. Form GST REG-21:

   • File Form GST REG-21 on the GST portal, providing details about the reasons for seeking revocation.

3. Additional Documents:

   • Submit any additional documents or information requested by the GST authorities to support the revocation application.

4. Acknowledgment:

   • Receive an acknowledgment confirming the submission of the revocation application.

5. GST Officer Review:

   • The GST officer reviews the application, examining the grounds for revocation and the supporting documents.

6. Clarifications or Further Documents:

   • If required, the GST officer may seek clarifications or request further documents from the applicant.

7. Decision by GST Officer:

   • The GST officer evaluates the application and decides whether to approve or reject the revocation.

8. Communication of Decision:

   • The GST officer communicates the decision to the applicant, specifying the approval or rejection of the revocation.

9. Revocation Order:

   • If approved, the GST officer issues a revocation order, reinstating the GST registration of the applicant.

10. Publication of Order:

    • The revocation order may be published on the GST portal or other designated platforms.

11. Compliance Post-Revocation:

    • The taxpayer must comply with all GST obligations post-revocation, including filing returns and paying taxes.

12. Continuation of Business:

    • Resume regular business activities with the reinstated GST registration.

13. Monitoring Period:

    • The GST authorities may monitor the taxpayer's compliance for a specified period post-revocation.

14. Record Keeping:

    • Maintain proper records of the revocation process and comply with any conditions specified in the revocation order.

15. Renewal of Registration:

    • Ensure timely renewal of registration and adhere to ongoing compliance requirements.

15. GST Officer Structure and Their Role:

A. GST Officer Structure:

1. Central Board of Indirect Taxes and Customs (CBIC):

   • Apex body overseeing the administration of GST at the central level.
   • Formulates policies and issues guidelines for GST implementation.

2. Central Goods and Services Tax (CGST) Commissionerates:

   • Operate at the central level to administer CGST and IGST.
   • Led by the Chief Commissioner of CGST.

3. State Goods and Services Tax (SGST) Commissionerates:

   • Operate at the state level to administer SGST.
   • Led by the Commissioner of SGST in each state.

4. Director General of GST Intelligence (DGGI):

   • Deals with matters related to the detection of tax evasion and intelligence gathering.
   • Works under the CBIC and is responsible for anti-profiteering investigations.

5. Directorate General of GST (DGGST):

   • Focuses on ensuring compliance, conducting audits, and addressing tax-related issues.
   • Operates under the CBIC to streamline GST administration.

B. Duties of GST officers

Goods and Services Tax (GST) officers play a crucial role in the administration and enforcement of GST laws. Their duties involve ensuring compliance, preventing tax evasion, and facilitating a smooth functioning of the GST system. Here are some key duties of GST officers:

1. Registration and Verification:

   • Verify applications for GST registration submitted by taxpayers to ensure accuracy and completeness of information.
   • Conduct physical verification of the premises to validate the details provided in the registration application.

2. Return Processing and Scrutiny:

   • Scrutinize GST returns filed by taxpayers to identify any discrepancies or inconsistencies in the reported transactions.
   • Initiate actions, such as audits, based on the findings during scrutiny.

3. Assessment and Audit:

   • Conduct assessments to determine the correctness of the self-assessed tax liability declared by taxpayers.
   • Undertake audits of business operations, including financial records, to verify compliance with GST laws.

4. Refund Processing:

   • Process refund claims submitted by taxpayers, ensuring that the claims adhere to the prescribed guidelines and eligibility criteria.

5. Anti-evasion Measures:

   • Identify and investigate cases of tax evasion, fraud, or any other non-compliance with GST laws.
   • Take appropriate legal actions against individuals or businesses involved in tax evasion.

6. Input Tax Credit Verification:

   • Verify claims for input tax credit to ensure that they are legitimate and comply with GST regulations.
   • Cross-verify the invoices and supporting documents submitted by taxpayers for claiming input tax credit.

7. Appeals and Adjudication:

   • Handle appeals filed by taxpayers against orders or decisions of lower authorities.
   • Adjudicate on matters where there is a dispute between the taxpayer and the tax department.

8. Educational Initiatives:

   • Conduct awareness programs and educational initiatives to help taxpayers understand their obligations and the GST compliance process.

9. Enforcement Activities:

   • Undertake enforcement activities to ensure that businesses comply with the provisions of the GST laws.
   • Monitor and take action against those engaging in tax evasion, smuggling, or other illegal activities.

10. Coordination with Other Authorities:

    • Collaborate and coordinate with other government agencies and law enforcement authorities to address issues related to GST evasion or fraud.

11. Assistance to Taxpayers:

    • Provide assistance and guidance to taxpayers on matters related to GST compliance, procedures, and regulations.

12. Data Analysis and Intelligence:

    • Use data analytics and intelligence tools to identify patterns of non-compliance and potential tax evasion.

13. Legal Proceedings:

    • Initiate legal proceedings, including filing complaints and conducting prosecutions, against offenders of GST laws.

14. Recordkeeping and Documentation:

    • Maintain proper records of assessments, investigations, and enforcement actions taken by the GST department.
    • Document and report findings for future reference and analysis.

15. Policy Feedback:

    • Provide feedback to policymakers on issues faced during the implementation of GST, suggesting improvements and amendments as needed.

C. GST Officer Roles:

1. Chief Commissioner:

   • Head of the CGST Commissionerate at the central level.
   • Responsible for overseeing the administration of CGST and IGST.

2. Commissioner of SGST:

   • Heads the SGST Commissionerate at the state level.
   • Responsible for administering SGST within the state.

3. Assistant/Deputy Commissioner:

   • Handles day-to-day operations, including assessments, audits, and taxpayer assistance.
   • Ensures compliance with GST laws.

4. Superintendent:

   • Assists higher-ranking officers in implementing GST policies.
   • Involved in various operational aspects, including inspections and audits.

5. Inspector:

   • Conducts field-level operations, such as inspections and investigations.
   • Assists in ensuring compliance and detecting tax evasion.

6. GST Practitioner:

   • Authorized to assist taxpayers in GST-related matters.
   • Helps in tasks such as filing returns and representing clients before tax authorities.

7. Other Support Staff:

   • Various other support staff, including clerks and assistants, play roles in administrative and operational tasks.

8. GST Council:

   • Formulates policies and makes key decisions related to GST.
   • Comprises the Union Finance Minister and state finance ministers.

9. National Anti-Profiteering Authority (NAA):

   • Investigates complaints of profiteering post-GST implementation.
   • Ensures that the benefits of reduced tax rates are passed on to consumers.

10. Appellate Authorities:

    • Hear appeals against decisions made by lower-level GST officers.
    • Provide a mechanism for taxpayers to challenge adverse rulings.