Registration under GST

Registration, Cancellation and Revocation Under GST

Registration under GST

In any tax system registration is the most fundamental requirement for identification of taxpayers ensuring tax compliance in the economy. Registration under GST allows the taxpayer to collect tax on behalf of the government and to avail input tax credit for the taxes on his inward supplies.

Registration on Crossing Turnover Limit

Registration under GST is required to be obtained by every supplier upon crossing the below mentioned threshold:

Particulars Turnover
For supply of goods in all over India except in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telengana, Tripura, Uttrakhanad INR 40 Lacs
For supply of goods in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telengana, Tripura, Uttrakhanad INR 20 Lacs
For supply of Ice cream and other edible ice, whether or not containing cocoa, Pan masala and goods falling under Chapter 24. INR 20 Lacs
For supply of services in all over India except in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telengana, Tripura, Uttrakhanad INR 20 Lacs
For supply of services in the state of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telengana, Tripura, Uttrakhanad INR 20 Lacs

Mandatory Registration irrespective of Turnover

A person is required to obtain registration under the GST Law irrespective of the turnover if, any one of the below conditions is satisfied:

i). persons making any inter-State taxable supply and having aggregate turnover of INR 20 Lacs or above;

ii). casual taxable persons making taxable supply;

iii). persons who are required to pay tax under reverse charge;

iv). person who are required to pay tax under section 9(5);

v). non-resident taxable persons making taxable supply;

vi). persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

vii). persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

viii). Input Service Distributor, whether or not separately registered under this Act;

ix). persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;

x). every electronic commerce operator who is required to collect tax at source under section 52;

xi). every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person;

Registration not Required

The following persons are not required to get registered under the GST Law:

i). any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from GST;

ii). an agriculturist, to the extent of supply of produce out of cultivation of land;

iii). the persons who are only engaged in making supplies of taxable goods or services or both, the total tax (CGST + SGST) on which is liable to be paid on reverse charge basis by the recipient of such goods or services.

Voluntary Registration

The person who is not liable to get registered can also get himself voluntarily registered under the GST Law.  However, after registration, the said person has to comply with all the provisions of the GST Law.

Time limit to Apply for Registration

The application for registration shall be made within 30 days from the date from which liability to register arose. The said time limit is not applicable for registrations taken voluntarily.

Amendment to Registration

Any changes in the information submitted at the time of registration shall be intimated to the GST Department within 15 days of such change.

Cancellation of Registration

The cancellation of registration can be done in two ways:

i). by the person himself; and

ii). by the GST Department

Self Cancellation 

In the following circumstances, the person himself can apply for cancellation of registration:

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

ii). there is any change in the constitution of the business; or

iii). the taxable person is no longer liable to be registered under the GST Law.

Cancellation by the GST Department

The GST Department can cancel the registration of the person in the following circumstances:

i). a registered person has contravened to the provisions of the GST Law; or

ii). a person paying tax under Composition Scheme has not furnished returns for three consecutive tax periods; or

iii). any registered person, other than a person paying tax under Composition Scheme, has not furnished returns for a continuous period of six months; or

iv). any person who has taken voluntary registration but has not commenced business within six months from the date of registration; or

v). registration has been obtained by means of fraud, wilful misstatement or suppression of facts.

Time Limit for filing application for Cancellation

A registered person who feels that he is no more liable to be registered under the GST Law shall file an application for cancellation within 30 days of event warranting cancellation.

Final Return after Cancellation

When the registration of a registered person, other than an Input Service Distributor or a non-resident taxable person or a person paying tax under the composition scheme or TDS/TCS, has been cancelled, the person has to file a final return within three months of the date of cancellation or date of order of cancellation, whichever is later. Details furnished in the final return with respect to inputs held in stock, inputs contained in semi-finished or finished goods held in stock, and capital goods/plant and machinery on which input tax credit is required to be reversed and paid back to Government shall be certified by a Chartered Accountant or a Cost Accountant.

Revocation of Cancellation

A registered person whose registration has been cancelled by the GST Department can apply for revocation of such cancellation within a period of 30 days from the date of the service of the order of cancellation of registration. The application for revocation can be filed online by logging on GST portal.  The said application has to be filed only after filing all the pending returns till the date of cancellation of registration.

Note: A registered person whose registration order has been cancelled by a Cancellation Order on or before 31.03.2019 have been given one time opportunity to apply for revocation of cancellation of registration on or before 22nd July 2019. [Circular No. 99/2019-GST dated 23.04.2019]

Anshul Jain

Anshul Jain is a practicing lawyer and has more than 3 years of professional experience in handling assignments on Tax planning & advisory, Compliance with Corporate Laws, litigation support under GST, Central Excise, Service Tax, Customs and FTP. He has also represented various MNCs, PSUs, Public Limited Companies etc. before Indirect Tax Tribunal and quasi-judicial authorities.

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