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Registration is an important component for migration to GST from existing taxation systems. With GST on the verge of rolling out, it is important to note who has to register, who can register, the type of registration to be obtained, the procedure for registration, the penalties for non-compliance, etc. GST is here for the long-haul and it is essential that a person understands if GST is applicable to them, if they have to register and how to register as detailed below.

Who Has To Register Under GST?

Under the Statutory Provisions listed down in Section 22 of the GST Act, the following persons are liable to register under GST-

1. Every supplier whose aggregate turnover exceeds INR 20 lakh ora supplier operating from Special Category States (North East, Jammu and Kashmir, etc.) as specified in Clause 4(g) of Article 279A of the Constitution whose aggregate turnover exceeds INR 10 lakh
2. A person making supplies from different States in India will be required to register for GST in each State Separately, even when it is supplied from a single entity.
3. A business that has multiple business verticals in the Same State may obtain separate registration for each vertical.
4. A person who has registered under the earlier law (Ex – State VAT, Service Tax or any other registered tax).
5. A Casual Taxable person or non-resident taxable person.
6. If a person who is liable to register for GST and hasn’t done so, then the proper officer can register the person in a prescribed manner.

When GST Registration Is Not Required?

GST does not apply to:

1. A person who supplies goods and/or services which are not liable to tax or wholly exempt from tax under the GST.
2. An agriculturist meaning an individual or HUF that undertakes cultivation of his or her own land by self or labor.
3. A person who may be exempted as per the notification issued by the Central Government.

Advantages Of Registration

Along with GST registration, certain advantages are bestowed on the recipient of GST registration such as:

1. Legally recognized as a supplier of goods and services.
2. Efficient recording of taxes and accounts on goods and services.
3. Pass on credit of the taxes paid on goods and services. The credit of taxes paid on input cannot be claimed without registration.
4. B2B entities would prefer to trade with registered vendors.

Types Of Registration

1.   Compulsory Registration

Compulsory registration under GST is required irrespective of a person crossing the taxable threshold (INR 20 lakhs and INR 10 lakhs, in cases). The list of persons required to be compulsorily registered under GST is given below:

1. Persons making a inter-State supply
2. Casual taxable persons making taxable supply
3. Persons required to pay tax under reverse charge mechanism
4. Electronic Commerce operators as defined under Section 9(5)
5. Persons required to deduct tax at source (TDS) under section 51
6. Agent or person supplying goods and services on behalf of another registered taxable person.
7. Input Service Distributor
8. All Electronic commerce operators such as Amazon, Flipkart, etc
9. Persons supplying online information and database access and retrieval services  from outside India
10. Non-resident taxable persons making taxable supply
11. Any person notified by the Government

2.   Voluntary Registration

Any person can voluntarily opt for GST registration even if Section 22 and 24 does not apply to such an individual. If a person does get registered under GST, then all provision of the GST Act are applicable to such a registered person.

3.   Casual Registration And Non-Resident Taxable Person

A casual taxable person is a person who occasionally carries out business activity in a taxable territory without a fixed place of business. A nonresident taxable person is a person residing outside India making a supply in India but without a fixed place of business or residence in India.

If a person is registered as a casual registered person or as a non-resident taxable person, then the certificate of registration is valid for a period of 90 days or the date specified in the certificate, whichever is earlier. Such persons are required to make an advance deposit of tax and the time period of registration is under 3 months serve as safeguards for temporary business activity.

4.   Composition Dealer

Individual taxpayers and small business with a turnover of less than INR 75 lakhs can opt for the composition dealer scheme under the GST Act. Composite dealers are taxed at a nominal rate of 1% for trader and 2% for manufacturers.

When To Register?

Section 25 of the GST Act provides for the procedure to be followed for GST registration. GST registration for those applicable to register and compulsory registrations under Section 22 and 24 shall  apply within 30 days from the date he becomes liable for registration. A casual taxable person and non-resident taxable person shall obtain registration at least 5 days before the commencement of business.

Penalties

Penalties for not registering under GST, making short payments or not paying tax is 10% of the tax amount due subject to a minimum of INR 10,000. If a taxpayer has evaded paying tax deliberately, then the penalty is at 100% of the tax amount due.

A registration may be canceled, revoked or surrendered as per Section 28, 29 and 30 of the Act.

Your GST Enabler

LegalDesk.com is a legal service provider that provides legal services online and on time. With the advent of GST, we are ready to enable applicants for GST with digital signature services, documentation services, agreements, affidavits, etc. to enable a smooth registration for GST. With everything at the click of a button away, you can register and get your GST Registration Certificate without having to leave your home or office. If you need to register for GST, the next roll out is on the 25th of June, and GST comes into full effect on the 1st of July so log on and register as soon as possible.