GST Registration Process [Section 25 of CGST Act. 2017]

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(A) Where and within What Time to Apply for GST Registration [Section 25(1)]

(1) Person who is liable to be registered under Section 22 or Section 24He shall apply for GST Registration in every such State or Union territory in which he is so liable within 30 days from the date on which he becomes liable to GST Registration, in such manner and subject to such conditions as may be prescribed
(2) A casual taxable person (CTP) or a non-resident taxable person (NRTP).He shall apply for GST Registration at least 5 days prior to the commencement of business

Explanation .—Every person who makes a supply from the territorial waters of India shall obtain GST Registration in the coastal State or Union territory where the nearest point of the appropriate baseline is located.

The application has to be made in Form GST REG-01. The procedure for making application in the above case is given in Rule 8.

After completion of formalities prescribed for making application, an acknowledgement of the receipt of the applicant shall be issued electronically to the applicant in FORM GST REG-02.

Verification of the Application and Approval for GST Registration [Rule 9 of CGST Rules 2017]

(1) Verification of application and approval of grant of GST Registration (Rule 9(1)]:

The application made under Rule shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same arc found to be in order, approve the grant of GST Registration to the applicant within a period of 3 working days from the date of submission of the application.

(2) Notice to be issued electronically in case of any deficiency or for any clarification [Rule 9(2)] :

Where the application submitted under Rule 8 is found to be deficient, either in terms of any information or any document required to be furnished under the said Rule, or where the proper officer requires any clarification with regard to any information provided in the application or documents furnished therewith, he may issue a notice to the applicant electronically in FORM GST REG-03 within a period of 3 working days from the date of submission of the application and the applicant shall furnish such clarification, information or documents electronically, in FORM GST REG-04. within a period of 7 working days from the date of the receipt of such notice.

(3) Approval to be granted on satisfaction of clarification or information, documents furnished (Rule 9(3)]:

Where the proper officer is satisfied with the clarification, information or documents furnished by the applicant. he may approve the grant of GST Registration to the applicant within a period of seven working days from the date of the receipt of such clarification or information or documents.

(4) Rejection of application in certain circumstances [Rule 9(4)]:

Where no reply is furnished by the applicant in response to the notice issued under Rule 9(2) or where the proper officer is not satisfied with the clarification, information or documents furnished, he shall, for reasons to be recorded in writing, reject such application and inform the applicant electronically in FORM GST REG-05.

(5) Deemed approval if no action is taken on application within the requisite time [Rule 9(5)] :

If the proper officer fails to take any action,—

(a) within a period of 3 working days from the date of submission of the application; or

(b) within a period of seven working days from the date of the receipt of the clarification, information or documents furnished by the applicant under Rule 9(2), the application for grant of GST Registration shall be deemed to have been approved.

Effective date of GST Registration [Rule 10(2) & (3)]

Where the application for GST Registration has been submitted within a period of 30 days from the date on which the person becomes liable to GST Registration [Rule 10(2)]The GST Registration shall be effective from the date on which the person becomes liable to GST Registration.
Where an application for GST Registration has been submitted by the applicant after the expiry of 30 days from the date of his becoming liable to GST Registration [Rule 19(3)]The effective date of GST Registration Shall be the date of the grant of GST Registration under Rule 9(1) or Rule 9(3) or Rule 9(5)

(B) Single GST Registration per State except when there is separate business vertical [Section 25(2)]

A person seeking GST Registration under this Act shall be granted a single GST Registration in a State or Union territory.

However, a person having multiple business verticals in a State or Union territory may be granted a separate GST Registration for each business vertical, subject to such conditions as may be prescribed

Separate GST Registration for each business vertical shall be granted provided all separately registered business verticals pay tax on supply of goods/services/both made to another registered business vertical, of such person and issue a tax invoice for such supply. Separate GST Registration application needs to be filed for each business vertical.

1. A business entity having its branches in multiple States will have to take separate State-wise GST Registration for the branches in different States.

2. Further, within a State, if an entity has multiple branches, it would have single GST Registration wherein it can declare one place as principal place of business (PPoB) and other branches as additional place(s) of business (APoB). However, a business entity having separate business verticals in a State may obtain separate GST Registration for each of its business verticals otherwise a given PAN based legal entity would have one GST Registration number – Goods and Services Tax identification Number (GSTIN) per State.

3. Meaning of “Business vertical” [Section 2(18)] : ‘Business vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of the other business verticals.

A registered person eligible to obtain separate GST Registration for business verticals may submit a separate application in FORM GST REG-01 in respect of each such vertical.

(C) Voluntary GST Registration [Section 25(3)]

A person, though not liable to be registered under Section 22 or Section 24 may get himself registered voluntarily, and all provisions of this Act, as arc applicable to a registered person. shall apply to such person.

However, once a person obtains voluntary GST Registration, he has to pay tax even though his aggregate turnover does not exceed Rs. 40 lakh or Rs. 20 lakh. as the case may be.

(D) ‘Distinct  Person’ / ‘Establishments of Distinct Persons’ [Section 25(4)& (5)]

A person who has obtained or is required to obtain more than one GST Registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such GST Registration, be treated as distinct persons for the purposes of this Act. [Section 25(4)]

Where a person who has obtained or is required to obtain GST Registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act. [Section 25(5)]

(E) Requirement of PAN for GST Registration [Section 25(6)]

Every person shall have a Permanent Account Number issued under the Income- tax Act, 1961 in order to be eligible for grant of GST Registration.

However, a person required to deduct tax under Section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of GST Registration.

PAN not necessary for non-resident [Section 25(7)] :

Notwithstanding anything contained in Section 25(6), a non-resident taxable person may be granted GST Registration under Section 25(1) on the basis of such other documents as may be prescribed.

(F) GST Registration may be granted by the proper officer Suo-motu [Section 25(8)]

Where a person who is liable to be registered under this Act fails to obtain GST Registration, the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for the time being in force, proceed to register such person in such manner as may be prescribed.

(G) Unique Identity Number (UIN) in certain cases [Section 25(9)]

Notwithstanding anything contained in Section 25(1),—

(a) any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries; and

(b) any other person or class of persons. as may be notified by the Commissioner.—

— shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services or both received by them, as may be prescribed.

Such person shall file an application in a different prescribed form. UIN shall be assigned and GST Registration certificate shall be issued within 3 working days from the date of submission of application if no deficiency has been communicated to the applicant within that period.

The GST Registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed. [Section 25(10)]

1. Person covered under Section 25(9) are not required to apply for GST Registration under Section 25(l). They are supposed to apply for Unique Identity Number (UIN) only.

2. UIN is needed for claiming refund of taxes paid on notified supplies of goods and/or services received by the above persons, and for such other purpose as may be notified.

3. The UIN granted to a person under clause Section 25(9)(a) shall be applicable to the territory of India.

(H) Issue of certificate of GST Registration [Section 25(11)]:

A certificate of GST Registration shall be issued in such form i.e. FORM GST REG-06 and with effect from such date as may be prescribed.

Effective date of GST Registration [Rule 10(2) & (3)]

Where the application for GST Registration has been submitted within a period of 30 days from the date on which the person becomes liable to GST Registration [Rule 10(2)]The GST Registration shall be effective from the date on which the person becomes liable to GST Registration.
Where an application for GST Registration has been submitted by the applicant after the expiry of 30 days from the date of his becoming liable to GST Registration [Rule 10(3)]The effective date of GST Registration shall be the date of the grant of GST Registration under Rule 9(1) or Rule 9(3) or Rule 9(5) (for Rule 9 see above)

(I) Deemed grant of GST Registration Certificate [Section 25(12)]:

A GST Registration or a Unique Identity Number shall be deemed to have been granted after the expiry of the period prescribed under Section 25(10) i.e. 3 working days from the date of submission of application, if no deficiency has been communicated to the applicant within that period.

GST Registration Certificate in case of Deemed Approval under [Rule 9(5) [Rule 10(5)]:

Where the GST Registration has been granted under Rule 9(5) (for Rule 9(5) see above), the applicant shall be communicated the GST Registration number, and the certificate of GST Registration under Rule 10(1), duly signed or verified through electronic verification code, shall be made available to him on the common portal, within a period of 3 days after the expiry of the period specified in Rule 9(5).

For approval of GST Registration and issue of GST Registration certificate and effective date of GST Registration. See Rules 9 and 10 above.

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