Q 1. What is advantage of taking registration in GST?
Ans. Registration under Goods and Service Tax (GST) regime
will confer following advantages to the business:
• Legally recognized as supplier of goods or services.
• Proper accounting of taxes paid on the input goods or
services which can be utilized for payment of GST due on supply of goods or services
or both by the business.
• Legally authorized to collect tax from his purchasers and
pass on the credit of the taxes paid on the goods or services supplied to purchasers
or recipients.
Q 2. Can a person without GST registration claim ITC and
collect tax?
Ans. No. A person without GST registration can neither collect
GST from his customers nor claim any input tax credit of GST paid by him.
Q 3. What will be the effective date of registration?
Ans. Where the application for registration has been submitted
within thirty days from the date on which the person becomes liable to registration,
the effective date of registration shall be date of his liability for
registration.
Where an application for registration has been submitted by
the applicant after thirty days from the date of his becoming liable to
registration, the effective date of registration shall be the date of grant of
registration. In case of suomoto registration, i.e. taking registration voluntarily
while being within the threshold exemption limit for paying tax, the effective
date of registration shall be the date of order of registration.
Q 4. Who are the persons liable to take a Registration under
the Model GST Law?
Ans. Any supplier who carries on any business at any place
in India and whose aggregate turnover exceeds threshold limit as prescribed in
a year is liable to get himself registered. However, certain categories of
persons mentioned in Schedule III of MGL are liable to be registered irrespective
of this threshold. An agriculturist shall not be considered as a taxable person
and shall not be liable to take registration. (As per section 9 (1))
Q 5. What is aggregate turnover?
Ans. As per section 2 (6) of the MGL, aggregate turnover includes
the aggregate value of:
(i)
all taxable and non-taxable supplies,
(ii)
exempt supplies, and
(iii)
exports of goods and/or service of a person
having the same PAN.
The above shall be computed on all India basis and excludes taxes
charged under the CGST Act, SGST Act and the IGST Act. Aggregate turnover does
not include value of supplies on which tax is levied on reverse charge basis,
and value of inward supplies.
Q 6. Which are the cases in which registration is compulsory?
Ans. As per paragraph 5 in Schedule III of MGL, the following
categories of persons shall be required to be registered compulsorily
irrespective of the threshold limit:
a) persons making any inter-State taxable supply;
b) casual taxable persons;
c) persons who are required to pay tax under reverse charge;
d) non-resident taxable persons;
e) persons who are required to deduct tax under section 37;
f) persons who supply goods and/or services on behalf of
other registered taxable persons whether as an agent or otherwise;
g) input service distributor;
h) persons who supply goods and/or services, other than
branded services, through electronic commerce operator;
i) every electronic commerce operator;
j) an aggregator who supplies services under his brand name
or his trade name; and
k) 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.
Q 7. What is the time limit for taking a Registration under
Model GST Law?
Ans. Any person should take a Registration, within thirty
days from the date on which he becomes liable to registration, in such manner
and subject to such conditions as may be prescribed.
Q 8. If a person is operating in different states, with the
same PAN number, whether he can operate with a single Registration?
Ans. No. Every person who is liable to take a Registration will
have to get registered separately for each of the States where he has a
business operation and is liable to pay GST in terms of Sub-section (1) of
Section 19 of Model GST Law.
Q 9. Whether a person having multiple business verticals in
a state can obtain for different registrations?
Ans. Yes. In terms of Sub-Section (2) of Section 19, a
person having multiple business verticals in a State may obtain a separate
registration for each business vertical, subject to such conditions as may be
prescribed.
Q 10. Is there a provision for a person to get himself voluntarily
registered though he may not be liable to pay GST?
Ans. Yes. In terms of Sub-section (3) of Section 19, a
person, though not liable to be registered under Schedule III, may get himself
registered voluntarily, and all provisions of this Act, as are applicable to a
registered taxable person, shall apply to such person.
Q 11. Is possession of a Permanent Account Number (PAN)
mandatory for obtaining a Registration?
Ans. Yes. Every person shall have a Permanent Account Number
issued under the Income Tax Act, 1961 (43 of 1961) in order to be eligible for
grant of registration under Section 19 of the Model GST Law. However as per section
19 (4A) of MGL, PAN is not mandatory for a non-resident taxable person who may
be granted registration on the basis of any other document as may be
prescribed.
Q 12. Whether the Department through the proper officer, can
suo-moto proceed with registration of a person under this Act?
Ans. Yes. In terms of sub-section (5) of Section 19, where a
person who is liable to be registered under this Act fails to obtain
registration, the proper officer may, without prejudice to any action that is,
or may be taken under the MGL, or under any other law for the time being in
force, proceed to register such person in the manner as may be prescribed.
Q 13. Whether the proper Officer can reject an Application
for Registration?
Ans. Yes. In terms of sub-section 7 of MGL, the proper officer
can reject an application for registration after due verification. However, it
is also provided in sub-section 8 of Section 19, the proper officer shall not
reject the application for registration or the Unique Identity Number without
giving a notice to show cause and without giving the person a reasonable
opportunity of being heard.
Q 14. Whether the Registration granted to any person is
permanent?
Ans. Yes, the registration Certificate once granted is permanent
unless surrendered, cancelled, suspended or revoked.
Q 15. Is it necessary for the UN bodies to get registration
under MGL?
Ans. All UN bodies Consulate or Embassy of foreign countries
and any other class of persons so notified would be required to obtain a unique
identification number (UIN) from the GST portal. The structure of the said ID
would be uniform across the States in conformity with GSTIN structure and the
same will be common for the Centre and the States. This UIN will be needed for
claiming refund of taxes paid by them and for any other purpose as may be prescribed
in the GST Rules.
Q 16. What is the responsibility of the taxable person supplying
to UN bodies?
Ans. The taxable supplier supplying to these organizations is
expected to mention the UIN on the invoices and treat such supplies as supplies
to another registered person (B2B) and the invoices of the same will be
uploaded by the supplier.
Q 17. Is it necessary for the Govt. organization to get registration?
Ans. A unique identification number (ID) would be given by
the respective state tax authorities through GST portal to Government
authorities / PSUs not making outwards supplies of GST goods (and thus not
liable to obtain GST registration) but are making inter-state purchases.
Q 18. Who is a Casual Taxable Person?
Ans. Casual Taxable Person has been defined in Section 2
(21) of MGL. It means a person who occasionally undertakes transactions in a
taxable territory where he has no fixed place of business.
Q 19. Who is a Non-resident Taxable Person?
Ans. A taxable person residing outside India and coming to India
to occasionally undertake transaction in the country but has no fixed place of
business in India is a non-resident taxable person in terms of Section 2 (69)
of the MGL.
Q 20. What is the validity period of the Registration certificate
issued to a Casual Taxable Person and non- Resident Taxable person?
Ans. The certificate of registration issued to a “casual 34
taxable person” or a “non-resident taxable person” shall be valid for a period
of ninety days from the effective date of registration. However, the proper
officer, at the request of the said taxable person, may extend the validity of
the aforesaid period of ninety days by a further period not exceeding ninety
days.
Q 21. Is there any Advance tax to be paid by a Casual Taxable
Person and Non-resident Taxable Person at the time of obtaining registration
under this Special Category?
Ans. Yes. While a normal taxable person does not have to make
any deposit of money to obtain registration, a casual taxable person or a
non-resident taxable person shall, at the time of submission of application for
registration under sub-section (1) of section 19, make an advance deposit of tax
in an amount equivalent to the estimated tax liability of such person for the
period for which the registration is sought. If registration is to be extended
beyond the initial period of ninety days, an advance additional amount of tax equivalent
to the estimated tax liability is to be deposited for the period for which the
extension beyond ninety days is being sought.
Q 22. Whether Amendments to the Registration Certificate is
permissible?
Ans. Yes. In terms of Section 20, the proper officer may, on
the basis of such information furnished either by the registrant or as
ascertained by him, approve or reject amendments in the registration
particulars in the manner and within such period as may be prescribed. It is to
be noted that permission of the proper officer for making amendments will be
required for only certain core fields of information, whereas for the other
fields, the registrant can himself carry out the amendments.
Q 23. Whether Cancellation of Registration Certificate is
permissible?
Ans. Yes. Any Registration granted under this Act may be
cancelled by the Proper Officer, in circumstances mentioned in Section 21 of
the MGL. The proper officer may, either on his own motion or on an application
filed, in the prescribed manner, by the registered taxable person or by his
legal heirs, in case of death of such person, cancel the registration, in such
manner and within such period as may be prescribed.
Q 24. Whether cancellation of Registration under CGST Act
means cancellation under SGST Act also?
Ans. Yes. The cancellation of registration under one Act (say
CGST Act) shall be deemed to be a cancellation of registration under the other
Act (i.e. SGST Act). (Section 21 (6))
Q 25. Can the proper Officer Cancel the Registration on his
own?
Ans. Yes, in certain circumstances specified under section 21(2)
of MGL, the proper officer can cancel the registration on his own. Such
circumstances include not filing return for a continuous period of six months
(for a normal taxable 36 person) or three months (for a compounding taxpayer), and
not commencing business within six months from the date of registration.
However, before cancelling the registration, the proper officer has to follow
the principles of natural justice. (Section 21 (4))
Q 26. What happens when the registration is obtained by
means of wilful mis-statement, fraud or suppression of facts?
Ans. In such cases, the registration may be cancelled with
retrospective effect by the proper officer. Section 21(3).
Q 27. Is there an option to take centralized registration
for services under MGL?
Ans. No.
Q 28. If the taxpayer has different business verticals in
one state, will he have to obtain separate registration for each such vertical
in the state?
Ans. No. However the taxpayer has the option to register such
separate business verticals independently in terms of Section 19(2) of MGL.
Q 29. Who is an ISD?
Ans. ISD stands for Input Service Distributor and has been
defined under Section 2 (56) of MGL. It is basically an office meant to receive
tax invoices towards receipt of input services and further distribute the
credit to supplier units proportionately.
Q 30. Will ISD be required to be separately registered other
than the existing taxpayer registration?
Ans. Yes. The ISD registration is for one office of the
taxpayer which will be different from the normal registration.
Q 31. Can a taxpayer have multiple ISDs?
Ans. Yes. Different offices of a taxpayer can apply for ISD registration.
Q 32. What could be the liabilities (in so far as registration
is concerned) on transfer of a business?
Ans. The transferee or the successor shall be liable to be registered
with effect from such transfer or succession and he will have to obtain a fresh
registration with effect from such date. (Schedule III of MGL).
Q 33. Whether all assessees/dealers who are already registered
under existing central excise/service tax/ vat laws will have to obtain fresh
registration?
Ans. No. GSTN shall migrate all such assessees/dealers to
the GSTN network and shall issue GSTIN number and password. They will be asked
to submit all requisite documents and information required for registration in
a prescribed period of time. Failure to do so will result in cancellation of
GSTIN number. The service tax assessees having centralized registration will
have to apply afresh in the respective states wherever they have their
businesses.
Q 34. Whether the job worker will have to be compulsorily
registered?
Ans. No. Section 43A of MGL does not prescribe any such condition.
Q 35. Whether the goods will be permitted to be supplied
from the place of business of a job worker?
Ans. Yes. But only in cases where the job worker is registered
or the principal declares the place of business of the job worker as his
additional place of business.
Q 36. At the time of registration will the assessee have to
declare all his places of business?
Ans. Yes. The principal place of business and place of business
have been separately defined under section 2(78) & 2(75) of MGL
respectively. The taxpayer will have to declare the principal place of business
as well as the details of additional places of business in the registration
form.
Q 37. Is there any system to facilitate smaller dealers or
dealers having no IT infrastructure?
Ans. In order to cater to the needs of taxpayers who are not
IT savvy, following facilities shall be made available:-
Tax Return Preparer (TRP): A taxable person may prepare his
registration application /returns himself or can approach the TRP for assistance.
TRP will prepare the said registration document / return in prescribed format on
the basis of the information furnished to him by the taxable person. The legal
responsibility of the correctness of information contained in the forms
prepared by the TRP will rest with the taxable person only and the TRP shall
not be liable for any errors or incorrect information. Facilitation Centre
(FC): shall be responsible for the digitization and / or uploading of the forms
and documents including summary sheet duly signed by the Authorized Signatory
and given to it by the taxable person. After uploading the data on common
portal using the ID and Password of FC, a print-out of acknowledgement will be taken
and signed by the FC and handed over to the taxable person for his records. The
FC will scan and upload the summary sheet duly signed by the Authorized
Signatory.
Q 38. Is there any facility for digital signature in the GSTN
registration?
Ans. Taxpayers would have the option to sign the submitted
application using valid digital signatures (if the applicant is required to
obtain DSC under any other prevalent law then he will have to submit his
registration application using the same). For those who do not have a digital
signature, alternative mechanisms will be provided in the GST Rules on Registration.
Q 39. What will be the time limit for the decision on the
online application?
Ans. If the information and the uploaded documents are found
in order, the State and the Central authorities shall approve the application
and communicate the approval to the common portal within three common working
days. The portal will then automatically generate the Registration Certificate.
In case no deficiency is communicated to the applicant by both the tax
authorities within three common working days, the registration shall be deemed
to have been granted [section 19(9) of MGL] and the portal will automatically generate
the Registration Certificate.
Q 40. What will be the time of response by the applicant if
any query is raised in the online application?
Ans. If during the process of verification, one of the tax authorities
raises some query or notices some error, the same shall be communicated to the
applicant and to the other tax authority through the GST Common Portal within 3
common working days. The applicant will reply to the query / rectify the error
/ answer the query within a period informed by the concerned tax authorities
(Normally this period would be seven days). On receipt of additional document
or clarification, the relevant tax authority will respond within seven common working
days.
Q 41. What is the process of refusal of registration?
Ans. In case registration is refused, the applicant will be informed
about the reasons for such refusal through a speaking order. The applicant
shall have the right to appeal against the decision of the Authority. As per
sub-section (10) of section 19 of MGL, any rejection of application for registration
by one authority (i.e. under the CGST Act / SGST Act) shall be deemed to be a
rejection of application for registration by the other tax authority (i.e.
under the SGST Act / CGST Act).
Q 42. Will there be any communication related to the
application disposal?
Ans. The applicant shall be informed of the fact of grant or
rejection of his registration application through an e-mail and SMS by the GST
common portal. Jurisdictional details would be intimated to the applicant at
this stage.
Q 43. Can the registration certificate be downloaded from
the GSTN portal?
Ans. In case registration is granted, applicant can download
the Registration Certificate from the GST common portal.