Goods and Service Tax Act 2017 201

Registration under GST

Registration of any business entity under the GST Law implies
obtaining a unique number from the concerned tax authorities for the
purpose of collecting tax on behalf of the government and to avail Input
Tax Credit for the taxes on his inward supplies. Section 22 of Central
Goods & Services Tax Act, 2017 mandates that every person who has an
year,
aggregate turnover of more than Rs 20 Lacs in the relevant financial
for
is liable to be registered under the Act. It must be noted though that
Jammu & Kashmir & North-East states, the threshold is Rs 10 Lacs.
North-eastern states would include Arunachal Pradesh, Assam,
along with
Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, and Tripurahas
hilly areas of Himachal Pradesh and Uttarakhand. If a person place of
business in various states, and one of the branches is in any of the states
mentioned above (Jamnu & Kashmir/North Eastern), then the threshoid
limit for GST registration would be reduced to Rs 10 Lacs.
Aggregate Turnover under the Act includes all taxable supplies,
doesn't
exempt supplies, zero-rated supplies, inter-state supplies, but
include the inward taxable supplies under the Reverse Charge Mechanism.
If the person has taxable and exempt supplies as a part of the turnover,
be added
example, machine oil and petrol, the turnover from both would
it does,
to determine whether the aggregate exceeds the threshold, and if by
then registration become mandatory for such supplier. The supplies
the aggregate
the agents on behalf of the principal would be included in mandatory
turnover of both, the principal and the agent. Registration is
supply has been made.
at every place of business from whereina taxable
Number (PAN)
The tègistration under GST is Permanent Account
based and state-specific. GST Identification Number (GSTIN) is a 15-digit
GSTIN is made
number and a certificate of registration, incorporating the
available to the applicant upon registration.
the state code
The first two digits of this number will represent
the taxpayer
The next ten digits will be the PAN number of
on the number of
The thirteenth digit will be assigned based
registrations within a state
The fourteenth digit will be Z by default
code
The last digit will be for check
which means that there
Registration under GST is not tax specific, SGST/UTGST,IGST and
the taxes i.e. CGST,
is single registration for all legal
given PAN based entity would have one GSTIN per State,
cesses. A will
having its branches in multiple States
that means a business entity registration for the branches in different
have to take separate State wise would have
But within a State, an entity with different branches
States.
declare one place as principal place of
single registration wherein it can However, a
branches as additional place of business.
other
business and
business verticals (as defined in section 2
business entity having separate may obtain separate registratton
lor
the CGST Act, 2017) in a state
(18) of
each of its business verticals.
202 Taxation Law

Persons liable for Registration [Section 22]

Section 22 and 24 list the persons liable to get registered under tha
GST Law.
(1) Every supplier shall be liable to be
the State or Union territory, other than special registered under this Act in
he makes a taxable supply of goods or services category States, from where
or both, if his
turnover in a financial year exceeds twenty lakh rupees: aggregate
Provided that where such person makes taxable
or services or both from any of the
special
supplies of goods
liable to be registered if his aggregate category States, he shall be
ten lakh rupees. turnover in a financial year exceeds
(2) Every person who, on the day
appointed day, is registered or holds a licence immediately preceding the
under an existing law, shall
be liable to be registered under this
Act with effect from the
(3) Where a business carried on appointed day.
this Act is transferred, whether on by a taxable person registered under
another person as a going concern, account
the
of succession or
otherwise, to
case may be, shall be liable to be transferee or the successor, as
such transfer or succession. registered with effect from the datetheof
(4)
Notwithstanding
in acase of transfer anything contained in sub-sections (1) and (3),
pursuant to
sanction of a schemne or an arrangement for
amalgamation or, as the case may be,
demerger of two or more
pursuantto an order of a High Tribunal or otherwise, thecompanies
shall be liable to be registered,Court,
with effect from the date on transferee
Registrar of Companies issues a certificate of
which the
such order of thè High Court or
Tribunal. incorporation giving effect to
As per GST Law, the
following categories of persons shall be
required to be registered compulsorily
irrespective of the
a persons
making any inter-State taxable supplythreshold limit:
b) casual taxable persons
C persons who are required to pay tax under
d reverse charge
non-resident taxable persons
e) persons who are required to deduct tax under section 37
) persons who supply goods and/or services on behalf of
registered taxable persons whether as an agent or other
8) input service distributor otherwise
h) persons who supply goods and/òr services, other than
services, through electronic commerce operator branded
every electronic commerce operator
an aggregator who supplies
his trade name services under his brand name or
k) such other person or class of
persons as may be
by the Central
Government or a State Government notified
recommendations of the Council. on the
 Goods and Service Tax Act 2017 203
Persons not liable to reglster
Section 23 of the Central[Section
with the Goods
23]
and Service Tax Act, 2017 deals
Section 23provisions of
(1) states thatpersons who are not liable for GST registration.
services or both that are notpersons
liable
who are engaged in supplying goods or
to
supplying of goods or services or bothbethat tax or persons who are
are wholly exemptedengagea in
then, such persons are not
reguired to obtain GST registration. from tax,
Further, section 23 (2) empowers the
category of persons that are exempted from government to notify a speciic
List of Persons
Exempted From Obtaining obtaining GST registration.
Following GST Registration -
and Service categories
Tax (GST)
of person are
exempted from obtaining Goods
1. The person registration
engaged exclusively in providing
supplying goods or services or both that are not business of
or are wholly
exempted from tax
liable to tax
Service Tax Act, 2017 or under under Central Goods and
Tax Act, 2017. Integrated Goods and Services
2. An
agriculturist. However, the exemption is only to the extent
of supply of produce out of cultivation of land.
3. Individual
4. Individual
advocates, including senior advocates.
sponsorship service providers, including players.
5. The person engaged in
making
services and having an aggregateinter-state
turnover
supplies of taxable
of less than INR 20
Lakhs, INR 10 Lakhs in case of special
category states, in a
financial year (as per nótification no. 10/2017-
dated 13th October 2017). Integrated tax
6. The person engaged in the supply of
services and
aggregate turnover of less than INR 20 Lakhs, INR having an
10 Lakhs
in case of special category states, in a
financial year
notification no. 65/2017-Central Tax dated 15th November(as per
2017).
However above exemption is not available to the person who is
engaged in supplies, specified under sub-section (5) of section
9of the Act, through an e-commerce operator who is
required
to collect tax at source (TCS) under section 52 of the Act.
7. The person engaged in supplying taxable goods or services or
both and the total tax on such supplies is required to be paid
by the recipient of goods or services or both under reverse
charge mechanism (as per notification no. 5/2017 - Central
Tax dated 19th June 2017 effective from 22nd June 2017).

Meaning of associated enterprise (Section 92A)

(1)For the purposes of this section and sections 92,92B, 92C, 92D,
92E and 92F, "associated enterprise", in relation to another enterprise,
means an enterprise