GST Scanner by DG Sir
GST Scanner by DG Sir
GST Scanner by DG Sir
IGST Sec 20 Application of provisions of CGST Act Rule 2 Application of provisions of CGST Rules
- All above sections have been made - Related rules have been made
applicable applicable
Relevant Definitions
CGST 2 (85) Place of business 2 (5) Agent
2 (89) Principal Place of business 2 (7) Agriculturist
2 (94) Registered person 2 (20) Casual Taxable person
2 (107) Taxable person 2 (77) Non-resident taxable person
2
3
Sec 22 Person liable for registration Sec 23 Person not liable for registration
22(1) Supplier of taxable supply with 23(1) Supplier exclusively engaged in supply that
‘ATO (FY) > 20 lakhs (10 lakhs) are
- Not liable to tax; or
- Wholly exempt
under CGST Act or IGST Act
22(2) Person already registered under
existing law an AGRICULTURIST, to the extent of supply of
Mandatory migration under GST produce out of cultivation of land.
Law
22(3) Transferee / Successor of business 23(2) NOTIFIED CATEGORIES **
(acquisition/ succession of business
.
Notes Notes
If such person failed to take mandatory registration, Such person may opt for voluntarily registration. If so opted for, then
then he shall be liable to penalty in terms of Sec 122(1)(xi) of all provisions as applicable to registered person shall be applicable. [Sec
CGST Act. 25(3)]
Further, PO is empowered to proceed to register such person
(in prescribed manner) – [Sec 25(8)]
.
4
5
Registration Procedure as per Rules
6
7
Registration Cancellation
Cancellation applied for by RP Cancellation applied for by RP PO has reason to believe that
. registration shall be cancelled
Or Cancellation by PO
Application FORM GST REG-16
SCN Whenever he has
• Discontinuation of business Time limit 30 days of reason to believe that
• Transfer of business occurrence of registration shall be
• Change in constitution of the business event* cancelled -- [FORM
• Taxable person (other than who has taken voluntarily registration) GST REG-17]
PO considers registration shall be
who is no longer liable to be registered u/Sec 22 or Sec 24 (e.g., cancelled Reply by RP Within 7 working days
Registered person whose goods/services have now become wholly --- [FORM GST REG-18]
exempt under GST) Cancellation Within 30 days of
Order date of submission of Cancellation Within 30 days of reply
application Order of SCN -- [FORM GST
-- [FORM GST REG- REG-19]
19] .
Cancellation of registration Discharge following liabilities as provided for in Sec 29(5) of CGST Act, 2017
Input in stock Higher of following : - (a) related ITC availed; (b) Output tax payable on inputs
CG in stock Higher of following : - (a) Reduced ITC (ITC availed* Bal life in complete months / 60 months); (b) Output tax payable on CG
.
8
[Expected]
1. What are the advantages of taking registration in GST?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Registration under Goods and Services Tax (GST) regime will confer following basis advantages to the business:
Right to collect tax from recipient of supply: Registration entitles supplier to collect tax from his purchasers. [A
person who is not registered person shall not collect in respect of any supply of goods and/or services any amount by way
of tax – Sec 32 of CGST Act]
Right to claim ITC: Registration entitled a person to claim ITC. Unregistered person is not entitled to claim ITC [Sec 16
of CGST Act].
2. Can a person without GST registration claim ITC and collect tax?
(ICAI Final Study Material) (CBEC FAQ)
Ans. No, a person without GST registration can neither collect GST from his customers nor can claim any input tax credit of GST paid
by him.
Note:
1. Only registered supplier can collect GST – Sec 32 of CGST Act
2. Only registered person can avail ITC – Sec 16 of CGST Act
.
3. LMN & Co, an unregistered supplier under GST wants to claim input tax credit and collect tax. Can it do so?
(ICAI – Test Paper for May, 2018)
Ans. No, LMN & Co. cannot claim input tax credit and collect tax. A person without GST registration can neither collect GST from his
customers nor can claim any input tax credit of GST paid by him. However, if LMN & Co. nevertheless wants to claim input tax
credit and collect tax, it can apply for voluntary registration under section 25(3) of CGST Act, 2017.
On the other hand, as per Section 23 of the Act, following persons are not required to take registration:
1) an agriculturist in respect of supply of his agricultural produce;
2) any person exclusively making supply of non-taxable goods and/or services (Nil Rated or Wholly Exempted);
3) Notified categories of persons*
Author Note:
• Above exemption has been issued under Central Tax.
• Though no notification has been issued under Integrated tax, still it is practically considered that even inter-
state supplier is not required to take registration if his supplies are under RCM.
[Supplier of SERVICES]
1. Supplier making inter-state supplies of ‘services’ if ATO does not exceed Rs 20 lakhs / 10 lakhs. [N/N 10/2017-IT]
2. Supplier making intra-state supplies of ‘services’ through ECO (who is required to collect TCS) if ATO does not exceed
Rs 20 Lakhs / 10 Lakhs [N/N 65/2017-CT]
[Supplier of GOODS]
Exemption to inter-state supplier of certain goods
N/N 3/2018 -IT -dated 22nd Oct, 2018 [Sec 20 of IGST Act read with Sec 23(2) of CGST Act, 2017]
New Notification specifies two categories of inter-state suppliers of certain goods who shall be exempt from taking
compulsory registration
10
Category-1 Inter-State supplies of handicraft goods as defined in the 39 Entries Suppliers
Explanation to N/N 21/2018-CT(Rate) dated 26th July, 2018 (the old are making inter-
notification) covered in state supplies
N/N 21/2018-CT (rate)- = An exemption notification issued u/Sec N/N of such goods
11 of CGST Act. It has granted partial exemption to certain 21/2018 – shall be
handicraft goods. CT (Rate) eligible for
“Handicraft Goods” means Goods predominantly made by hand even exemption.
though some tools or machinery may also have been used in the
process;
such goods are graced with visual appeal in the nature of
ornamentation or in-lay work or some similar work of a substantial
nature;
such goods possess distinctive features, which can be aesthetic,
artistic, ethnic or culturally attached and are amply different from
mechanically produced goods of similar utility.
.
Category-2 Inter-State supplies of the products mentioned in N/N 3/2018 - 28 Entries Suppliers
IT(Rate) - dated 22nd Oct, 2018 (the new notification) when made are making inter-
by the craftsman predominantly by hand even though some covered in state supplies
machinery may also be used in the process N/N of such goods
3/2018 –IT shall be
eligible for
exemption.
Category-2 Inter-State supplies of the products mentioned in N/N 28 Entries Suppliers making
3/2018 -IT(Rate) - dated 22nd Oct, 2018 (the new are covered inter-state
notification) when made by the craftsman predominantly in N/N supplies of such
by hand even though some machinery may also be used in 56/2018 –CT goods shall be
the process eligible for
exemption.
.
11
[Expected]
5. Discuss the registration requirement u/Sec 22(1) of CGST Act?
(CBEC FAQ)
Ans. As per Section 22 of the CGST/SGST Act 2017, every supplier who makes a taxable supply i.e. supply of goods and / or services
which are leviable to tax under GST law, and his aggregate turnover in a financial year exceeds the threshold limit of Rs 20
lakhs shall be liable to register himself in the State or Union territory from where he makes the taxable supply.
In case of eleven special category states (as mentioned in Article.279A(4)(g) of the Constitution of India), excluding State of J&K,
this threshold limit for registration liability is ten lakh rupees.
Note:
1. INTRA-STATE SUPPLY (of goods/ services)
.
Case-e) Product X – GST@Nil Rs 18,00,000 Rs 36,00,000 Required (on crossing threshold of 20 lakhs) Sec 22
Product Y – GST@5% Rs 18,00,000
[Expected]
A opened shop in Delhi in July, 2018. A is making intra-state supply of Product A (GST Exempt)
TO ATO Registration Remarks
July 2018 Non-taxable goods Rs 3,00,000 Rs 3,00,000 Not required Sec 23(1)(a)
Aug, 2018 Non-taxable goods Rs 4,00,000 Rs 7,00,000 Not required Sec 23(1)(a)
Sep, 2018 Non-taxable goods Rs 7,00,000 Rs 14,00,000 Not required Sec 23(1)(a)
Oct, 2018 Non-taxable goods Rs 8,00,000 Rs 22,00,000 Not required Sec 23(1)(a)
Nov 2018 Exemption withdrawn Required Sec 22
Taxable goods Rs 2,00,000 Rs 24,00,000
.
3. Shop-1 (Rajasthan) Product X – GST@Nil Rs 40,00,000 Rs 58,00,000 Not Required Sec 23(1)(a)
(on crossing threshold of 20 lakhs)
Shop-2 (Gujarat) Product Y – GST@5% Rs 18,00,000 Required Sec 22
(on crossing threshold of 20 lakhs)
2. INTER-STATE SUPPLY
Supply of Goods: Supply from single place of business: .
Case-e) Service X – Rs 18,00,000 Rs 36,00,000 Required (on crossing threshold of 20 lakhs) Sec 23(2) + Sec 24
GST@Nil Rs 18,00,000
.
Service Y – GST@5%
.
Note:
1. Supplies under RCM:
Outward supply under RCM: Includible in ATO.
.
Tax under other law (like Excise on tobacco products): All other taxes shall be included in computation of ATO.
3. Aggregate turnover will be ‘aggregate of value as per Sec 15’:
ATO = Aggregate of ‘Value (including non-GST taxes), but (excluding GST)
.
13
7. 'A' is a dealer in Computers and Computer parts having turnover of Rs. 8 lakh in a year. Does 'A' have to register
under GST?
(Press release)
Ans. Every supplier located in a State or Union territory, whose "aggregate turnover" in a financial year exceeds twenty lakh rupees,
is liable to be registered under GST. This limit of turnover for a special category State is ten lakh rupees. 'A', whose aggregate
turnover is only Rs. 8 lakh in a year, is therefore not liable to registration.
* Presumed that A is making intra-state supplies only and is located in state/UT other than Special Category States.
8. Mr A has a sole proprietorship firm and acts as a dealer of Khaitan in Delhi. Will he require registration under
GST laws if his sales are intra-state sales and not exceeding the threshold limit provided in Sec 22 of CGST Act?
(Press release)
Ans. Every supplier located in a State or Union territory, whose "aggregate turnover" in a financial year exceeds twenty lakh rupees,
is liable to be registered under GST. This limit of turnover for Delhi State* is twenty lakh rupees. 'A', whose aggregate turnover
is below Rs 20 lakhs in a year shall not be liable to registration.
Note:
1. Delhi is UT with State legislature. For GST purposes, it is treated as ‘State’.
2. Intra-state supplies in Delhi attracts CGST and Delhi GST.
9. X is a salaried employee (salary income being Rs. 90 lakh). Besides, he owns a residential property which is let
out for residential purposes (annual rent being Rs. 40 lakh).
In this case, aggregate turnover is Rs. 40 lakh*, rent received from residential property renting.
Further, since service of renting of residential property for residential purpose is exempt supply, X shall be exempt from
registration requirement as Sec 23 of CGST Act provides for exemption from registration where a person is exclusively engaged
in making exempt supplies.
Since X is not making supply of any taxable services**, he is not liable for registration.
Note:
1. Services rendered in course of employment are not ‘supply’. (being out of scope of supply – Sec 7(2) of CGST Act)
2. ATO is aggregate of ‘supplies’. Thus, salary income shall not form part of ATO.
** Taxable goods / services = Goods/services which are liable for payment of GST
Sale of Product A (GST Exempt) = Taxable Supply (as covers under GST law), but it is not a supply of taxable goods (as
goods are not liable to actual payment of GST)
[Expected]
10. SNP Pvt. Ltd., Coimbatore exclusively manufactures and sells product ‘Z’ which is exempt from GST vide
notifications issued under relevant GST legislations. The company sells ‘Z’ only within Tamil Nadu. The turnover
of the company in the PY was Rs. 55 lakh. The company expects the sales to grow by 20% in the current year.
Owing to the growing demand for the product, the company decided to increase its production capacity and
purchased additional machinery for manufacturing ‘Z’ on 01.07.20XX. The purchase price of the capital goods
was Rs. 20 lakh exclusive of GST @ 18%.
However, effective from 01.11.20XX, exemption available on ‘Z’ was withdrawn by the CG and GST @ 12% was
imposed thereon. The turnover of the company for the half year ended on 30.09.20XX was Rs. 40 lakh.
The Board of Directors of SNP Pvt. Ltd. wants to know whether they have to register under GST?
(CA Final - RTP May 2018)
Ans. In the given case, SNP Pvt. Ltd. was supplying non-taxable goods (exempt goods) till 31st Oct. From 1st Nov,
20XX, his goods became taxable (non-exempt).
Till the time his goods were non-taxable (exempt from tax), he was not liable for registration in terms of Sec 23(1)(a) of
CGST Act as it exempts person from registration if he is supplying goods which are exempt from tax. But once exemption is
withdrawn, such person shall not be entitled to benefit of Sec 23(1)(a). Now, he being intra-state supplier shall consider his
registration requirement in terms of Sec 22 of CGST Act.
In terms of Section 22(1) of the CGST Act, 2017, a supplier in non-special category states, is liable for registration in the
State if his aggregate turnover in a FY exceeds Rs. 20,00,000.
14
The ‘aggregate turnover’ has been defined u/Sec 2(6) of CGST Act to include, inter-alia (among other things), value of exempt
supplies. Therefore, as on date its product has become non-exempt, its ATO was 40 Lakhs. Therefore, the company needs to
take registration. Once so liable, it shall apply for registration within 30 days.
11. Mr. J has been involved in supplying taxable material in J&K*. In FY 20XX- 20XX, his turnover in the month of
Nov 20XX exceeded Rs. 12 lacs. Whether Mr. J is required to register under GST law?
(Study material- Adapted)
Ans. Mr J is supplying taxable material in J&K (i.e., place of supply is J&K). Presuming that Mr J is also located in J&K,
such supplies are ‘intra-state supply’ (as supplier of goods and place of supply both begin in same state- J&K).
Such person shall be liable for registration as per provisions of Sec 22 which mandates registration if his ATO
exceeds the specified limit. Since supplier is located in J&K, the applicable threshold for registration is 20 lakhs. Since his
ATO has not exceeded Rs. 20 lakhs, Mr. J is not required to register under GST law.
12. Mr C has agricultural farm in his hometown in Haryana and is also a trader of hosiery in Haryana. His sales from
sale of farm product (exempt supply) and hosiery trading (chargeable to GST) exceed Rs 20 lakhs. Does he
require registration under GST law?
Ans. Mr C is agriculturist but he is not exclusively engaged in supply of agricultural produce. Thus, he is not exempt from registration
u/Sec 23 of CGST Act*.
All his supplies are intra-state supplies and thus, Sec 22 of CGST Act governs his registration requirement. Since, his ATO
in the FY is exceeding Rs 20 lakhs (the threshold as applicable to him), he shall be required to take registration.
Note:
1. Sec 23 exempts ‘agriculturist’ from registration requirement to the extent of supply of produce arising out of cultivation of land.
2. Thus, trading activity of Mr C makes him liable to registration.
3. ATO includes ‘supply chargeable to tax (hosiery trading)’ as well as ‘supply not chargeable to tax (farm produce)’
[Imp.]
13. Which are the cases in which registration is compulsory? (Sec 24)
(CBEC FAQ)
Ans. The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:
i) persons making any inter-State taxable supply,
Exception:
1. persons making inter-state supply of certain handicraft goods and craftmans goods if his ATO is upto Rs 20 lakhs (Rs
10 lakhs in special category states other that J&K)
2. inter-state supply of services if his ATO is upto Rs 20 lakhs (Rs 10 lakhs in special category states other that J&K);
iv) persons who are required to pay tax* under reverse charge;
v) persons who are required to pay tax under section 9(5); (i.e., Third party ECO: liable to pay GST in case of 3
notified services)
vi) persons who supply goods/services, other than supplies specified under Section 9(5), through such e-commerce
operator who is required to collect tax at source under section 52; (i.e., Third party ECO (receiving payment from
receiver and handing over to connected supplier): in between, ECO is liable to pay TCS@1%)
Exception: Supplier of services supplying through ECO if his ATO is upto Rs 20 lakhs (Rs 10 lakhs in special category states
other that J&K);
vii) persons who are required to deduct tax under section 51 (whether or not separately registered under the Act);
viii) every electronic commerce operator; (i.e., Supplier who is also ECO in himself – liable to pay GST as supplier)
15
ix) persons who make taxable supply of goods or services on behalf of other taxable persons whether as an
agent or otherwise; (i.e., Agent = Agent who make further supply by raising invoice in his own name = Supplier in
itself)
x) Input service distributor (whether or not separately registered under the Act);
xi) every person supplying online information and data base access or retrieval services from a place outside
India to a person in India, other than a registered person; (i.e., Overseas supplier of OIDAR services to unregistered
Indian person)
14. Mr. Gold runs a retail shop for handmade jewellery and is registered in Chennai. Mr. Gold is planning to sell the
jewellery at an exhibition in Mumbai, to be held from 1st January 2018 to 10th January 2018. Advise time with
regard to registration and payment of GST.
(ICMA Study material)
Ans. Mr. Gold should apply for registration as a casual taxable person. He shall apply atleast 5 days prior to the date of
commencement. Mr. Gold should also make an advance deposit of the estimated tax liability for the period from 1st January
2018 to 10th January 2018.
Casual TP = Advance Deposit of tax + Registration + Supply Business for maximum period of 90 days (+ 90 days)
Situation Casual TP or Remarks
Not
Mr. A = runs a retail shop for jewellery (GST Casual TP in Separate Reg - Compulsory Registration u/Sec 24
registered as normal TP in Delhi) Maharashtra Allotment Letter/ Consent letter granting permission to use
Planning to participate in Jewellery Exhibition (30 exhibition premises = Proof of place of business
days) in Maharashtra. He intends to sell jewellery .
from Jewellery Exhibition in Maharashtra. Registration shall be taken before making any taxable supplies
from exhibition
Application for Registration [Form GST REG-01]
ARN number (Temporary Reference No.)
Delhi Maha.
Deposit tax liability in advance (Estimated Net tax
Normal Casual liability = (Gross GST liability - ITC) - Circular No. 71/
TP TP 45/ 2018-GST (26th Oct, 2018)
Acknowledgment of Reg Application [Form GST REG-02]
Verification of Registration Application by PO
Grant of Registration [RC in From GST REG-06]
Post registration, effect taxable supply
RC becomes invalid on expiry of registration period (30
days in this case)
Effect of invalidity of registration
• Now, he becomes unregistered supplier in Maha.
• Shall not make any taxable supply (else will attract
penal consequences)
Mr. A = runs a retail shop for Paintings (GST Not a Casual He is not creating any place of business in Maharashtra.
registered as normal TP in Delhi) TP in No Need of taking any registration of Casual TP.
Planning to participate in Painting Exhibition (30 Maharashtra
Paintings can be send to art exhibition (and received back)
days) in Maharashtra. He intends to send paintings under cover of Delivery Challan [Rule 55]
only for exhibition/display purposes – not for making
sales therefrom – Art gallery will exhibit paintings
.
Delhi Maha.
Normal Casual TP
TP
16
.
..
15. M/s X Ltd is an advertising company located in Delhi and is registered as a normal taxable person there. Now,
they have secured an assignment to manage digital marketing for the Some Festival, which will take place in
Mumbai, Maharashtra. This will require M/s X Ltd. to place some resources in Mumbai until the festival is over.
Advise M/s X Ltd. to obtain for separate registration in the State of Maharashtra.
(ICMA Study material)
Ans. In this case, since M/s X Ltd does not have too many assignments coming from Mumbai, they can register as a Casual Taxable
Person in Maharashtra for 90 days.
[Imp.]
16. State which of the following suppliers are liable to be registered:
(a) Agent supplying goods* on behalf of some other taxable person and its aggregate turnover does not exceed
Rs. 20 lakh during the financial year.
(b) An agriculturist who is only engaged in supply of produce out of cultivation of land.
(ICAI Final Study Material)
Ans. (a) Section 22 stipulates that every supplier becomes liable to registration in the State or UT if his aggregate turnover exceeds
Rs. 20 lakh in a State/UT [Rs. 10 lakh in Special Category States, except J&K] in a financial year. However, as per section
24, a person supplying goods/services or both on behalf of other taxable persons whether as an agent or not is
liable to be compulsorily registered even if its aggregate turnover does not exceed Rs. 20 lakh during the financial year.
Note:
Registration of Agent – whether under section 22 or Sec 24.
1. Agent of TAXABLE PERSON (GST registered entity) – Such agent is required to take Compulsory registration u/Sec
24 (threshold limit is irrelevant for agent). The compulsory registration has been prescribed to make sure that supply
chain from principal to agent and from agent to buyer remains interlinked with continued flow of ITC.
2. Agent of NON- TAXABLE PERSON (non-GST registered entity) – Such agent is required to take registration u/Sec 22
(i.e., agent required to take registration only if his ATO exceeds the threshold limit).
• Agent ATO may exceed as agent may be working for many principals.
17
(b) As per section 23, an agriculturist who is only engaged in supply of produce out of cultivation of land is not required to
obtain registration.
[Expected]
17. Mr. C of Calicut is trading on his own goods and also acting as an agent of Mr. B of Bengaluru. Mr. C turnover in
the financial year 20XX-X1 is Rs. 12 lakhs in his own account and Rs. 9 lakhs on behalf of principal. Whether Mr.
C is liable to take registration under GST law.
(Study material)
Ans. As per explanation 1 of Sec. 22(1) in computing the total turnover, both the value of supply on his own account that is Rs. 12
lakhs and on behalf of principal Rs. 9 lakhs will be aggregated. Hence, the aggregate turnover will be Rs. 21 lakhs. Mr. C is
liable to take registration under the GST law.
Note:
* Presumed, his supplies are in nature of intra-state.
* Mr B (principal) is non-taxable person (an entity not liable to take GST registration).
[Imp]
18. Pure Oils, Delhi has started the supply of machine oils and high speed diesel in the month of April, 20XX. The
following details have been furnished by it for the said month: -
Sl. Particulars Rs.*
No.
(i) Supply of machine oils in Delhi 2,00,000
(ii) Supply of high speed diesel in Delhi 4,00,000
(iii) Supply made through Fortis Lubricants - an agent of Pure Oils in Delhi 3,75,000
(iv) Supply made by Pure Oils from its branch located in Punjab 1,80,000
*excluding GST
Determine whether Pure Oils is liable for registration.
Will your answer change, if Pure Oils has a branch in Himachal Pradesh from where he supplies machine oils
amounting to Rs. 2,50,000?
(CA Inter - RTP May 2018)
Ans. Computation of aggregate turnover
Computation of aggregate turnover for the month of April, 20XX as per provisions of GST Law (Sec 2(6) of CGST Act):
Particulars Amount (in Rs.)
(i) Supply of machine oils in Delhi [WN-1] 2,00,000
(ii) Supply of high speed diesel in Delhi [WN-2] 4,00,000
(iii) Supply made through Fortis Lubricants - an agent of Pure Oils in Delhi [WN-3] 3,75,000
(iv) Supply made by Pure Oils from its branch located in Punjab [WN-4] 1,80,000
Aggregate Turnover 11,55,000
Working Notes:
1. Supply of machine oil in Delhi is intra-state supply of goods which is taxable under GST law. It shall be includible in
‘aggregate turnover’.
2. Supply of HSD in Delhi is intra-state supply of goods which is non-taxable under GST law. Though non-taxable, it shall be
includible in ‘aggregate turnover’.
3. Transfer of goods to agent for further supply (sale) is also treated as ‘supply’ though such transfer does not include any
consideration. Sec 7(1)(c) read with Schedule I (Para 3) covers transfer of goods to agent. Further, since goods have been
transferred to Agent in Delhi, such transfer is an intra-state supply of goods which is taxable under GST. It shall be includible
in ‘aggregate turnover’.
4. Supply is made from branch office in Punjab. Under GST law, such branch office is treated as establishment of a different
person. Thus, Head Office (Delhi) and Branch Office (Punjab) are treated as ‘deemed distinct persons (establishment of
different persons)’ under GST law. In absence of specific information, it is presumed that Punjab branch is also making
‘intra-state’ supply. Since ATO is computed on all India basis (establishments operating with same PAN), it shall be includible
in ‘aggregate turnover’.
18
Registration Requirement of Pure Oils
All the supplies made by Pure Oils are intra-state supplies and thus, his liability for registration shall be governed by Sec 22 of
the CGST Act which provides that every supplier is liable to be registered in the State/UT from where he makes a taxable supply
of goods or services or both, if his aggregate turnover in a financial year exceeds Rs. 20 lakh (Rs 10 lakhs in case he is making
supplies from special category states other than J&K).
Since the aggregate turnover is not exceeding Rs. 20 lakh, Pure Oils is not liable to be registered.
In case where Pure Oils has a branch in Himachal Pradesh from where he supplies machine oils amounting to
Rs. 2,50,000, then aggregate turnover in that case will be 14,05,000 (11,55,000 + 2,50,000). Further, in this situation, the
applicable threshold for registration will be Rs. 10 lakh as Himachal Pradesh is one of the specified Special Category States.
Thus, in such situation Pure Oils, Delhi shall be liable to be registered.
19. Mr. X a dealer (situated in Delhi) dealing with Intra State supply of goods and services has place of business in
India furnished the following information in the financial year 20XX-X1:
1. Sale of taxable goods by Head Office located in Chennai for Rs. 1,00,000
2. Supply of taxable services by Branch office at Bengaluru for Rs. 50,000
3. Supply of goods exempted from GST Rs. 10,000
4. Export of goods for Rs. 2,00,000
Whether Mr. X is liable for Registration ?
(ICMA Study material)
Ans. Statement showing computation of aggregate turnover in a Financial Year 20XX-X1
Particulars Value in Rs.
Sale of taxable goods by Head Office located in Chennai (*presumed to be intra-state supply) 1,00,000
Supply of taxable services by Branch office at Bengaluru (*presumed to be intra-state supply) 50,000
Supply of goods exempted from GST (*presumed to be intra-state supply) 10,000
Export of goods (Export is considered as inter-state supply under GST law) 2,00,000
Aggregate turnover 3,60,000
Though aggregate turnover is not exceeding Rs. 20 lakhs, but since he is engaged in exports which are inter-state supplies, his
registration falls under section 24 which provides for compulsory registration (i.e., no threshold limit of 20 Lakhs).
Note:
1. Export (inter-state supplies)
2. Export supplies are zero-rated in terms of Sec 16 of IGST Act.
3. For availing benefit of zero-rating provided by Sec 16, registration is mandatory. [Sec 16(3) of IGST Act gives benefit to
‘registered person’]
20. Mr B has ATO of Rs 10 lakhs in a FY from the State of UP only, through its sole proprietorship firm. He has a
property located in Delhi, which is currently in dispute and has engaged lawyer for representing his case in
dispute. Will Mr B be required to register himself u/sec 24 of the CGST Act, considering persons required to pay
under RCM?
Ans. Mr B is a business entity making intra-state supplies in UP only. It is unregistered, as his ATO is not exceeding Rs 20 lakhs in a
FY.
Now, it has received services legal services which attracts reverse charge and thus, making recipient liable to pay GST.
Presuming that legal services have been sought in relation to business, such service is exempt from payment of GST as Mr A
is a business entity with ATO not exceeding Rs 20 lakhs. Such service being exempt, the recipient, Mr B, is actually not required
to pay GST. Thus, he is not required to take compulsory registration u/Sec 24 of CGST Act.
Note:
1. Legal Services provided by advocate/ advocate firm are subject to RCM – Sec 9(3) of CGST Act / Sec 5(3) of IGST Act
• However, exemption to legal services has also been provided to legal services if provided to business entity having ATO
not exceeding 20 Lakhs (Rs 10 Lakhs, in case of SCS) in the preceding FY.
2. In case of supplies attracting RCM, recipient is required to take compulsory registration u/Sec 24 only when such recipient
is required to pay GST.
3. If supply is exempt and thus, recipient not required to pay GST, then he is not required to take registration also.
19
21. With the help of the following information in the case of M/s. Jayant Enterprises, Jaipur (Rajasthan) for the FY,
determine the aggregate turnover for the purpose of registration under CGST Act, 2017.
Particulars Amount in (Rs.)
(i) Sale of diesel on which Sale Tax (VAT) is levied by Rajasthan Government 1,00,000
(iii) Export supply to England (U.K.) 5,00,000
(iv) Supply to its own additional place of business in Rajasthan. 5,00,000
(v) Outward supply on which GST is to be paid by recipient under reverse charge. 1,00,000
.
22. Rajesh Dynamics, having its head office in Chennai, carries on the following activities with respective turnovers
in a Financial Year :
Rs.
Supply of petrol at Chennai 18,00,000
Value of inward supplies on which tax is payable on reverse charge basis 9,00,000
Supply of transformer oil at Chennai 2,00,000
Value of taxable supplies at Bengaluru branch 13,00,000
It argues that it does not have taxable turnover crossing threshold limit of Rs. 20,00,000 either at Chennai or
Bengaluru.
Decide based on the above facts :
(i) The aggregate turnover of Rajesh Dynamics.
(ii) All conditions that fulfil the requirements for registration under CGST Act, 2017 in the given
circumstances.
(CA Final May 2018 - 4 Marks)
Ans. Rajesh Dynamics is supplier making supplies from multiple states – Chennai (Tamil Nadu), Bengaluru (Karnataka). Head office
is in Chennai (Tamil Nadu), while its branch is in Bengaluru (Karnataka). The applicable threshold for registration as specified
in Sec 22 of CGST Act shall be Rs 20 Lakhs.
20
Computation of aggregate turnover of Rajesh Dynamics
Particulars Rs.
Supply of petrol at Chennai (non-taxable turnover) 18,00,000
[Being a non -taxable supply, it is an exempt supply and thus, includible in aggregate turnover vide
section 2(6) of CGST Act, 2017]
Value of inward supplies on which tax is payable on reverse charge basis (taxable turnover) Nil
[Inward supplies does not constitute turnover of supplier – these being not his supplies]
Supply of transformer oil at Chennai (taxable turnover) 2,00,000
Value of taxable supplies of Bengaluru Branch (*presumed to be intra-state supply) (taxable 13,00,000
turnover)
Aggregate turnover (as per Sec 2(6) of CGST Act) 33,00,000
Validity of argument as to threshold of 20,00,000 not being crossed at either of place of business
Rajesh Dynamics is liable to be registered in Chennai (Tamil Nadu) and also in Bengaluru (Karnataka) as his aggregate turnover
(computed on PAN India basis) in a financial year exceeds Rs. 20 lakh.
Rajesh Dynamics’ argument that it is not liable to registration since the threshold exemption of Rs. 20 lakh is not being crossed
either at Chennai, Bengaluru is not correct as ATO is computed on all India basis and not State -wise.
Liability to take GST registration
However, Rajesh Dynamics is compulsorily required to register under section 24 of the CGST Act, 2017 irrespective of the
turnover limit as it is liable to pay tax on inward supplies under reverse charge.
23. AB Pvt. Ltd., Pune provides house-keeping services. The company supplies its services exclusively through an e-
commerce website owned and managed by Hi-Tech Indya Pvt. Ltd., Pune. The turnover of AB Pvt. Ltd. in the
current financial year is Rs. 18 lakh.
Advise AB Pvt. Ltd. as to whether they are required to obtain GST registration. Will your advice be any different
if AB Pvt. Ltd. sells readymade garments exclusively through the e-commerce website owned and managed by
Hi-Tech Indya Pvt. Ltd.?
(CA Final - MTP March 2018- 6 Marks)
Ans. AB Pvt Ltd. is providing house keeping services and also it is not liable for registration under section 22 as it is located in
Maharashtra (Pune) and its TO not exceeding 20 Lakhs in a FY.
Sec 9(5) of CGST Act which provides that in respect of notified services, ECO through which notified services are supplier
shall be treated as supplier and it shall be liable for paying GST. House keeping is one of notified service when provided by
supplier who is not liable for registration u/Sec 22(1) as its ATO not exceeding Rs 20 lakhs. Thus, AB Pvt Ltd is providing notified
services and accordingly, ECO-Hi Tech Indya Pvt Ltd. shall be deemed supplier liable for paying GST. Hence, AB Pvt. Ltd shall
not be liable to take GST registration, rather ECO-Hi Tech Indya Pvt Ltd. shall be liable to take compulsory registration under
section 24.
Note:
1. X Ltd. – having four regional offices and 12 branch offices
• Each Regional office is controlling 3 branches under it.
• Each such regional office can be registered as ISD.
• Each regional officer can distribute ITC to branches working under it.
27. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
(CBEC FAQ)
In order to be eligible for grant of registration, a person must have a Permanent Account Number issued under
the Income- tax Act, 1961. State one exception to it.
(ICAI Final Study Material)
Ans. Yes. As per Section 25(6) of the CGST Act every person shall have a Permanent Account Number issued under the Income
Tax Act,1961 in order to be eligible for grant of registration.
However a person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and
Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration. (proviso
to the aforesaid section 25(6))
Also, PAN is not mandatory for a non- resident taxable person who may be granted registration on the basis of some other
documents (self-attested copy of valid passport, tax identification number or any other unique number issued to foreign entity
in his country) (section 25(7))
28. If a person is operating in different states, with the same PAN number, whether he can operate with a single
Registration?
(ICAI Final Study Material) (CBEC FAQ)
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 get registered in terms of Section 22(1) of the CGST Act.
29. Is there an option to take centralized registration for services under GST Law?
(ICAI Final Study Material) (CBEC FAQ)
Ans. No, the taxpayer has to take separate registration in every state from where he makes taxable supplies.
Note:
1. Under erstwhile ST law, centralized registration was permissible.
2. But, GST law does not permit centralized registration.
[Expected]
30. If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each
such vertical in the state?
(ICAI Final Study Material) (CBEC FAQ)
Ans. No, however the taxpayer has the option to register such separate business verticals independently in terms of the proviso to
Section 25(2) of the CGST Act, 2017.
22
2. Taxable person operating from different premises in the same state: Single Registration is required
However, if such taxable person is having more than one business vertical in a state can consider obtaining more
than one registration in that state for each of different verticals. This is optional facility for the taxable person.
Unit-1 Unit-2 ATO Remarks Separate Registration
Delhi Maharashtra 30 lakhs Different business verticals Mandatory Separate Registration
Delhi Maharashtra 30 lakhs Not different business verticals Mandatory Separate Registration
Delhi Delhi 30 lakhs Different business verticals Separate Registration not required
- Optionally, separate registration may be
taken
Delhi Delhi 30 lakhs Not different business verticals Separate Registration not required
Mandatory Single registration
31. At the time of registration will the assessee have to declare all his places of business?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the
CGST/SGST Act 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.
32. Whether a person having multiple business verticals in a state can obtain different registrations?
(CBEC FAQ)
Ans. Yes. In terms of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each
business vertical, subject to such conditions as prescribed in the registration rules.
[Imp.]
33. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes. In terms of 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 are applicable to a registered taxable person, shall apply to such person.
Note:
VOLUNTARILY REGISTRATION:
Concept In general, for persons having ATO in excess of Rs 20 lakhs/ 10 lakhs, GST registration is mandatory.
For others, voluntary registration is possible and there are good reasons to be registered even when you
are not required to register.
• Person carrying on or intends to carry on business of supply of goods and/or services may apply for
voluntarily business.
Effect Voluntarily Registered Supplier = Taxable Person = Liable to pay GST
• He also becomes liable to submit returns.
• Being registered person, he can also claim ITC (subject to fulfillment of all conditions related to ITC)
23
Basic Benefit Inverted tax structure where ITC availment is more beneficial: In case of inverted tax structure, its
beneficial to get registered and pay tax liability and avail ITC.
Customers insistence: Customers may prefer, or even insist on, dealing only with other registered business.
This is particularly when customer is GST registered as such customer will fall under reverse charge if his
vendor/supplier is unregistered. – Sec 9(4) of CGST Act] – (presently, RCM liability created by Sec 9(4) is
exempt and hence, this no longer is reason for taking voluntarily registration)
Creating good self-impression: Some business such as contractors may decide to register to avoid an
embarrassment caused by revealing that their annual taxable supply is below the threshold (Threshold limit
is 20 lakhs generally).
Lock-in period There is lock-in period of 1 year from the effective date of registration
[Deleted by N/N 3/2018-CT- dated 3rd Jan, 2018]
Earlier, there was lock-in period on voluntary registered person. But now, that restriction as to de-
registration has been removed. [Rule 20 (application for cancellation of registration) has been amended]
Suo-moto If supplier after taking voluntarily registration failed to commence business within 6 months from date of
cancellation by registration, PO may can cancel his registration.
GST Officer
34. Whether the Department through the proper officer, can suo-moto proceed to register a person under GST?
(ICAI Final Study Material) (CBEC FAQ) (CA Inter- MTP April 2018)
Ans. Yes. In terms of Section 25(8), 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 which may be taken under this Act, or under any other
law for the time being in force, proceed to register such person in the manner as is prescribed in the relevant CGST Rules,
2017.
Note:
Suo-Moto Registration – Sec 25(8) + Rule 16 of CGST Rules, 2017
PO Will register suo-moto – will pass order for that purpose (Form GST REG-12)
• Temporary Registration
• Registration effective from date of order granted registration (not back-dated registration).
Action by He agrees to his registration
concerned • Within 90 days, proceed for registration (registration application – GST REG-01)
person
• GSTIN will be granted.
• GSTIN granted shall be effective w.e.f. date of suo-moto registration order passed by PO.
.
Registration Procedure
[Expected]
35. What is the time limit for taking a Registration under GST?
(CBEC FAQ)
OR
State the time-period within which registration needs to be obtained in each of the following independent cases:
(a) Casual taxable person
(b) Person making inter-State taxable supply
(ICAI Study Material)
24
Ans. Section 25(1) of the CGST Act stipulates the time-period within which registration needs to be obtained in various cases. It
provides the following time-limits:
In case of a person who is liable to be registered under section 22 or section 24, registration needs to be obtained
within 30 days from the date on which he becomes liable to registration
In case of a casual taxable person or a non-resident taxable person, registration needs to be obtained at least 5 days
prior to the commencement of business
In view of the aforesaid provisions:
(a) A casual taxable person must obtain registration at least 5 days prior to the commencement of its business.
(b) As per section 24 of the CGST Act, person making inter-State taxable supply is liable to get compulsorily registered.
Therefore, such person must obtain registration within 30 days from the date on which he becomes liable to registration.
36. What will be the time limit for the decision on the on-line registration application?
(ICAI Final Study Material) (CBEC FAQ)
Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond
to the application within 3 working days.
If application is complete in all respect, registration shall be granted within 3 days.
It there is any deficiency or discrepancy in application, then SCN communicating any deficiency or discrepancy shall be
issued within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such
communication. Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have
7 days from the date when the taxable person communicates removal of deficiencies.
In case no response is given by the departmental authorities within the said time line (3 days / 7 days), the portal shall
automatically generate the registration.
37. What will be the time of response by the applicant if any query is raised in the online application?
(ICAI Final Study Material) (CBEC FAQ)
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 working days. The
applicant will reply to the query/rectify the error/ answer the query within a period of seven days from the date of receipt of
deficiency intimation.
On receipt of additional document or clarification, the relevant tax authority will respond within seven working days from the
date of receipt of clarification.
38. Whether the proper officer can reject an application for Registration?
(CBEC FAQ)
Ans. Yes. In terms of section 25(10) of the CGST Act, the proper officer can reject an application for registration after due verification.
Note:
Communication related to the application disposal:
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.
40. Can the registration certificate be downloaded from the GSTN portal?
(CBEC FAQ)
Ans. In case registration is granted; applicant can download the Registration Certificate from the GST common portal.
[Expected]
42. Who is a Non-resident Taxable Person?
(CBEC FAQ)
Ans. In terms of Section 2(77) of the CGST Act, a non- resident taxable person means any person who occasionally undertakes
transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who
has no fixed place of business or residence in India.
Illustration International Trade Fair is organized in Delhi. Sellers from Delhi, other states as well as from other countries participate
.
therein, they set up their stall therein and make sales therefrom.
Category of Sellers Category of Supplier Registration
CTP, NRTP, Others
Suppliers from Other Having no fixed place of Casual Taxable Person GST registration - u/ Sec 24
States / UT business in Delhi State from (*no threshold exemption)
where they are affecting the
supply (India)
.
Suppliers from Other Having no fixed place of NR Taxable Person GST registration - u/ Sec 24
Countries (say, Mr business in entire INDIA (*no threshold exemption)
John from USA)
Casual Taxable Person (CTP) – Sec 2 (20) Non-Resident Taxable Person (NRTP) – Sec 2 (77)
Supplier who does not have any fixed place of business Supplier who does not have any fixed place of business or
in that taxable territory in which it undertakes taxable residence in India.
supply.
Registration provisions Registration provisions
• Compulsory registration u/Sec 24 of CGST Act • Compulsory registration u/Sec 24 of CGST Act
No threshold exemption to CTP No threshold exemption to NRTP
.
.
• Registration before commencement of business and with • Registration before commencement of business and with
advance payment of tax advance payment of tax
• Normal Registration Application: GST REG-01 • Separate Simplified Registration Application: GST REG-
09
• PAN based GST Registration granted • GST Registration granted without PAN
43. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident
Taxable person?
(ICAI Final Study Material) (CBEC FAQ) (CA Final – MTP Aug 2018- 4 marks)
Ans. In terms of Section 27(1) read with proviso thereto, the certificate of registration issued to a “casual taxable person” or a “non-
resident taxable person” shall be valid for a period specified in the application for registration or ninety days from the
effective date of registration, whichever is earlier.
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.
26
44. 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?
(CBEC FAQ)
Ans. Yes. While a normal taxable person does not have to make any advance deposit of tax to obtain registration, a casual taxable
person or a non-resident taxable person shall, at the time of submission of application for registration is required, in terms of
Section 27(2) read with proviso thereto, to 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.
45. Mr. X of Mumbai is considering to participate in the jewellery exhibition at Trade Fair in Delhi, which is organised
every year in the month of February. Mr. X applied for registration in January. The proper officer demanded an
advance deposit of tax in an amount equivalent to the estimated tax liability of Mr. X.
You are required to examine whether any advance tax is to be paid by Mr. X at the time of obtaining registration?
(CA Final – Test Series- May 2018) (CA Inter- MTP April/Aug 2018)
Ans. Yes, advance tax is to be paid by Mr. X at the time of obtaining registration. Since Mr. X occasionally undertakes supply of
goods in the course or furtherance of business in a State where he has no fixed place of business, thus he qualifies as casual
taxable person.
While a normal taxable person does not have to make any advance deposit of tax to obtain registration, a casual taxable person
shall, at the time of submission of application for registration is required to 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 90 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 90 days is being sought.
.
Expected
Circular No. 71/ 45/ 2018-GST Dated 26th Oct, 2018
Issue: Whether the amount required to be deposited as advance tax while taking registration as a Casual TP (CTP) should be
100% of the estimated gross tax liability or the estimated tax liability payable in cash should be calculated after deducting
the due eligible ITC which might be available to CTP?
Clarification
1. It has been noted that while applying for registration as a casual taxable person, the FORM GST REG-1 (S. No. 11)
seeks information regarding the “estimated net tax liability” only and not the gross tax liability.
2. It is accordingly clarified that the amount of advance tax which a Casual TP is required to deposit while obtaining
registration should be calculated after considering the due eligible ITC which might be available to such taxable person.
.
[Expected]
47. Is it necessary for the UN bodies to get registration under GST?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes. In terms of Section 25(9) of the CGST Act, certain specified entities (UN bodies, Consulate or Embassy of foreign
countries etc) and certain notified entities* would be required to obtain a unique identification number (UIN) from
the GST portal.
Such entities are entitled for claiming refund of taxes paid by them on their inward supplies. This UIN will be
needed for claiming refund of such taxes.
Note:
27
1. Such entities are entitled to claim refund of GST paid by them on their inward supplies.- Sec 55 of CGST Act.
.
Administrative The taxpayer (GSTIN Holder) will be Central Government will be responsible for all
Officer assigned either to center administration or to administrative compliances in respect of such entities
state administration. (UIN Holder).
[Based on turnover, taxpayer will be assigned] • A nodal officer has been designated in each State.
Turnover Assigned to • Application for refund claim may be submitted before
the designated Central Tax nodal officers in the State
28
TO > 1.5 Cr 50% (Centre) in which the UIN has been obtained.
50% (State) The facility of centralized UIN ensures that irrespective of
TO < 1.5 Cr 10% (Centre) the type of tax (CGST, SGST, IGST or Cess) and the State
90% (State) where such inward supply of goods or services have been
procured, all refunds would be processed by Central
authorities only.
[Expected]
48. What is the responsibility of the taxable person supplying to UN bodies?
(CBEC FAQ)
Ans. The taxable supplier supplying to these organizations shall 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.
Note:
1. Entities allocated UIN = Not ‘registered person’ as defined in Sec 2(94) of CGST Act
3. Refund of Taxes.
.
[Imp]
49. What will be the effective date of registration?
(CBEC FAQ)
Ans. Date of effectiveness in case of person required to take registration
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 the date on which he became liable 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.
51. Pari & Sons is an unregistered dealer. On 10th August, 20XX aggregate turnover of Pari & Sons exceeded Rs.
20,00,000. The firm applied for registration on 27th August, 20XX and was granted the registration certificate
on 1st September, 20XX. Under CGST Rules, 2017, you are required to advise Pari & Sons as to what is the
effective date of registration in its case.
(CA Final May 2018 – 4 Marks)
Ans. Date of becoming liable for registration = 10th Aug, 20XX
Date of making registration application = 27th Aug, 20XX - within 30 days
Effective date of registration - 10th August 2017 as application was filed within 30 days.
Effective date of registration is 10th August : As per section 25 read with CGST Rules, 2017, where an applicant submits
application for registration within 30 days from the date he becomes liable to registration, effective date of registration is the
date on which he becomes liable to registration. Since Pari & son’s turnover exceeded Rs. 20 lakh on 10th August, it became
liable to registration on same day. Further, it applied for registration within 30 days of so becoming liable to registration, the
effective date of registration is date on which he becomes liable to registration, i.e. 10th August.
.
Revision of invoices issued between date of becoming liable to registration to date of actual registration: As per
section 31 read with CGST Rules, 2017, every registered person who has been granted registration with effect from a date
earlier than date of issuance of certificate of registration to him, may issue Revised Tax Invoices. Revised Tax Invoices shall be
issued within 1 month from date of issuance of registration in respect of taxable supplier effected during the period starting
from the effective date of registration till the date of issuance of certificate of registration (1st September) within 1 month from
date of issuance of certificate of registration, i.e. on or before 1st October.
Note:
1. Core fields requiring approval of PO
Change in legal name of business;
Change in address of place of business;
Addition, deletion or retirement of partners, directors, karta, board of trustees, CEO or equivalent,
responsible for day to day affairs of the company.
2. Date from which amendment will be effective:-
a. Date from which change necessitating amendment has taken place: ?
b. Date of submission of amendment application; ?
c. Date of passing of order approving amendment: ?
55. Discuss the procedure for amendment of registration under CGST Act and rules thereto?
(CA Final - MTP March 2018- 4 Marks)
Ans. The procedure for amendment of registration are contained in section 28 read with rule 19 of CGST Rules. The significant
aspects of the same are discussed hereunder:
1. Where there is any change in the particulars furnished in registration application/UIN application, registered person shall
submit an application in prescribed manner, within 15 days of such change, along with documents relating to such
change at the Common Portal.
2. In case of amendment of core fields of information, the proper officer may, on the basis of information furnished or as
ascertained by him, approve or reject amendments in the registration particulars in the prescribed manner. Such
amendment shall take effect from the date of occurrence of event warranting such amendment.
3. However, where change relates to non-core fields of information, registration certificate shall stand amended upon
submission of the application for amendment on the Common Portal.
4. Where a change in the constitution of any business results in change of PAN of a registered person, the said person shall
apply for fresh registration. The reason for the same is that GSTIN is PAN based. Any change in PAN would warrant a
new registration.
(b) a composition supplier has not furnished returns for three consecutive tax periods (quarter); or
(c) a normal supplier, has not furnished returns for a continuous period of six months **; or
(d) any person who has taken voluntary registration u/Sec 25(3) has not commenced business within 6 months from the
date of registration **; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts
Note:
** Non-filer of return – registration cancellation proceedings initiated (noticed served)
– TP furnishes return with all dues paid, cancellation proceedings shall be dropped by PO
[Rule 22(2) – inserted by N/N 39/2018-CT (4th Sep, 2018)
“where the person instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b)
or clause (c) of section 29(2), furnishes all the pending returns and makes full payment of the tax dues along with applicable interest
and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST-REG 20.
Amendment Analysis
• Sec 29(2)(b): PO may cancel registration of composition TP if he fails to furnish returns for 3 consecutive quarters
•
.
Sec 29(2)(c): PO may cancel registration of normal TP if he fails to furnish returns for continuous period of 6 months
Rule 22:
PO shall serve SCN proposing cancellation of registration.
Pre Amendment: Officer was to make a judgment whether to restore registration or not. In case he still passes cancellation order, then
assesse/taxpayer was required to apply for revocation of cancellation order (as provided in Section 30 read with Rule 23)
Post Amendment: Where SCN is issued for cancellation of registration on account of non-filing of returns for continuous six months (normal
taxpayer) or for three consecutive tax periods (composition taxpayer), and if all returns are later filed after issue of SCN and tax due
paid, the SCN shall be dropped. (Officer is not left with any discretion)
[New Form GST REG 20 -Order for dropping the proceedings for cancellation of registration substituted]
.
57. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?
(CBEC FAQ)
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 29 (4))
Note:
1. Vice-versa is also true
2. Cancellation of GST registration under SGST Act = Deemed cancellation under CGST Act
[Expected]
58. Can the proper Officer Cancel the Registration on his own?
(CBEC FAQ)
Ans. Yes, in certain circumstances specified under section 29(2) of the CGST/SGST Act, the proper officer can cancel the registration
on his own. Such circumstances include following:
1) contravention of any of the following prescribed provisions of the CGST Act or the rules made there under;
(a) the registered person did not conduct any business from the declared place of business; or
(b) the registered person issued invoice or bill without supply of goods or services in violation of the provisions of this
Act, or the rules made thereunder; or
(c) the registered person violated the provisions of section 171 of the Act or the rules made thereunder (Anti-profiteering
measures)
2) Composition Supplier becoming a consistent non-return filer for 3 consecutive tax periods (quarters);
3) Regular Supplier becoming a consistent non-return filer for 6 consecutive tax periods (months)
4) Voluntarily registered person failed to commence business within 6 months from the date of registration;
5) Registered person who has obtained registration fraudulently.
32
However, before cancelling the registration, the proper officer has to follow the principles of natural justice (i.e., after grant of
opportunity of being heard).
59. What happens when the registration is obtained by means of willful mis-statement, fraud or suppression of
facts?
(ICAI Final Study Material) (CBEC FAQ)
Ans. In such cases, the registration may be cancelled with retrospective effect by the proper officer. (Section 29(2))
Note:
1. Cancellation of registration with retrospective effective:
Cancellation order passed on 10th Jan, 2018.
Cancellation with retrospective effect, i.e., date from which registration was granted.
[Expected]
60. Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled?
(ICAI Final Study Material) (CBEC FAQ) (CA Inter- MTP Aug, 2018- 3 marks)
Ans. Yes, as per Section 29(5) of the CGST Act, every registered taxable person whose registration is cancelled shall pay an amount,
by way of debit in the electronic cash/credit ledger, equivalent to the credit of input tax in respect of inputs held in stock and
inputs contained in semi- finished or finished goods held in stock or capital goods or plant and machinery on the day immediately
preceding the date of such cancellation or the output tax payable on such goods, whichever is higher.
De-registered Person: Liable to pay amount in respect of inputs/ CG (including plant and machinery) in stock.
Stock position Higher of following shall be payable:
Related ITC Output tax payable
(computed as per Rule 44 of CGST Rules, 2017) (Valuing goods as per CGST Rules, 2017)
Inputs lying in stock ITC availed on such inputs Output tax payable on such goods
(lying as such or contained in semi-
finished or finished goods lying in stock)
Capital goods (and plant and machinery) Reduced ITC Output tax payable on such goods
(= ITC availed * Bal life in complete months /
60 Months)
** Above amount may be paid by way of debit in the e- credit ledger or e-cash ledger.
.
.
Legal provisions Sec 29 of CGST Act, 2017 + Rule 20, 21, 22 of CGST Rules, 2017
Application Online
Filing Clarification: Mandatory information required to be filed in application:
1) Address for future correspondence with mobile number and email address;
2) Reason for cancellation;
3) Date from which cancellation is sought;
4) Details of the value and the input tax/tax payable on the stock of inputs, inputs contained in semi-
finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery;
5) In case of transfer, merger of business, etc., particulars of registration of the entity in which the existing
unit has been merged, amalgamated, or transferred (including the copy of the order of the High Court /
transfer deed);
6) Details of the last return filed by the taxpayer along with the ARN of such return filed.
On successful submission of the cancellation application, the same appears on the dashboard of jurisdictional officer.
Application Clarification:
Processing Acceptance or Rejection
Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of
commission/omission committed before or after the date of cancellation, the proper officer should accept all
such applications within a period of 30 days from the date of filing the application, except in the following
circumstances:
a) The application in FORM GST REG-16 is incomplete, i.e. where all the relevant particulars, have not been
entered;
b) In case of transfer, merger or amalgamation of business, the new entity in which the applicant proposes to
amalgamate or merge has not got registered with the tax authority before submission of the application for
cancellation.
.
Rejection cases:
34
• Inform (in writing) the discrepancy to the applicant – providing time period of 7 days for reply:
• No reply received – reject application after giving an opportunity of being heard;
• reply received but not satisfactory – reject application after giving an opportunity of being heard;
• reply received and is satisfactory – approve application and proceed to cancel registration by passing
cancellation order;
.
The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may
have incurred u/sec 29(5) of the CGST Act.
.
Pendency of It is pertinent to mention here that section 29 of the CGST Act has been amended by the CGST (Amendment)
cancellation Act, 2018 to provide for “Suspension” of registration. The intent of the said amendment is to ensure that a
proceedings- taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of
requirement of the proceedings related to cancellation.
returns filing • Although the provisions of CGST (Amendment) Act, 2018 have not yet been brought into force, it will be
prudent for the field formations not to issue notices for non-filing of return for taxpayers who have already
filed an application for cancellation of registration under section 29 of the CGST Act.
• However, the requirement of filing a final return, as under section 45 of the CGST Act, remains unchanged.
.
Note:
Whether transaction of transfer of Transfer of Business = Supply of Service
business (for consideration) falls within Thus, this transaction amounts to supply of service.
the scope of supply.
Whether GST will be payable on such GST not payable as it has been exempted. [N/N 12/2017-CT (Entry no. 1)]
transfer?
Whether transferee is liable to take Yes,
registration (without considering any Transferee is required to take registration – Sec 22(3)
threshold limit)?
By what date he becomes liable to take He becomes liable to take registration from date of such transfer – Sec 22(3)
registration?
Whether transferee is liable to pay past Yes
GST dues of the business acquired by The transferor and the transferee remains jointly and severally liable to pay
him? GST dues/ outstanding upto the date of such transfer – Sec 85(1)
[Such dues may be those which have already been determined/ adjudicated by
the time of transfer. Such dues may be those which have not already been
determined/ adjudicated by the time of transfer.]
Note:
1. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have
their businesses.
(Job-worker)
64. Whether the job worker will have to be compulsorily registered?
(CBEC FAQ)
Ans. No, a Job worker is a supplier of services and will be obliged to take registration only when his turnover crosses the prescribed
threshold of Rs. 20/10 Lakhs.
Note:
1. Supply by job-worker = Treatment of goods of other person = Supplier of service
2. Supply of service may be intra-state or inter-state.
3. Threshold exemption from registration (ATO of 20 lakhs / 10 lakhs)
Intra-state supply: Registration not required as per express provisions of Sec 22.
Inter-state supply: Registration exempt as per notifications issued under provisions of Sec 23(2).
Job-work procedure
Stage-1: Dispatch of goods (inputs/ capital goods) by Principal to job-worker
• Such dispatch is not treated as supply and GST need not be paid. (Sec 143 of CGST Act)
o Intimation of dispatch shall be given over common portal [Form GST ITC 04]
• Post job-work, the principal shall do either of following:
o Bring back goods to him within 1 year (inputs) or 3 years (capital goods);
o Supply goods directly from premises of job-worker within 1 year (inputs) or 3 years (capital goods)
36
Registration Requirement of Job-worker:
Principal intends to receive back goods from job-work and will be supplying goods from his registered place of business
Registered principal J/Wrker may be registered or Need not do anything
unregistered
Principal intends to supply job-worked goods / capital goods from job-worker’s premises
Registered principal J/Wrker is registered Need not do anything
J/Wrker is unregistered Registered principal shall get the job-worker’s
premise registered in his name as his additional
place of business.
65. Whether the goods will be permitted to be supplied from the place of business of a job worker?
(CBEC FAQ)
Ans. Yes. But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker
as his additional place of business.
[Expected]
66. Mr A (principal) has send some goods for chemical treatment to Mr Y (job-worker). Both, Mr A (principal) and
Mr Y (job-worker) are GST registered. Post completion of job-work, Mr A intends to make direct supply from the
premises of Mr Y. The value of supply of such goods shall be considered in aggregate turnover of whom:
(a) Mr A (the principal); or
(b) Mr Y (the Job-worker)
Ans. The value of supply of goods shall definitely be considered in aggregate turnover of Mr A (the principal) as the supplier is Mr A
only though he has effected supply from premises of registered job-worker.
In this context, Explanation to Sec 22(1) explicitly provides that the supply of goods, after completion of job-work,
by a registered job-worker shall be treated as supply of goods by the principal referred to in Section 143, and the value of such
goods shall not be included in aggregate turnover of the registered job-worker.
Conclusion:
Registered Principal: Computation of ATO
1. Supply effected from his own GST registered premises shall be included in his ATO.
2. Supply effected from GST registered premises of the job-worker shall also be included in his ATO.
Registered Job-worker: Computation of ATO
1. Charges of job-work (supply of service) shall be included in his ATO.
.
Comprehensive
67. Rishabh Enterprises - a sole proprietorship firm - started an air-conditioned restaurant in Virar, Maharashtra in
the month of February wherein the customers are served cooked food as well as cold drinks/non-alcoholic
beverages. In March, the firm opened a liquor shop in Raipur, Uttarakhand for trading of alcoholic liquor for
human consumption.
Determine whether Rishabh Enterprises is liable to be registered under GST law with the help of the following
information:
Particulars February March
(Rs)* (Rs)*
Serving of cooked food and cold drinks/non-alcoholic beverages in 5,50,000 6,50,000
restaurant in Maharashtra
Sale of alcoholic liquor for human consumption in Uttarakhand — 5,00,000
Interest received from banks on the fixed deposits 1,00,000 1,00,000
.
Supply of packed food items from restaurant in Maharashtra 1,50,000 2,00,000
* excluding GST
37
You are required to provide reasons for treatment of various items given above.
(ICAI RTP May 2018 – New Syllabus)
Ans. As per section 22 of the CGST Act, 2017, a supplier is liable to be registered in the State/Union territory from where he makes
a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs. 20 lakh.
However, if such taxable supplies are made from any of the specified special category States, namely, States of
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, he
shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs. 10 lakh.
In the given question, since Rishabh Enterprises is engaged in making taxable supplies from Maharashtra which is not a specified
Special Category State, the threshold limit for obtaining registration is Rs. 20 lakh.
The threshold limit is not reduced to Rs. 10 lakh in this case, as sale of alcoholic liquor for human consumption from Uttarakhand
(one of the specified Special Category States) are non-taxable supplies in terms of section 9(1) of CGST Act, 2017.
As per section 2(6) of the CGST Act, 2017, aggregate turnover includes the aggregate value of:
(i) All taxable supplies,
(ii) All exempt supplies,
(iii) Exports of goods and/or services and
(iv) All inter-State supplies of persons having the same PAN.
The above is computed on all India basis. Further, the aggregate turnover excludes central tax, State tax, Union territory tax,
integrated tax and cess. Moreover, the value of inward supplies on which tax is payable under reverse charge is not taken into
account for calculation of 'aggregate turnover'.
In the light of the afore-mentioned provisions, the aggregate turnover of Rishabh Enterprises is computed as under:
Computation of aggregate turnover of Rishabh Enterprises
Particulars Turnover of Cumulative turnover of
February (Rs.) February & March (Rs.)
Serving of cooked food and cold drinks/non-alcoholic 5,50,000 12,00,000
beverages in restaurant in Maharashtra [Rs. 5,50,000 + Rs. 6,50,000]
Add: Sale of alcoholic liquor for human consumption in 5,00,000
Uttarakhand [Note-1]
Add: Interest received from banks on the Fixed 1,00,000 2,00,000
Deposits [Note-2] [Rs. 1,00,000 + Rs. 1,00,000]
Rishabh Enterprises was not liable to be registered in the month of February since its aggregate turnover did
not exceed R s 20 lakh in that month. However, since its ATO exceeds Rs 20 Lakhs in the month of March, it
should apply for registration within 30 days from the day on which it becomes liable to registration.
Note:
1. Rishab Enterprises – 2 Establishment in different states – One in Maharashtra, Another in Uttrakhand
.
Both these establishments in different states = Deemed Distinct persons under GST [Explanation 1 to Sec 8 of
IGST Act / Sec 25(5) of CGST Act]
.
Establishment in Uttrakhand (establishment of deemed distinct person) is making non-taxable supply (supply of
liquor) which is not liable to GST – Registration of this establishment is not required in terms of Sec 23(1) of CGST Act
.
Establishment in Maharashtra (establishment of deemed distinct person) is making taxable which is liable to GST
– Registration of this establishment is only required in terms of Sec 22 of CGST Act
.