GST REGISTRATION AND MIGRATION 1 SRINIVAS KOTNI ADVOCATE

GST REGISTRATION AND MIGRATION 1 SRINIVAS KOTNI ADVOCATE & COMPANY SECRETARY MANAGING PARTNER LEXport

FLOW OF PRESENTATION INDEX (1) Important Sections for Orocess of Registration & Migration under the CGST (9) Revocation of Cancellation of Registration [2] Some Important Definitions (10) Penalty for Non-Registration (3) Liability to take Registration (4) Enrollment of Existing Taxpayers on GST Portal/ Migration (5) Registration of New Applicants (6) Process for Fresh Registration (7) Amendment of Registration (8) Cancellation of registration 2

IMPORTANT PROVISIONS FOR REGISTRATION & MIGRATION 3 Sections Application for Section 22 Fresh registration Section 25 Procedure of Registration Section 27 Special provisions relating to casual taxable persons and non- resident taxable person Section 28 Amendment in registration Section 29 Cancellation of registration Section 30 Revocation of cancellation of registration Section 139 Migration

4 SOME IMPORTANT DEFINITIONS

PERSON Section 2 (84) includes such as An Individual A Company A Firm A LLP A HUF Society An association of persons, body of individuals (whether incorporated or not in India or outside) Government Corporations Government companies Trust Body Corporate – Foreign Local Authority Government (Central or State) Every Artificial juristic person 5

6 Place of business S. 2 (85) includes. Place from where business ordinarily carried on Warehouse, godown or any other place of storage Place of supply / receipt of goods or services or both Placewherebooksof ofaccount maintained Principal place of business [S 2(89)] specified as such in the certificate of registration Place of agent

7 Registered person [S 2(94)] Supplier [S 2(105)] Taxable person [S 2(107)] • A person • Registered under S 25 • Does not include a person having unique identity number • A person • Supplying good or services or both • Includes an agent of supplier • A person • Who is registered • Or liable to be registered under S 22 or S 24

8 Recipient [S 2(94)] In the context of goods or services or both Is a person who is liable to pay consideration (if it is involved) Person to whom delivery / possession / use of goods is given (if no consideration involved) Person to whom service is rendered (if no consideration involved) Includes agent of recipient

9 LIABILITY TO TAKE REGISTRATION

LIABILITY TO TAKE REGISTRATION [Section 22 of the CGST Act] Particulars Exemption Limit Remarks All Suppliers in India (Except J&K and Special Category States) Aggregate Turnover in a Financial year UPTO Rs. 20 lakhs “Aggregate Turnover” S. 2 (6) – To Include on All India Basis : Suppliers in North Eastern and other specified States (Special Category States) Aggregate Turnover in a Financial year UPTO Rs. 10 lakhs 10 - All taxable supplies - All exempt supplies - Exports (goods, services or both) - Inter-state Stock Transfers / Supplies of a person having same PAN Number (i. e. deemed distinct persons - though a single entity) - Supplies on behalf of Principal (S. 23) - Supplies received by the Principal from a job worker after job work – (S. 23 ) To Exclude : - Value of inward supplies on Reverse Charge Basis (RCB) - All Taxes (GST) - Value of Job Work (for a Job Worker) (S. 23)

LIABILITY TO TAKE REGISTRATION [Section 22 of the CGST Act] Particulars Exemption Limit Transferee of a going business (by succession or otherwise) – w. e. f. date of transfer No Exemption Transferee as a result of scheme of arrangement or amalgamation approved by High Court / Tribunal- w. e. f. date of ROC certificate No Exemption 11

COMPULSORY REGISTRATION IN CERTAIN CASES [Section 24 of the CGST Act] Particulars Exemption Limit Remarks Input Service Distributor No Exemption Irrespective of Turnover Person making inter-state taxable supply No Exemption Irrespective of Turnover Casual Taxable person No Exemption - Casual taxable person : 12 - who occasionally undertakes supply of goods or services - In the course of furtherance of business - In a taxable territory - Where he has no fixed place of business - Needs registration irrespective of the turnover

COMPULSORY REGISTRATION IN CERTAIN CASES (CONTD…) Particulars Exemption Limit Remarks Person registered under existing Indirect Tax laws No Exemption Irrespective of Turnover Person liable to pay tax under Reverse Charge Mechanism No Exemption Irrespective of Turnover Non Resident taxable person No Exemption - Non-Resident Taxable Person : - Who occasionally undertakes supply of goods or services - Whether as principal or agent or in any capacity - Has no fixed place of business or residence in India - Needs registration irrespective of the turnover 13

COMPULSORY REGISTRATION IN CERTAIN CASES (CONTD…) 14 Particulars Exemption Limit Remarks Supplier of goods on behalf of other taxable person whether as agent or otherwise No exemption. Irrespective of Turnover Supplierof Goods/ services through E -commerce operator No Exemption Irrespective of the turnover as the customer of the goods are scattered all over India Electronic commerce operator No Exemption Irrespective of Turnover

COMPULSORY REGISTRATION IN CERTAIN CASES (CONTD…) 15 Particulars Exemption Limit Remarks Aggregator [who owns and manages an electronic platform and by means of application and communication device connects a person with the supplier of service under his own brand name or trade name] No Exemption Irrespective of the turnover. Any other category of person As may be prescribed Government may specify any other person or class of persons who shall be liable to take registration under GST.

PERSONS NOT LIABLE TO BE REGISTERED [S. 23 of the CGST Act] Person exclusively engaged in supply of exempt goods, services or both An agriculturist (only for produce out of cultivation of land) Category of persons to be notified on recommendation of GST Council 16

Registrant will be legally recognized as supplier of goods or 17 services Registrant will be authorised tocollect tax from his purchasers Registrant will be able to book Input Tax Credit ADVANTAGES OF TAKING REGISTRATION UNDER GST Registrant can pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients by issuing tax invoice.

18 PROCEDURE FOR REGISTRATION

PROCEDURE FOR REGISTRATION [S 25] 19 Registration to be applied for by a person in every State / UT where he is liable Registration to be applied for within 30 days of the person becoming liable The procedure and conditions are prescribed in the Rules Casual taxable person / non-resident taxable person to apply for registration atleast commencement of business 5 days prior to For on-shore supplies – registration to be obtained in the coast state near the base line Generally a single registration is granted in each state or UT Person with multiple business verticals in a state or UT may obtain separate registration for each vertical

PROCEDURE FOR REGISTRATION [S 25] 20 Voluntary registration possible for persons otherwise not liable for registration Person obtaining or required to be obtaining multiple registrations within the State or across more States to be treated as distinct persons Establishments in different States of the same person with different registrations to be treated as establishments of distinct persons PAN / Tax Deduction and Collection Account Number essential for GST registration - not applicable to non-resident taxable person GST officer can forcibly register a person who has failed to register UN, specified multilateral institutions, consulates and embassies and other notified persons to be granted a Unique Identity Number (UIN) for refunds etc Registrations / UINs to be granted or rejected after due verification and within time as prescribed Certificate of Registration granted

21 DEEMED REGISTRATION [S. 26] CASUAL TAXABLE PERSON / NON-RESIDENT TAXABLE PERSON [S 27] • Grant of Unique Identification Number (UIN) under SGST / UTGST deemed as grant of UIN under CGST • Provided that the UIN has not been specifically rejected under the CGST • Any rejection of UIN under SGST / UTGST deemed as rejected under CGST • Registration certificate issued to these persons valid for the period specified in the application or 90 days from the registration whichever is earlier • The aforesaid period of 90 days can be extended to another 90 days • The above persons can make taxable supplies only after the certificate of registration is issued • These persons at the time of registration / extension need to deposit advance tax equal to the estimated tax liability for the period registration is sought • The advance tax need to be credited to the electronic cash ledger

22 PRACTICAL ASPECTS OF REGISTRATION

ENROLLMENT OF EXISTING TAXPAYERS ON GST 23 SYSTEM PORTAL / MIGRATION Entity currently registered under any of the following Acts: Central Excise Service Tax State Sales Tax/ VAT (except exclusive liquor dealers if registered under VAT) Entry Tax Luxury Tax Entertainment Tax (except levied by local bodies) Customs Act

INFORMATION AND DOCUMENTS NEEDED (As per FAQ’s on GST Migration by CBEC) 24 Following information/ documents must be made available for enrolling with GST System Portal: Provisional ID received from State/ Central Authorities Password received from State/ Central Authorities Valid Email Address Valid Mobile Number Bank Account Number Bank IFSC Proof of Constitution of Business Partnership Firm: Partnership Deed (PDF & JPEG; Maximum Size: 1 MB) Others: Registration Certificate of Entity (PDF & JPEG; Maximum Size: 1 MB) Photograph of Promoters/ Partners/ Karta of HUF (JPEG; Maximum Size: 100 KB) Proof of Appointment of Authorized Signatory (PDF & JPEG; Maximum Size: 1 MB) Photograph of Authorized Signatory (JPEG; Maximum Size: 100 KB) Opening Page of Bank Passbook/ Statement containing Bank Account Number, Address of Branch, Address of Account Holder and few Transaction Details (PDF & JPEG; Maximum Size: 1 MB)

USER ID & PASSWORD 25

USER ID & PASSWORD 26 For First Login: - Provide Username & Password received from State VAT/ Central Tax Department (Service Tax /Excise etc) For Subsequent Login: - Enter Username & Password created while enrolling with GST System Portal Email Address & Mobile Number of the primary Authorized Signatory to be provided All future correspondence/ communication from the GST System Portal will be sent on the registered Mobile Number Tax Professionals to be given separate User ID and Password from GST System based on their own Email ID & Mobile Number

PREFILLED DETAILS IN ENROLMENT 27 APPLICATION AND REGISTRATION CERTIFICATE Prefilled details in Enrolment Application : PAN of Business Legal Name of Business & State Reason of liability to obtain registration Email Address & Mobile Number of Primary Authorized Signatory entered during enrolling with GST System Portal Registration Certificate : Provisional Registration Certificate: It will be available on your dashboard on the appointed date if you have filled enrolment application successfully Final Registration Certificate: It will be provided after verification of documents (within 6 months) by proper officer(s) of centre/ state of concerned jurisdiction after appointed date

REGISTRATION FOR NEW APPLICANTS 28

FRESH REGISTRATION PROCESS Logon to the GST common portal Got the application reference no. on mobile/ email GST officer will verify the application within 3 working days Officer asks for more documents in GST-REG-03 Fill up the Form GST REG 01 - Part –A (PAN , Mobile and E-mail) Fill the Part B of form using the reference no. Officer approves the GST application Produce the documents withn 7 working days in GST - REG-04 29 The portal verifies the details by OTP Upload the required documents Certificate of registration under Form GST REG-06 Officer may reject the GST application GST REG 05

30 GST FORMS RELATING TO REGISTRATION

31 Form Number Rule Description of Form GST REG-01 Rule 1 (1) of the Registration Rules Application for Registration u/s 25 of the Act, 2017 GST REG-02 Rule 1 (5) of the Registration Rules Acknowledgement GST REG-03 Rule 2 (2) of the Registration Rules Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation GST REG-04 Rule 2 (2) of the Registration Rules Application for filing clarifications Registration / Amendment / Cancellation / Revocation of Cancellation CGST

32 Form Number Rule Description of Form GST REG-05 Rule 2 (4) of the Registration Rules Order of Rejection of Application for Registration / Amendment / Cancellation / Revocation of Cancellation GST REG-06 Rule 3 (1) of the Registration Rules Registration Certificate GST REG-07 Rule 5 (1) of the Registration Rules Application for Registration as TDS or TCS GST REG-08 Rule 5 (3) of the Registration Rules Order of Cancellation of Application for Registration as TDS /TCS GST REG-09 Rule 6 (1) of the Registration Rules Application for Registration for Non Resident Taxable Person.

33 Form Number Rule Description of Form GST REG-10 Rule 7 (1) of the Registration Rules Application for the extension in the period of registration by casual taxable person and non resident taxable person GST REG-11 Rule 8 (1) of the Registration Rules Suo moto registration GST REG-12 Rule 9 (1) of the Registration Rules Application for Allotment of Unique ID to UN Bodies/ Embassies /any other person u/s 19(6) of the GST Act GST REG-13 Rule 11( 1) of the Registration Rules Application for Amendment in Particulars subsequent to Registration

AMENDMENT OF REGISTRATION [S. 28 of the CGST Act] Any change in information pertaining to the registered person, submitted at the time of registration, need to be informed to the GST officer in the manner prescribed Proper officer may approve / reject amendment by following the due procedure For certain amendments to be prescribed, approval of Proper officer not required No rejections of amendments can be made without giving an opportunity of hearing Any approval / rejection of amendment under SGST / UTGST shall be deemed to be approval / rejection under CGST 34

CANCELLATION OF REGISTRATION [S. 29 of the CGST Act] 35 GST officer on his own or on application (by the registrant / legal heirs) cancel registration, in case • Business has been discontinued • Proprietor has died • Amalgamated with any other entity / de-merged • There is change in constitution of business • The taxable person is no longer required to be registered

CANCELLATION OF REGISTRATION [S. 29 of the CGST Act] [CONTD…] 36 GST officer cancel registration either prospectively or retrospectively if : • The registered person has contravened any provision(s) • Returns have not been filed for 3 consecutive tax periods in respect of a taxable person under composition scheme • Returns have not been filed for a continuous period of 6 months • Person who has taken voluntary registration has not commenced business for 6 months • Registration obtained by means of fraud, willful misstatement or suppression of facts • Cancellation only after an opportunity of being heard

CANCELLATION OF REGISTRATION [S. 29 of the CGST Act] [CONTD…] Cancellation of registration not to effect liability to pay tax and other dues or to discharge prescribed obligations for such period Cancellation of registration under SGST / UTGST will be deemed to be a cancellation under CGST After cancellation of registration, payment of an amount is to be made Either by debit to electronic credit ledger or electronic cash ledger, of ITC on inputs in stock / in semi finished / finished goods / capital goods / plant and machinery or the output tax payable on such goods whichever is higher In respect of capital goods or plant and machinery the amount would be reduced by prescribed percentage points (depreciation) or the transaction value whichever is higher 37

REVOCATION OF CANCELLATION OF REGISTRATION In case registration is cancelled suo-moto, taxable person can file for revocation within 30 days of cancellation order GST officer can in the manner and timeframe prescribed, either revoke the cancellation or reject the application by way of an order In any case, the registered person has to be given an opportunity of being heard Revocation of cancellation under SGST or UTGST will be deemed as Revocation of cancellation under CGST 38

PENALTY FOR NON- REGISTRATION 39 Every person shall be liable to penalty of Rs. 10, 000/- if: He is liable to take registration but fails to obtain registration He furnishes any false information with regard to particulars specified as mandatory at the time of applying for registration.

MIGRATION UNDER GST

MIGRATION OF EXISTING TAX PAYERS – PROVISIONAL REGISTRATION Every person: other than a person deducting tax at source or an Input Service Distributor; registered under an existing law and having a Permanent Account Number issued under the Income-tax Act, 1961, shall enroll on the Common Portal by validating his e-mail address and mobile number, either directly or Facilitation Centre notified by the Commissioner. through a The said person shall be: granted registration on a provisional basis and a certificate of registration in FORM GST REG-25, incorporating the GSTIN therein, shall be made available to him on the Common Portal

MIGRATION OF EXISTING TAX PAYERS – PROVISIONAL TO FINAL REGISTRATION Every person who has been granted a provisional registration shall: -submit an application electronically in FORM GST REG– 24; -duly signed; -along with the information and documents specified in the said application, on the Common Portal either directly or through a Facilitation Centre notified by the Commissioner. The information asked for shall be furnished within a period of three months. A certificate of registration in FORM GST REG-06 shall be made available to the registered person electronically on the Common Portal if the information and the particulars in the application are found to be correct and complete.

MIGRATION OF EXISTING TAX PAYERS – CANCELLATION BY PROPER OFFICER In case the procedures for obtaining the certificate of registration is not followed, - the proper officer shall cancel the provisional registration and issue an order in FORM GST REG-26 No provisional registration shall be cancelled: - without serving a notice to show cause in FORM GST REG-27 and - without affording the person concerned a reasonable opportunity of being heard The show cause notice issued in FORM GST REG-27 can be vacated by issuing an order in FORM GST REG-19, if it is found that no such cause exists for which the notice was issued.

MIGRATION OF EXISTING TAX PAYERS – SELF CANCELLATIONS Every person: - registered under any of the existing laws, - who is not liable to be registered under the Act may, - within thirty days from the appointed day, - submit an application electronically in FORM GST REG-28 at the Common Portal for cancellation of the registration granted to him.

GST MIGRATION SEWA KENDRAS Ministry of Finance/Department of Revenue has urged all Chief Commissioners to personally arrange to have special GST MIGRATION SEVA KENDRAS in their Zonal Headquarters/ Divisions/ Commissionerates with the following minimum requirements: 3 -4 personal computers linked to internet, Scanners and printers, Adequate number of well trained officers. Last date for Migration under GST- April 30, 2017.

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