REGISTRATION PROVISIONS UNDER GST DISCUSSION ON PRACTICAL ISSUES

REGISTRATION PROVISIONS UNDER GST DISCUSSION ON PRACTICAL ISSUES RELATED TO REGISTARTION AND MIGRATION UNDER GST BY NIRC OF ICSI DATE-01 MAR 2017 Ashu Dalmia FCA, DISA, CISA, ICAI Certified-FAFD, ICAI-Certified Arbitrator, Special Auditor u/s 72 A of the finance Act 1994 (office of the Commissioner, Service, Tax Audit-II Delhi) Partner Ashu Dalmia & Associates Mob: - +91 -9810893243 Email: ashu. dalmia@ada. org. in Web: - www. gstindia. biz www. ada. org. in

2 PROVISIONS OF REGISTRATION UNDER GST-CHAPTER VI OF MGL www. ada. org. in/gstindia. biz

3 Section 23 • Basic Provisions for Registration Section 24 Section 25 • Special provisions relating to casual taxable person and non resident taxable person • Amendment of Registration Section 26 • Cancellation of Registration Section 27 • Revocation of cancellation of Registration Schedule V • Persons Liable to be Registered Section 18(1) & (2) of Chapter V • Restriction on use of ITC for new Registration www. ada. org. in/gstindia. biz

4 WAYS OF REGISTRATION • MANDATORTY REGISTRATION –SCHEDULE V of MGL • • CASUAL /NON RESIDENT TAXABLE PERSON www. ada. org. in/gstindia. biz

5 Mandatory Registration liability arising from schedule V of the MGL Registration to be taken each state Registration to applied with in 30 days of becoming taxable person www. ada. org. in/gstindia. biz

6 IMPACT IF REGISTRATION NOT APPLIED WITH IN 30 DAYS üRegistration will be effective from the date of grant of registration. üCredit available only after date of Registration. üLoss of credit of inputs before the date of becoming taxable person. üTaxable invoices can not be issued for the intermediate period. www. ada. org. in/gstindia. biz

7 Schedule V –Mandatory to take registration • Where to take registration (Fresh registration) -In every state -From where -The supplier -Is making the taxable supply -and aggregate turnover exceeds Rs. 20 Lacs for normal states -Rs. 10 lacs in special category states and - states covered in Article 279 A (4) (g) • States are Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand. www. ada. org. in/gstindia. biz

8 Can multiple registration be taken in a state? • Optional -In case of multiple business verticals in a state • What is business vertical: As per Section 2(18) of CGST/SGST Act 2016, “Business vertical” means a distinguishable component of an enterprise that is engaged in supplying an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business verticals; Explanation: Factors that should be considered in determining whether products or services are related include: a. the nature of the products or services; b. the nature of the production processes; c. the type or class of customers for the products or services; d. the methods used to distribute the products or provide the services; and e. if applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities. www. ada. org. in/gstindia. biz

9 Aggregate turnover includes: -taxable supply -exempt supplies -export of Goods and/or services -inter state supplies of a person having same PAN to be computed on all India basis -excludes taxes paid under GST and -Supplies on which tax has been paid under reverse charge. Exempt Supply Includes: not taxable under this Act Supply of nil rated Exempted u/s 11 of the MGL www. ada. org. in/gstindia. biz

10 Threshold limit will also include: v. Supplies made by a person on behalf of his principals will also be considered for threshold limit of agent. v. Supply of goods by a registered job worker shall be included in turnover of principal. www. ada. org. in/gstindia. biz

11 Mandatory registration without any threshold limit Persons making interstate taxable supply i. Casual taxable persons i. Persons covered in reverse charge i. Persons who are required to pay tax u/s 8(4) i. Non-resident taxable persons i. Person required to deduct TDS i. Person required to collect TCS i. Agent ISD i. Person supplying through Ecommerce operator in case operator not covered u/8(4) i. Every electronic commerce operator i. ODAR operator www. ada. org. in/gstindia. biz

12 Tax liability u/s 8(4) of MGL Ø categories of services the tax on which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the person liable for paying the tax in relation to the supply of such services. • PROVIDED that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax. • PROVIDED FURTHER that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax www. ada. org. in/gstindia. biz

13 Casual Taxable Person § occasionally undertakes transactions § involving supply of goods and/or services § in the course or furtherance of business § whether as principal, agent or in any other capacity, § in a taxable territory where he has no fixed place of business. Non Resident Taxable Person § occasionally undertakes transactions § involving supply of goods and/or services § whether as principal, agent or in any other capacity, § has no fixed place of business in India. www. ada. org. in/gstindia. biz

14 Registration of Casual and No resident Taxable Person • Registration before 5 days of starting activities • Initial registration for maximum 90 days which is further extendable to 90 days • Advance deposit of tax which will be credited in cash ledger www. ada. org. in/gstindia. biz

15 WHY Voluntary Registration • Section 18(2) A person who take registration u/s 23(3) will be eligible for input tax in respect of inputs held in respect of Stock Semi finished stock Finished stock On the day immediately preceding the date of grant of registration. • Section 18 (1) A person who has applied for registration under the Act within thirty days from the date on which he becomes liable to registration and has been granted such registration shall, subject to such conditions and restrictions as may be prescribed, be entitled to take credit of • input tax in respect of inputs held in stock • inputs contained in semi finished Goods • inputs contained in finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act. www. ada. org. in/gstindia. biz

16 WHICH FORM TO BE USED www. ada. org. in/gstindia. biz

17 FLOW OF REGISTRATION Application in FORM GSTREG 01 ACKNO WLEDGE MENT in FORM GSTREG 02 Informati on in FORM GSTREG -03 Within 3 days Reply in FORM GSTREG 04 Within 7 days Reject in FORM GSTREG -05 Or Registrat ion in FORM GST REG-06 www. ada. org. in/gstindia. biz

18 Amendment to Registration • Online • Application to the proper Officer www. ada. org. in/gstindia. biz

19 Cancellation of Registration • By own motion i. Where the taxpayer has contravened such provisions of the Act as may be prescribed. ii. Person paying tax u/s 8 has not file returns for three consecutive tax periods. iii. Person other than above has not filed the returns for consecutive six months. iv. Any person who has taken voluntary registration has not commenced business within six months from the date of registration. www. ada. org. in/gstindia. biz

20 Cancellation of Registration • On an application filed by registered taxable person i. Where the business has been discontinued ii. Transferred iii. There is a change in constitution of business iv. The person liable to be registered in schedule III is no longer liable to be registered. On an application filed by legal heirs in case of death of such person www. ada. org. in/gstindia. biz

21 List of Forms related to registration S. No. Form Number Description 1 REG-01 Application for Registration u/s 19(1) GST Act, 2016 2 REG-02 Acknowledgement 3 REG-03 Notice for Seeking Additional Information relating to Registration / Amendments / Cancellation 4 REG-04 Application for filing clarification Registration / Amendment / Cancellation / Revocation of Cancellation 5 REG-05 Order of Rejection of Application for Registration / Amendment / Cancellation / Revocation of Cancellation 6 REG-06 Registration Certificate issued u/s 19(8 A) of the GST Act, 20 7 REG-07 Application for Registration as TDS or TCS u/s 19(1) of the GST Act, 20 8 REG-08 Order of Cancellation of Application for Registration as TDS /TCS u/s 21 of the GST Act www. ada. org. in/gstindia. biz

22 List of Forms related to registration S. No. Form Number Description 9 REG-09 Application for Allotment of Unique ID to UN Bodies/ Embassies /any other person u/s 19(6) of the GST Act 10 REG-10 Application for Registration for Non Resident Taxable Person. 11 REG-11 12 REG-12 13 REG-13 14 REG-14 Application for Cancellation of Registration under GST 20 15 REG-15 Show Cause Notice for Cancellation of Registration 16 REG-16 Order for Cancellation of Registration Application for Amendment in Particulars subsequent to Registration Order of Amendment of existing Registration Order of Allotment of Temporary Registration/ Suo Moto Registration www. ada. org. in/gstindia. biz

23 List of Forms related to registration S. No. Form Number Description 17 REG-17 18 REG-18 19 REG-19 Notice for Seeking Clarification / Documents relating to Application for Revocation of Cancellation 20 REG-20 Application for Enrolment of Existing Taxpayer 21 REG-21 Provisional Registration Certificate to existing taxpayer 22 REG-22 Order of cancellation of provisional certificate 23 REG-23 24 REG-24 Application for Revocation of Cancelled Registration under GST 20 Order for Approval of Application for Revocation of Cancelled Registration Intimation of discrepancies in Application for Enrolment of existing taxpayer Application for Cancellation of Registration for the Migrated Taxpayers not liable for registration under GST 20 www. ada. org. in/gstindia. biz

24 List of Forms related to registration S. No. Form Number 25 REG-25 26 REG-26 Description Application for extension of registration period by Casual / Non-Resident taxable person. Form for Field Visit Report www. ada. org. in/gstindia. biz

25 www. ada. org. in/gstindia. biz

For any inquiry ASHU DALMIA & ASSOCIATES CHARTERED ACCOUNTANTS A-36, 2 nd Floor, Guru Nanak Pura Laxmi Nagar, Delhi-110092, INDIA Tel: +91 -11 -22466591, 22422707, 45665691 Mob: +91 -9810893243 Email: ashu. dalmia@ada. org. in Website: http: //www. gstindia. biz/ada. org. in