Customs and Excise (popularly known as GST) will soon be a new indirect tax system in India that will apply to all other indirect taxes collected in India to date.
From a taxpayer’s point of view, registration under the GST can be a priority. The purpose of this article is to enlighten the reader on the various aspects of enrollment covered under Chapter VI of the Model Goods and Services Act.
1. Provisions governing the registration process
Chapter VI of the Model GST Act
Schedule III of the Model GST Act
Report of the Joint Business Procedures Committee on GST Registration
Incomplete Rules for Registration
2. Benefits of Obtaining Registration under the GST regime
2.1 Legal recognition as a supplier of goods or services;
2.2 Accounting for the tax payable for imported goods or services that may be used to pay GST as a result of the supply of goods or services or both entities;
2.3 Transfer tax liability paid for goods or services provided to consumers or recipients; and
2.4 One platform for all indirect taxes.
3. Key Areas Included in this article
S. No Combined Locations
1People responsible for the registration
2 Documents required for registration
3 Registration Time Limit
4 Application for Registration
5 Issuance of registration certificate
6 Subscription number structure
7 Multiple registrations in the event of Multiple Business Verticals
8 Migration of persons registered under the Previous Act
9 Registration under special categories
10 Ten Lessons
4. People are obliged to register
There are selected reasons why a person is required to register under the GST. Reasonable and necessary reason for the application form:
4.1 Crossing the border
4.1.1 The limit must be adjusted to consider the provision of goods and services to the maximum benefit. Such benefits may include the benefit of exempt goods and services (including tax-exempt) as well as export exemptions under the CGST Act, SGST Act, and IGST Act.
4.1.2 The limit for the purpose of registration is kept at Rs 10 Lakhs in Northeast countries including Sikkim and Rs 20 Lakhs in other provinces.
4.2 Due to the tax levy from the government
4.3 Due to the obligation to pay as a recipient of services
4.4 Due to being an Input Service Distributor (ISD)
4.5 UN Themes for Allocation of Alternative Identity Number (same as invoices)
4.6 Due to the Transfer of Business which includes a change in the ownership of the business (If the transferor is not a registered organization)
4.7 Due to Death of Owner (If the successor is not a registered organization)
4.8 Due to consolidation
4.9 Due to changes in the business constitution
4.10 Due to the merger of two or more registered taxpayers
4.11 Being ordinary taxpayers
4.12 Being non-taxable persons
4.13 Due to tax deductions under section 37
4.14 Persons who supply goods/services on behalf of other persons who are registered for tax purposes may be an agent or otherwise
4.15 Merger that provides services under the brand name or its trade name
4.16 Persons who supply goods and/or services, other than branded services, through electronic commerce operators
4.17 Commercial operators
4.18 None of the above- is voluntary
Note: Registration under the SGST means registration under the CGST and vice versa. Also, a business with one PAN but operational items from many countries will need to take registration in each Country from where the transaction is made.
5. Registration Time Limit
5.1 Every manufacturer or service provider or dealer registered under the Central Excise Act or under the Services Tax Act or State Vat Act will receive an automatic PAN registration number without a new application.
6. Required registration documents
6.1 The observer must provide documentation support in order to prove the details required to be completed in the other sections of the GST application form.
7. Application for registration – Procedure
7.1 Model GST Act does not specify procedures for registration. The Empowerment Committee released the GST Business Procedures Report on the GST Registration Process in July 2015 providing the registration process. The Government recently also released the ‘Proposed Registration Rules’ for public comment.
8. Composition of Registration Number
8.1 PAN-based GSTIN- Each taxpayer will be allocated a State-wise PAN based on the Goods and Services Taxpayer Identification Number (GSTIN) number. The first 2 numbers will be the State Code. The next 10 digits will be the Income Tax PAN. Number 13 will be the business code. The 14 numbers will be empty for future use.