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1. Background

Model GST law provides for registration of various persons in different situations. This article aims at enlightening readers about the persons who are required to take registration and other provisions related to registration.

2. Threshold Limit

In order to provide relaxation to small suppliers it is provided that every supplier shall be liable to be registered under this act in the State form where it makes a taxable supply of goods or services if its aggregate turnover in a financial year exceeds ₹ 9 lacs. However, this limit is ₹ 4 lacs for the persons conducting business in NE states including Sikkim.

Here, aggregate turnover means the aggregate value of all taxable and non-taxable supplies, exempt supplies and exports of goods and/or services of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under the CGST Act, SGST Act and the IGST act, as the case may be. But aggregate turnover does not include the value of supplies on which tax is levied on reverse charge basis and the value of inward supplies.

3. Persons requiring registration

Following are the persons required to take registration under this act –

(a) Persons making inter-state supply, irrespective of any threshold limit

(b) Casual taxable persons, irrespective of the threshold specified

(c) Persons who are required to pay tax under reverse charge

(d) Non resident taxable persons

(e) Persons who are required to deduct tax under section 37 (TDS)

(f) Agents

(g) Input service distributor

(h) Supply of goods or services through electronic commerce operator, other than branded services

(i) Every electronic commerce operator

(j) Aggregator who supplies service under his brand name or his trade name

(k) Other notified persons

In the situation other than above–

(l) Suppliers liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 9 lacs.

(m) Supplier liable to be registered where it makes a taxable supply of goods of services if its aggregate turnover in a financial year exceeds ₹ 4 lacs. (for NE states including Sikkim)

(n) Persons who were already registered under the earlier law subject to point (l) and (m) above.

(o) Transferee in case where business is transferred.

4. Following will make some situations regarding registration more clear –

Nature of supply Registration required

1 Taxable inter-state supply - Yes

2 Exempted inter-state supply - No

3 Intra-state supply (upto ₹ 9 lacs) - No

4Intra-state supply (exceeding ₹ 9 lacs) - Yes

5Intra-state supply (upto ₹ 9 lacs) Exempted inter-state supply of any value - No

6 Casual Taxable person - Yes

7 Reverse charge – for personal use upto prescribed limit-No

8 Reverse charge – for personal use beyond prescribed limit-Yes

9 Reverse charge – Other than personal use-Yes

10 Non-resident person-Yes

11 Persons required to deduct TDS providing intra state supply upto ₹ 9 lacs-Yes

12 Input service distributor-Yes

13 Agent or the like-Yes

14 Intra-state supply upto ₹ 9 lacs As an agent -Yes

15 Electronic commerce operator-Yes

16 Supply through electronic commerce operator – Branded or otherwise-Yes

17 Aggregator – supplying services-Yes

18 Intra-state supply – Exempted ₹ 5 lacs

5. Time limit for registration

Person liable to take registration under this act shall be liable to take registration within thirty days from the date on which he becomes liable to registration.

Input service distributor, registered in the erstwhile law is not required to re-register subject to the procedure to be followed by it as prescribed.

6. Other aspects

  • Option available for separate registration for each business vertical

  • Option of voluntary registration is available

  • Every person applying for registration should b having PAN number

  • Non resident person may be granted registration on any other documents as prescribed ion absence of PAN number.

  • Unique Identity number will be allotted to the assessees.

7. Special provisions relating to casual taxable person and non-resident taxable person

  • Registration certificate issued will be valid for 90 days from the date of registration.

  • This period could be further extended to 90 days.

  • Such taxable persons are required to deposit tax in advance on the basis of estimated tax liability.

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