(A) INTRODUCTION

• As we all know that the Empowered Committee of State Finance Ministers has released draft GST Model Law. Subsequently, the President gave his consent to the Constitutional Amendment Bill on September 08, 2016. Thereafter, the GST Council was formed as per the provisions of Article 279A of the 101^st Constitutional Amendment Act, 2016.
• In less than a week after the first meeting of the GST Council held on 22 / 23^rd September 2016, the Government came out with draft rules and their formats relating including Rules of Registration.
• Sections 19 to 22 of the Goods and Services Tax Act, 2016 (“The Act”) deals with registration of taxable persons.
• Section 2 (96) read with Section 9 provides the meaning of ‘taxable person’ means a person who carries on any business at any place in India / State and who is registered or required to be registered under Schedule III of the Act.
• For all the suppliers of goods and services, the threshold limit for registration will be INR 20[1] Lakhs on an all India basis (aggregate turnover in a financial year). However, for the suppliers, who conduct business in any of the Northeastern and hill states, the threshold limit will be INR 10 Lakhs.

(B) PEPRSONS LIABLE TO BE COMPULSORY REGISTERED UNDER THE GST, IRRESPECTIVE OF THRESHOLD LIMIT [Clause 5 of Schedule III ]

Irrespective of the threshold limit, following persons shall be required to be registered under this Act:

• Persons making an inter-state taxable supply,
• Casual taxable persons,
• Persons liable to pay tax under reverse charge,
• Non-resident taxable persons,
• Persons required to deduct tax under Section 37 of the Act,
• Persons who supply goods and/or services on behalf of other registered taxable persons,
• Input Service Distributor,
• Persons who supply goods and/or services other than branded services through e-commerce operator,
• Every e-commerce operator,
• An aggregator who supplies services under his brand name or trade name,
• Such other person or class of persons as maybe notified by the Central Government or a State Government on the recommendations of the Council.

(C) PERSONS NOT TO BE REGISTERED [Section 9(1) of the Act]

An agriculturist shall not be considered as a taxable person and he need not get himself registered even if the turnover exceeds the limit prescribed for registration.

(D) APPLICATION FOR REGISTRATION [Rule 1 of the Registration Rules]

• Every person shall have a Permanent Account Number issued under the Income Tax Act, 1961 in order to be eligible for grant of registration [Section 19 (4) of the GST Act].
• As per Rule 1 of the Draft Goods and Services Tax Registration Rules (“Registration Rules”), every person, other than:
• a non-resident taxable person;
• a person required to deduct tax at source under Section 37; and
• a person required to collect tax at source under Section 43C

is liable to be registered under sub-section (1) of Section 19 and every person seeking registration under sub-section (3) of Section 19 shall, before applying for registration, declare his Permanent Account Number (PAN), mobile number and e-mail address in Part A of prescribed form (i.e. REG-01) on the Common Portal either directly or through a Facilitation Centre, notified by the Board or Commissioner.

• Every person registered under an earlier law and having a Permanent Account Number issued under the Income Tax Act, 1961 shall be granted registration on a provisional basis and a certificate of registration in the prescribed form (REG-21) [Rule 14(1)].

(E) REGISTRATION CERTIFICATE [Rule 3 of Registration Rules]

• Subject to the provisions of sub-section (11) of Section 19, where the application has been approved for grant of registration under Rule 2, a certificate of registration in the prescribed form (i.e. REG-06) shall be made available to the applicant on the Common Portal for the principal place of business and for every additional place of business.

• The registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within thirty days from such date.

• 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 under sub-rules (1), (4) or (6) of Rule 2 of the Registration Rules.

(F) REGISTRATION REQUIREMENTS FOR BUSINESS VERTICALS [Section 19(2 )of the Act]

• As per Section 19 (2) of the Act, a person having multiple business verticals in a State may obtain a separate registration for each business vertical.
• In this regard, Rule 4 of the Registration Rules provides that any person who has multiple business verticals within a State and requires a separate registration for any of its business verticals under sub-section (2) of Section 19 shall be granted separate registration in respect of each of the verticals subject to the following conditions:

(a) Such person has more than one business vertical as defined under sub-section (18) of Section 2 of the Act;

(b) No registration shall be granted to a business vertical of a taxable person to pay tax under Section 8 (composition levy), if any one of the other business verticals of the same person is paying tax under Section 7.

(c) All separately registered business verticals of such person shall pay tax under this Act on supply of goods and/or services made to another registered business vertical of such person and issue a tax invoice for such supply.

• Rule 4 of the Registration Rules further provides that a separate application may be filed by a registered taxable person who is eligible to obtain separate registration for business verticals in the prescribed form (i.e. REG-01) in respect of each such vertical.

(G) REGISTRATION FOR SPECIFIC ASSESSES [Section 19A of the Act read with Rule 8 of the Registration Rules]

• The validity of the certificate of registration issued to a casual taxable person or a non-resident taxable person will be for a period of ninety days from the effective date of registration [Section 19A].
• As per Rule 8 of the Registration Rules:

A non-resident taxable person shall submit an application electronically for registration, duly signed, in the prescribed form (i.e. REG-10), at least five days prior to commencement of the business at the Common Portal either directly or through a Facilitation Centre, notified by the Board or Commissioner.

(H) AMENDMENT TO REGISTRATION [Section 20 of the Act read with Rule 9 of the Registration Rules]

• If there are any changes in the particulars furnished in the application for registration, either at the time of obtaining registration or as amended from time to time, the registered taxable person shall submit an application electronically, duly signed, electronically, within fifteen days of such change along with documents relating to such change at the Common Portal either directly or through a Facilitation Centre (Rule 9).

(I) CANCELLATION OF REGISTRATION [Section 21 of the Act read with Rule 11 and 12 of the Registration Rules]

Application for cancellation of Registration

• A registered taxable person seeking cancellation of his registration under sub-section (1) of Section 21 (Refer Section 21), shall electronically submit an application in the prescribed form [i.e. REG-14] including the details of closing stock and liability thereon and may furnish, relevant documents along with the application in support thereof at the Common Portal either directly or through a Facilitation Centre, notified by the Board or Commissioner.

• Every taxable person, seeking cancellation of registration under sub-rule (1), other than a person paying tax under Section 8, shall furnish a final return under rule Return 19.

Form No.	Event
REG-14	Application for cancellation of registration
REG-01, REG-07, REG-09 or REG-10	When changes in the particulars furnished in the application for registration in these forms, then
REG-11	Application to be submitted by taxable person in this form

• A notice may be issued to the taxable person to show cause within seven days as to why his registration should not be cancelled, if the proper officer has reasons to believe that the registration of a taxable person is liable to be cancelled under Section 21 of the GST Act.

• An order may be issued by the proper officer to a taxable person, to be passed within thirty days from the date of application under sub-rule (1) of Rule 11, if he is satisfied that the application submitted by the taxable person for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled under Section 21.

Form No.	Event
REG-15	Notice to be issued in this form
REG-16	Order may be issued by the proper officer in this form

(J) REVOCATION OF CANCELLATION OF REGISTRATION [Section 22 of the GST Act read with RULE 13 of the Registration Rules]

• A taxable person may submit an application for revocation of cancellation of registration, to such proper officer who cancelled his registration on his own motion, within thirty days from the date of service of the order of cancellation of registration.
• Where the proper officer is satisfied, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order within thirty days from the date of receipt of such application and communicate the same to the applicant.

• The proper officer may by an order reject the application for revocation of cancellation of registration and communicate the same to the applicant, under circumstances other than those specified in clause (a).

Form No.	Event
REG-17	An application to be submitted in this form for revocation of cancellation of registration
REG-18	Proper officer shall revoke the cancellation of registration by an order in this form
REG-05,	Proper officer may reject the application for revocation of cancellation of registration by and order in this form

• The proper officer may require the applicant to furnish such information or clarification which he may think may be required for verifying the particulars furnished in the said application, within three common working days of the filling of the application and the same shall be furnished by the applicant within seven common working days from the date of the service of notice.

• Upon receipt of the information or clarification in the prescribed format (i.e. REG-04), the proper officer may proceed to dispose of the application in the manner specified in sub-rule (2) within thirty days from the receipt of such information or clarification from the applicant:

Provided that the application shall not be rejected without giving the applicant a chance to be heard by issue of a notice within thirty days from the date of receipt of such application.

Form No.	Event
REG–03	Information/clarification to be furnish by applicant in this form within three common working days of the filing of application
REG-04	The abovementioned application shall be furnished by the applicant within seven common working from the date of service of notice in this form
REG-19	Applicant to be given a chance of hearing by issue of a notice in this form

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[1] As per Schedule-III the limit was decided INR 10 Lakhs and 5 Lakhs respectively. However, the GST council in its recent meeting has enhanced the threshold limit to INR 20 Lakhs & INR 10 Lakhs respectively.