Who is the person liable to get registered under GST? Explain the procedure for registration, amendment, and cancellation of registration.

• mandatory registration based on Aggregate turnover Section 22
• mandatory registration irrespective of Aggregate turnover Section 24
• voluntary registration section 25(3)

Persons liable for registration[Section 22.]

1. New Registrations:  Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs.20 lakh :
   
   Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs. 10 lakh .
   
   Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.
   
   [Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from Rs. 20 lakh rupees to such amount not exceeding Rs. 40 lakh  in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.
   
   Explanation.––For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]

Threshold limit for Registration: increasing aggregate turnover threshold limit of goods from Rs 20 lakh to Rs 40 Lakh for general state at the 32nd GST Council meeting held on 10th January 2019 from 1st April 2019. For special category states, Aggregate turnover limits increase to Rs 20 from Rs.10 lakh. 

Meaning of Aggregate Turnover: As persecution 2(6) of the CGST/ SGST aggregate turnover” means the aggregate value of 1. all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), 2. exempt supplies,3. exports of goods or services or both and 4. inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess; 

In other words, Aggregate Turnover to be computed on all India basis. 

it is the aggregate of All india Supply Consist of

• All Exempt supplies across India are on the same PAN.
• All Taxable supplies across India on the same PAN.
• Exports of goods or services on the same PAN.
• Interstate Branch Transfer on the same PAN.

exclude

• All GST inward supply subj to RCM 

Where Registration is required?

Registration is required in the state from where he makes a taxable supply of goods or services or both but it is advisable to get registration either regular or ISD, where any inward supply of goods or services required to avail ITC so that no loss of input tax credit. 

1. Already Registered under old law requires migration of registration:  Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under existing law, shall be liable to be registered under this Act with effect from the appointed day.
2. Registration requirement where transfer of a business as a going concern on succession or otherwise:  Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

Note: Both inter vivos transfer as well as transfer on succession are covered if the transfer of a business as a going concern. i.e. Transferor or Succession of running business. Here Registration of the Successor or transferee is required So that the balance ITC of the transferor/ predecessor can be transferred to the Successor/ transferor and also Successor or transferee is made liable to Pay GST on the transfer of stock of Raw material, WIP, Finished goods, Stock in trade, capital goods, etc in future on which ITC already claimed.

1.  Amalgamation of two or Companies or demerger of company Notwithstanding anything contained in sub-section (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.
   
   Explanation.––For the purposes of this section,––
   
   (i) The expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
   
   (ii) the supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
   
   (iii) the expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution. except for the States of Jammu and Kashmir and the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhand

Compulsory registration in certain cases: Here registration is compulsory irrespective of turnover 

Section 24. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,—

(i) persons making any inter-State taxable supply;

(ii) casual taxable persons making taxable supply;

(iii) persons who are required to pay tax under reverse charge; Tax liability under RCM

(iv) persons who are required to pay tax under sub-section (5) of section 9; electronic commerce operator, where supply of service through E- e-commerce operator 

(v) non-resident taxable persons making taxable supply;

(vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act; Tax deductor Government or Government entity.

(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise; Supplying taxable goods or service on behalf of others whether as agent or principal. 

(viii) Input Service Distributor (ISD), whether or not separately registered under this Act;

(ix)  persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operators who are required to collect tax at source under section 52; i . e  person Supplying goods or Services through E-commerce operator, where such operator is liable to collect tax.

(x) every electronic commerce operator who is required to collect tax at source under section 52;

(xi) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; 

[(xia) every person supplying online money gaming from a place outside India to a person in India; and]

(xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.

Voluntary Registration Section 25(3)) A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.

Procedure for registration Section 25:

• application for registration within 30 days of Liability of GST in REG -01 and approval of application and  certificate of registration in FORM GST REG-06 
• Separate registration for SEZ units and non-SEZ units
• a casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.

Effective date of registration: As per Rule 10 

• If an application is made within 30 days of the date of liability, registration shall be valid from the date of liability.
• If an application is made beyond 30 days of the date of liability, registration shall be valid from the date of grant of registration.

Amendment of Registration: Section 28  

Every registered person and a person to whom a Unique Identity Number has been assigned shall inform the proper officer of any changes in the information furnished at the time of registration or subsequent thereto, in such form and manner and within such period as may be prescribed.

The proper officer may, on the basis of information furnished under sub-section (1) or as ascertained by him, approve or reject amendments in the registration particulars in such manner and within such period as may be prescribed:
Provided that approval of the proper officer shall not be required in respect of amendment of such particulars as may be prescribed:
Provided further that the proper officer shall not reject the application for amendment in the registration particulars without giving the person an opportunity of being heard.

Any rejection or approval of amendments under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a rejection or approval under this Act.

Application for amendment FORM GST REG-14: As per rule 19(1): for any Amendment in registration particulars after registration, the registered person shall, within a period of 15 days of such change, submit an application, duly signed or verified through an electronic verification code, electronically in FORM GST REG-14, along with the documents relating to such change at the common portal.

order of amendment in GST REG-15: The proper officer shall, after due verification approve the amendment within a period of 15 working days from the date of the receipt of the application in FORM GST REG-14 and issue an order in FORM GST REG-15 electronically and such amendment shall take effect from the date of the occurrence of the event warranting such amendment;

SCN in form GST REG-03 before rejection of application for amendment: Where the proper officer is of the opinion that the amendment sought under sub-rule (1) is either not warranted or the documents furnished therewith are incomplete or incorrect, he may, within a period of 15 working days from the date of the receipt of the application in FORM GST REG-14, serve a notice in FORM GST REG-03, requiring the registered person to show cause, within a period of 7 working days of the service of the said notice, as to why the application submitted under sub-rule (1) shall not be rejected.

Reply to SCN in FORM GST REG-04:  The registered person shall furnish a reply to the notice to show cause, issued under sub-rule (2), in FORM GST REG-04, within a period of 7 working days from the date of the service of the said notice.

Where the reply furnished under sub-rule (3) is found to be not satisfactory or where no reply is furnished in response to the notice issued under sub-rule (2) within the period prescribed in sub-rule (3), the proper officer shall reject the application submitted under sub-rule (1) and pass an order in FORM GST REG -05.

changes are of two types 

• minor changes need to be updated on the portal such as email id. and mobile no etc,

• Major changes such as a change in address, key persons, and legal name of business

• amendment require a change in PAN such as a change in the constitution of the entity. Requiring fresh registrations.

Cancellation of Registration

29. Cancellation [or suspension] of registration

1. Action  by PO/ registered person: The proper officer may, either on his own motion or on an application filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and within such period as may be prescribed, having regard to the circumstances where,––
   
3. Grounds for cancellation:
   (a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
   
   (b) there is any change in the constitution of the business; or
   
   (c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of section 25:
   
   Provided that during the pendency of the proceedings relating to cancellation of registration filed by the registered person, the registration may be suspended for such period and in such manner as may be prescribed.
4. The proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where,––
   
   (a) a registered person has contravened such provisions of the Act or the rules made thereunder as may be prescribed; or
   
   (b) a person paying tax under section 10 (Composition scheme)  has not furnished the return for a financial year beyond 3 months from the due date of furnishing the said return; or
   
   (c) any registered person, other than person opting for composition scheme , has not furnished returns for such continuous tax period as may be prescribed; or
   
   (d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or
   
   (e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts:
   
   Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard.
   
   [Provided further that during the pendency of the proceedings relating to cancellation of registration, the proper officer may suspend the registration for such period and in such manner as may be prescribed.]

Cancellation does not affect on tax liability etc.:

1. The cancellation of registration under this section shall not affect the liability of the person to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation.
3. The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act.

Delhi High court on power of retrospective cancellation of registration : Registration – Cancellation of – Retrospective effect – Assessee had applied for cancellation of registration due to discontinuation of his business – However, registration was cancelled with retrospective effect from a date prior to date of application for cancellation of registration – Show Cause Notice stated that assessee failed to file returns for a continuous period of 6 months – it was held by the court that Registration cannot be cancelled with retrospective effect mechanically – It can be cancelled only if proper officer deems it fit to do so – Such satisfaction could not be subjective but must be based on some objective criteria – Merely because assessee had not filed returns for some period does not mean that assessee’s registration is required to be cancelled with retrospective date also covering the period for which  returns were filed and assessee was compliant – Order of cancellation was to be modified to extent that same shall operate with effect from date when assessee first applied for cancellation of registration [Section 29 of Central Goods and Services Tax Act, 2017/Delhi Goods and Services Tax Act, 2017]  AryanTimberStore Vs.Sales Tax Officer [2024] 158 taxmann.com 661 (Delhi)(HC)

Action required on cancellation: reversal of ITC or Payment of ITC included in inventory or Capital goods

1. Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed:
   
   Provided that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such percentage points as may be prescribed or the tax on the transaction value of such capital goods or plant and machinery under section 15, whichever is higher.
2. The amount payable under sub-section (5) shall be calculated in such manner as may be prescribed.

recourse available against cancellation of registration: appeal before appellate authority u/s107 of the CGST/SGST Act.