76221bos61590-cp8

CHAPTER 8
REGISTRATION
The section numbers referred to in the chapter pertain to CGST Act, unless otherwise
specified. Examples/Illustrations/Questions and Answers given in the Chapter are based
on the position of GST law existing as on 30.04.2023.
LEARNING OUTCOMES
After reading this chapter, you will be able to:

 understand the concept of the taxable person
 explain when a person becomes liable to get registered under
GST.
 identify the scenarios where registration is compulsory.
 identify the persons who are not liable for registration.
 describe the procedure for obtaining registration under GST.
 explain the procedure for amendment of registration.
 describe the cancellation of registration and revocation of
cancellation of registration in specified circumstances.
© The Institute of Chartered Accountants of India

1.2 8.2 GOODS AND SERVICES TAX
1. INTRODUCTION
Under any taxation law, registration is the most
fundamental requirement for the identification of
persons liable to pay tax thereby ensuring tax
compliance in the economy. Under the indirect tax
regime, without registration, a person can neither
collect tax from his customers nor claim any credit of
tax paid by him. It is the first step towards becoming compliant under any tax law.
Registration under GST legally recognizes a person as a supplier of goods or
services or both and legally authorizes him to collect taxes from his customers and
pass on the credit of the taxes paid on the goods or services supplied to the
purchasers/recipients. He can claim the input tax credit of taxes paid and can utilize
the same for payment of taxes due on the supply of goods or services. Registration
ensures the seamless flow of input tax credit from suppliers to recipients at the
national level.
Under GST law, a supplier is required to obtain State-wise registration. There is no
concept of a centralized registration under GST like the erstwhile service tax regime.
A supplier has to obtain registration in every State/UT from where he makes a
taxable supply provided his aggregate turnover exceeds a specified threshold limit.
Such a supplier is not required to obtain registration in a State/UT from where he
makes only a non-taxable supply.
Since registration in GST is PAN based, once a supplier is liable
to register in any one State, he has to obtain registration in
each of the States/UTs in which he makes taxable supply under PAN based
registration
the same PAN. Further, he is normally required to obtain single
registration in a State/UT. However, where he has multiple
places of business in a State/UT, he has an option either to get a single registration
for said State/UT [wherein he can declare one place as principal place of business
(PPoB) and the other places/branches as additional place(s) of business (APoB)] or
to get separate registrations for each place of business in such State/UT.
Registration under GST is not tax specific, which means that there is single
registration for all the taxes i.e. CGST, SGST/UTGST, IGST and GST compensation
cess.

REGISTRATION 8.3
Chapter VI - Registration [Sections 22 to 30] of the CGST Act, 2017 and Chapter III
– Registration [Rules 8 to 26] of the CGST Rules, 2017 contain the provisions relating
to registration. State GST laws also prescribe identical provisions in relation to
Registration.
Before proceeding to understand the registration provisions, let us first go through
a few relevant definitions.
2. RELEVANT DEFINITIONS
 Agent: means a person, including a factor, broker, commission agent,
arhatia, del credere agent, an auctioneer or any other mercantile agent,
by whatever name called, who carries on the business of supply or receipt
of goods or services or both on behalf of another [Section 2(5)].
 Common portal: means the common goods and services tax electronic
portal referred to in section 146 [Section 2(26)].
 Council: means the Goods and Services Tax Council established under
article 279A of the Constitution [Section 2(36)].
 Place of business: includes [Section 2(85)]:
a place from where the business is ordinarily carried on, and

includes a warehouse, a godown or any other place where a taxable
person stores his goods, supplies or receives goods or services or
both; or
a place where a taxable person maintains his books of account; or
a place where a taxable person is engaged in business through an

agent, by whatever name called.
 Appellate Authority: means an authority appointed or authorised to hear

appeals as referred to in section 107 [Section 2(8)].
 Exempt supply: means supply of any goods or services or both which

attracts nil rate of tax or which may be wholly exempt from tax under
section 11 of the CGST Act, or under section 6 of the IGST Act, and
includes non-taxable supply [Section 2(47)].
 Taxable supply: means a supply of goods or services or both which is

leviable to tax under this Act [Section 2(108)].
 Taxable territory: means the territory to which the provisions of this Act
apply [Section 2(109)].
 Taxable person: means a person who is registered or liable to be

registered under section 22 or section 24 [The concept of taxable person
has been discussed in detail in subsequent paras] [Section 2(107)].
 Principal place of business: means the place of business specified as the

principal place of business in the certificate of registration [Section 2(89)].
 Proper officer: in relation to any function to be performed under this Act,

means the Commissioner or the officer of the central tax who is assigned
that function by the Commissioner in the Board [Section 2(91)].
 Registered person: means a person who is registered under section 25,

but does not include a person having a Unique Identity Number
[Section 2(94)].
 Fixed establishment: means a place (other than the registered place of

business) which is characterised by a sufficient degree of permanence and
suitable structure in terms of human and technical resources to supply
services, or to receive and use services for its own needs [Section 2(50)].
 Tax period: means the period for which the return is required to be
furnished [Section 2(106)].
 Business: includes [Section 2(17)]–

REGISTRATION 8.5
(a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any
other similar activity, whether or not it is for a pecuniary benefit;
(b) any activity or transaction in connection with or incidental or ancillary to (a) above;
(c) any activity or transaction in the nature of (a) above, whether or not there is volume,
frequency, continuity or regularity of such transaction;
(d) supply or acquisition of goods including capital assets and services in connection
with commencement or closure of business;
(e) provision by a club, association, society, or any such body (for a subscription or any
other consideration) of the facilities or benefits to its members, as the case may be;
(f) admission, for a consideration, of persons to any premises; and
(g) services supplied by a person as the holder of an office which has been accepted by
him in the course or furtherance of his trade, profession or vocation;
(h) activities of a race club including by way of totalisator or a license to book maker or
activities of a licensed book maker in such club
(i) any activity or transaction undertaken by the Central Government, a State
Government or any local authority in which they are engaged as public authorities.
3. CONCEPT OF TAXABLE PERSON [SECTION

2(107)]
Under GST law, the concept of taxable
person is significant since tax on supplies of
goods and/or services, is to be paid by a
taxable person. So, let us understand the
concept of taxable person. As per section
Taxable person
2(107), taxable person means a person who
is registered or liable to be registered under section 22 or section 24 [These sections
have been discussed in detail subsequently in this Chapter].
Thus, even an unregistered person who is liable to be registered is a taxable person.

Similarly, a person not liable to be registered, but has taken voluntary registration
and got himself registered is also a taxable person.
In the subsequent paras, we will see when a person becomes liable to get registered,
what is the procedure for getting registered under GST, how to get the registration
amended, when can the registration be cancelled and when the cancellation of the

registration initiated by the Department or by the registered person be revoked.

Following sections of Chapter VI – Registration of the CGST Act shall be discussed
in this chapter to understand the registration provisions:
Section 22 Persons liable for registration
Section 23 Persons not liable for registration
Section 24 Compulsory registration in certain cases
Section 25 Procedure for registration.
Section 26 Deemed registration
Section 27 Special provisions relating to casual taxable person and

non-resident taxable person
Section 28 Amendment of registration
Section 29 Cancellation or suspension of registration
Section 30 Revocation of cancellation of registration
4. PERSONS LIABLE
4 FOR REGISTRATION
[SECTION 22]
STATUTORY PROVISIONS
Section 22 Persons liable for registration
Sub-section Particulars
(1) 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 twenty lakh rupees.

REGISTRATION 8.7
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 ten lakh rupees.
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 twenty lakh rupees to such amount not exceeding
forty lakh rupees 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.
(2) Every person who, on the day immediately preceding the appointed day,
is registered or holds a license under an existing law, shall be liable to be
registered under this Act with effect from the appointed day.
(3) 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.
(4) Notwithstanding anything contained in sub-sections (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, de-merger

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 the State of Jammu and Kashmir and
States of Arunachal Pradesh, Assam, Himachal Pradesh,
Meghalaya, Sikkim and Uttarakhand.
ANALYSIS
(i) Threshold limit for registration
 Every supplier of goods or services or both is required to obtain

registration
 in the State or the Union territory from where he makes the taxable
supply
 if his aggregate turnover exceeds specified threshold limit in a FY.

REGISTRATION 8.9
Before, we study what is the applicable

threshold limit for various States/ UTs, let us
first understand the concept of aggregate
turnover.
Aggregate turnover is a crucial parameter
for deciding the eligibility of a supplier to
avail the benefit of threshold exemption
from registration and eligibility for
composition scheme [Discussed in Chapter 2 – Charge of GST in Module 1 of
the Study Material].
‘Turnover’ in common parlance is the total volume of business in monetary
terms. The term ‘aggregate turnover’ as defined under section 2(6) has been
presented in the diagrammatic form as follows:
Aggregate turnover
--CGST
Value of all outward supplies
--SGST
--Taxable supplies
--UTGST
--Exempt supplies
--IGST
--Exports
--Compensation cess
--Inter-State supplies
--Value of inward supplies on
of persons having same PAN be
which tax is payable under
computed on all India basis
reverse charge
The definition of ‘aggregate turnover’ Section 2(6) [as given above] read with
explanation (i) and (ii) to section 22 has been analysed as follows:
(A) Aggregate turnover to exclude inward supplies on which tax is
payable under reverse charge: It may be noted that the inward
supplies on which recipient is required to pay tax under Reverse Charge

Mechanism (RCM) do not form part of the ‘aggregate turnover’. The

law stipulates certain supplies like, Goods Transport Agency services,
legal services, sponsorship services, to name a few, where the recipient
of service is required to pay the tax to the Government – Discussed in
detail in Chapter 2 – Charge of GST. The value of such supplies would
not form part of the ‘aggregate turnover’ of recipient of such supplies.
Outward Supplies taxable

under reverse charge would
continue to be part of the
‘aggregate turnover’ of the
supplier of such supplies
(1) Raghubir Private Ltd. pays GST on sitting fees paid to its
directors for the services rendered by them, taxable under
reverse charge. The value of services provided by the directors
to Raghubir Private Ltd. will form part of the aggregate turnover of the
directors and not of Raghubir Private Ltd even though tax is to be paid
by Raghubir Private Ltd.
(B) Aggregate turnover excludes the elements of tax i.e. CGST, SGST,
UTGST, and IGST and compensation cess
(C) Aggregate turnover includes total turnover of all branches (i.e. all
GST registrations) under same PAN
Aggregate turnover is calculated by taking together the value in respect
of the activities carried out on all-India basis.
(2) A dealer ‘X’ has two offices – one in Delhi and another in
Haryana. In order to determine the aggregate turnover of ‘X’,
turnover of both the offices would be taken into account
subject to provisions of section 24.
(D) Value of exported goods/ services, exempted goods/services,
inter-State supplies including inter-State supplies between distinct
persons having same PAN, to be included in aggregate turnover

REGISTRATION 8.11
(3) Madhur Oils, Punjab, is engaged in supplying machine oil

as well as petrol. Supply of petrol is not leviable to GST, but
supply of machine oil is taxable. In order to determine the
aggregate turnover of Madhur Oils, turnover of both non-taxable as well
as taxable supplies would be taken into account.
(E) Aggregate turnover to include all supplies made by the taxable
person, whether on his own account or made on behalf of all his
principals. [Explanation (i) to Section 22]
(4) Mohini Enterprises has appointed M/s Bestfords &
Associates as its agent. M/s Bestfords & Associates makes
supply of goods on its own account as well as on behalf of
Mohini Enterprises where invoices are issued in name of M/s Bestfords
& Associates only.
All the supplies of goods made by M/s Bestfords & Associates as agent
of Mohini Enterprises as well as on its own account will be included in
the aggregate turnover of M/s Bestfords & Associates.
(F) ‘Aggregate turnover’ Vs. ‘Turnover in a State’: The definition of
‘Turnover in a state’ is similar to the definition of ‘Aggregate turnover’
with a difference that the definition of ‘Turnover in a state’ considers
the taxable, exempt and export supplies made from the relevant State.
Aggregate turnover is used for determining the threshold limit for
registration and the eligibility for the composition scheme [Discussed in
Chapter 2 – Charge of GST]. However, once a person is eligible for
composition levy, GST payable under composition levy would be
calculated as a specified % of ‘turnover in the State/UT’.
(G) Value of goods, after completion of job work, supplied directly from
the premises of the registered job worker not to be included in
aggregate turnover of the job worker [Explanation (ii) to Section 22]
Job-work implies undertaking any treatment or
process by a person on goods belonging to
another registered taxable person.
The person who is treating or processing the
goods belonging to other person is called ‘job worker’ and the person

to whom the goods belong is called ‘principal’. Schedule II of the CGST

Act stipulates that job work is a service.
The Principal can supply the goods directly from the premises of the
job worker without bringing it back to his own premises.
In case the job worker is unregistered, principal should declare job
worker’s premises as his additional place of business and remove goods
from the same.
If the job worker is a registered person/ principal supplies notified
goods, goods can be supplied directly from the premises of the job
worker.
Supply of goods, after completion of job work, directly from a
registered job worker’s premises is treated as supply of goods by
the principal.
Further, the value of such goods supplied will be included in the
aggregate turnover of the principal and not job worker.
supplies goods directly to buyer after

completion of job work on the same
Registered Buyer
Job
worker for processing
supplies goods to job
the same
Supply of such goods shall be

treated as the supply of goods
by the principal and the value
of such goods shall be
included in the aggregate
Principal

REGISTRATION 8.13
Applicable threshold limit
The threshold limit prescribed under section 22(1) is ` 20 lakh in a FY, i.e.
every supplier, whose aggregate turnover in a financial year exceeds
` 20 lakh, is liable to be registered under GST in the State/ Union territory
from where he makes the taxable supply of goods and/or services.
However, the limit of ` 20 lakh will be reduced to ` 10 lakh if the person is

carrying out business in Special Category States. As per Article 279A(4)(g)
of the Constitution, there are 11 Special Category States, namely, States of
Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya,
Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.
However, as per the explanation (iii) to section 22, for the purposes of
registration, only Mizoram, Tripura, Manipur and Nagaland are Special
Category States. Therefore, the threshold limit ` 10 lakh is applicable for
Mizoram, Tripura, Manipur and Nagaland.
If a person with places of business in

different States across India has one
branch in a Special Category State, the
threshold limit for GST registration will
be reduced to ` 10 lakh.
Government is empowered to enhance the threshold limit of ` 20 lakh upto

` 40 lakh for a supplier engaged exclusively in the supply of goods, at the
request of a State and on the recommendations of the Council. This shall be
subject to such conditions and limitations, as may be notified.
For the purposes of section 22(1), 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.

Further, Notification No. 10/2019 CT dated 07.03.2019 exempts any

person who is engaged exclusively in supply of goods and whose aggregate
turnover in the financial year does not exceed ` 40 lakh, from the requirement
to obtain a registration.
Exceptions to this exemption are as follows:
(a) Persons required to take compulsory registration under section 24.
(b) Persons engaged in making supplies of
(i) ice cream and other edible ice, whether or not containing cocoa
[2105 00 00],
(ii) pan masala [2106 90 20],
(iii) all goods of Chapter 24, i.e. Tobacco and manufactured tobacco
substitutes,
(iv) fly ash bricks; fly ash aggregates; fly ash blocks [6815],
(v) bricks of fossil meals or similar siliceous earths [6901 00 10],
(vi) building bricks [6904 10 00],
(vii) earthen or roofing tiles [6905 10 00].
(c) Persons engaged in making intra-State supplies in the States of

Arunachal Pradesh, Uttarakhand, Meghalaya, Sikkim, Telangana,
Puducherry and Special Category States as per section 22 [Nagaland,
Mizoram, Manipur, Tripura]. Inter-State supplies of goods are
nevertheless liable to compulsory registration under Section 24 and are
already covered in exception (a) above.
(d) Person who has opted for voluntary registration or such registered
persons who intend to continue with their registration under the CGST
Act.

REGISTRATION 8.15
In view of the above discussion, the registration requirements under GST can
be summarised as follows:
Threshold limit for persons

engaged
exclusively in exclusively in
supply of supply of
goods services/ in
supply of
both goods &
services
States/UTs other Puducherry ` 20 lakh ` 20 Lakh
than Special
Telangana ` 20 lakh ` 20 Lakh
Category States
Others ` 40 lakh ` 20 Lakh
Special Special Manipur ` 10 lakh ` 10 Lakh
Category Category
Mizoram ` 10 lakh ` 10 Lakh
States/ States as
UTs as per Nagaland ` 10 lakh ` 10 Lakh
per section
Tripura ` 10 lakh ` 10 Lakh
Constitut 22
ion
Other Jammu and ` 40 lakh ` 20 Lakh
States/ Kashmir
UTs
Assam ` 40 lakh ` 20 Lakh
Himachal ` 40 lakh ` 20 Lakh
Pradesh
Arunachal ` 20 Lakh ` 20 Lakh
Pradesh
Meghalaya ` 20 Lakh ` 20 Lakh
Sikkim ` 20 Lakh ` 20 Lakh
Uttarakhand ` 20 Lakh ` 20 Lakh

The above information is presented in an alternate manner as follows:
States with threshold States with threshold States with threshold

limit of limit of ` 20 lakh for limit of
` 10 lakh for supplier supplier of goods ` 20 lakh for supplier
of goods and/or and/or services of services/ both
services goods and services
and threshold limit of
` 40 lakh for supplier
of goods (Intra-State)
 Manipur  Arunachal Pradesh  Jammu and
Kashmir
 Mizoram  Meghalaya
 Assam
 Nagaland  Sikkim
 Himachal
 Tripura  Uttarakhand
Pradesh
 Puducherry
 All other States
 Telangana
(5) Prithiviraj of Assam is exclusively engaged in intra-State supply

of shoes. His aggregate turnover in the current financial year is
` 22 lakh. In view of the discussion in the above paras, the
applicable threshold limit for registration for Prithviraj in the given case is
` 40 lakh. Thus, he is not liable to get registered under GST.
If in the above example, all other things remaining the same, Prithiviraj is
exclusively engaged in the supply of pan masala instead of shoes, he will not
be eligible for higher threshold limit of ` 40 lakh and the applicable threshold
limit for registration in that given case will be ` 20 lakh. Thus, Prithiviraj will
be liable to get registered under GST.
If instead of pan masala, Prithiviraj is exclusively engaged in supply of taxable
services, the applicable threshold limit for registration will still be ` 20 lakh.
Thus, Prithiviraj will be liable to get registered under GST.
Further, if Prithiviraj is engaged in supply of both taxable goods and services,
the applicable threshold limit for registration will still remain ` 20 lakh only.
Thus, Prithiviraj will be liable to get registered under GST.

REGISTRATION 8.17
(6) Shivaji of Telangana is exclusively engaged in intra-State supply

of toys. Its aggregate turnover in the current financial year is ` 22
lakh. Since Shivaji is making taxable supplies from Telangana, he
will not be eligible for higher threshold limit available in case of exclusive
supply of goods. The applicable threshold limit for registration for Shivaji in
the given case is ` 20 lakh. Thus, he is liable to get registered under GST.
If in the above example, all other things remaining the same, if Shivaji is
exclusively engaged in supply of taxable services instead of toys or is engaged
in the supply of both taxable goods and services, the applicable threshold
limit for registration will still be ` 20 lakh. Thus, Shivaji will be liable to get
registered under GST in such cases.
(7) Ashoka of Manipur is exclusively engaged in intra-State supply

of paper. Its aggregate turnover in the current financial year is
` 12 lakh. Since Ashoka is making taxable supplies from Manipur
which is a Special Category State, the applicable threshold limit for
registration for Ashoka in the given case is ` 10 lakh. Thus, he is liable to get
registered under GST.
If in above example, all other things remaining the same, Ashoka is exclusively
engaged in supply of taxable services instead of paper, the applicable
threshold limit for registration will still be ` 10 lakh. Thus, Ashoka will be
liable to get registered under GST.
Further, if Ashoka is engaged in supply of both taxable goods and services,
the applicable threshold limit for registration in that given case will be ` 10
lakh only. Thus, Ashoka will be liable to get registered under GST.
(8) Raghav of Assam is exclusively engaged in intra-State supply of

readymade garments. Its turnover in the current FY from Assam
showroom is ` 28 lakh. It has another showroom in Tripura with a
turnover of ` 11 lakh in the current FY. Since Raghav is engaged in supplying
garments from a Special Category State as per section 22, the applicable
threshold limit for him gets reduced to ` 10 lakh. Further, Raghav is liable to
get registered under GST in both Assam and Tripura on his aggregate
turnover crossing the threshold limit of ` 10 lakh.

(ii) Registration required only for a place of business from where taxable
supply takes place
A supplier is required to obtain registration with respect to each of his place
of business in India from where he is making a taxable supply. However, a
supplier shall not be liable to obtain registration in a State/UT from where he
makes only exempt/non-taxable supply.
It is pertinent to note here that a supplier is required to obtain registration
only in the State(s) “from where taxable supply is made” and not in States
“where taxable supply is made”. It may be noted that if goods and/or services
are supplied in different States, GST registration is not required in each such
State(s).
Further, registration is required to be obtained only in the State(s) where the

supplier has a “fixed establishment”. This aspect is more relevant in respect
of supply of services like repair & maintenance, transportation, security,
erection & commissioning services and construction contracts etc. where the
supplier might be required to travel to a different State temporarily in order
to provide the services.
Thus, if a person has only liaison office or marketing office in a State and if
there is no taxable supply from that State, he is not required to obtain
registration in that State, even if he is registered in other State/s. Thus, in
respect of that State where the liaison office or marketing office is located,
but registration is not obtained, he will be treated as ‘unregistered’.
For instance, Mr. X having registered office in Delhi, imports goods which are
landed in Mumbai sea port. Mr. X enters into a sales agreement with Mr. Y
located in Mumbai to directly sell the goods from Mumbai port. In this case,
Mr. X is not required to obtain registration in Mumbai as he does not have
any fixed establishment in Mumbai.
Further, the threshold limit of a person having places of business in more than
one State/UT in India gets reduced to ` 10 lakh only when such person makes
taxable supplies of goods or services or both from any of the Special
Category States specified under section 22. It is pertinent to note that, in
case where a person makes exempt/non-taxable supply from a Special

REGISTRATION 8.19
Category State and taxable supplies from a State other than Special Category
State, the threshold limit shall not be so reduced.
(9) Uday Enterprises is engaged in supply of taxable goods in
Maharashtra. It also supplies alcoholic liquor for human
consumption from Nagaland. Its turnover in the current financial
year is ` 34 lakh in Maharashtra and ` 8 lakh in Nagaland.
Since Uday Enterprises is exclusively engaged in making taxable supplies of
goods from Maharashtra, the applicable threshold limit for obtaining
registration is ` 40 lakh. Further, the threshold limit will not be reduced to
` 10 lakh in this case, as supply of alcoholic liquor for human consumption
from Nagaland (one of the Special Category States) are non-taxable supplies 1.
In the given case, since the aggregate turnover of Uday Enterprises exceeds
the applicable threshold limit of ` 40 lakh, it is liable to obtain registration. It
will obtain registration in Maharashtra, but is not required to obtain
registration in Nagaland as he is not making any taxable supplies from
Nagaland.
(iii) Person liable for registration in case of transfer of business
Where a business is transferred, whether on account

of succession or any other reason [including
transfer/change in the ownership of business due to
death of the sole proprietor 2], to another person as a
going concern, the transferee/ successor, is to be
registered with effect from the date of such transfer/succession.
Where the business is transferred, pursuant to sanction of a scheme/
arrangement for amalgamation/ de-merger of two or more companies,
pursuant to an order of a High Court/Tribunal, the transferee is to be
registered with effect from the date on which the Registrar of Companies
issues a certificate of incorporation giving effect to such order.
1
in terms of section 9(1) read with Section 2 (78)
2
clarified vide Circular No. 96/15/2019 GST dated 28.03.2019

5. COMPULSORY REGISTRATION IN CERTAIN

CASES [SECTION 24]
As we have seen above that a supplier is liable to be registered under GST in the
State/ Union territory from where he makes the taxable supply of goods and/or
services only if his aggregate turnover in a financial year exceeds the applicable
threshold limit. However, there are certain cases wherein a supplier is mandatorily
required to obtain registration irrespective of the quantum of his aggregate
turnover. In other words, these are the cases wherein a supplier is compulsorily
required to obtain registration even though his aggregate turnover does not
exceed the applicable threshold limit.
However, certain exemptions from registration have also been provided under
section 23. These exceptions have been incorporated briefly at the relevant places
in the discussion under this heading in order to provide a holistic picture. The
exceptions have also been explained in detail in the next heading 6. Persons not
liable for registration.
The category of persons requiring compulsory registration under GST have been
enlisted below with the relevant exceptions:
(1) Persons making any inter-State taxable supply. However, threshold limit
of ` 20 lakh (` 10 lakh in case of Special Category States of Mizoram, Tripura,
Manipur and Nagaland) is available in case of inter-State supply of taxable
services and of notified handicraft goods and notified handmade goods.
(2) Casual taxable persons (CTP) making taxable supply. However, threshold
limit of ` 20 lakh (` 10 lakh in case of Special Category States of Mizoram,
Tripura, Manipur and Nagaland) is available in case of CTP who is making
inter-State taxable supplies of notified handicraft goods and notified hand-
made goods and is availing the benefit of exemption from registration as
mentioned in point 1 above.
(3) Persons who are required to pay tax under reverse charge on inward
supplies received. However, persons engaged exclusively in making
outward supplies, tax on which is liable to be paid on reverse charge basis are
exempt from registration.

REGISTRATION 8.21
(4) Non-resident taxable persons (NRTP) making taxable supply.

(5) E-commerce: (i) Every ECO (Electronic Commerce Operator) who is required
to collect tax at source under section 52, (ii) persons who supply goods
and/or services, other than supplies specified
under section 9(5), through such ECO who is
required to collect tax at source under section In case a person already
52, but threshold limit of ` 20 lakh (` 10 lakh in registered under GST is
case of Special Category States of Mizoram, required to deduct tax
under section 51, he is
Tripura, Manipur and Nagaland) is available in
required to take separate
case of suppliers supplying services through registration for the
ECO. purpose of deducting
tax under section 51.
(6) Persons who are required to deduct tax
er section 51, whether or not separately
under
registered under this Act.
(7) Persons who make taxable supply of goods or services or both on behalf of
other taxable persons whether as an agent or otherwise.
(8) Input Service Distributor, whether or not separately registered under this Act.
(9) Every person supplying online information

and data base access or retrieval (OIDAR)
services from a place outside India to a person An ISD is required to
in India, other than a registered person; and obtain a separate
registration even
(10) Persons who are required to pay tax under though it may be
section 9(5) and separately registered.
(11) Such other person or class of persons as may

be notified by the Government on the recommendations of the Council.
Note: Concept of CTP and NRTP is explained subsequently in this chapter.
6. PERSONS NOT LIABLE FOR REGISTRATION

[SECTION 23]
Section 23 lists the persons who are not liable to obtain a registration. As
mentioned above, a person who is not registered under the GST but is liable to

be registered and a person who is registered (whether voluntarily or otherwise)

is considered to be a taxable person. Accordingly, it can be said that persons
listed as not liable to be registered under Section 23 would not fall in the
definition of the ‘taxable persons’.
(i) Persons not liable to registration
Section 23 (1) lists the following persons as not liable to be registered:

(A) Person engaged exclusively in the business of supplying goods and
/or services not liable to tax/wholly exempt from tax: Any person
engaged exclusively in the business of supplying goods or services or both
that is not liable to tax or is wholly exempt from tax under CGST Act/ IGST
Act shall not be liable to registration. This provision can be understood
with the help of following examples:
(10) Madhur Oils, Punjab, is exclusively engaged in supplying
petrol. Supply of petrol is not leviable to GST. Thus, Madhur Oils
is not liable for registration as it is engaged exclusively in supplying
goods not leviable to tax.
(11) Bhavyajyoti Foundation, a charitable trust registered under

section 12AB of the Income-tax Act, 1961, is exclusively engaged
in supply of services by way of charitable activities. Services by an
entity registered under section 12AB of the Income-tax Act, 1961 by way of
charitable activities are exempt from GST. Bhavyajyoti Foundation is not
liable for registration as it is exclusively engaged in supplying services exempt
from tax.
(B) An agriculturist, to the extent of supply of produce out of cultivation
of land: An agriculturist to the extent of supply of produce out of
cultivation of land is also not liable to registration. The
term agriculturist has been defined under section 2(7)
as an individual/Hindu Undivided Family (HUF) who
undertakes cultivation of land—
(a) by own labour, or

REGISTRATION 8.23
(b) by the labour of family, or

(c) by servants on wages payable in cash or kind or by
hired labour under personal supervision or the
personal supervision of any member of the family.
From the above definition, it is clear that the benefit of
not being liable to registration is only restricted to the agriculturists who
are individuals or HUFs. Further, if an agriculturist is also engaged in
making any supply other than supply of produce out of cultivation of land,
he shall be liable to registration based on applicable threshold limit.
(12) Deshbandhu is an agriculturist engaged in cultivation of wheat
in his field in the State of Punjab. He was exclusively engaged in
supply of wheat cultivated in his field in the previous year. Thus,
he was not liable to registration as he was exclusively engaged in supply of
produce out of cultivation of land.
In the current year, he decides to start trading in pre-packaged and labelled

puffed rice apart from supplying his wheat produce. His turnover in the
current year is ` 32 lakh from supply of wheat produced and ` 9 lakh from
trading of pre-packaged and labelled puffed rice.
Since he is engaged in trading of pre-packaged and labelled puffed rice also,
he is not covered under section 23 above. The threshold limit for registration
applicable to a person exclusively engaged in supply of goods in the State of
Punjab is ` 40 lakh. The aggregate turnover of Deshbandhu in the current
year is ` 41 lakh [` 32 lakh + ` 9 lakh] which exceeds the threshold limit. Thus,
he will be liable to registration.
(ii) Specified category of persons notified by the Government exempted

from obtaining registration
Section 23(2) provides that notwithstanding anything to the contrary

contained in section 22(1) or section 24, the Government may, on the
recommendations of the Council, by notification, subject to such conditions
and restrictions as may be specified therein, specify the category of persons
who may be exempted from obtaining registration under this Act. Thus, section
23 (2) grants the Government, a power to notify category of persons as being

exempted from obtaining registration under GST law. The following category of
persons have been notified under the said section:-
A. Persons making only reverse charge supplies

Persons who are only engaged in making supplies of taxable goods or
services or both, the total tax on which is liable to be paid on reverse charge
basis by the recipient of such goods or services or both under section 9(3)
have been exempted from obtaining registration [Notification No. 5/2017 CT
dated 19.06.2017 w.e.f. 22.06.2017].
(13) Manikaran Transporters is a Goods Transport Agency (GTA)
engaged exclusively in supplying GTA services liable to tax under
reverse charge [since tax is beng paid on GTA services @ 5% and
Manikaran has not exercised the option to pay GST itself]. Thus, it is exempt
from registration as it is engaged exclusively in making supplies, tax on which
is liable to be paid on reverse charge basis.
Further, Manikaran Transporters supplies the said service to Diwakar

Manufacturing Pvt. Ltd. whose aggregate turnover does not exceed the
applicable threshold limit. However, since Diwakar Manufacturing Pvt. Ltd.
has to pay tax on GTA services [@ 5%] under reverse charge, it will be required
to obtain registration mandatorily irrespective of the quantum of its
aggregate turnover.
B. Persons making inter-State supplies of taxable services up to ` 20 lakh
The persons making inter-State supplies of taxable services and having an
aggregate turnover, to be computed on all India basis, not exceeding an
amount of ` 20 lakh in a financial year have been exempted from obtaining
compulsory registration. However, the aggregate value of such supplies,
computed on all India basis, should not exceed an amount of ` 10 lakh in case
of Special Category States of Mizoram, Tripura, Manipur and Nagaland
[Notification No. 10/2017 IT dated 13.10.2017 as amended by Notification No.
3/2019 IT dated 29.01.2019].].

REGISTRATION 8.25
(14) Dhola & Co., located in Delhi, is engaged in supply of taxable

goods 3 in the neighbouring States of Punjab and Haryana. Its
aggregate turnover in current FY is ` 10 lakh. Since it is engaged
in making inter-State taxable supply of goods, it is required to register
mandatorily under GST irrespective of its aggregate turnover.
However, if in the above case, Dhola & Co. is engaged in inter- State supply
of taxable services instead of goods, it will be eligible for exemption from
registration till its aggregate turnover does not exceed ` 20 lakh.
C. Persons making inter-State taxable supplies of notified handicraft goods
and notified handmade goods up to ` 20 lakh
As we have seen earlier that as per section 24 read
with Notification No. 10/2017 IT, a person making
inter-State supplies of goods is liable to be
registered compulsorily under GST irrespective of
the threshold limit.
However, in the following cases, persons making
inter-State supplies of goods have been exempted
from obtaining registration:
(a) Persons making inter-State taxable supplies of notified handicraft
goods 4 .
3
other than notified handicraft goods and notified hand-made goods
4
Handicraft goods referred herein are goods as defined and notified in Notification No. 21/2018 CT
(R) dated 26.07.2018. This notification notifies the handicraft items which are eligible for
concessional rate of tax, for instance, handcrafted candles, articles made of paper mache, coir
articles, handbags including pouches and purses; jewellery box, hand embroidered articles, art ware
of iron/aluminium, etc. These examples are only for the purpose of knowledge and are not relevant
for examination purposes.
Handicraft goods are defined under said notification as goods predominantly made by hand even
though some tools or machinery may also have been used in the process; such goods are graced
with visual appeal in the nature of ornamentation or in-lay work or some similar work of a
substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally
attached and are amply different from mechanically produced goods of similar utility.

(b) Persons making inter-State taxable supplies of notified products 5 , when

made by craftsmen predominantly by hand even though some
machinery may also be used in the process.
Conditions to be fulfilled:
1. The aggregate value of such supplies, to be computed on all India
basis, does not exceed an amount of ` 20 lakh [` 10 lakh in case
of Special Category States of Mizoram, Tripura, Manipur and
Nagaland] in a FY.
2. Such persons have obtained a PAN and have generated an
e-way bill 6 [Notification No. 3/2018 IT dated 22.10.2018].
(15) Ariza Pvt. Ltd., located in Madhya Pradesh, is a supplier
of taxable and notified handicraft goods. It supplies these
goods in the neighbouring States of Uttar Pradesh and
Orissa. Its aggregate turnover till the month of October is ` 15 lakh.
Although Ariza Pvt. Ltd. is engaged in making inter-State supplies of
taxable goods, it is not liable to obtain registration till its aggregate
turnover does not exceed ` 20 lakh as it has availed the exemption from
registration under Notification No. 03/2018 IT 7.
D. Casual Taxable Persons making inter-State taxable supplies of notified
handicraft goods and notified handmade goods up to ` 20 lakh
As we have seen earlier that as per section 24, a CTP is liable to be registered
compulsorily under GST irrespective of the threshold limit.
However, following categories of CTPs have been exempted from obtaining
registration:
(a) CTPs making inter-State taxable supplies of notified handicraft goods,
[as referred in Point C above] or
5
Some of the notified products are leather articles, carved wood products, wood turning and lacquer
ware, bamboo products, textiles hand printing, theatre costumes, musical instruments, dolls and
toys, etc. These examples are only for the purpose of knowledge and are not relevant for
examination purpose.
6
The provisions relating to e-way bill have been discussed in detail in Chapter 10 in this
Module of the Study Material.
7
subject to fulfilment of other conditions prescribed under said notification.

REGISTRATION 8.27
(b) CTPs making inter-State taxable supplies of notified products [as

referred in Point C above], when made by the craftsmen predominantly
by hand even though some machinery may also be used in the process.
Conditions to be fulfilled:
1. CTPs are availing benefit of Notification No. 03/2018 IT dated
22.10.2018 [discussed above].
2. The aggregate value of such supplies, to be computed on all India
basis, does not exceed an amount of ` 20 lakh [` 10 lakh in case
of Special Category States of Mizoram, Tripura, Manipur and
Nagaland] in a FY.
3. Such persons have obtained a PAN and have generated an
e-way bill [Notification No. 56/2018 CT dated 23.10.2018].
E. Persons making supplies of services through an ECO [other than supplies
specified under section 9(5)] with aggregate turnover up to ` 20 lakh
Persons making supplies of services, other than supplies specified under
section 9(5), through an ECO who is required to collect tax at source under
section 52, and having an aggregate turnover, to be computed on all India
basis, not exceeding ` 20 lakh (` 10 lakh in case of Special Category States
of Mizoram, Tripura, Manipur and Nagaland) in a FY, have been exempted
from obtaining compulsory registration [Notification No. 65/2017 CT dated
15.11.2017].
Therefore, all service providers, whether supplying intra-State,
inter-State or through ECO, will be exempt from obtaining registration,
provided their aggregate turnover does not exceed ` 20 lakh (` 10 lakh in
special category States of Mizoram, Tripura, Manipur and Nagaland).
Liability to register in respect of services provided by the commission agent
as per APMC Act for sale/ purchase of agricultural produce
CBIC has clarified 8 the issue as to whether the services provided by the commission
agent as per Agricultural Produce Marketing Committee Act (APMC Act) in
connection to the sale/ purchase of agricultural produce qualify as supply under
GST with the help of the following example. It further examines and clarifies the
registration requirements of such commission agents.
8
Circular No. 57/31/2018 GST dated 04.09.2018

Mr. A sells agricultural produce by utilizing the services of Mr. B who is a

commission agent as per the APMC Act of the State 9. Mr. B identifies the buyers
and sells the agricultural produce on behalf of Mr. A for which he charges a
commission from Mr. A.
In cases where the invoice is issued directly by Mr. A to the buyer, the commission
agent (Mr. B) doesn’t fall under the category of agent covered under Schedule I.
However, in cases where the invoice is issued by Mr. B to the buyer, Mr. B is an
agent as covered under Para 3 of Schedule I to the CGST Act. Hence, in such cases,
the services supplied by commission agent Mr. B on behalf of the principal without
consideration shall be deemed to be a supply – Concept of Deemed Supply under
Schedule-I has been discussed in detail in Chapter 1 – Supply under GST in Module 1
of the Study Material.
The registration requirements of the commission agents in such cases have been
examined and clarified as follows:
(i) As we have already seen, as per section 24, a person is liable for mandatory
registration if he makes taxable supply of goods or services or both on behalf
of other taxable persons.
Accordingly, a commission agent will be liable to get mandatorily registered

under this provision only when both the following conditions are satisfied:
(a) the principal should be a taxable person; and
(b) the supplies made by the commission agent should be taxable.
However, generally, a commission agent under APMC Act makes supplies on
behalf of an agriculturist who is not a taxable person if he supplies produce
out of cultivation of land 10 [as seen above].
Thus, a commission agent, who is making supplies on behalf of
non-taxable person [viz. agriculturist], is not liable for compulsory
registration under this provision.
9
As per the APMC Act, the commission agent is a person who buys or sells the agricultural
produce on behalf of his principal, or facilitates buying and selling of agricultural produce on
behalf of his principal and receives, by way of remuneration, a commission or percentage
upon the amount involved in such transaction.
10
in terms of section 23(1)(a)

REGISTRATION 8.29
(ii) Further, since the services provided by the commission agent for sale/
purchase of agricultural produce are exempt from GST 11, such commission
agents are not liable to be registered in accordance with provisions of
section 23(1)(a) [as discussed above].
(iii) However, where a commission agent is liable to pay tax under reverse charge
for any other services procured by him, such an agent will be required to get
registered compulsorily (We have already seen under previous heading that
persons liable to pay tax under reverse charge are required to obtain
registration mandatorily).
The provisions of section 23 can be summarized in the following diagram:
Person engaged exclusively in the Person engaged exclusively in the

business of supplying goods/ services/ business of supplying goods/ services/
both not liable to tax both wholly exempt from tax
Persons not liable for
registration
Specified category of persons
Agriculturist to the extent of supply
notified by the Government on GST
of produce out of cultivation of land
Council recommendation
7. PROCEDURE FOR REGISTRATION [SECTIONS

25, 26 & 27]
Section 25 Procedure for registration
(1) Every person who is liable to be registered under section 22 or

section 24 shall apply for registration in every such State or Union
territory in which he is so liable within thirty days from the date
11
Notification No. 12/2017 CT (R) dated 28.06.2017 [Discussed in Chapter 3 – Exemptions
from GST in Module 1 in Module-1 of the Study material.]

on which he becomes liable to registration, in such manner and

subject to such conditions as may be prescribed.
Provided that a casual taxable person or a non-resident taxable
person shall apply for registration at least five days prior to the
commencement of business.
Provided further that a person having a unit, as defined in the
Special Economic Zones Act, 2005, in a Special Economic Zone or
being a Special Economic Zone developer shall have to apply for
a separate registration, as distinct from his place of business
located outside the Special Economic Zone in the same State or
Union territory.
Explanation—Every person who makes a supply from the
territorial waters of India shall obtain registration in the coastal
State or Union territory where the nearest point of the appropriate
baseline is located.
(2) A person seeking registration under this Act shall be granted a

single registration in a State or Union territory.
Provided that a person having multiple places of business in a
State or Union territory may be granted a separate registration for
each such place of business, subject to such conditions as may be
prescribed.
(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.
(4) A person who has obtained or is required to obtain more than one
registration, whether in one State or Union territory or more than one
State or Union territory shall, in respect of each such registration, be
treated as distinct persons for the purposes of this Act
(5) Where a person who has obtained or is required to obtain

registration in a State or Union territory in respect of an
establishment, has an establishment in another State or Union
territory, then such establishments shall be treated as
establishments of distinct persons for the purposes of this Act.

REGISTRATION 8.31
(6) Every person shall have a Permanent Account Number issued

under the Income- tax Act, 1961 in order to be eligible for grant
of registration:
Provided that a person required to deduct tax under section 51
may have, in lieu of a Permanent Account Number, a Tax
Deduction and Collection Account Number issued under the said
Act in order to be eligible for grant of registration.
(6A) Every registered person shall undergo authentication, or furnish

proof of possession of Aadhaar number, in such form and manner
and within such time as may be prescribed.
Provided that if an Aadhaar number is not assigned to the
registered person, such person shall be offered alternate and
viable means of identification in such manner as Government
may, on the recommendations of the Council, prescribe.
Provided further that in case of failure to undergo authentication
or furnish proof of possession of Aadhaar number or furnish
alternate and viable means of identification, registration allotted
to such person shall be deemed to be invalid and the other
provisions of this Act shall apply as if such person does not have
a registration.
(6B) On and from the date of notification, every individual shall, in

order to be eligible for grant of registration, undergo
authentication, or furnish proof of possession of Aadhaar number,
in such manner as the Government may, on the recommendations
of the Council, specify in the said notification.
Provided that if an Aadhaar number is not assigned to an
individual, such individual shall be offered alternate and viable
means of identification in such manner as the Government may,
on the recommendations of the Council, specify in the said
notification.
(6C) On and from the date of notification, every person, other than an
individual, shall, in order to be eligible for grant of registration,
undergo authentication, or furnish proof of possession of Aadhaar
number of the Karta, Managing Director, whole time Director,
such number of partners, Members of Managing Committee of
Association, Board of Trustees, authorised representative,

authorised signatory and such other class of persons, in such

manner, as the Government may, on the recommendation of the
Council, specify in the said notification
Provided that where such person or class of persons have not been
assigned the Aadhaar Number, such person or class of persons
shall be offered alternate and viable means of identification in
such manner as the Government may, on the recommendations
of the Council, specify in the said notification.
(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-

section (6C) shall not apply to such person or class of persons or
any State or Union territory or part thereof, as the Government
may, on the recommendations of the Council, specify by
notification.
Explanation—For the purposes of this section, the expression
“Aadhaar number” shall have the same meaning as assigned to it
in clause (a) of section 2 of the Aadhaar (Targeted Delivery of
Financial and Other Subsidies, Benefits and Services) Act, 2016
(7) Notwithstanding anything contained in sub-section (6), a non-

resident taxable person may be granted registration under sub-
section (1) on the basis of such other documents as may be
prescribed
(8) Where a person who is liable to be registered under this Act fails
to obtain registration, the proper officer may, without prejudice to
any action which may be taken under this Act or under any other
law for the time being in force, proceed to register such person in
such manner as may be prescribed
(9) Notwithstanding anything contained in sub-section (1),––
(a) any specialised agency of the United Nations Organisation

or any Multilateral Financial Institution and Organisation
notified under the United Nations (Privileges and
Immunities) Act, 1947, Consulate or Embassy of foreign
countries ; and
(b) any other person or class of persons, as may be notified by

the Commissioner,

REGISTRATION 8.33
shall be granted a Unique Identity Number in such manner and

for such purposes, including refund of taxes on the notified
supplies of goods or services or both received by them, as may be
prescribed.
(10) The registration or the Unique Identity Number shall be granted

or rejected after due verification in such manner and within such
period as may be prescribed.
(11) A certificate of registration shall be issued in such form and with

effect from such date as may be prescribed
(12) A registration or a Unique Identity Number shall be deemed to

have been granted after the expiry of the period prescribed under
sub-section (10), if no deficiency has been communicated to the
applicant within that period
Section 26 Deemed registration
(1) The grant of registration or the Unique Identity Number under the
State Goods and Services Tax Act or the Union Territory Goods and
Services Tax Act shall be deemed to be a grant of registration or
the Unique Identity Number under this Act subject to the condition
that the application for registration or the Unique Identity
Number has not been rejected under this Act within the time
specified in sub-section (10) of section 25.
(2) Notwithstanding anything contained in sub-section (10) of section

25, any rejection of application for registration or the Unique
Identity Number under the State Goods and Services Tax Act or
the Union Territory Goods and Services Tax Act shall be deemed
to be a rejection of application for registration under this Act.
Section 27 Special provisions relating to casual taxable person and

(1) The certificate of registration issued to a casual taxable person or

a non- resident taxable person shall be valid for the period
specified in the application for registration or ninety days from the
effective date of registration, whichever is earlier and such person

shall make taxable supplies only after the issuance of the

certificate of registration.
Provided that the proper officer may, on sufficient cause being
shown by the said taxable person, extend the said period of ninety
days by a further period not exceeding ninety days.
(2) A casual taxable person or a non-resident taxable person shall, at

the time of submission of application for registration under sub-
section (1) of section 25, make an advance deposit of tax in an
amount equivalent to the estimated tax liability of such person for
the period for which the registration is sought.
Provided that where any extension of time is sought under sub-
section (1), such taxable person shall deposit an additional
amount of tax equivalent to the estimated tax liability of such
person for the period for which the extension is sought.
(3) The amount deposited under sub-section (2) shall be credited to

the electronic cash ledger of such person and shall be utilised in
the manner provided under section 49.
ANALYSIS
The procedure for registration is governed by section 25 read with the relevant
CGST Rules, 2017. Relevant provisions of CGST Rules, 2017 have been incorporated
at the relevant places. Further, special provisions have been provided for registration
of casual taxable person and non-resident taxable person under section 27. Concept
of deemed registration has been elaborated under section 26.
Under GST, the application for registration has to be submitted electronically at the
GST Common Portal – www.gst.gov.in, duly signed or verified.
A large number of forms/formats relating to registration have been prescribed in the
CGST Rules. For every process in the registration chain such as application for
registration, acknowledgment, query, rejection, registration certificate, show cause
notice for cancellation, reply, cancellation, amendment, field visit report etc., there

REGISTRATION 8.35
are separate standard formats 12. This makes the process uniform all over the country.
The decision-making process has also been expedited. Strict time-lines have been
stipulated for completion of different stages of registration process.
(i) Where and by when to apply for registration? [Section 25(1)]
Particulars Where When

Person who is liable to in every such State/UT within 30 days from
be registered under in which he is so liable the date on which he
section 22 or section 24 becomes liable to
registration
A casual taxable person at least 5 days prior to
or a non-resident the commencement of
taxable person business
Every person who in the coastal State/UT within 30 days from
makes a supply from where the nearest point the date on which he
the territorial waters of of the appropriate base becomes liable to
India line is located. registration
(16) Sugam Services Ltd. is engaged in taxable supply of services

in Delhi. The turnover of Sugam Services Ltd. exceeded ` 20 lakh
on 1st November. It is liable to get registered by 1st December in
Delhi.
(ii) State-wise registration [Section 25(2) read with rule 11]
(A) One registration per State
 Registration needs to be taken State-wise, i.e. there is no

centralized registration under GST. A business entity having its
branches in multiple States will have to take separate State-wise
registration for its branches in different States.
 Further, within a State, an entity with different branches shall
normally be granted a single registration wherein it can declare
12
For knowledge purposes students are advised to go through various forms/formats relating
to registration which are a part of the CGST Rules. The online forms can also be viewed at
http://www.gst.gov.in

one place as principal place of business (PPoB) and other

branches as additional places of business (APoB) The exception
to this is provided below:
(B) Separate registration for different places of business within a
State/UT may be granted
 Although a taxpayer having multiple places of business in one
State is not mandatorily required to obtain a separate registration
for each such place of business in the State, he has an option to
obtain independent registrations with respect to each such
separate place of business based on business requirements.
 In case a separate registration for each place of business has been
obtained, such separately registered places of business of such
person shall have to pay tax on supply of goods/services/both
made to another registered place of business, of such person and
issue a tax invoice/bill of supply, for such supply.
 A registered person opting to obtain separate registration for a
place of business shall submit a separate application in
Form GST REG 01 in respect of such place of business.
 The provisions of rules 9 and 10 [Discussed in subsequent paras]
relating to verification and grant of registration shall mutatis
mutandis apply to an application submitted under this rule.
(17) Meethalal & Sons - a supplier in Maharshtra - has
three branches in Mumbai, Pune and Mahabaleshwar.
Mumbai and Pune branches are engaged in supply of
garments and Mahabaleshwar branch engaged in supply of shoes.
Either it can obtain single registration for Mahrashtra declaring one of
the branches as PPoB (let’s say Mumbai) and other two branches (Pune
and Mahabaleshwar) as APoB or it can obtain separate GST registration
for each of the three branches in Mumbai, Pune and Mahabaleshwar as
separate places of business.
In case Meethalal & Sons opts to have separate registrations for its all
three branches and Mumbai branch sends some garments [liable to
GST] for sale to Pune branch, Mumbai branch must raise a tax invoice
and pay tax on such transfer of garments to Pune branch.

REGISTRATION 8.37
(C) Composition levy in case of separate registration for multiple

places of business within a State/UT
 If a person is paying tax for one of his places of business under

normal scheme, he cannot opt to pay tax under composition levy
for any other place of business.
 If one of the places of business [separately registered] of a

registered person becomes ineligible to pay tax under
composition levy, all other registered places of business of said
person would also become ineligible to pay tax under
composition levy.
 The provisions of rules 9 and 10 [Discussed in subsequent paras]

relating to verification and grant of registration shall mutatis mutandis
apply to an application submitted under this rule.
(iii) Voluntary registration [Section 25(3)]
A person who is not liable to be registered under Voluntary

section 22 or section 24 may get himself registered Registration
voluntarily. In case of voluntary registration, all provisions
of this Act, as are applicable to a registered person, shall apply to such
voluntarily registered person.
However, once a person obtains voluntary registration, he has to pay tax even
though his aggregate turnover does not exceed the applicable threshold limit
for registration (` 40 lakh/ ` 20 lakh/ ` 10 lakh, as the case may be).
(iv) Distinct Persons/ establishments of distinct persons [Section 25(4) & (5)]
A person who has obtained/ is required to obtain more than one registration,
whether in one State/ Union territory or more than one State/Union territory
shall, in respect of each such registration, be treated as distinct persons.
Further, where a person who has obtained or is required to obtain registration

in a State or Union territory in respect of an establishment, has an
establishment in another State or Union territory, then such establishments

shall be treated as establishments of distinct persons. These concepts have

already been discussed in detail in Chapter 1– Supply under GST.
(v) PAN must for obtaining registration [Section 25(6) & (7)]
A Permanent Account Number is mandatory to be eligible for grant of

registration.
🌟🌟 A Non-Resident Taxable Person (NRTP) may be granted registration on

the basis of other prescribed documents [Elaborated in subsequent paras].
🌟🌟 A person required to deduct tax under section 51 may have, in lieu of a

PAN, a Tax Deduction and Collection Account Number issued under the
Income Tax Act in order to be eligible for grant of registration.
(vi) Unique Identity Number (UIN) [Section 25(9) & (10) read with rule 17]
Any specialized agency of the United Nations

Organization or any Multilateral Financial institution and
organization as notified under the United Nations
(Privileges and Immunities) Act, 1947, consulate or
embassy of foreign countries and any other person
notified by the Commissioner, is required to obtain a UIN
from the GSTN portal.
This UIN is needed for claiming refund of taxes paid on notified supplies of
goods and/or services received by them, and for such other purpose as may
be notified. The UIN granted would be a centralized UIN i.e. it shall be
applicable to the whole territory of India. A person having UIN is not
considered as a registered person and thus, is not a taxable person.
The proper officer may, upon submission of an application in prescribed form

or after filling up the said form or after receiving a recommendation from the
Ministry of External Affairs, Government of India, assign a UIN to the said
person and issue a certificate in Form GST REG 06 within 3 working days
from the date of submission of application.

REGISTRATION 8.39
(vii) Suo-motu registration by the proper officer [Section 25(8) read with
rule 16]
Where, pursuant to any survey, enquiry, inspection, Temporary

search or any other proceedings under the Act, the Registration
proper officer finds that a person liable to registration
under the Act** has failed to apply for such registration,
such officer may register the said person on a temporary basis and issue an
order in prescribed form.
**Such person shall either:
(i) submit an application for registration in prescribed form within 90

days from the date of grant of temporary registration, or
(ii) file an appeal against such temporary registration.
In case (ii), if the Appellate Authority upholds the liability to

registration, application for registration shall be submitted within 30
days from the date of issuance of such order of the Appellate Authority.
Provisions relating to verification and issue of registration certificate [as

contained in rules 9 and 10] [discussed in subsequent paras] shall, mutatis
mutandis, apply to such application submitted by the person granted
temporary registration. GSTIN thereafter granted shall be effective from the
date of order of proper officer granting temporary registration.
(viii) Procedure for registration [Section 25 read with rules 8, 9 & 10]
Provisions relating to procedure for application for registration, verification
of the application and approval & issue of registration certificate are
contained in the rules 8, 9 and 10 respectively. The same have to be read in
conjunction with the provisions of section 25. The procedure for obtaining
registration as prescribed under rules 8, 9 and 10 is also applicable to a person
paying tax under composition levy, every person seeking voluntary
registration as well as a casual taxable person. Such persons shall apply for
registration in Form GST REG 01. The application for registration in GST Form
REG 01 is divided into two parts – Part A and Part B.

However, the procedure so laid down will not apply to:
 Non-resident taxable person (NRTP)
 A person required to deduct tax at source under section 51
 A person required to collect tax at source under section 52
 A person supplying OIDAR services from a place outside India to a non-

taxable online recipient referred to in section 14 of IGST Act.
Separate registration forms and procedure have been prescribed for each of
the aforesaid persons.
In order to cater to the needs of tax payers who are not IT savvy, Facilitation
centres have been established which help the taxpayer in submitting the
application for registration, amending the registration certificate, submitting
application for cancellation of registration, revocation of cancellation of
registration, etc. Facilitation Centre shall be responsible for the digitization
and/or uploading of the forms and documents.
Application for registration by Special Economic Zone (SEZ) [Second

proviso to section 25(1)]:
A person having unit in SEZ is a geographically bound zone
SEZ/an SEZ developer will where the economic laws relating to
have to make a separate export and import are more liberal as
application for registration compared to other parts of the country.
SEZ is considered to be a place outside
as distinct from his place of
India for all tax purposes.
business located outside
SEZ in the same State/UT.
Thus, there may be a case where two units of a tax payer are located in same
State/UT - one in SEZ and another outside SEZ. In that case, separate
registrations have to be obtained for each of the two units as separate places
of business.

REGISTRATION 8.41
(18) Suvarna Industries is engaged in manufacturing activities in

Uttar Pradesh. It has two manufacturing units in UP - one in SEZ
and another outside SEZ.
Under GST, one registration per State is required. However, since in this case,
one of the two units of Suvarna Industries is located in SEZ, SEZ unit will have
to compulsorily make a separate application for registration as a place of
business distinct from unit located outside SEZ in the same State
Application for registration by Input Service Distributor [Second proviso

to rule 8(1) of the CGST Rules, 2017]: Every person being an Input Service
Distributor shall make a separate application for registration as such Input
Service Distributor.
There is no threshold limit for registration for an ISD. A person who follows
ISD mechanism is required to obtain a separate registration even though it
may be otherwise registered in the same State, though the application shall
be made in Form GST REG 01 only. An office of a person like marketing
division, security division etc. which receives common services getting
consumed by different GST registered locations may apply for a separate ISD
registration. Procedure for registration has been depicted by way of a
diagram on next page:

Procedure for registration
Part I
Every person liable to get registered and person seeking voluntary registration
shall, before applying for registration, declare his Permanent Account Number
(PAN) and State/UT in Part A of FORM GST REG-01 on GST Common Portal.
PAN is validated online by Common Portal from CBDT database and is also
be verified through separate OTPs sent to the PAN linked mobile
number and e-mail address.
Temporary Reference Number (TRN) is generated and communicated to

the applicant on the validated mobile number and e-mail address.
Using TRN, applicant shall electronically submit application in Part B of

application form, along with specified documents at the Common Portal.
Part B of application contains the details, such as, constitution of
business, jurisdiction, option for composition, date of commencement
of business, reason to obtain registration, address of PPoB and nature
of activity carried out therein, details of APoB, details of bank account(s),
details of authorized signatory, aadhaar authentication, etc.
On receipt of such application, an acknowledgement in the prescribed form

shall be issued to the applicant electronically. A Casual Taxable Person
(CTP) applying for registration gets a TRN for making an advance deposit
of tax in his electronic cash ledger and an acknowledgement is issued only
after said deposit.*
Application shall be forwarded to the Proper Officer.
The procedure after receipt of application by the Proper Officer is

depicted in Part II.
* Discussed in detail in subsequent paras.

Part-II
Proper Officer examines the application and where a person fails to undergo
Aadhaar authentication/does not
accompanying documents.
opt for Aadhaar authentication
within 30 days
Proper Officer from where PO deems it fit to carry
If same are No issues notice application out site verification
found in thereby submission
Yes where a person, who has undergone
order? seeking date
Aadhaar authentication, is
Yes clarification**, identified on common portal, based
Registration information or within 7 on data analysis & risk parameters,
granted within Registration is documents working days to carry out site verification
7 working granted within 30 from application
from the
days from the days of application submission date
applicant Other cases
date of after verification of
site & prescribed electronically

submission of No
documents If applicant has furnished the clarification**,
application
information or documents within 7 working
without site where days’ time from receipt of notice?
REGISTRATION
verification applicant where PO where a person, who

fails to deems it fit (C)
has undergone Yes
if applicant undergo to carry out No
Aadhaar If proper officer is satisfied with it?
Aadhaar site
successfully authentication,is
authentica
validates his verification identified on common
tion/ does Yes
aadhaar portal, based on data Proper officer
not opt for Proper officer will grant registration
authentication, analysis & risk may reject the
Aadhaar within 7 working days from the
authentication parameters, to carry application for
(A) date of receipt of information/
8.43
out site verification reasons to be

clarification/ documents
(B) (B) (B) recorded in
writing.
**Clarification includes modification/correction of particulars declared in the application
for registration other than PAN, State Mobile No. & E-mail address.
✮ Deemed Approval of Application

If the proper officer fails to take any action in the following cases within the
stipulated time, the application for grant of registration shall be deemed to
have been approved-
•within a period of 30 days from the date of

in cases where a person is submission of the application
covered in (B) above
•within a period of 7 working days from the

in case of a person covered date of submission of the application
in (A) above
•within 7 working days from the date

of receipt of clarification, information
in cases covered in (C) above or documents furnished by the
applicant
Thus, in case of successful authentication of Aadhaar and no SCN being

issued, registration will be deemed to be approved within 7 working days.
However, if Aadhar authentication is not opted for/ aadhaar authentication
fails in validation/ PO deems it fit to carry out site verification and no SCN is
issued, registration will be deemed to be approved within 30 days by tax
official.
Tax Officer can issue SCN within 7 working days, for grant of registration, in
cases of successful Aadhar authentication. However, in cases when taxpayer
do not opt to provide Aadhaar/when Aadhar authentication fails/ PO deems
it fit to carry out site verification, he can issue SCN upto 30 days. In both
cases, applicants can submit their reply within 7 working days from issue of
SCN.

REGISTRATION 8.45
Aadhaar authentication
[Section 25(6A), (6B), (6C) & (6D) read with rules 8, 9, 10B and 25]
As seen above, there’s a simplified registration procedure under GST.
However, this easy registration procedure was unduly misused by fly-by-night
operators. Thus, in an endeavor to curb/check such operators and to increase
compliance, aadhaar e-KYC based registration has been introduced under the
GST law. Aadhaar authentication is mandatory for the new applicants
(whether an individual applicant or otherwise) in order to be eligible for grant
of registration. Aadhaar Authentication process has been introduced, for the
persons applying for GST registration as normal taxpayer/ composition
dealer/ casual taxable person/ Input Service Distributor (ISD)/ SEZ Developer/
SEZ Unit etc, in Form GST REG 01.
Existing registrants (those who are already registered under GST) are also
required to undergo aadhaar authentication.
How is the aadhaar authentication done?
New registrants
While filing the application for registration, the applicant gets an option as
to whether he wants to opt for an Aadhaar authentication or not. If he opts
‘Yes’ for Aadhaar authentication, GST system sends "authentication link" on
the mobile numbers and email ids (mentioned in the registration application)
of promotor/partner, and primary authorized signatory which are selected by
the applicant 13.
On clicking the verification link, a window for Aadhaar authentication opens
where they enter the Aadhaar Number and the OTP received by them on the
mobile number and email id linked with Aadhaar.
Once Aadhaar authentication has been successfully validated, his application
will be deemed to be approved within 7 working days and the registration
application submitted by him will not be marked for mandatory site visit,
unless the tax official raises a show cause notice within stipulated time.
13
While opting for Aadhaar authentication, the applicant needs to select atleast 1 Primary
Authorized Signatory and 1 Promoter/ Partner/Karta/Director/Member for authentication
purposes.

However, in case the applicant does not opt for Aadhaar authentication while
applying for registration or where his Aadhar authentication fails in validation,
registration application will not be deemed approved within 7 working days
and it will be marked for mandatory site visit and approval thereafter, by the
tax official. Registration application will get deemed approved after 30
calendar days, if tax official doesn't take any action.
If tax official raises SCN within 30 calendar days, then applicant has 7 working
days to reply to it. Tax official can take further action on that reply within 7
working days. If tax official doesn't take any action after receipt of applicant’s
reply within next 7 working days, his application will get deemed approved.
Existing registrants
All the regular taxpayers and composition taxpayer are required to get
Aadhaar authenticated for existing GST registration. An existing taxpayer can
get himself Aadhaar authenticated on GST portal using either Aadhaar
authentication link or uploading E-KYC documents 14.
A. Persons required to undergo aadhaar authentication
As per section 25(6A), (6B) and (6C), following persons are required to
undergo aadhaar authentication:
(1) New applicant

Every (i) individual applicant or (ii) an applicant, other than an
individual, shall undergo authentication/furnish proof of
possession of Aadhaar number, in the manner prescribed in rule
8 15. Rule 8(4A) provides that where an applicant opts for
authentication of Aadhaar number, he shall, while submitting an
application for registration, undergo authentication of Aadhaar
number. Said authentication is required to be eligible for grant
of registration.
14
It is not mandatory for every authorized signatory, promoter or partner to get Aadhaar
authenticated for an existing GST registration. The Aadhaar authentication will be needed
only for 1 Primary Authorized Signatory and 1 Promoter/ Partner/ Karta/ Director/ Member.
15
Notification No. 18/2020 CT dated 23.03.2020

REGISTRATION 8.47
Date of submission of the application in such cases shall be earlier

of:
(a) the date of authentication of the Aadhaar number,
or
(b) 15 days from the submission of the application in Part B of
Form GST REG-01.
In case applicant is an individual, he shall undergo authentication
of his own aadhaar number.
In case applicant is other than individual, the authentication will
be of aadhaar number of the Karta, Managing Director, whole
time Director, such number of partners, Members of Managing
Committee of Association, Board of Trustees, authorised
representative, authorised signatory and such other notified class
of persons [authorised signatory of all types, Managing and
Authorised partners of a partnership firm and Karta of a Hindu
Undivided Family, have been so notified 16].
Risk-based biometric-based aadhaar authentication of
registration applicants – Pilot project in Gujarat [Sub-rules
(4A), (4B) and (5) amended]
In order to improve the registration process, biometric based
aadhaar authentication of the high-risk applicants who opt
for authentication of Aadhaar number has been introduced on
a pilot basis in the State of Gujarat.
An applicant who has opted for authentication of Aadhaar
number and is identified on the common portal, based on data
analysis and risk parameters, shall be followed by biometric-
based Aadhaar authentication and taking photograph:
(i) of the applicant where the applicant is an individual or
(ii) of such individuals where the applicant is not an
individual,
16

along with the verification of the original copy of the

documents uploaded with the application in Form GST REG-
01 at one of the notified Facilitation Centres.
The application shall be deemed to be complete only after
completion of the process laid down hereunder.
An acknowledgement shall be issued to the applicant only

after completion of biometric-based authentication.
(2) Persons already registered
Every registered person shall undergo authentication/furnish
proof of possession of Aadhaar number, in prescribed form and
manner and within the prescribed time.
The manner in which aadhaar authentication needs to be done

by a registered person is prescribed as under:-
A registered person, who has been issued a certificate of
registration under GST, shall undergo authentication of the
Aadhaar number of:-
 Proprietor, in the case of proprietorship firm,
 Any partner, in the case of a partnership firm,

 Karta, in the case of a Hindu undivided family,
 Managing director or any whole-time director, in the
case of a company,
 Any of the Members of the Managing Committee of an
Association of persons or body of individuals or a
Society, or
 Trustee in the Board of Trustees, in the case of a Trust;
and of the Authorized Signatory,
in order to be eligible for the following purposes:

 for filing of application for revocation of cancellation of
registration [Rule 23]
 for filing of refund application in Form RFD-01 [Rule 89]

REGISTRATION 8.49
 for refund of the IGST paid on goods exported out of

India [Rule 96]
B. Where Aadhaar number is not assigned

(1) In case of new applicant
If an aadhaar number is not assigned to a new applicant – either
(i) an individual or (ii) person/class of persons (other than
individual), such individual/person/class of persons shall be
offered alternate and viable means of identification in the manner
specified in rule 9 17.
Proviso to rule 9(1) provides that where
(i) a person fails to undergo authentication of aadhaar number
or does not opt for authentication of Aadhaar number, or
(ii) a person, who has undergone authentication of Aadhaar
number, is identified on the common portal, based on
data analysis and risk parameters (presently in case pilot
project in Gujarat), for carrying out physical verification
of places of business
(iii) the proper officer, with the approval of an officer authorised
by the Commissioner not below the rank of Assistant
Commissioner, deems it fit to carry out physical verification
of places of business
the registration shall be granted within 30 days of submission of
application only after physical verification of the principal place of
business in the presence of the said person, in the prescribed
manner (specified in rule 25 discussed subsequently) and
verification of such documents as the proper officer may deem fit.
Where the application submitted under rule 8 is found to be

deficient, either in terms of any information or any document
required to be furnished under the said rule, or where the proper
17
Provisos to section 25(6B) and 25(6C) read with Notification No.s 18 and 19/2020 CT both
dated 23.03.2020

officer requires any clarification with regard to any information

provided in the application or documents furnished therewith, he
may issue a notice to the applicant electronically in within a period
of 7 working days from the date of submission of the application
and the applicant shall furnish such clarification, information or
documents electronically within a period of 7 working days from
the date of the receipt of such notice [Rule 9(2)].
However, in such cases, i.e. where:
(i) a person fails to undergo Aadhaar authentication/does not

opt for Aadhaar authentication or
(ii) a person, who has undergone authentication of Aadhaar
number, is identified on the common portal, based on data
analysis and risk parameters (presently in case pilot
project in Gujarat), for carrying out physical verification of
places of business; or
(iii) PO deems it fit to carry out site verification,
the notice (in prescribed form) seeking clarifications/ information/
documents from the applicant may be issued by the proper officer
not later than 30 days from the submission of the application for
registration [Proviso to rule 9(2)].
2. In case of an already registered persons [Rule 10B]

If an Aadhaar number is not assigned to an existing registered
person, such person shall be offered alternate and viable means
of identification in the prescribed manner 18.
Such manner has been prescribed as follows:
If Aadhaar number has not been assigned to the person
required to undergo authentication of the Aadhaar number,
such person shall furnish the following identification
documents, namely: –
(a) his/ her Aadhaar Enrolment ID slip; and
18
First proviso to section 25(6A)

REGISTRATION 8.51
(b) (i) Bank passbook with photograph; or

(ii) Voter identity card issued by the Election
Commission of India; or
(iii) Passport; or
(iv) Driving license issued by the Licensing Authority
However, once Aadhaar number is allotted to such person, he

shall undergo the authentication of Aadhaar number within a
period of 30 days of the allotment of the Aadhaar number.
In case of failure to undergo aadhaar authentication/furnish proof

of possession of Aadhaar number/furnish alternate and viable
means of identification, registration allotted to such person shall
be deemed to be invalid and the other provisions of this Act shall
apply as if such person does not have a registration 19.
C. Persons/class of persons exempt from aadhaar authentication
Section 25(6D) stipulates that above provisions shall not apply to such
person or class of persons or any State or Union territory or part thereof,
as may be notified.
Following persons have been notified in this regard 20:

 A person who is not a citizen of India
 Department or establishment of State Government or Central
Government
 Local authority
 Statutory body
 Public Sector Undertaking

 A person applying for Unique Identity Number under
section 25(9)
19
Second proviso to section 25(6A)
20

Furnishing of bank account details [Rule 10A]

As seen in the diagram outlining the procedure for registration, while filing
the application for registration on GST portal, in Part B of the application
form, a person is required to furnish the details of his bank account.
Rule 10A relaxes this requirement to a limited extent. In pursuance to the
same, the registered person is allowed to furnish information with respect to
details of bank account, or any other information, as may be required on the
common portal in order to comply with any other provision, soon after
obtaining certificate of registration and a GSTIN, but not later than 45 days
from the date of grant of registration or the date on which the return required
under section 39 is due to be furnished, whichever is earlier.
In short, a taxpayer has an option to give his bank account details after
obtaining registration, within 45 days from the date of grant of registration
or the due date of furnishing return, whichever is earlier.
However, this relaxation is not available for those who have been granted
registration as TDS deductor/ TCS collector under rule 12 or suo-motu
registration under rule 16. They are mandatorily required to furnish the bank
account details at the time of filing the application for registration.
Physical verification of business premises in certain cases [Rule 25]
Where the proper officer is satisfied that the physical verification of the place
of business of a person is required due to failure of Aadhaar authentication
or due to not opting for Aadhaar authentication before the grant of
registration, or due to any other reason after the grant of registration, he may
get such verification of the place of business, in the presence of the said
person, done. The verification report along with the other documents,
including photographs, shall be uploaded in prescribed form on the common
portal within a period of 15 working days following the date of such
verification.
Issuance of registration certificate [Rule 10]
Where the application for grant of registration has been approved, a

certificate of registration [duly signed or verified through EVC by the proper
officer] in Form GST REG-06 showing the PPoB and APoB is made available
to the applicant on the Common Portal and a Goods and Services Tax

REGISTRATION 8.53
Identification Number (hereinafter referred to as “GSTIN”) i.e. the GST

registration no. is communicated to applicant, within 3 days after the grant
of registration.
GSTIN format
State PAN Entity Check sum

Code Code character
Display of registration certificate and GSTIN on the name board

[Rule 18]
Every registered person shall display his registration certificate in a prominent
location at his PPoB and at every APoB. Further, his GSTIN also has to be
displayed on the name board exhibited at the entry of his PPoB and at every
APoB.
(ix) Effective date of registration [Rule 10]
Where an applicant submits Effective date of registration

application for registration is
Within 30 days from the date the Date on which person

person becomes liable to registration becomes liable to registration
After 30 days from the date the Date of grant of registration

person becomes liable to registration
(19) Sugam Services Ltd. is engaged in taxable supply of services

in Madhya Pradesh. The turnover of Sugam Services Ltd. exceeded
` 20 lakh on 1st November. It is required to submit the application
for registration upto 1st December [30 days] in the State of Madhya Pradesh.
It applies for registration on 28th November and is granted registration
certificate on 5th December. The effective date of registration of Sugam
Services Ltd. is 1st November.

(20) In above example, if Sugam Services Ltd. applies for

registration on 3rd December and is granted registration certificate
on 10th December. The effective date of registration of Sugam
Services Ltd. is 10th December.
(x) Special provisions for grant of registration in case of Non-Resident
Taxable Person (NRTP) and Casual Taxable Person (CTP) [Sections 25 &
27 read with rules 13 & 15]
(A) Meaning of casual taxable person and non-resident taxable person
Before going into nuances of the registration provisions of CTP and

NRTP, let us first understand the meaning of casual taxable person and
non-resident taxable person:
Casual Taxable Person
There may be case where a person has a
registered business in some State in India,
but wants to effect supplies from some other
State in which he does not have any fixed
place of business. Such person needs to
register in the State from where he seeks to
supply as a ‘casual taxable person’.
CGST Act defines a casual taxable person as a person who occasionally
undertakes transactions involving supply of goods or services or both
in the course or furtherance of business, whether as principal, agent or
in any other capacity, in a State/UT where he has no fixed place of
business [Section 2(20)]. Further, he cannot exercise the option to pay
tax under composition levy.
(21) Krishnadev & Co., engaged in supplying taxable goods,
is registered in Rajasthan. It wishes to participate in a
5 days’ business exhibition being held in Delhi. However, it
does not have a fixed place of business in Delhi. In this case, Krishnadev
& Co. has to obtain registration as a casual taxable person in Delhi.

REGISTRATION 8.55
A person who is a foreigner and

occasionally wants to effect taxable
supplies from any State in India needs
GST registration for the same. Such
person needs to register in the State
from where he seeks to supply as a non-
resident taxable person. CGST Act
defines non-resident taxable person as any person who occasionally
undertakes transactions involving supply of goods or services or both,
whether as principal or agent or in any other capacity, but who has no
fixed place of business or residence in India [Section 2(77)]. He cannot
exercise the option to pay tax under composition levy.
Based on the aforesaid definitions, following points merit consideration:

 A CTP does not have a fixed place of business in the State/UT
where he undertakes supply though he might be registered with
regard to his fixed place of business in some other State/UT, while
a NRTP does not have fixed place of business/residence in India
at all.
 A CTP has to undertake transactions in the course or furtherance
of business whereas the business test is absent in the definition
of NRTP.
(B) Special registration provisions of casual taxable person and
GST law prescribes special procedure for registration, as also for
extension of the operation period of such casual or non-resident
taxable persons. They have to apply for registration at least 5 days in
advance before making any supply. Also, registration is granted to them
or period of operation is extended, only after they make advance
deposit of the estimated tax liability. The special registration
procedure pertaining to CTP and NRTP is as follows:

(A) Both CTP 21 and NRTP have to compulsorily get registered under
GST irrespective of the threshold limit, at least 5 days prior to
commencement of business.
(B) As per section 25(6), every person must have a PAN to be eligible
for registration. Since NRTP will generally not have a PAN of India,
he may be granted registration on the basis of other prescribed
documents.
Thus, a NRTP being an individual has to submit a self-attested
copy of his valid passport along with the application duly signed
or verified through electronic verification code by his authorized
signatory who is an Indian Resident having valid PAN. However,
in case of a business entity incorporated or established outside
India, the application for registration shall be submitted along
with its tax identification number or unique number on the basis
of which the entity is identified by the Government of that country
or its PAN, if available.
Application will be submitted by NRTP in a different prescribed
form whereas CTP will submit the application for registration in
the normal form for application for registration i.e. Form GST REG
01 and his registration of CTP will be a PAN based registration.
(C) Period of validity of registration certificate granted to CTP/NRTP
Registration Certificate granted to
CTP/NRTP will be valid for:
(i) Period specified in the CTP and NRTP will
registration application, or make taxable
supplies only after
(ii) 90 days from the effective date the issuance of the
of registration [can be certificate of
extended further by a period registration.
not exceeding 90 days by
making an application before
the end of the validity of registration granted to him]
21
Subject to exemption from registration under Notification No. 56/2018 CT dated
23.10.2018

REGISTRATION 8.57
whichever is earlier.
Provisions relating to verification of application and grant of
registration [under rules 9 and 10] will apply mutatis mutandis, to
an application for registration filed by NRTP.
(D) Advance deposit of tax
At the time of submitting the registration application, CTP/NRTP are
required to make an advance deposit of tax** of an amount equivalent
to the estimated tax liability of such person for the period for which the
registration is sought.
Further, CTP/NRTP will get a Temporary Reference Number (TRN) for
making an advance deposit of tax which shall be credited to his
electronic cash ledger. An acknowledgement of receipt of application
for registration is issued only after said deposit
Such advance tax deposit amount should be calculated after

considering the due eligible ITC which might be available to such casual
taxable person [Circular No. 71/45/2018 GST dated 26.10.2018].
**Where extension of time is sought, CTP/NRTP will deposit an additional

amount of tax equivalent to the estimated tax liability of such person for
the period for which the extension is sought.
Registration of participants of long running exhibitions

In case of long running exhibitions (for
a period more than 180 days), the
taxable person cannot be treated as a
CTP and thus such person would be
required to obtain registration as a
normal taxable person.
While applying for normal registration,
the said person should upload a copy
of the allotment letter granting him
permission to use the premises for the exhibition and the allotment
letter/consent letter shall be treated as the proper document as a proof for
his place of business.

In such cases, he would not be required to pay advance tax [Refer Point D]
for the purpose of registration. He can surrender such registration once the
exhibition is over [Circular No. 71/45/2018 GST dated 26.10.2018].
(xi) Deemed registration [Section 26]
Registration under GST is not tax specific, which means that there is single
registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cess.
Grant of registration/UIN under any SGST Act/ UTGST Act is deemed to be
registration/UIN granted under CGST Act provided application for
registration has not been rejected under CGST Act.
Further, rejection of application for registration/UIN under SGST Act/UTGST
Act is deemed to be rejection of application for registration under CGST Act.
(xii) Special provisions for grant of registration in case of persons required

to deduct tax at source under section 51 or to collect tax at source under
section 52 [Rule 12]
An application for registration has to be submitted by such persons in a
different prescribed form at GST Common Portal. They would be granted
registration within 3 working days from the date of submission of
application after due verification.
When a person is applying for registration to collect TCS or to deduct TDS in
a State/UT where he does not have a physical presence, he shall mention
name of said State/UT in Part A of prescribed application form for
registration. Further, the name of the State/UT in which his principal place of
business is located is to be mentioned in Part B of the application form. Thus,
States/UTs mentioned in Part A and Part B of the application form may be
different.
Where, on a request made in writing by a person to whom a registration
has been granted under rule 12(2) or upon an enquiry or pursuant to any
other proceeding under the CGST Act, the proper officer is satisfied that a
person to whom a certificate of registration has been issued is no longer liable
to deduct tax at source under section 51 or collect tax at source under section
52, the said officer may cancel the registration issued and such cancellation
shall be communicated to the said person electronically in prescribed form.

REGISTRATION 8.59
Proper Officer shall follow the procedure laid down for cancellation of
registration prescribed under this Act and rules therein.
(xiii) Special provisions for grant of registration in case of person supplying

online information and data base access or retrieval services (OIDAR
services) from a place outside India to a non-taxable online recipient
[Rule 14]
Application for registration has to be submitted by such persons in a different
prescribed form. They would be granted registration subject to such
conditions and restrictions and by such officer as may be notified by the
Central Government on the recommendations of the Council.
In this Chapter, while elaborating the registration

provisions contained in Chapter -III Registration of CGST
Rules, 2017, only Registration forms - Form GST REG-01
and Form GST REG-06 have been discussed. Students are advised to
go through various forms/formats relating to registration at
http://www.cbic.gov.in. for knowledge purposes.
8. AMENDMENT OF REGISTRATION [SECTION 28]
Section 28 Amendment of registration
(1) 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.
(2) 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.
(3) 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.
ANALYSIS
A registered person or UIN holder may need to make some changes/amendments
in the registration application. There are two categories of details in registration
application – core and non-core fields.
Core fields are name of the business, (legal name) if there is no change in PAN,
addition / deletion of stakeholders 22, principal place of business (other than change
in State) or additional place of business (other than change in State). All other
fields are non-core fields like name of day to day functionaries, e-mail ids, mobile
numbers etc.
In case the change is in core information in the registration application, the
taxable person will apply for amendment within 15 days of the event necessitating
the change. The proper officer, then, will approve the amendment within next 15
days. For other changes – non-core information, no approval of the proper officer
is required, and the amendment can be affected by the taxable person on his own
on the common portal.
The provisions relating to amendment of registration are contained in section 28
read with rule 19.
22
Refer diagram given on next page.

REGISTRATION 8.61
The significant aspects of the same are discussed hereunder:
 Where there is any change in the particulars furnished in registration

application/UIN application, registered person shall submit an application in
prescribed manner, either at the time of obtaining registration or Unique
Identity Number or as amended from time to time, within 15 days of such
change, along with documents relating to such change at the Common Portal.
 In case of amendment of core fields of information, the proper officer

may, on the basis of information furnished or as ascertained by him, approve
or reject amendments in the registration particulars in the prescribed manner.
Such amendment shall take effect from the date of occurrence of event
warranting such amendment.
 However, where change relates to non-core fields of information,

registration certificate shall stand amended upon submission of the
application for amendment on the Common Portal.
 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 SGST/UTGST Act shall be

deemed to be a rejection or approval under this Act also.
 Any particulars of the application for registration shall not stand amended
with effect from a date earlier than date of submission of application for
amendment on common portal except with order of Commissioner for
reasons to be recorded in writing and subject to conditions specified by
Commissioner in the said order.
 Application for amendment of registration cannot be filed for change in PAN

because GST registration is PAN-based. One needs to make fresh application
for registration in case there is change in PAN. Thus. where a change in the
constitution of any business results in change of PAN of a registered person,
the said person shall apply for fresh registration.

 Similarly, application for amendment of registration form cannot be filled if

there is change in place of business from one State to the other because GST
registrations are State-specific. If one wishes to relocate his business to
another State, he must voluntarily cancel his current registration and apply
for a fresh registration in the State he is relocating his business.
Core fields of information
Permission of proper officer required if change

relates to core fields of information
And such change does not warrant cancellation of registration

under section 29
Addition, deletion or retirement of

Legal name Address of
stakeholders (partners or directors,
of business PPoB/APoB
Karta, Managing Committee, Board of
Trustees, Chief Executive Officer or
equivalent, responsible for day to day
affairs of the business)
Change of these two particulars shall be applicable for all

registrations of a registered person obtained under provisions of
this Chapter on same PAN.
Mobile no./e-mail address of authorised signatory can be amended only after

online verification through GST Portal.

REGISTRATION 8.63
Submission of
Core areas application within 15
days of change
Registered
Person/ UIN
GST
holder
Common Portal
Non-core areas
Amendment carried out on GST

Common Portal
Proper Officer (PO)
Approval to be
granted within next
Registration certificate 15 days No
amended Is PO of the opinion
that amendment is
unwarranted/
Yes documents
PO will serve a SCN why
application for amendment within 15 working days of furnished are
should not be rejected? receipt of application incomplete/
incorrect?
If registered person replies

No to the notice within 7
working days?
Yes
No
Yes
If reply is
satisfactory? Application for
amendment shall be
rejected.
Within 7 working days of receipt of
l

If the proper officer fails to take any action,-

(a) within a period of 15 working days from the date of submission of the
application, or
(b) within a period of 7 working days from the date of the receipt of the reply to
the show cause notice,
the certificate of registration shall stand amended to the extent applied for and the
amended certificate shall be made available to the registered person on the
common portal.
(22) Varun Enterprises, a sole proprietorship firm, is engaged in supply

of electrical goods in Delhi. The firm is registered under GST. Varun is
the proprietor of the firm. He wishes to expand his business and his
friend – Arun - approaches him to provide additional capital for his business if he
is made a partner in Varun’s business.
Varun agrees and changes the constitution of his business and form a partnership
firm – Varun Arun & Co. Since the change in constitution of business from sole
proprietorship firm to partnership firm results in change in PAN of the registered
person, the partnership firm has to apply for fresh registration. The reason for the
same is that GSTIN is PAN based. Any change in PAN would warrant a new
registration.
9. CANCELLATION
9 OR SUSPENSION OF
REGISTRATION AND REVOCATION OF
CANCELLATION [SECTIONS 29 & 30]
Section 29 Particulars
Sub-section Cancellation or suspension of registration
(1) The proper officer may, either on his own motion or on an

application filed by the registered person or by his legal heirs, in

REGISTRATION 8.65
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:
(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
(b) there is any change in the constitution of the business
(c) the taxable person is no longer liable to be registered under

section 22 or section 24 or intends to optout of the
registration voluntarily made under sub-section (3) of
section 25.
Provided that during 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.
(2) 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
(b) a person paying tax under section 10 has not furnished the
return for a financial year beyond three months from
the due date of furnishing the said return
(c) any registered person, other than a person specified in

clause (b), has not furnished returns for such continuous
tax period as may be prescribed
(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
(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 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.
(3) 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.
(4) 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.
(5) 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.
(6) The amount payable under sub-section (5) shall be calculated in

such manner as may be prescribed.

REGISTRATION 8.67
Section 30 Revocation of cancellation of registration
(1) Subject to such conditions as may be prescribed, any registered

person, whose registration is cancelled by the proper officer on his
own motion, may apply to such officer for revocation of cancellation
of the registration in such manner, within such time and subject
to such conditions and restrictions, as may be prescribed.
(2) The proper officer may, in such manner and within such period as
may be prescribed, by order, either revoke cancellation of the
registration or reject the application.
Provided that the application for revocation of cancellation of
registration shall not be rejected unless the applicant has been given
an opportunity of being heard.
(3) The revocation of 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 revocation of
cancellation of registration under this Act.
ANALYSIS
The provisions relating to cancellation of registration and its revocation are

contained in sections 29 & 30 respectively read with rules 20 to 23. The
registration granted under GST can be cancelled for specified reasons. The
cancellation can either be initiated by the Department on their own motion or the
registered person can apply for cancellation of their registration.

Where the
Voluntary For example, in case of
registered
cancellation by death of registered
person no more
registered person, the legal heirs can
requires the
Cancellation of
person apply for cancellation

registration
registration
For example, when the

Where the Proper registrant is not doing
Officer considers business from the
Suo-motu
the registration of registered place of
cancellation by
a person liable for business or if he issues tax
the Department
cancellation in view invoice without making
of certain defaults the supply of goods or
services.
(i) Circumstances where registration is liable to be cancelled [Section

29(1) & (2)]
A. Circumstances when the registration can be cancelled either suo
motu by proper officer or on an application of the registered
person or his legal heirs (in case death of such person)
Cancellation by the registered person on its own or by the

Department
--Business discontinued
--Transferred fully for any Taxable person who
reason including death of is no longer liable to
the proprietor Change in the be registered under
--Amalgamated with other constitution of the section 22 or section
legal entity business 24 or who intends to
opt out of the
--Demerged or
voluntary registration.
--Otherwise disposed of
B. Circumstances when the proper officer can cancel registration on

his own
In the following cases, registration can be cancelled by the proper
officer from such date, including any retrospective date, as he may
deem fit after giving an opportuniy of being heard:

REGISTRATION 8.69
A registered person
has contravened the
prescribed provisions
(Refer I below)
Registration was obtained A registered person has

by means of fraud, wilful Proper not filed returns for
misstatement or officer can specified period [Refer
suppression of facts cancel clauses (h) & (i) below]
registration
on his own
if Composition tax payer has
Voluntarily registered person
not furnished return for a
has not commenced the
FY beyond 3 months from
business within 6 months
due date of furnishing
from the date of registration
return
(I) Prescribed contraventions which make a registered person liable

to cancellation of registration [Rule 21]: The registered person-
(a) does not conduct any business from the declared place of
business, or
(b) issues invoice/bill without supply of goods/services in
violation of the provisions of this Act, or the rules made
thereunder.
(c) violates the provisions of section 171. Section 171 contains
provisions relating to anti-profeetering measure – discussed
in detail in Chapter 24 – Miscellaneous Provisions in
Module 3 of the Study Material.
(d) violates the provision of rule 10A (discussed earlier in this
chapter).
(e) avails input tax credit in violation of the provisions of section
16 23 of the CGST Act or the rules made thereunder; or
(f) furnishes the details of outward supplies in
Form GSTR-1 under section 37 for one or more tax periods
23
Provisions of section 16 have been discussed in detail in Chapter 7 – Input tax credit in this
Module of the Study Material.

which is in excess of the outward supplies declared by him

in his valid return under section 39 for the said tax periods;
or
(g) violates the provision of rule 86B 24.
(h) required to file return under section 39(1) for each
month or part thereof (i.e. monthly return filer), has not
furnished returns for a continuous period of 6 months.
(i) required to file return under proviso to section 39(1) for
each quarter or part thereof (i.e. quarterly return filer),
has not furnished returns for a continuous period of 2
tax periods.
C. Suspension of registration [First proviso to section 29(1) and
second proviso to section 29(2) read with rule 21A]
Once a registered person has applied for cancellation of registration or
the proper officer seeks to cancel his registration,
the proper officer may suspend his registration
during pendency of the proceedings relating to
cancellation of registration filed. In this way, a
taxpayer is barred from the routine compliances, including filing
returns, under GST law during the pendency of the proceedings related
to cancellation of registration.
The period and manner of suspension of registration is as follows:
1. Where registered person has applied for cancellation of
registration: Where a registered person has applied for
cancellation of registration, the registration shall be deemed to
be suspended from:
(a) the date of submission of the application

or
(b) the date from which the cancellation is sought,
24
Provisions of rule 86B have been discussed in detail in Chapter 7 – Input tax credit.

REGISTRATION 8.71
whichever is later,
pending the completion of proceedings for cancellation of
registration.
2. Where cancellation of the registration has been initiated by
the Department on its own motion: Where the proper officer
has reasons to believe that the registration of a person is liable to
be cancelled, he may suspend the registration of such person with
effect from a date to be determined by him, pending the
completion of the proceedings for cancellation of registration.
Apart from the above, where, a comparison of the returns
furnished by a registered person under section 39 with:
(a) the details of outward supplies furnished in Form GSTR-1;
or
(b) the details of inward supplies derived based on the details
of outward supplies furnished by his suppliers in their Form
GSTR-1,
or such other analysis, as may be carried out on the
recommendations of the Council, show that there are significant
differences or anomalies indicating contravention of the
provisions of the CGST Act or the rules made thereunder, leading
to cancellation of registration of the said person, his registration
shall be suspended.
Said person shall be intimated in prescribed form by sending a
communication to his e-mail address provided at the time of
registration or as amended from time to time.
In this intimation for suspension and notice for cancellation of
registration, the said differences and anomalies are highlighted
and said person is asked to explain, within a period of 30 days, as
to why his registration shall not be cancelled.

3. A registered person, whose registration has been suspended as

above:
• shall not make any taxable supply** during the period of

suspension and
• shall not be required to furnish any return under section 39.
**The expression “shall not make any taxable supply” shall

mean that the registered person shall not issue a tax invoice and,
accordingly, not charge tax on supplies made by him during the
period of suspension.
In cases where the cancellation is initiated by the Department on
its own and registration of a person has been suspended, such
person shall not be granted any refund under section 54 25, during
the period of suspension of his registration.
4. The suspension of registration shall be deemed to be revoked
upon completion of the cancellation proceedings by the proper
officer. Such revocation shall be effective from the date on which
the suspension had come into effect.
The suspension of registration may be revoked by the proper

officer, anytime during the pendency of the proceedings for
cancellation, if he deems fit.
5. Further, the suspension of registration shall be deemed to be
revoked upon furnishing of pending GST returns, where GST
registration was suspended due to non-filing of GST return for
a financial year beyond 3 months from the due date of
furnishing the said return by a composition taxpayer or
returns for such continuous tax period as may be prescribed
by registered persons (other than composition taxpayer)
subject to the condition that the registration has not been
cancelled by the proper officer under rule 22.
25
Section 54 contains provisions relating to refunds under GST discussed in Chapter 15 –
Refunds in Module 3 of the Study Material.

REGISTRATION 8.73
6. Where any order having the effect of revocation of suspension of

registration has been passed, the provisions of section 31(3)(a)
[revised tax invoices 26] and section 40 [first return 27] in respect of
the supplies made during the period of suspension and the
procedure specified therein shall apply.
(ii) Procedure for cancellation of registration [Rules 20 and 22]
(a) Voluntary cancellation by registered person
Application
 A registered person seeking cancellation of registration 28 shall electronically
submit the application for cancellation of registration in prescribed form
within 30 days of occurrence of the event warranting cancellation.
 He is required to furnish in the application the details of inputs held in stock
or inputs contained in semi-finished/finished goods held in stock and of
capital goods held in stock on the date from which cancellation of
registration is sought, liability thereon, details of the payment, if any, made
against such liability and may furnish relevant documents thereof.
Order
 Where a person who has submitted an application for cancellation of his
registration is no longer liable to be registered, proper officer shall issue the
order of cancellation of registration within 30 days from the date of
submission of application for cancellation.
(b) Suo-motu cancellation by the Department

 Where the proper officer cancels the registration suo-motu, he shall not
cancel the same without giving a show cause notice and without giving a
reasonable opportunity of being heard, to the registered person. The reply
to such show cause notice (SCN) has to be submitted within 7 days of service
of notice.
26
Provisions relating to revised tax invoice have been discussed in detail in Chapter 9 - Tax
Invoice; Credit and Debit Notes in this Module of the Study Material.
27
Provisions relating to first return have been discussed in detail in Chapter 13 - Returns in
this Module of the Study Material.
28
under section 29(1)

 If reply to SCN is satisfactory, proper officer shall drop the proceedings and
pass an order in prescribed form. However, where the person instead of
replying to the SCN served for failure to furnish returns for a continuous
period of 6 months or 2 tax periods, as the case may be (return for a F.Y.
beyond 3 months from due date of furnishing the said return in case of
composition scheme supplier) 29 furnishes all the pending returns and makes
full payment of the tax dues along with applicable interest and late fee, the
proper officer shall drop the proceedings and pass an order.
Where registration of a person is liable to be cancelled, proper officer shall
issue the order of cancellation of registration within 30 days from the date of
reply to SCN.
(c) Effective date of cancellation

 The cancellation of registration shall be effective from a date to be
determined by the proper officer and mentioned in the cancellation order.
The taxable person will be directed in the said order to pay arrears of any tax,
interest or penalty including the amount liable to be paid under section 29(5).
(iii) Amount payable on cancellation of registration [Section 29(5) & (6)]

A registered person whose registration is cancelled will have to debit the
electronic credit or cash ledger by an amount equivalent to:
(i) Input tax credit (ITC) in respect of:
 stock of inputs and inputs contained in semi-finished/finished
goods’ stock or
 capital goods or plant and machinery
on the day immediately preceding the date of cancellation, or

(ii) the output tax payable on such goods
whichever is higher, calculated in such manner as may be prescribed.
However, 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
29
i.e., contravention of the provisions contained in section 29(2)(b)/(c) read with clauses (h)
& (i) of rule 21

REGISTRATION 8.75
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.
The manner of determination of amount of credit to be reversed is prescribed
under rule 44. On conjoint reading of section 29(5) and rule 44, it can be
inferred as follows:
Amount of credit to be reversed in respect of INPUTS:
ITC in respect of ITC on inputs computed

inputs proportionately on the
calculated in basis of corresponding
accordance with invoices** on which credit
rule 44 of the whichever is
had been availed on such
CGST Rules higher
inputs.
Output tax payable on such goods
* Discussed in detail in Chapter-7: Input Tax Credit

**If tax invoices are not available, the ITC to be reversed will be based on the
prevailing market price (MP) of such goods on the date of cancellation.
Amount of credit to be reversed in respect of CAPITAL GOODS OR PLANT
& MACHINERY:
ITC in respect of ITC involved in the

capital goods or remaining useful life in
plant & machinery months of the capital
calculated in goods will be reversed
accordance with rule on pro-rata basis, taking whichever is
44 of the CGST Rules the useful life as 5 years higher
Tax on the transaction value of such capital goods or

plant and machinery under section 15

(23) Capital goods have been in use for 4 years, 6 month and 15
days. The useful remaining life in months = 5 months ignoring a
part of the month.
ITC taken on such capital goods = C
ITC attributable to remaining useful life = C x 5/60
It is important to note that this requirement to debit the electronic credit

and/or cash ledger by suitable amounts is not a prerequisite for applying for
cancellation of registration. This can also be done at the time of submission
of Final Return 30.
(iv) Other points about cancellation
 A person to whom a UIN has been granted under rule 17 cannot apply
for cancellation of registration [Rule 20].
 The cancellation of registration will not affect liability of registered
person to pay tax and other dues under the Act for any period prior to
the date of cancellation 31 [Section 29(3)].
(24) The proper officer cancelled the registration of Naman
Associates on 11th October. The tax dues of Naman
Associates for July-September quarter (determined by the
proper officer on 16th December) are ` 50,000. The cancellation of
registration of Naman Associates shall have no effect on his liability of
tax dues of ` 50,000 even though the tax dues are determined after the
cancellation of registration.
 The cancellation of registration under either SGST Act/UTGST Act shall
be deemed to be a cancellation of registration under CGST Act [Section
29(4)].
30
A taxable person whose GST registration is cancelled or surrendered has to file a return
known as Final Return. This is statement of stocks held by such taxpayer on day immediately
preceding the date from which cancellation is made effective. Detailed provisions of Final
Return are discussed in Chapter 13 -Returns.
31
whether or not such tax and other dues are determined before or after the date of
cancellation.

REGISTRATION 8.77
 Once registration is cancelled by the tax authority, the taxpayer will be

intimated about the same via sms and email. Order for cancellation of
registration will be issued and intimated to the primary authorized
signatory by email and sms.
 Taxpayer would not be allowed to file return for the period after date
of cancellation mentioned in the cancellation order. However, he can
submit returns of the earlier period (i.e. for the period before date of
cancellation mentioned in the cancellation order for which registration
was active).
(v) Revocation of cancellation of registration [Section 30 read with rule 23]
(A) Procedure for revocation of cancellation
 Where the registration of a person is cancelled suo-motu by the

proper officer, such registered person may apply for revocation of
the cancellation to such proper officer, in such manner, within
such time and subject to such conditions and restrictions, as
may be prescribed.
Thus, a registered person, whose registration is cancelled by
the proper officer on his own motion, may subject to
provisions of rule 10B submit an application for revocation of
cancellation of registration, in prescribed form, to such proper
officer, within a period of 30 days from the date of the service
of the order of cancellation of registration or within such time
period as extended by the Additional Commissioner or the
Joint Commissioner or the Commissioner, as the case may be,
in exercise of the powers provided under the proviso to section
30(1), at the common portal, either directly or through a
Facilitation Centre notified by the Commissioner.
 If the proper officer is satisfied that there are sufficient grounds
for revocation of cancellation, he may revoke the cancellation of
registration, by an order within 30 days of receipt of application
and communicate the same to applicant.
 Otherwise, he may reject the revocation application. However,
before rejecting the application, he has to first issue SCN to the

applicant who shall furnish the clarification within 7 working days

of service of SCN. The proper officer shall dispose the application
(accept/reject the same) within 30 days of receipt of clarification.
(B) Where registration was cancelled for failure of registered person to
furnish returns
Where registration was cancelled for failure of registered person to

furnish returns, before applying for revocation, the person has to make
good the defaults, i.e. the person needs to file such returns and pay any
amount due as tax along with any amount payable towards interest,
penalty and late fee in respect of the said returns. However, the
registration may have been cancelled by the proper officer either from
the date of order of cancellation of registration or from a retrospective
date.
(1) Where the registration has been cancelled with effect from
the date of order of cancellation of registration
As we have already seen that the common portal does not allow
furnishing of returns for the period after the effective date of
cancellation, but returns for the earlier period (i.e. for the period
before date of cancellation mentioned in the cancellation order)
can be furnished after cancellation.
Where the registration is cancelled with effect from the date of
order of cancellation of registration, person applying for revocation
of cancellation has to furnish all returns due till the date of such
cancellation before the application for revocation can be filed and
has to pay any amount due as tax, in terms of such returns along
with any amount payable towards interest, penalties or late fee
payable in respect of the said returns.
However, since the portal does not allow to furnish returns for the
period after the date of cancellation of registration, all returns due
for the period from the date of order of cancellation till the date
of order of revocation of cancellation of registration have to be
furnished within a period of 30 days from the date of the order of
revocation.

REGISTRATION 8.79
(25) The registration of Naman Associates was cancelled

by the proper officer by an order dated
1st June for its failure to furnish returns. The registration
was cancelled with effect from 1st June itself. It applied for
revocation of cancellation of registration and the order for
revocation of cancellation of Naman Associates is passed on
31st July. In this case, Naman Associates shall be required to furnish
all the returns for the period from 1st June to 31st July within a period
of 30 days from 31st July, i.e. by 30th August.
Returns for this period to Returns for this period to be filed

be filed before applying for within 30 days of the order of
revocation of cancellation revocation of cancellation
Date of order of
Date from which
Date of order of
cancellation of
cancellation of
revocation of
registration
registration
returns not
furnished
Effective date of
cancellation of
registration
(2) Where the registration has been cancelled with retrospective

effect
Where the registration has been cancelled with retrospective
effect, it is not possible to furnish the returns before filing the
application for revocation of cancellation of registration.
In that case, the application for revocation of cancellation of
registration is allowed to be filed, subject to the condition that all
returns relating to the period from the effective date of cancellation
of registration till the date of order of revocation of cancellation of
registration shall be filed within a period of 30 days from the date of
order of such revocation of cancellation of registration.

(26) The registration of Naman Associates was

cancelled by the proper officer by an order dated
1st June for its failure to furnish returns. The registration
was cancelled with effect from 1st January itself. It applied for
revocation of cancellation of registration and the order for
revocation of cancellation of Naman Associates is passed on 31st
July. In this case, Naman Associates shall be required to furnish all
the returns for the period from 1st January to 31st July within a
period of 30 days from 31st July, i.e. by 30th August.
Returns for this period to be filed within 30 days of the order

of revocation of cancellation
Date of order of
Date from which
Date of order of
cancellation of
cancellation of
revocation of
registration
registration
returns not
furnished
Effective date of
cancellation of
registration
Points to be noted
UIN Holders (i.e. UN Bodies, Embassies and Other Notified

Persons), GST Practitioner cannot apply for revocation of cancelled
registration. In case the registration is cancelled on the request of
the taxpayer or his legal heir, one cannot apply for revocation of
cancelled registration.
The revocation of cancellation of registration under the SGST

Act/ UTGST Act, as the case may be, shall be deemed to be a
revocation of cancellation of registration under CGST Act

REGISTRATION 8.81
LET US RECAPITULATE
Nature of registration
The registration in GST is PAN based and State specific.
One registration per State/UT.
However, a business entity having separate places of business in a State may

obtain separate registration for each of its places of business .
GST identification number called “GSTIN” - a 15-digit number and a

certificate of registration incorporating therein this GSTIN is made available
to the applicant on the GSTN common portal.
Registration under GST is not tax specific, i.e. single registration for all the
taxes i.e. CGST, SGST/UTGST, IGST and cesses.
Persons liable to registration
Those who exceed threshold •Threshold limit elaborated separately in the

limit diagram below.
In case of transfer of
•transferee liable to be registered from the date of
business on account of
succession of business
succession, etc.
•transferee liable to be registered from the date

In case of amalgamation/
on which Registrar of Companies issues
demerger by an order of
incorporation certificate giving effect to order of
High Court etc.
High Court etc.
Inter
Taxable Exempt Aggregate
Exports State
Supplies supplies Turnover
supplies
Aggregate Turnover will be computed on All-India basis for same PAN

Applicable threshold limit
States with threshold limit of ` 10 •Manipur, Mizoram, Nagaland and Tripura

lakh for supplier of goods and/or
services
States with threshold limit of •Arunachal Pradesh, Meghalaya, Sikkim,

` 20 lakh for supplier of goods Uttarakhand, Puducherry and Telangana
and/or services
States with threshold limit of ` 20 lakh

for supplier of services/both goods •Jammu and Kashmir, Assam, Himachal
and services and Pradesh, All other States
threshold limit of ` 40 lakh for supplier
of goods (Intra-State)
Compulsory registration in certain cases

Casual taxable person
who does not have a A person receiving
Persons making any
fixed place of business supplies on which tax is
inter-State taxable
in the State or Union payable by recipient on
supply
Territory from where he reverse charge basis
wants to make supply
Those ecommerce
Non-resident taxable
operators who are Persons who are
persons who do not
notified as liable for tax required to deduct tax
have a fixed place of
payment under section under section 51 (TDS)
business in India
9(5)
A person who supplies Suppliers other than

Every e-commerce
on behalf of some other notified under section
operator who is
taxable person (i.e. an 9(5) who supply
required to collect tax at
Agent of some through an e-commerce
source
Principal) operator
Input Service
Every person supplying OIDAR
Distributor, whether Person/ class of persons
services from a place outside
or not separately notified by the Central/
India to a person in India other
registered under State Government
than a registered person
this Act

REGISTRATION 8.83
Persons not liable for registration
Person engaged exclusively Agriculturist

Persons making
in supplying goods/ limited to supply
only reverse
services/ both not liable to of produce out of
charge supplies
tax/ wholly exempt from tax cultivation of land
Persons making inter-State

Persons making
taxable supplies of notified
inter-State supplies
handicraft goods and
of taxable services up
notified hand-made goods
to ` 20 lakh**
up to ` 20 lakh**
Casual Taxable Persons Persons making supplies of
making inter-State taxable services through an ECO [other
supplies of notified than supplies specified under
handicraft goods and section 9(5)] with aggregate
notified hand-made goods turnover up to ` 20 lakh**
up to ` 20 lakh**
**` 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur

and Nagaland
Where and by when to apply for registration?
Person who is liable to A casual taxable A person who makes a

be registered under person or a non- supply from the
section 22 or section resident taxable person territorial waters of
24 India
•in every such State/UT
•in every such State/UT •in the coastal State/UT
in which he is so liable
in which he is so liable where the nearest
•at least 5 days prior to point of the
•within 30 days from the commencement of appropriate base line
the date on which he business is located.
becomes liable to
registration •within 30 days from
the date on which he
becomes liable to
registration

Voluntary Registration and UIN
Voluntary Registration Unique Identification Number (UIN)
In respect of supplies to some

Person not liable to be notified agencies of United
registered under sections Nations organisation,
22/24 may get himself multinational financial
registered voluntarily. institutions and other
organisations, a UIN is issued.
Effective date of registration
Application submitted within 30 Application submitted after 30

days of the applicant becoming days of the applicant becoming
liable to registration liable to registration
Effective date is the date on

Effective date is date of
which he becomes liable to
grant of registration
registration
Deemed registration
Deemed registration
Grant of registration/UIN under any Rejection of application for

SGST Act/ UTGST Act is deemed to be registration/UIN under SGST Act/UTGST
registration/UIN granted under CGST Act is deemed to be rejection of
Act provided application for registration application for registration under CGST
has not been rejected under CGST Act. Act.

REGISTRATION 8.85
Procedure for registration
Part I
Every person liable to get registered and person seeking voluntary registration shall,
before applying for registration, declare his Permanent Account Number (PAN) and
State/UT in Part A of FORM GST REG-01 on GST Common Portal.
PAN is validated online by Common Portal from CBDT database and is also be
verified through separate OTPs sent to the PAN linked mobile number and e-
mail address.
Temporary Reference Number (TRN) is generated and communicated to the

applicant on the validated mobile number and e-mail address.
Using TRN, applicant shall electronically submit application in Part B of

application form, along with specified documents at the Common Portal.
Part B of application contains the details, such as, constitution of business,
jurisdiction, option for composition, date of commencement of business,
reason to obtain registration, address of PPoB and nature of activity carried
out therein, details of APoB, details of bank account(s), details of authorized
signatory, aadhaar authentication, etc.
On receipt of such application, an acknowledgement in the prescribed form shall

be issued to the applicant electronically. A Casual Taxable Person (CTP) applying
for registration gets a TRN for making an advance deposit of tax in his electronic
cash ledger and an acknowledgement is issued only after said deposit.*
Application shall be forwarded to the Proper Officer.
The procedure after receipt of application by the Proper Officer is depicted

in Part II.
* Discussed in detail in subsequent paras.

Part-II
Proper Officer examines the application and where a person fails to undergo
1.86
Aadhaar authentication/does not

accompanying documents.
opt for Aadhaar authentication
within 30 days
Proper Officer from where PO deems it fit to carry
If same are
8.86
No issues notice application out site verification

found in thereby submission
Yes where a person, who has undergone
order? seeking date
Aadhaar authentication, is
Yes clarification**, identified on common portal, based
Registration information or within 7 on data analysis & risk parameters,
granted within Registration is documents working days to carry out site verification
7 working granted within 30 from application
from the
days from the days of application submission date
applicant Other cases
date of after verification of
site & prescribed electronically
submission of No
documents If applicant has furnished the clarification**,

application
information or documents within 7 working
without site where
verification
days’ time from receipt of notice?
applicant where PO where a person, who
fails to deems it fit (C)
has undergone Yes
if applicant undergo to carry out No
Aadhaar
Aadhaar site
If proper officer is satisfied with it?
successfully authentication,is
GOODS AND SERVICES TAX
authentica
validates his verification identified on common
tion/ does Yes
aadhaar portal, based on data Proper officer
not opt for Proper officer will grant registration
authentication, analysis & risk may reject the
Aadhaar within 7 working days from the
authentication parameters, to carry application for
(A) date of receipt of information/
out site verification reasons to be
clarification/ documents
(B) (B) (B) recorded in
writing.
**Clarification includes modification/correction of particulars declared in the application
for registration other than PAN, State Mobile No. & E-mail address.
REGISTRATION 8.87
Special procedure for registration of CTP and NRTP
Casual Taxable Person Non-resident Taxable Person
A Casual taxable person is one

who has a registered business in
some State in India, but wants to A Non-Resident taxable
effect supplies from some other person is one who is a
State in which he is not having any foreigner and occasionally
fixed place of business. wants to effect taxable
supplies from any State in
Such person needs to register in India, and for that he needs
the State from where he seeks to GST registration.
supply as a Casual taxable person.
Casual Taxable Person Non-resident taxable person
GST law prescribes special procedure for registration, as also for extension of
the operation period of such Casual or Non-Resident taxable persons.
They have to apply for registration at least 5 days in advance before making
any supply.
Registration is granted to them or period of operation is extended only after

they make advance deposit of the estimated tax liability.
Registration is granted to them for the period specified in the registration

application or 90 days from the effective date of registration.

Amendment of Registration
Except for the changes in some core information in the registration application,
a taxable person shall be able to make amendments without requiring any
specific approval from the tax authority.
In case the change is core fields of information, the taxable person will apply
for amendment within 15 days of the event necessitating the change. The
Proper Officer, then, will approve the amendment within the next 15 days.
For changes in non-core fields, no approval of the Proper Officer is required,
and the amendment can be affected by the taxable person on his own on the
common portal.
Cancellation or suspension of registration and revocation of cancellation of

registration
A registered person has

Registration --Business contravened the prescribed
can be discontinued/ Registration provisions
cancelled Transferred/ can be
either by Amalgamated cancelled A registered person has not filed
proper with other legal by the returns for continuous 6 months
officer or on entity/ proper or 2 tax periods (return for a
an Demerged or officer on F.Y. beyond 3 months from due
application Otherwise his own date of furnishing the said
of the disposed of return for composition supplier)
registered
person Voluntarily registered person has
Change in the not commenced the business
constitution of within 6 months from the date of
the business registration
Taxable person Registration was obtained by

no longer liable means of fraud, wilful
to be registered misstatement or suppression of
or intends to facts
opt out of
voluntary
registration
Once a registered person has applied for cancellation of registration or the proper officer
seeks to cancel his registration, proper officer may suspend his registration during
pendency of proceedings relating to cancellation of registration filed by such registered
person.

REGISTRATION 8.89
Procedure for cancellation
Where the registered person Where the proper officer

applies for cancellation cancels the registration
PO shall issue a SCN to the registered

Registered person seeking cancellation
person who has to reply to said notice
shall apply for the same within 30 days
i hi d
of occurrence of the event warranting
cancellation, in prescribed form, Proceedings shall be Cancellation
furnishing the details of inputs held in dropped order shall
stock or inputs contained in semi- be issued
finished/finished goods held in stock within 30
days of reply
and of capital goods held in stock on
to SCN
the date from which cancellation of If reply to Where instead
where
registration is sought, liability thereon, SCN is of replying to
registration
payment, if any made & relevant satisfactory SCN, person
is liable to
furnishes all
documents. be cancelled
pending
returns &
makes full
Proper officer (PO) shall issue the payment of tax
order of cancellation within 30 along with
days of submission of application interest & late
for the same. fee.
Revocation of cancellation
In case where registration is cancelled suo-motu by the proper officer, the taxable person can apply
within 30 days (extendible by 30 days by Additional/Joint Commissioner and by further 30 days by
Commissioner) of service of cancellation order, requesting the officer for revoking the cancellation
ordered by him.
However, before so applying, the person has to make good the defaults (by filing all pending returns,
making payment of all dues and so) for which the registration was cancelled by the officer.
If satisfied, the proper officer will revoke the cancellation earlier ordered by him.
However, if the officer concludes to reject the request for revocation of cancellation, he will first
observe the principle of natural justice by way of issuing notice to the person and hearing him on the
issue.
However, there shall be deemed revocation of cancellation upon furnishing of pending GST
returns subject to the condition that the registration has not been cancelled by the proper
officer under rule 22

TEST YOUR KNOWLEDGE
1. Mahadev Enterprises, a sole proprietorship firm, opened a shopping complex

dealing in supply of ready-made garments at multiple locations, i.e. in
Himachal Pradesh, Uttarakhand and Tripura in the month of June.
It has furnished the following details relating to the supply made at such
multiple locations for the month of June:-
Particulars Himachal Uttarakhand Tripura

Pradesh
(`)* (`)* (`)*
Intra-State supply of taxable 22,50,000 - 7,00,000
goods
Intra-State supply of exempted - - 6,00,000
goods
Intra-State supply of non-taxable - 21,00,000 40,000
goods
* excluding GST
With the help of the above mentioned information, answer the following
questions giving reasons:-
(1) Determine whether Mahadev Enterprises is liable to be registered under
GST law and what is the threshold limit of taking registration in this case
assuming that it is not required to pay any tax on inward supplies under
reverse charge.
(2) Explain with reasons whether your answer in (1) will change in the
following independent cases:
(a) If Mahadev Enterprises is dealing exclusively in taxable supply of
goods only from Himachal Pradesh;
(b) If Mahadev Enterprises is dealing in taxable supply of goods and
services only from Himachal Pradesh;

REGISTRATION 8.91
(c) If Mahadev Enterprises is dealing in taxable supply of goods only

from Himachal Pradesh and has also effected inter-State supplies
of taxable goods (other than notified handicraft goods and notified
hand-made goods) amounting to ` 4,00,000.
2. LMN Pvt. Ltd., Coimbatore, Tamil Nadu, exclusively manufactures and sells
product ‘X’ which is exempt from GST vide a notification issued under relevant
GST legislations. The company sells product ‘X’ only within Tamil Nadu and is
not registered under GST. Further, all the inward supply of the company are
taxable under forward charge. The turnover of the company in the previous
year was ` 45 lakh. The company expects the sales to grow by 30% in the
current year. The company purchased additional machinery for manufacturing
‘X’ on 1st July. The purchase price of the capital goods was
` 30 lakh exclusive of GST @ 18%.
However, effective from 1st November, exemption available on ‘X’ was
withdrawn by the Central Government and GST @ 12% was imposed thereon.
The turnover of the company for the half year ended on 30 th September was
` 45 lakh.
(a) Examine the above scenario and advise LMN Pvt Ltd. whether it needs to
get registered under GST.
(b) If the answer to the above question is in affirmative, advise LMN Pvt. Ltd.
whether it can avail input tax credit on the additional machinery
purchased exclusively for manufacturing “X”?
3. SNP Pvt. Ltd., Coimbatore, Tamil Nadu, exclusively manufactures and sells
product ‘Z’ which is exempt from GST vide notifications issued under relevant
GST legislations. The company sells product ‘Z’ only within Tamil Nadu and it
not registered under GST. Further, all the inward supplies of the company are
taxable under forward charge. The turnover of the company in the previous
year was ` 55 lakh. The company expects the sales to grow by 20% in the
current year. Owing to the growing demand for the product, the company
decided to increase its production capacity and purchased additional
machinery for manufacturing ‘Z’ on 1st July. The purchase price of such capital
goods was ` 20 lakh exclusive of GST @ 18%.

However, effective from 1st November, exemption available on ‘Z’ was

withdrawn by the Central Government and GST @ 12% was imposed thereon.
The turnover of the company for the half year ended on 30 th September was
` 50 lakh.
(a) The Board of Directors of SNP Pvt. Ltd. wants to know whether they have
to register under GST?
(b) In case in the above question, SNP Pvt. Ltd. is already registered with
respect to certain taxable supplies being made by it along with
manufacture of exempt product ‘Z’, other facts remaining the same, can
it take input tax credit on additional machinery purchased exclusively for
manufacturing ‘Z’? If yes, then how much credit can be availed?
Advice SNP Pvt. Ltd. on the above issues with reference to the provisions of GST
law.
4. Rishabh Enterprises – a sole proprietorship firm – started an air-conditioned
restaurant in Virar, Maharashtra in the month of February wherein the
customers are served cooked food as well as cold drinks/non-alcoholic
beverages. In March, the firm opened a liquor shop in Raipur, Uttarakhand for
trading of alcoholic liquor for human consumption.
Determine whether Rishabh Enterprises is liable to be registered under GST law
with the help of the following information:
Particulars February March

(`)* (`)*
Serving of cooked food and cold drinks/non- 5,50,000 6,50,000
alcoholic beverages in restaurant in Maharashtra
Sale of alcoholic liquor for human consumption 5,00,000
in Uttarakhand
Supply of packed food items from restaurant in 1,50,000 2,00,000
Maharashtra
* excluding GST
You are required to provide reasons for treatment of various items given above.

REGISTRATION 8.93
5. With the help of the following information in the case of M/s Jayant Enterprises,
Jaipur (Rajasthan) for the financial year, determine the aggregate turnover for
the purpose of registration under the CGST Act.
Sl. Particulars Amount

No. (` )
(i) Sale of diesel on which VAT is levied by Rajasthan 1,00,000
Government.
(ii) Supply of goods, after completion of job work, from the 3,00,000
place of Jayant Enterprises directly by principal by
declaring the place of M/s Jayant Enterprises as its
additional place of business.
(iii) Export of goods to England (U.K.) 5,00,000
(iv) Supply to its own additional place of business in 5,00,000
Rajasthan.
(v) Outward supply of services on which GST is to be paid 1,00,000
by recipient under reverse charge.
All the above amounts are excluding GST.

You are required to provide reasons for treatment of various items given above.
6. Rajesh Dynamics, having its head office in Chennai, Tamil Nadu carries on the
following activities with respective turnovers in a financial year:
Supply of petrol at Chennai, Tamil Nadu 18,00,000
Value of inward supplies on which tax is payable on reverse 9,00,000

charge basis
Supply of transformer oil at Chennai, Tamil Nadu 2,00,000
Value of branch transfer from Chennai, Tamil Nadu to 1,50,000

Bengaluru, Karnataka without payment of consideration
Value of taxable supplies at Manipur branch 11,50,000

It argues that it does not have taxable turnover crossing threshold limit of
` 40,00,000 either at Chennai, Tamil Nadu, Bengaluru, Karnataka or Manipur
branch. Further, it believes that the determination of aggregate turnover is not
required for the purpose of obtaining registration but is required for
determining the eligibility for composition levy.
Determine the aggregate turnover of Rajesh Dynamics. You are also required
to review the technical veracity of the arguments of Rajesh Dynamics.
ANSWERS/HINTS
1. As per section 22 read with Notification No. 10/2019 CT dated 07.03.2019, a

supplier is liable to be registered in the State/ Union territory from where he
makes a taxable supply of goods and/or services, if his aggregate turnover in
a financial year exceeds the threshold limit. The threshold limit for a person
making exclusive intra-State taxable supplies of goods is as under:-
(i) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(ii) ` 20 lakh for the States of Arunachal Pradesh, Meghalaya, Puducherry,
Sikkim, Telangana and Uttarakhand.
(iii) ` 40 lakh for rest of India.
The threshold limit for a person exclusively making taxable supply of services
or supply of both goods and services is as under:-
(ii) ` 20 lakh for the rest of India.
As per section 2(6), aggregate turnover includes the aggregate value of:
(i) all taxable supplies,

(ii) all exempt supplies,
(iii) exports of goods and/or services and
(iv) all inter-State supplies of persons having the same PAN.
The above is to be computed on all India basis.

REGISTRATION 8.95
In the light of the afore-mentioned provisions, the aggregate turnover of

Mahadev Enterprises is computed as under:
Computation of State-wise aggregate turnover of Mahadev Enterprises
Particulars Himachal Pradesh Uttarakhand Tripura
(`)* (`)* (`)*
Intra-State supply of 22,50,000 - 7,00,000

taxable goods
Intra-State supply of - - 6,00,000

exempted goods
Intra-State supply of non-

taxable goods (Refer Note
below) - 21,00,000 40,000
Aggregate Turnover 22,50,000 21,00,000 13,40,000
Note: As per section 2(47), exempt supply includes non-taxable supply. Thus,
intra-State supply of non-taxable goods in Uttarakhand, being a non-taxable
supply, is an exempt supply and is, therefore, included in the aggregate
turnover.
In the given case, Mahadev Enterprises is engaged in exclusive intra-State
supply of goods from Himachal Pradesh, Tripura and Uttarakhand. However,
since Mahadev Enterprises makes taxable supply of goods from one of the
specified Special Category States (i.e. Tripura), it will not be eligible for the
higher threshold limit of ` 40 lakh; instead, the threshold limit for registration
will be reduced to ` 10 lakh.
(1) In view of the above-mentioned provisions, Mahadev Enterprises is
liable to be registered under GST law with the aggregate turnover
amounting to ` 56,90,000 (computed on all India basis) of the States of
Himachal Pradesh, Uttarakhand and Tripura since the applicable
threshold limit of registration in this case is ` 10 lakh. Further, he is not
liable to be registered in Uttarakhand since he is not making any taxable
supply from Uttarakhand.

(2) (a) If Mahadev Enterprises is dealing in supply of goods only from

Himachal Pradesh, the applicable threshold limit of registration
would be ` 40 lakh. Thus, Mahadev Enterprises will not be liable
for registration as its aggregate turnover would be ` 22,50,000.
(b) If Mahadev Enterprises is dealing in taxable supply of goods and
services only from Himachal Pradesh then higher threshold limit
of ` 40 lakh will not be applicable as the same applies only in case
of exclusive supply of goods. Therefore, in this case, the
applicable threshold limit will be ` 20 lakh and hence, Mahadev
Enterprises will be liable to registration.
(c) In case of inter-State supplies of taxable goods other than notified
handicraft goods or notified hand-made products, section 24
requires compulsory registration irrespective of the quantum of
aggregate turnover. Thus, Mahadev Enterprises will be liable to
registration.
2. (a) Section 22(1) read with Notification No. 10/2019 CT dated 07.03.2019
inter alia provides that every supplier who is exclusively engaged in
intra-State supply of goods is liable to be registered under GST in the
State/ Union territory from where he makes the taxable supply of goods
only when aggregate turnover in a financial year exceeds
` 40,00,000.
However, the above provisions are not applicable to few specified
States, i.e. States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram,
Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand.
Further, a person exclusively engaged in the business of supplying
goods and/or services that are not liable to tax or are wholly exempt
from tax is not liable to registration in terms of section 23(1)(a).
In the given case, the turnover of the company for the half year ended
on 30th September is ` 45 lakh which is more than the applicable
threshold limit of ` 40 lakh. Therefore, as per above mentioned
provisions, the company should be liable to registration. However,
since LMN Pvt. Ltd. supplied exempted goods till 31st October, it was
not required to be registered till that day; though voluntary registration
was allowed under section 25(3).

REGISTRATION 8.97
However, the position will change from 1st November as the supply of
goods become taxable from that day and the turnover of company is
above ` 40 lakh. It is important to note here that in terms of section
2(6), the aggregate turnover limit of ` 40 lakh includes exempt turnover
also.
Therefore, turnover of ‘X’ prior to 1st November will also be considered
for determining the limit of ` 40 lakh even though the same was exempt
from GST. Therefore, the company needs to register within
30 days from 1st November (the date on which it becomes liable to
registration) in terms of section 25(1).
(b) Section 18(1)(a) provides that a person who has applied for registration
within 30 days from the date on which he becomes liable to registration
and has been granted such registration shall be entitled to take credit
of input tax in respect of inputs held in stock and inputs contained in
semi-finished or 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.
Thus, LMN Pvt. Ltd. cannot avail credit for additional machinery
purchased exclusively for manufacturing X as input tax credit of only
inputs is allowed when a person gets registered for the first time.
3. (a) Section 22(1) read with Notification No. 10/2019 CT dated 07.03.2019
inter alia provides that every supplier who is exclusively engaged in
intra-State supply of goods is liable to be registered under GST in the
State/ Union territory from where he makes the taxable supply of goods
only when aggregate turnover in a financial year exceeds ` 40,00,000.
However, the above provisions are not applicable to few specified
States, i.e. States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram,
Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand.
However, a person exclusively engaged in the business of supplying
goods and/or services that are not liable to tax or are wholly exempt
from tax is not liable to registration in terms of section 23(1)(a).
In the given case, the turnover of the company for the half year ended
on 30th September is ` 50 lakh which is more than the applicable

threshold limit of ` 40 lakh. Therefore, as per section 22, the company

will be liable to registration. However, since SNP Pvt. Ltd. supplied
exempted goods till 31st October, it was not required to be registered
till that day; though voluntary registration was allowed under section
25(3).
However, the position will change from 1st November as the supply of
goods become taxable from that day and the turnover of company is
above ` 40 lakh. It is important to note here that in terms of section
2(6), the aggregate turnover limit of ` 40 lakh includes exempt turnover
also.
Therefore, turnover of ‘Z’ will be considered for determining the
threshold limit even though the same was exempt from GST. Therefore,
the company needs to register within 30 days from
1st November (the date on which it becomes liable to registration) in
terms of section 25(1).
Further, the company cannot avail exemption of ` 40 lakh from
1st November as the GST law does not provide any threshold exemption
from payment of tax but threshold exemption from obtaining
registration (which in this case had been crossed).
(b) Rule 43(1)(a) of the CGST Rules, 2017 disallows input tax credit on
capital goods used or intended to be used exclusively for effecting
exempt supplies.
However, as per section 18(1)(d), where an exempt supply of goods
and/or services by a registered person becomes a taxable supply, such
person gets entitled to take credit of input tax in respect of inputs held
in stock and inputs contained in semi-finished or finished goods held
in stock relatable to such exempt supply and on capital goods
exclusively used for such exempt supply on the day immediately
preceding the date from which such supply becomes taxable.
Rule 40(1)(a) of the CGST Rules, 2017 lays down that the credit on
capital goods can be claimed after reducing the tax paid on such capital
goods by 5% per quarter of a year or part thereof from the date of the
invoice.

REGISTRATION 8.99
Therefore, in the given case, SNP Pvt. Ltd. could not claim credit on
machinery till the time the supply of product ‘Z’ for which said
machinery was being used was exempt. However, it can claim credit
from 31st October - the day immediately preceding the date from which
the supply of product ‘Z’ became taxable (1st November).
The credit will be available for the remaining useful life of the machinery
and will be computed as follows:
Date of purchase of machinery 1st July
Date on which credit becomes eligible 31st October
Number of quarters for which credit is to be 2 (including part of

reduced quarter)
GST paid on machinery [` 20,00,000 x 18%] ` 3,60,000
Credit to be reduced [[` 3,60,000 x 5% x 2] ` 36,000
Amount of credit that can be taken ` 3,24,000

[` 3,60,000 – ` 36,000]
4. As per section 22 read with Notification No. 10/2019 CT dated 07.03.2019, a

supplier is liable to be registered in the State/ Union territory from where he
makes a taxable supply of goods and/or services, if his aggregate turnover in
a financial year exceeds the threshold limit. The threshold limit for a person
making exclusive intra-State taxable supplies of goods is as under:-
(ii) ` 20 lakh for the States of Arunachal Pradesh, Meghalaya, Puducherry,
Sikkim, Telangana and Uttarakhand.
The threshold limit for a person making exclusive taxable supply of services
or supply of both goods and services is as under:-

As per section 2(6), aggregate turnover includes the aggregate value of:
(i) all taxable supplies,
(ii) all exempt supplies,
(iii) exports of goods and/or services and
(iv) all inter-State supplies of persons having the same PAN.
The above is computed on all India basis. Further, the aggregate turnover
excludes central tax, State tax, Union territory tax, integrated tax and cess.
Moreover, the value of inward supplies on which tax is payable under reverse
charge is not taken into account for calculation of ‘aggregate turnover’.
In the given question, since Rishabh Enterprises is engaged in making taxable
supplies of goods and services from Maharashtra and non-taxable supplies
from Uttarakhand, the threshold limit for obtaining registration is
` 20 lakh.
In the light of the afore-mentioned provisions, the aggregate turnover of
Rishabh Enterprises is computed as under:
Computation of aggregate turnover of Rishabh Enterprises
Particulars Turnover Cumulative

of February turnover of
(`) February &
March (`)
Serving of cooked food and cold 5,50,000 12,00,000

drinks/non-alcoholic beverages in [` 5,50,000 +
restaurant in Maharashtra ` 6,50,000]
Add: Sale of alcoholic liquor for human 5,00,000

consumption in Uttarakhand [As per
section 2(47), exempt supply includes
non-taxable supply. Thus, supply of
alcoholic liquor for human consumption in
Uttarakhand, being a non-taxable supply,
is an exempt supply and is, therefore,

REGISTRATION 8.101
includible while computing the aggregate

turnover.]
Add: Supply of packed food items from 1,50,000 3,50,000

restaurant in Maharashtra [` 1,50,000 +
` 2,00,000]
Aggregate Turnover 7,00,000 20,50,000
Rishabh Enterprises was not liable to be registered in the month of February

since its aggregate turnover did not exceed ` 20 lakh in that month. However,
since its aggregate turnover exceeds ` 20 lakh in the month of March, it
should apply for registration within 30 days from the date on which it
becomes liable to registration. Further, he is not liable to be registered in
Uttarakhand since he is not making any taxable supply from Uttarakhand. It
should obtain registration in Maharashtra.
5. Computation of aggregate turnover of M/s Jayant Enterprises for the FY
Particulars `
Supply of diesel on which Sales Tax (VAT) is levied by 1,00,000

Rajasthan Government [Note-1]
Supply of goods, after the completion of job work, from the Nil
place of Jayant Enterprises, directly by the principal [Note-2]
Export supply to England [Note-3] 5,00,000
Supply to its own additional place of business in Rajasthan 32 Nil

[Note-4]
Outward supply of services on which GST is to be paid by 1,00,000

recipient under reverse charge [Note-5]
Aggregate turnover 7,00,000
The above solution has been worked out on the assumption that supply to another place of
32
business is without consideration (as per general business practices).

Notes:-
1. As per section 2(47), exempt supply includes non-taxable supply. Thus,
supply of diesel, being a non-taxable supply, is an exempt supply and
exempt supply is specifically includible in aggregate turnover in terms
of section 2(6).
2. Supply of goods after completion of job work by a principal by declaring
the place of business of job worker its additional place of business shall
be treated as the supply of goods by the principal in terms of
explanation (ii) to section 22.
3. Export supplies are specifically includible in the aggregate turnover in
terms of section 2(6).
4. Supply made without consideration to units within the same State is a
not a supply and hence not includible in aggregate turnover.
5. Outward supplies taxable under reverse charge would be part of the
“aggregate turnover” of the supplier of such supplies. Such turnover is
not included as turnover in the hands of recipient.
As per section 22 read with Notification No. 10/2019 CT dated
07.03.2019, a supplier is liable to be registered in the State/ Union
territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnover in a financial year exceeds the
threshold limit. The threshold limit for a person making exclusive intra-
State taxable supplies of goods is as under:-
(i) ` 10 lakh for the States of Mizoram, Tripura, Manipur and
Nagaland.
(ii) ` 20 lakh for the States of Arunachal Pradesh, Meghalaya,
Puducherry, Sikkim, Telangana and Uttarakhand.
The threshold limit for a person making exclusive taxable supply of
services or supply of both goods and services is as under:-
(i) ` 10 lakh for the States of Mizoram, Tripura, Manipur and

Nagaland.

REGISTRATION 8.103
The applicable turnover limit for registration, in the given case, will be
` 20 lakh as Rajasthan is not a Special Category State and M/s. Jayant
Enterprises is engaged in supply of goods and services. Although, the
aggregate turnover of M/s Jayant Enterprises does not exceed
` 20 lakh, it is compulsorily required to register in terms of
section 24(i) irrespective of the turnover limit as it is engaged in making
inter-State supply of goods in the form of exports to England.
6. Computation of aggregate turnover of Rajesh Dynamics:
Particulars `
Supply of petrol at Chennai, Tamil Nadu [Being a non- 18,00,000

taxable supply, it is an exempt supply and thus, includible
in aggregate turnover vide section 2(6)]
Value of inward supplies on which tax is payable on reverse Nil

charge basis
Supply of transformer oil at Chennai, Tamil Nadu 2,00,000
Value of branch transfer from Chennai, Tamil Nadu to 1,50,000

Bengaluru, Karnataka without payment of consideration
[Being a taxable supply, it is includible in aggregate
turnover]
Value of taxable supplies of Manipur Branch 11,50,000
Aggregate turnover 33,00,000
Rajesh Dynamics is not liable to be registered in Chennai, Tamil Nadu, if his

aggregate turnover in a financial year does not exceed ` 40 lakh. However,
since Rajesh Dynamics also makes taxable supplies from Manipur, a specified
Special Category State, the threshold exemption gets reduced to
` 10 lakh in terms of section 22(1) [Notification No.10/2019-CT dated.
07.03.2019].
Rajesh Dynamics’ argument that it is not liable to registration since the
threshold exemption of ` 40 lakh is not being crossed either at Chennai, Tamil
Nadu, Bengaluru, Karnataka or Manipur is not correct as firstly, the aggregate
turnover to be considered in its case is ` 10 lakh and not ` 40 lakh and

secondly, the same is computed on all India basis and not

State-wise.
Apart from this, Rajesh Dynamics is also wrong in believing that aggregate
turnover is computed only for the purpose of determining the eligibility limit
for composition levy since the aggregate turnover is required for determining
the eligibility for both registration and composition levy.
Last but not the least, Rajesh Dynamics is compulsorily required to register
under section 24 irrespective of the turnover limit as it is liable to pay tax on
inward supplies under reverse charge and it also makes inter-State taxable
supply.


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CHAPTER 8

After reading this chapter, you will be able to:

© The Institute of Chartered Accountants of India

© The Institute of Chartered Accountants of India

a place from where the business is ordinarily carried on, and

a place where a taxable person maintains his books of account; or

a place where a taxable person is engaged in business through an

 Appellate Authority: means an authority appointed or authorised to hear

 Exempt supply: means supply of any goods or services or both which

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 Taxable supply: means a supply of goods or services or both which is

 Taxable person: means a person who is registered or liable to be

 Principal place of business: means the place of business specified as the

 Proper officer: in relation to any function to be performed under this Act,

 Registered person: means a person who is registered under section 25,

 Fixed establishment: means a place (other than the registered place of

 Business: includes [Section 2(17)]–

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(f) admission, for a consideration, of persons to any premises; and

3. CONCEPT OF TAXABLE PERSON [SECTION

Thus, even an unregistered person who is liable to be registered is a taxable person.

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registration initiated by the Department or by the registered person be revoked.

Section 22 Persons liable for registration

Section 23 Persons not liable for registration

Section 24 Compulsory registration in certain cases

Section 25 Procedure for registration.

Section 26 Deemed registration

Section 27 Special provisions relating to casual taxable person and

Section 28 Amendment of registration

Section 29 Cancellation or suspension of registration

Section 30 Revocation of cancellation of registration

Section 22 Persons liable for registration

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Provided that where such person makes taxable supplies of goods

(3) Where a business carried on by a taxable person registered under

(4) Notwithstanding anything contained in sub-sections (1) and (3), in

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of two or more companies pursuant to an order of a High Court,

Explanation––For the purposes of this section, ––

(i) the expression “aggregate turnover” shall include all supplies

(ii) the supply of goods, after completion of job work, by a

 Every supplier of goods or services or both is required to obtain

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Before, we study what is the applicable

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Mechanism (RCM) do not form part of the ‘aggregate turnover’. The

Outward Supplies taxable

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(3) Madhur Oils, Punjab, is engaged in supplying machine oil

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to whom the goods belong is called ‘principal’. Schedule II of the CGST

supplies goods directly to buyer after

Supply of such goods shall be

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Applicable threshold limit

However, the limit of ` 20 lakh will be reduced to ` 10 lakh if the person is

If a person with places of business in

Government is empowered to enhance the threshold limit of ` 20 lakh upto

For the purposes of section 22(1), a person shall be considered to be engaged