When is GST registration mandatory?

In the terms of the GST regime, every business whose aggregate turnover in the financial year exceeds Rs. 40 lakhs and Rs. 10 lakhs in the case of North-Eastern states are required to mandatorily register under GST.

North-Eastern States (special category states) - As per explanation (3) of CGST act 2017, "special category states" shall mean the States as specified in sub-clause (4) of article 279A of the Constitution. They are-

 1.  Arunachal Pradesh

2. Assam

3. Jammu & Kashmir

 4.  Manipur

 5.  Meghalaya

 6.  Mizoram

 7.  Nagaland

 8.  Sikkim

 9.  Tripura

10. Himachal Pradesh 

11. Uttarakhand

However, Jammu & Kashmir may enjoy the benefit of a minimum threshold limit of Rs. 20 lakhs. 

Who should mandatorily register under GST? 

As per Sec 24. in certain cases the registrations are mandatory irrespective of aggregate turnover in the Financial Year.

They are as follows:-

1. Interstate taxable supply. 

2. Taxable supply by Casual Taxable Persons. 

3. Taxable supply by the E-commerce operator. 

4. Person liable to pay tax under reverse charge mechanism.

5. Taxable supply by a Non - Resident Indian. 

6. Person who is required to deduct tax under Sec 51, whether or not separately registered under this Act ;

7. Taxable supply of goods or services or both on behalf of other taxable people whether as an agent or otherwise. 

8. Input Service Distributor, whether or not separately registered under CGST ; 

9. Supply of goods or services or both, other than supplies under Sec 9(5), through such electronic commerce operator who is required to collect tax at source under Sec 52;

10. Person who is required to pay tax under RCM [Reverse Charge Mechanism]

11. Every person who supplies online information and database access or retrieval services from a place outside India to a person in India, other than a registered person. 

12. Such other person or class of persons may be notified by the Govt of India on the recommendation of the council.

Advantages of GST registration -

Every person who registers under GST enjoys the following benefits - 

1. He gets legal recognition as a supplier to supply both goods and services. 

2. He can legally collect taxes from his customers and avail of ITC benefits. 

3. He is legally authorized to claim ITC on taxes paid and pass the credit on the taxes paid on the goods and services supplied to the recipient. 

4. He can enjoy smooth inter-state transactions. 

5. He can supply his goods digitally. 

6. He can gain the trust of his customers widely. 

7. He is eligible to apply for Government bids or contracts or assignments.

Penalty for not registering under GST - 

As per section 122(1)(xi) of CGST Act, 2017 any taxable person who fails to register under GST even if he/she is legally bound as per the GST Act needs to pay the following amount of penalty:

As per section 122(2)(a) for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten percent. of the tax due from such person, whichever is higher;

Otherwise, as per section 122(2), (b) is 10,000 INR or the amount of tax evaded whichever is higher.

Documents required for GST registration - 

Every GST taxpayer has to mandatorily register under the GST regime within 30 days from the date on which he becomes liable to registration. :-

• Name of the entity
• PAN 
• Aadhar Card
• Mobile number
• E-mail ID
• State or Union Territory
• Address proof
• Bank account details 

Procedure for GST registration - 

                               Login to the GST common portal. 

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   Fill Part A of Form GST REG-01 (By declaring above mentioned documents) 

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                        The portal verifies the details of the OTP      

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            On successful verification, a reference number is generated. 

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         Fill out Part B of Form GST REG- 02, using the reference number. 

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                                Upload the required documents. 

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                 The GST officer will verify the application within 3 working dates. 

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        If these documents are found in order, the Proper officer approves the registration. 

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                           A certificate of registration will be generated

cancellation of GST registration

Introduction

The enlistment conceded under GST can be dropped for determining reasons. The retraction can either be started by the office on their own movement or the enrolled individual can apply for retraction of their enrollment. In the instance of the death of an enrolled individual, the lawful beneficiaries can apply for retraction. In the event that the enrollment has been dropped by the office, there is an arrangement for the renouncement of the retraction. On retraction of the enrollment, the individual needs to document a return which is known as the last return.

Reason for cancellation of GST registration

The enlistment can be dropped for the accompanying reasons: 

a) an individual enlisted under any of the current laws, yet who isn't obligated to be enlisted under the GST Act; 

b) the business has been ceased, moved completely under any condition including the passing of the owner, amalgamated with other lawful substance, demerged or in any case discarded; 

c) there is any adjustment of the constitution of the business; 

d) the available individual (other than the individual who has willfully taken enlistment under sub-segment (3) of area 25 of the CGST Act, 2017) is at this point not at risk to be enrolled; 

e) an enrolled individual has negated such arrangements of the Act or the standards made thereunder; 

f) an individual paying assessment under Composition demand has not 

outfitted returns for three continuous duty periods; 

i) any enrolled individual, other than an individual covering charge under Composition demand has not outfitted returns for a consistent time of a half year; 

j) any individual who has taken willful enlistment under sub-area (3) of segment 25 has not started a business within a half year from the date of enlistment; 

k) enrollment has been acquired through misrepresentation, determining error or concealment of realities 

Procedure for wiping out: 

I. An individual previously enlisted under any of the current laws (Central extract, Service charge, VAT, and so on), yet who presently isn't at risk to be enlisted under the GST Act needs to present an application electronically by 31ST December 2017, in FORM GST REG-29 at the normal entrance for the dropping of enlistment without a doubt to him. The Superintendent of Central Tax.

will, subsequent to directing such inquiry as considered fit, 

drop the said enrollment. 

ii. The wiping out of enrollment under the State Labor and products Tax Act or the Union Territory Goods and Services Tax Act, by and large, will be considered to be a wiping out of enrollment under Central Goods and Services Tax Act. 

iii. On the occasion, the Superintendent of Central Tax has motivations to accept that the enrollment of an individual is responsible to be dropped, a notification to such individual in Structure GST REG-17, expecting him to show cause, within a time of seven working days from the date of the assistance of such notification, with respect to why his registration will not be dropped; will be given. 

iv. The answer to the show cause notice given must be outfitted by the enrolled individual in FORM REG– 18 within a time of seven working days. 

v. On the off chance that the answer to the show cause notice is found to be palatable, the Superintendent of Central Duty will drop the procedures and pass a request in Structure GST REG – 20. 

vi. In any case, when the individual who has presented an application for wiping out of his enrollment is no longer responsible to be enrolled or his enlistment is liable and ready to be dropped, the Superintendent of Central Expense will give a request in FORM GST REG-19, inside a time of thirty days from the date of application or, by and large, the date of the answer to the show cause gave, drop the enlistment, with impact from a date still up in the air by him and advise the available individual, guiding him to pay back payments of any duty, interest or punishment. 

vii. The enlisted individual whose enrollment is dropped will pay a sum, via charge in the electronic credit record or electronic money record, comparable to the credit of information charge in regard to data sources held in stock and data sources contained in semi-completed or completed products held in stock or capital merchandise or plant, what's more, the hardware on the day promptly going before the date of such scratch-off or the yield charge payable on such products, whichever is higher. 

viii. In the event of capital merchandise or plant and hardware, the available individual will pay a sum equivalent to the info tax break taken on the said capital products or plant furthermore, hardware, diminished by such rate focuses as might be endorsed or the duty on the exchange esteem of such capital merchandise or plant and hardware under area 15, whichever is higher. 

ix. The abrogation of enlistment will not influence the risk of the individual to satisfy charge and different obligations for any period before the date of dropping whether or then again not such assessment and different not really set in stone previously or then again after the date of scratch-off.

Final Returns of GST registration cancellation

When the registration of a registered person other than an Input Service Distributor or a non-resident taxable person or then again an individual paying assessment under the piece plot or TDS/TCS; has been dropped, the individual needs to record the last return within 90 days of the date of wiping out or date of request of wiping out, whichever is later, electronically in FORM GSTR-10 through the normal entrance by the same token straightforwardly or through a Facilitation Center told by the Official.

Denial of Cancellation of GST Registration

I. At the point when the enlistment has been dropped by the Legitimate Officer (Superintendent of Central Tax) on his own movement and not based on an application, then, at that point, the enlisted individual, whose enrollment has been dropped, can present an application for disavowal of retraction of enlistment, in FORM GST REG-21, to the Proper Officer (Assistant or Delegate Commissioners of Central Tax), inside a time of thirty days from the date of the help of the request for crossing out of enrollment at the common entryway, either straightforwardly or through a Facilitation Focus advised by the Commissioner: 

ii. In any case, if the enrollment has been dropped for inability to outfit returns, application for denial will be recorded, solely after such returns are outfitted, what's more, any sum due as duty, as far as such returns, has been paid alongside any sum payable towards interest, punishment and late expense in regard of the said returns

iii. On the assessment of the application if the Proper Officer (Assistant or Deputy Commissioners of Central Tax) is fulfilled, for motivations to be recorded in composing, that there is adequate justification for revocation of the undoing of enrollment, then, at that point, he will deny the wiping out of enrollment by a request in FORM GST REG-22 inside a time of thirty days from the date of the receipt of the application, what's more, impart something very similar to the candidate. 

iv. In any case, if on assessment of the application for repudiation, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) isn't fulfilled then, at that point, he will give a notification in FORM GST REG–23 requiring the candidate to show cause with respect to why the application submitted for disavowal ought not to be dismissed and the candidate needs to outfit the answer inside a time of seven working days from the date of the assistance of the notification in FORM GST REG24. 

v. Endless supply of the data or explanation in Structure GST REG-24, the Proper Officer (Assistant or Deputy Commissioners of Central Tax) will discard the application within a time of thirty days from the date of the receipt of such data or on the other hand explanation from the candidate. In the event that the information or explanation given is acceptable, the Appropriate Officer (Assistant or Deputy Commissioners of Central Tax) will arrange the application according to para

(iii) above. In the event that it isn't palatable, the applicant will be obligatorily offered a chance of being heard, after which the Proper Officer (Assistant or Deputy Commissioners of Central Tax) after recording the reasons recorded as a hard copy may be a request in Structure GST REG-05, reject the application for disavowal of scratch-off of enlistment and convey something similar to the candidate. 

vi. The repudiation of retraction of enlistment under the State Goods and Services Tax Act or the Union Region Goods and Services Tax Act, as the case might be, will be considered to be a renouncement of wiping out of enlistment under Central Goods and Administrations Tax Act.