Standardised PPT on GST Indirect Taxes Committee The Institute of Chartered Accountants of India

Disclaimer and Copy right This presentation has been prepared to provide a standard ‘user presentation’. The views expressed in this presentation are those of Speaker(s). The Institute of Chartered Accountants of India may not necessarily subscribe to the views expressed by the speaker(s). The information cited in this presentation has been drawn from various sources. While every efforts have been made to keep the information cited in this presentation error free, the Institute or any office do not take the responsibility for any typographical or clerical error which may have crept in while compiling the information provided in this presentation. Further, the information provided in this presentation are subject to the provisions contained under different acts and members are advised to refer to those relevant provision also. For clarifications write to us at idtc@icai.in © The Institute of Chartered Accountants of India This standardised PPT may be used by any person with due acknowledgement to the Indirect Taxes Committee of ICAI. © Indirect Taxes Committee, ICAI

Registration © Indirect Taxes Committee, ICAI

Sec-22 : Person Liable for Registration Aggregate turnover > Rs20 Lakhs Special Category States, Aggregate turnover > Rs10 Lakhs What is Aggregate turnover? Taxable Supplies + Exempt Supplies + Exports + Inter State Supplies Taxable supplies does not include Alcoholic Liquor for human consumption Cocktails Will it include turnover on which tax needs to be paid under reverse charge? Specific exclusion of inward supplies liable under reverse charge basis © Indirect Taxes Committee, ICAI

Sec-22 : Person Liable for Registration Registration is required in the State from which he makes taxable supply. GST is destination based tax, tax goes to the “destination” State but registration is in the “Origin State”. Person registered / licensed under erstwhile law on day immediately preceding the appointed date. Transfer of Business –Transferee to obtain registration in case of Sale Succession Amalgamation or De-merger © Indirect Taxes Committee, ICAI

How the Aggregate Turnover calculated? XYZ Ltd Assam unit is a special category state wherein the registration limit is Rs 10 lakhs. XYZ Ltd required to take registration in Assam Unit due to Aggregate turnover > 10 Lakhs Now, Whether for Mumbai Unit registration required ? Ans. Even though Aggregate Turnover is < 20 Lakhs, registration would be mandatory for Mumbai Unit by virtue of mandatory registration in Assam Mumbai Unit (Turnover) – Rs 11 Lakh Assam Unit (Turnover) – Rs 11 Lakh © Indirect Taxes Committee, ICAI

Sec 23. Person not liable to register Person exclusively engaged in Goods / Service Not liable to tax, or Wholly exempt from tax under CGST, or Wholly exempt from tax under IGST What about a person exclusively engaged in supply of goods which attracts NIL rate of tax? Ans. Not required to take registration (“Exempt Supplies” distinguish “NIL rate” from “wholly exempt” ) © Indirect Taxes Committee, ICAI

Sec 23. Person not liable to register Agriculturist Only Individual / HUF Person dealing in agricultural products? Ans. Only an agriculturist is exempt from registration requirement whom supply of produce out of cultivation of land. If supplies not linked to the cultivation of land, he will fall within provision of sec 22 and required to take registration. © Indirect Taxes Committee, ICAI

Exemption from registration Notification No. 5/2017 – Central Tax dated 19th June, 2017 The 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 sub-section (3) of section 9 of the said Act as the category of persons exempted from obtaining registration under the aforesaid Act. Notification No. 32/2017 – Central Tax dated 15th September, 2017 The casual taxable persons, having aggregate turnover not exceeding an amount of Rs. 20 Lakhs ( Rs. 10 Lakhs in case of Special Category States) in a financial year and making inter-State taxable supplies of handicraft goods availing the benefit of notification No. 8/2017 – Integrated Tax dated the 14th September, 2017, are exempted from obtaining registration under the aforesaid Act. © Indirect Taxes Committee, ICAI

Exemption from registration Notification No. 10/2017 – Integrated Tax dated 13.10.2017 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 Rs. 20 Lakhs ( Rs. 10 Lakhs in case of Special Category States) in a financial year are exempted from obtaining registration under the said Act. Notification No. 65/2017 – Central Tax dated 15.11.2017 The persons making supplies of services, other than supplies specified under subsection (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of Rs. 20 Lakhs ( Rs. 10 Lakhs in case of Special Category States) in a financial year, as the category of persons exempted from obtaining registration © Indirect Taxes Committee, ICAI

Exemption from registration Notification No. 7/2017 – Integrated Tax dated 14.09.2017 Job workers engaged in making inter-State supply of services to a registered person are exempted from obtaining registration under the said Act, except:- who is liable to be registered under sub-section (1) of section 22 or who opts to take registration voluntarily under sub-section (3) of section 25 of the said Act; or who is involved in making supply of services in relation to the goods mentioned against serial number 151 in the Annexure to rule 138 of the Central Goods and Services Tax Rules, 2017 © Indirect Taxes Committee, ICAI

Sec 24. Compulsory Registration Notwithstanding Section 22 Inter-State Taxable supply 3. Person Required to pay tax under Reverse Charge 2. Casual Taxable persons making taxable supply 4. Required to pay tax under sub-section (5) of section 9 6. Required to deduct tax under section 51 5. NR Taxable persons making Taxable supply 9. Every Electronic commerce operator 7. Making taxable supply as an Agent or otherwise 8. Input Service Distributor 10. Supplier of OIDAR services from outside India to a to a person in India o/t Registered person 11. Other than supplies specified under sub-section (5) of section 9 such e-commerce operator who is required to collect tax at source under sec-52 12. class of persons as may be notified by the Govt – Council recommendation © Indirect Taxes Committee, ICAI

Procedure for Registration – Sec 25 Application to be filed online in each State/UT within 30 days. Single registration in a State or Union Territory. If having a Multiple business verticals in a State or Union Territory may be granted separate registration Registration in some special cases Casual Dealer/Non resident Will have to apply 5 days prior to the commencement of business Person supplying from territorial waters of India Shall take registration in coastal state/UT where the nearest point of appropriate baseline is located © Indirect Taxes Committee, ICAI

Procedure for Registration – Sec 25 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. A person who have more than 1 registration, each such registrations, be treated as distinct persons. A person who have take registration in respect of an establishment & have more establishments as well then, each such establishments, be treated as establishments of distinct persons. Requirement of PAN/TAN (under Sec 51) is mandatory for grant of registration. NR may get the registration without PAN & TAN under sub-section (1) as per the prescribed documents. © Indirect Taxes Committee, ICAI

Procedure for Registration – Sec 25 In case of failure of registration, the proper officer may proceed to register such person in such manner as may be prescribed. Not withstanding sub-section(1), any special agencies of the UN organization shall be granted Unique Identity Number, as prescribed. The registration or UIN shall be granted or rejected after due verification. Certificate shall be issued in such form as may be prescribed date Registration or UIN deemed to be granted after expiry of prescribed period if no deficiency communicated © Indirect Taxes Committee, ICAI

Registration Process Verification Application Approval /Rejection Form GST Reg-01 Part A (PAN, e-Mail, Mobile Verification) Part B (Other details) Ack. Form GSTReg-02 Submit the relevant docs Application Verification Approval within 3 working days If satisfactory clarifications received– approval shall be given in next 7 days If clarifications not satisfactory- intimate the rejection in Form GST REG-05 Deemed registration--No action taken within 3/7 working days Approval /Rejection Initial verification within 3 working days Clarifications/info required –Form GST Reg-03 Applicant furnish clarifications in Form GST Reg-04 within next 7 working day 17 days Process Said process applicable to Inter-state, Voluntary, Casual, Reverse Charge, ISD, Agents, E-com Registration Certificate is Issued in Form GST Reg-06 © Indirect Taxes Committee, ICAI

Rule-10 : Registration Certificate Certificate in Form GST REG-06 with GSTIN of 15 digit on GST portal 00AAAAA0000A000 State Code PAN Number Entity Code Check sum © Indirect Taxes Committee, ICAI

Rule 11 : Registration of Business vertical Any person having a Multiple business verticals in a State or Union Territory requiring separate registrations subject to following conditions:- More than one business vertical as defined in clause (18) of section 2. Registration of business vertical shall not be granted u/s 10 if any one of the other business verticals of the same person is paying tax u/s 9. Supply made b/w all separately registered business verticals of same person shall issue a tax invoice among themselves for such supply. Separate application form GST REG-01 required for registration of each vertical. Provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis. © Indirect Taxes Committee, ICAI

Rule 12 : Grant of registration to persons required to deduct tax at source or to collect tax at source Submit application in Form GST REG -07 Certificate of Registration issued in GST REG-06 within 3 working days Registration Certificate may be cancelled as per Rule 22 by Proper Officer if that person no longer to deduct tax at source under section 51. © Indirect Taxes Committee, ICAI

Rule 13: Registration of non resident taxable person Submit application along with Passport for registration duly signed & verified through electronic mode In FORM GST REG-09, at least 5 days prior to the commencement of business A temporary reference number by the common portal shall be given only after making an advance deposit Business entity incorporated or established outside India: Application submitted along with Tax identification number or unique number © Indirect Taxes Committee, ICAI

Registration granted in Form GST REG-06 Rule 14 to 17 (R-14) Supplier of OIDAR services from Outside India to non- taxable online receiver Submit application in Form GST REG-10 either directly or via Facilitation Centre Registration granted in Form GST REG-06 (R-16) Proper officer may register on a temp. basis in FORM REG-12 in case of failure of registration by person Person granted the Temp registration shall suit application with 90 days In case of appeal by said person against temp registration, application submit with in 30 days of App Auth. order (R-17) Person granted UIN submit application elect. in Form- GST REG-13 Proper officer after receiving recommendation from Ministry of External Affairs issue certificate for assign UIN in GST REG-06 within 3 days © Indirect Taxes Committee, ICAI

Section 26: Deemed Registration Grant of registration or UIN under SGST Act or UTGST Act shall be deemed to registered under this Act as well. Condition that application of registration or the UIN has not been rejected under this Act within time specified in sub-section (10) of Section 25. Notwithstanding sub-section(10) of section 25, any rejection of application of registration or UIN under STGST or UTGST shall be deemed to be a rejection of application under this Act. © Indirect Taxes Committee, ICAI

Section 27: Casual taxable person First registration will be granted for 90 days (further extension by 90 days) Advance deposit of tax = Estimated tax liability of such person for the period at the time of taking registration Amount will be credited to electronic cash ledger A person applying for registration as a casual taxable person shall be given a temporary reference number by the common portal for making advance deposit of tax in accordance with the provisions of section 27 and the acknowledgement under sub-rule (5) shall be issued electronically only after the said deposit. (Rule 8). A registered Casual taxable person or Non- resident taxable person intends to extend the period of registration may file an application in FORM GST REG-11 before the end of registration validity granted to him. © Indirect Taxes Committee, ICAI

Registration Provisions, Non-Resident Taxable Person – Sec 27 Person who occasionally, undertakes transactions involving supply of goods and services, and who has no fixed place of business in India. Time period Certificate of Registration issued to such persons shall be valid only for a period of 90 Days. [Can be extended maximum by further 90 days] Advance Deposit They shall be required to make advance deposit of estimated tax liability net tax at the time of registration and additional deposit of tax in case of extension. © Indirect Taxes Committee, ICAI

Amendment in Registration – Sec 28 Any change in registration has to be informed within 15 days of change. Proper officer may approve / reject amendment. No rejection without giving an opportunity of being heard. Rejection of amendment under CGST will be a deemed rejection under SGST and vice-a-versa. As per Notification No. 75/2017 - Central Tax, Dated 29th December, 2017 It may be noted that amendment in Registration Certificate (in Form REG-14) will stand amended only from the date of application for amendment. © Indirect Taxes Committee, ICAI

Cancellation of Registration – Sec 29 Reasons for cancellation Cancellation can be done by Proper Officer suo motu or on application made by the registered taxable person:- Transfer of business or discontinuation of business Change in the constitution of business. (Partnership Firm may be changed to Sole Proprietorship due to death of one of the two partners, leading to change in PAN ) Persons no longer liable to be registered under Section 22 or 24 (Except when he is voluntarily registered) Cancellation can be done by Proper Officer including retrospective date as deem fit :- Where registered taxable person has contravened provisions of the Act as may be prescribed A composition supplier has not furnished returns for 3 consecutive tax periods/ any other person has not furnished returns for a continuous period of 6 months Non-commencement of business within 6 months from date of registration by a person who has registered voluntarily. Where registration has been obtained by means of fraud, willful statement or suppression of facts. An opportunity of being heard provided by Proper officer before cancellation. © Indirect Taxes Committee, ICAI

Cancellation of Registration – Sec 29 Liability to pay tax before the date of cancellation will not be affected; Cancellation under CGST Act will be deemed cancellation under SGST Act and vice-versa; Amount required to be pay by debit of Electronic credit/ cash ledger, equivalent to the:- In case of P & M or Capital Goods, an amount shall pay = (ITC taken - % points prescribed) or tax on Transaction value, whichever is higher. Input Tax Credit in respect of Inputs:- Held as Stock Semi-finished or finished goods held as stock. Capital Goods or Plant & machinery Output Tax Payable OR Which ever is higher © Indirect Taxes Committee, ICAI

Sec-30 Revocation of Cancellation of Registration Any registered person, whose registration is cancelled by Proper officer, may apply to officer for revocation of cancellation in prescribed manner within 30 days from date of service of order. Proper officer as per prescribed manner, either revoke cancellation of the registration or reject the application. Application cannot be rejected without giving an opportunity of being heard. Revocation of cancellation under CGST will be a deemed revocation under SGST and vice-a-versa © Indirect Taxes Committee, ICAI

Cancellation of Registration – Sec 29 SL No Form No Title of the Form 1 GST-REG-01 Application for registration 2 GST-REG-02 Acknowledgement 3 GST-REG-03 Notice Seeking Additional information/ clarification/ documents relating to application for registration / amendment / cancellation 4 GST-REG-04 Furnishing clarification sought in GST REG03 5 GST-REG-05 Order of rejection of Application 6 GST-REG-06 Registration Certificate issued © Indirect Taxes Committee, ICAI

Cancellation of Registration – Sec 29 SL No Form No Title of the Form 7 GST-REG-07 Application for Regn of Tax Deductor / Tax Collected at source 8 GST-REG-08 Order of cancellation of registration as Tax deductor or Tax collector at source 9 GST-REG-09 Application for Registration for Non Resident Taxable person 9A GST- REG-9A Application for registration for OIDRS by Non Resident Taxable person 10 GST-REG-10 Application for extension in period of causal taxable person or non resident taxable person 11 GST-REG-11 Temporary Suo Moto Registration 12 GST-REG-12 Application to grant UID © Indirect Taxes Committee, ICAI

Thank You For any Clarification, Please Contact Indirect Taxes Committee of ICAI Email: idtc@icai.in, Website: www.idtc.icai.org © Indirect Taxes Committee, ICAI