FAQ on Registration under GST

The date of Implementation of GST has been specified as 1st July 2017, hence all dealers who are not required to get registered under earlier tax regime but are required to register under GST would have to obtain registration under the GST Regime post implementation of GST. Moreover, registration for units/place of business earlier covered under centralized registration should be freshly registered.

Here are some of the FAQs regarding taking a new registration under the GST Act.

a) What will be the time limit for registration after reaching threshold limit?

Ans:  Once a supplier crosses the required threshold limit of Rs. 20 lakhs/ 10 lacs as the case maybe or he starts a new business, registration application must be filed within 30 days from the date of the supplier’s liability for obtaining such registration.

b)  What will be the effective date of registration?

Ans: Effective date of registration would be the date of application in all cases i.e. whether the application has been filed within prescribed time limit of 30 days or otherwise.

c) Can the dealer claim ITC for the goods purchased before effective date of registration?

Ans : A person who has applied for registration under the GST Act within thirty 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 Central, State, Union Territory and Integrated Goods and Services Act.

d) Can a dealer having turnover below threshold limit take GST registration?

Ans: Yes, a person who though not liable for mandatory registration may get himself registered voluntarily and all the provision of the Acts as applicable to a registered person would be applicable to that person also.

e) What are the situations where compulsory registration is required to be obtained?

Ans:  The following categories of persons shall be required to be registered under this Act compulsorily without any threshold limit

i. persons making any inter-State taxable supply;

ii.  casual taxable persons making taxable supply;

iii. persons who are required to pay tax under reverse charge;

iv. electronic commerce operators required to pay tax under sub-section (5) of section 9;

v. non-resident taxable persons making taxable supply;

vi. persons who are required to deduct tax, (Section 51)

vii. persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

viii. Input Service Distributor, whether separately registered or not;

ix. persons who are required to collect tax at source (Section 52);

x. every electronic commerce operator

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

f)  Is it necessary to take separate registration for different states? 

Ans: For each State the taxable person should take a separate registration, even though the taxable person may be supplying goods or services or both from more than one State as a single legal entity.

g)  If the dealer has different verticals in the state, shall he take separate registration for

all?

 

Ans: Any person having multiple business verticals within a State or a Union territory, is required to obtain a separate registration for any of its business verticals, the registration shall be granted in respect of each of the verticals subject to the following conditions:

(a) Such person has more than one business vertical

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

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

 

h) Does threshold limit for registration includes exports?

Ans: There will be a threshold of Gross Annual Turnover including exports and exempted supplies (to be calculated on all-India basis) below which any person engaged in supply of Goods or Services or both will not be required to take registration

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