Registration

Question 1

What is the requirement for registration where the supplier has multiple places of business in a single state/UT?

Answer 1

Since registration in GST is PAN based, once a supplier is liable to register, he has to obtain registration in each of the States/UTs in which he operates under 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 the option either to get a single registration for said State/UT [wherein it can declare one place as principal place of business (PPoB) and other branches as additional place(s) of business (APoB)]

or to get separate registrations for each place of business in such State/UT.

Question 2

What is the definition of place of business as per section 2(85)?

Answer 2

POB includes following items in the Image attached

Question 3

What is the definition of business as per the provisions of section 2(17) of the act?

Answer 3

Memorize this fully and completely

Question 4

What is short way of communicating the concept of taxable person as per section 2(107)?

Answer 4

• As per section 2(107) of the CGST Act, taxable person means a person who is registered or liable to be registered under section 22 or section 24.
• 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.

Question 5

What is the threshold limit for registration purposes as per the provisions of Section 22?

Answer 5

• 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.(20L - 40L - we generally consider only the upper limit here) and 10L - 20L in case of special category states, except certain states - here too we can use the upper limit to determine the eligibility for registration)

Question 6

What is the concept of aggregate turnover and what are included and excluded from it’s computation? and how is it different from Turnover in the state?

Answer 6

• In the diagram, the items in the left side has to be included and items in the right side has to be excluded which is denoted by plus and minus sign.
• Outward Supplies taxable under reverse charge would continue to be part of the ‘aggregate turnover’ of the supplier of such supplies(Only inward supply under reverse charge alone is excluded)
• Differences between Aggregate TO and Turnover in the state - The aggregate turnover is different from turnover in a State. The former is used for determining the threshold limit for registration and eligibility for composition scheme.
• However, once a person is eligible for composition levy, the amount payable under composition levy would be calculated as a specified % of ‘turnover in the State/UT’.

Question 7

The value of the goods goods, after completion of job work, supplied directly from the premises of the registered job worker. In whose aggregate turnover this be included - The Job worker’s or the Principal ?

Answer 7

• 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, and hence value of goods will be included in the turnover of the Principal and not of the job worker

Question 8

What is the applicability of threshold limits when it comes to registration, how does it differ when it comes to special category state? is there some special category states to which the regular threshold shall still apply?

Answer 8

• 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.
• 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.
• 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.

Question 9

What are the exceptions to the 40 Lakh threshold limit? that is to say are there any persons who can be below this limit and still have the need to register compulsarily?

Answer 9

Further, Notification No. 10/2019 CT dated 07.03.2019 exempts any person who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed ` 40 lakh, from registration requirement. Exceptions to this exemption are as follows:

Question 10

What is the overall view of all of the discussions made - that is what limits will apply to what category of states and will it differ when it is exclusive supply of good and supply of goods and services etc.?

Answer 10

These thresholds are very important and all these cannot be easily inferred from the discussion made in the previous sections, hence do not take this lightly.

Question 11

What are the interpretations of the age old rule that Registration required only for a place of business from where taxable supply takes place?

Answer 11

• supplier is not liable to obtain registration in a State/UT from where he makes an exempt/non-taxable supply.
• 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 as per section 22(Very important to be kept in Mind)

Question 12

Nature of transfer to decide the treatment

Who/ when will the person be liable for registration in case of transfer of business?

Answer 12

• Where a business is transferred, whether on account of succession/ any other reason [including transfer/change in the ownership of business due to death of the sole proprietor3], 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.

Question 13

Who are the persons to be compulsorily registered under section 24?(Already briefly seen under exceptions to applicable threshold limits)

Answer 13

• Persons making any inter-State taxable supply - Threshold limits will be available in case of inter-State supply of taxable services and of notified handicraft goods.
• Casual taxable persons (CTP) making taxable supply - Threshold limits will be available in case of CTP who is making inter-State taxable supplies of notified handicraft goods and availing the benefit of exemption from registration as mentioned in point (i) above.
• Persons who are required to pay tax under reverse charge on inward supplies received - However, persons engaged exclusively in making supplies, tax on which is liable to be paid on reverse charge basis are exempt from registration.
• Non-resident taxable persons (NRTP) making taxable supply
• See Rest of the items in Image attached

Question 14

Who are the persons not liable for registration as per the provisions of section 23?

Answer 14

• Person engaged exclusively in the business of supplying goods and /or services not liable to tax/wholly exempt from tax.
• An agriculturist, to the extent of supply of produce out of cultivation of land -
• individual/Hindu Undivided Family (HUF) who undertakes cultivation of land—
• (a) by own labour, or
  (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.
• 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.

Question 15

Who are the specified category of persons notified by the Government exempted from obtaining registration?(Have already seen this in brief in previous sections)

Answer 15

• Persons making only reverse charge supplies - Those persons that are in the receiving end of reverse charge supplies(That is who will be liable to pay tax under RCM), they have to get compulsorily registered under 24. But Persons who are only engaged in making supplies of taxable goods or services or both(On the supplying end and not the receiving end), the total tax on which is liable to be paid on reverse
  charge basis by the recipient of such goods or services is exempted
• Persons making inter-State supplies of taxable services up to ` 20 lakh - Inter state taxable supply of goods falls under compulsory registration.
• Persons making inter-State taxable supplies of notified handicraft goods up to ` 20,00,000 - Generally Inter state supply of taxable goods calls for mandatory registration, but for the supply on notified handicraft and Other notified products, this condition will not be applicable.
• Casual Taxable Persons making inter-State taxable supplies of notified handicraft goods up to ` 20 lakh - Similar to above.
• Persons making supplies of services through an ECO (other than supplies specified under section 9(5) of the CGST Act) with aggregate turnover up to ` 20 lakh - who is required to collect tax at source under section 52
  *

Question 16

What is the liability for registration in respect of services provided by the commission agent for sale/ purchase of agricultural produce?

Answer 16

• If the commission agent can supply invoice on his own on behalf of the principal, then it will be considered as deemed supply under schedule 1. and as per section 24 person is liable for mandatory registration if he makes taxable supply of goods or services or both on behalf of other taxable persons
• But as per the exemption provisions services provided by the commission agent for sale or purchase of agricultural produce are exempt from GST - hence such commission agents not liable to be registered in accordance with provisions of section 23(1)(a).

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.

• 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.
• However, where a commission agent is liable to pay tax under reverse charge, such an agent will be required to get registered compulsorily

Question 17

Where and when to apply for registration as per the provisions of section 25(1)?

Answer 17

Question 18

What is the requirement for registration when a person has different places of business within a state/ UT?

Answer 18

• General Rule - One registration per State - within a State, an entity with different branches shall be
  granted single registration wherein it can declare one place as principal place of business (PPoB) and other branches as additional places of business (APoB)
• Exception to the above rule - Although a taxpayer having multiple places of business in one State is not mandatorily required to obtain 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.
• separate registration for each place of business shall be granted provided all separately registered places of business of such person 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. Separate registration application needs to be filed for each place of business.
• 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.

Question 19

Where a person has different places of business within state/UT, will he be able to opt for composition levy for one of such places and normal registration for other places of businesses?

Answer 19

If a person is paying tax for one of his places of business under normal scheme, he shall not 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.

Question 20

What are the requirements for a person to get voluntary registration under Section 25(3)?

Answer 20

• In case of voluntary registration, all provisions of this Act, as are applicable to a registered person, shall apply to voluntarily registered person.(First he should be a person who is not liable to be registered under 22 or 24)
• However, once a person obtains voluntary registration, he has to pay tax even though his aggregate turnover does not exceed ` 40 lakh/ 20 lakh/ 10 lakh, as the case may be.

Question 21

What is the requirement of registration when the person is a distinct person or has establishment of distinct person as per section 25(4) &(5)?

Answer 21

• 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.)This will be the scenario even where there is an establishment in another state or union territory.

Question 22

Whether PAN is must for the person to obtain registration under section 25(6) &(7)?

Answer 22

• 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].

Question 23

Who is required to get UIN? and for what purpose it is obtained? and what is the limit for grant of UIN and the form that needs to be filled by the applicant for the same?

Answer 23

• Who? 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.
• Purpose - 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. UIN granted is a centralized UIN i.e. it shall be applicable to the territory of India. A person having UIN is not 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.

Question 24

When can Suo Motu registration be done by the proper officer under section Section 25(8) read with rule 16?

Answer 24

• Such person who is liable for registration under the act has failed to apply for such registration and due to that the 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.
• GSTIN thereafter granted shall be effective from the date of order of proper officer granting temporary registration.

Question 25

Who are the persons to which the general provisions for procedure of registration as per Section 25 read with rules 8, 9 & 10 not apply?

Answer 25

• 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.
• But it will apply to person paying tax under composition levy, every person seeking voluntary registration as well as casual taxable person.

Question 26

What is the procedure to apply where the person applies for registration by Special Economic Zone (SEZ) [Second proviso to section 25(1):

Answer 26

• A person having unit in SEZ/an SEZ developer will have to make a separate application for registration as distinct from his place of 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.

Question 27

Whether ISD has to apply for registration separately where he already has registration within a state/ UT - Second proviso to rule 8(1) of the CGST Rules, 2017?

Answer 27

• 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. An ISD is required to obtain a separate registration even though it may be otherwise registered,
• though the application shall be made in
• *Form GST REG 01 only**. Different offices like marketing division, security division etc. may apply for separate ISD registration.

Question 28

What are brief procedures for registration as per part 1 of GST REG -01?

Answer 28

The procedure in Part 2 - after the receipt of application by the proper officer is depicted in Part 2.

Question 29

What are brief procedures for registration as per part 2 of GST REG -01?

Answer 29

The time limits of 3, 7 and 21 working days are pretty confusing and can be interchanged and wrongly applied. Please read this carefully during revision.

Question 30

What is the meaning of deemed approval of application in the procedure for registration in Part 2?

Answer 30

This is pretty important too. Reinforces the time limits seen previously

Question 31

From when the requirement for Aadhar authentication made mandatory? To whom shall these provisions apply? - Section 25(6A), (6B), (6C) & (6D) read with rules 8, 9 and 25

Answer 31

• Aadhaar e-KYC based registration has been introduced under the GST law. With effect from 21.08.2020, Aadhaar authentication is mandatory for the new applicants (whether an individual applicant or an applicant other than individual) 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/ casual taxable person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01.
• Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, tax authority, based on the documents produced, can grant registration.

Question 32

What is the procedure for persons who are required to undergo the Aadhar authentication provisions as per 25(6A), (6B) and (6C)?(For both new applicant and already registered as on 21.08.2020 applicant?

Answer 32

• New applicant

1. Every (i) individual applicant or (ii) an applicant, other than an individual,
2. 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.
3. 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.
4. Who is the applicant that has to undergo this authentication as required? - Image

• 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.(Not yet prescribed as on date)

Question 33

What is the procedure where Aadhar number is not assigned to an applicant?

Answer 33

• In case of New applicant

1. such individual/person/class of persons shall be offered alternate and viable means of identification in the manner specified in rule 9.
2. First proviso to rule 9(1) provides that where a person fails to undergo authentication of aadhaar number or does not opt for authentication of Aadhaar number, the registration shall be granted only after physical verification of the principal place of business in the prescribed manner.
3. However, in lieu of the physical verification of the place of business, the proper officer may carry out the verification of such documents as he may deem fit(Officer to record reasons in writing and take prior approval from of an officer not
   below the rank of Joint Commissioner [Second proviso to rule 9(1)].).
4. Further, in such case, a notice (in prescribed form) seeking clarifications/ information/ documents from the applicant may be issued by the proper officer not later than 21 days from the submission of the application for registration [Proviso to rule 9(2)].

• In case of an already registered persons:

1. 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
2. Failure to do authentication as above 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.

Question 34

Are there an persons or class of persons who are exempted from Aadhaar authentication? and how Aadhar authentication will be done?

Answer 34

(i) A person who is not a citizen of India
(ii) A class of persons other than the following class of persons:(Means to say, that below mentioned types of persons, authentication of Aadhar etc. shall apply)
 Individual
 Authorised signatory of all types
 Managing and Authorised partner
 Karta of a Hindu Undivided Family

Question 35

What is the requirement in relation to furnishing of bank A/c details when applying for registration? are there any relaxations provided under the act with regard to the same? - Rule 10 A

Answer 35

• 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 who have obtained 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.

Question 36

What are certain other procedures which needs to be done in relation to physical verification of business premises in certain cases? - Rule 25

Answer 36

• 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.
  *

Question 37

What is the form in which the registration certificate will be issued and what is the format for GST number? - Rule 10

Answer 37

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 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.

Question 38

What is the effective date of registration as per Rule 10?

Answer 38

See Examples given to gain better perspective

Question 39

What are the main points of differences in the meaning and taxability of NRTP and CTP as per Sections 25 & 27 read with rules 13 & 15?

Answer 39

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.

Question 40

What are the special registration provisions of casual taxable person and nonresident taxable person?

Answer 40

• Both CTP and NRTP have to compulsorily get registered under GST irrespective of the threshold limit, at least 5 days prior to commencement of business.
• 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
• Prescribed Docs - Image

Question 41

What is the period of validity of the registration granted to CTP/NRTP?

Answer 41

• Period specified in the registration application, or
  (ii) 90 days from the effective date of registration [can be extended further by a period not exceeding 90 days by making an application before the end of the validity of registration granted to him]
• *whichever is earlier**
• Further they can make taxable supplies only after the issuance of certificate of registration.

Question 42

What are the registration requirements for CTP/NRTP where Registration of participants of long running exhibitions?

Answer 42

• 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.
• 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].

Question 43

What is the meaning of deemed registration under the provisions of section 26?

Answer 43

• 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 cesses.
• 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.
• Further, rejection of application for registration/UIN under SGST Act/UTGST Act is deemed to be rejection of application for registration under CGST Act.

Question 44

What are the 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]

Answer 44

• 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.
• Registration will be cancelled if proper officer is satisfied that such person is no longer liable to deduct tax at source or collect tax at source.
  Cancellation of registration will be communicated to such person electronically in prescribed form.

Question 45

What are the 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]?

Answer 45

• 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.

Question 46

What are Core an non core fields of Information in relation amendment of registration as per section 28? and what are certain types of amendment where we are not permitted to apply for amendment, rather cancel or apply for fresh application accordingly?

Answer 46

• Core fields are name of the business, (legal name) if there is no change in PAN, addition / deletion of stakeholders, 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.
• Any particular 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.

Situations where we need to cancel or apply for fresh registration:

• 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.

Question 47

What are the important time limits in relation to amendment of registration and when will it be considered as deemed to be approved as per Section 28?

Answer 47

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.

Question 48

What are the 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)?

Answer 48

Question 49

What are the circumstances when the proper officer can cancel registration on his own?

Answer 49

Question 50

When can the registration be liable for suspension as per First proviso to section 29(1) and second proviso to section 29(2) read with rule 21A]?

Answer 50

• 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.
• The period and manner of suspension of registration are as follows: See Image.
• 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] and section 40 [first return] in respect of the supplies made during the period of suspension and the procedure specified therein shall apply.

Question 51

What is procedure to cancel the registration after the abovementioned circumstances are met with accordingly?-Rules 20 and 22

Answer 51

For Voluntary cancellation by the registered person

• A registered person seeking cancellation of registration18 shall electronically submit the application for cancellation of registration in prescribed form within 30 days of occurrence of the event warranting cancellation.
• 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.
• 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.

Suo-motu cancellation by the Department

• The reply to such show cause notice (SCN) has to be submitted within 7 days of service of notice(In response to the SCN or the opportunity of being heard)
• If reply to SCN is satisfactory, proper officer shall drop the proceedings and pass an order in prescribed form.
• If instead of replying to the SCN, for Non furnishing of return for a continuous period of 6 months - 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.

Question 52

What is the amount that has to be paid or payable on cancellation of registration as per Section 29(5) & (6)?

Answer 52

As already seen in the ITC chapter. Similar provisions are applicable

Question 53

What are certain miscellaneous points regarding cancellation?

Answer 53

• 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 cancellation21 [Section 29(3)].
• 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).

Question 54

What is the Procedure for revocation of cancellation as per Section 30 read with rule 23?

Answer 54

• proper officer, such registered person may apply for revocation of the cancellation to such proper officer, within 30 days from the date of service of the order of cancellation of registration.
• 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 dipose the application (accept/reject the same) within 30 days of receipt of clarification.

Question 55

What is the procedure for application for revocation of cancellation Where registration was cancelled for failure of registered person to furnish returns?

Answer 55

Where the registration has been cancelled with effect from the date of order of cancellation of registration:

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.

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.