FAQs - GST Registration

FAQs

GST Registration

1. When does the GST registration become effective?

1. The effective date of GST registration depends on the timing of the application:

If the application is submitted within 30 days from the date of becoming liable for registration, the registration is effective from that date.
If the application is submitted after 30 days, the registration is effective from the date of grant of GST registration.

2. What are the steps for applying for GST registration?

The process for GST registration involves the following steps:

The applicant (except certain excluded categories) must declare their Permanent Account Number (PAN), State or Union Territory in Part A of FORM GST REG-01 on the common portal.
The PAN is validated online, and verification is done through one-time passwords (OTP) sent to the linked mobile number and email.
Upon successful verification, a temporary reference number (TRN) is generated and shared with the applicant.
Using this TRN, the applicant must submit Part B of FORM GST REG-01, along with the required documents.
If Aadhaar authentication is opted for, the registration application is considered submitted on the earlier of Aadhaar authentication completion or 15 days from application submission.
If Aadhaar authentication is not opted for or additional verification is required, the applicant may need to undergo biometric authentication and document verification at a Facilitation Centre.
An acknowledgment in FORM GST REG-02 is issued electronically after successful submission of the application.

3. How long does it take for a GST registration application to be approved?

The approval time for a GST registration application depends on the verification process:

Standard Approval: If all documents are in order, the application is approved within 7 working days from submission.
Physical Verification Required: If Aadhaar authentication is not completed or if the application is flagged for risk-based verification, the registration may take up to 30 days, including physical verification of business premises.
Deficiency in Application: If additional information or documents are needed, the applicant will receive a notice (FORM GST REG-03) within 7 working days, and they must respond within 7 working days (FORM GST REG-04). If the response is satisfactory, registration is approved within 7 working days.
Deemed Approval: If the officer does not take action within the prescribed timeframes (7 or 30 days, depending on the case), the application is deemed approved automatically.

4. When should a registered person furnish their bank account details after GST registration?

After receiving the GST registration certificate (FORM GST REG-06) and GSTIN, the registered person (except those under Rule 12 or Rule 16) must provide their bank account details on the common portal:

Within 30 days from the date of registration grant, or
Before filing GSTR-1 or using the invoice furnishing facility, whichever is earlier.

5. Who is required to apply for GST registration and within what timeframe?

Every person liable for GST registration under Section 22 or Section 24 must apply for registration within 30 days from the date they become liable.

Casual taxable persons and non-resident taxable persons must apply at least 5 days before starting their business.
Special Economic Zone (SEZ) units and SEZ developers must obtain a separate registration from their other business locations in the same State/UT.
Voluntary registration is allowed for persons not mandatorily required to register.

Failure to register may result in the proper officer initiating registration based on prescribed procedures

7. Can a business have multiple GST registrations within the same State or Union Territory?

Yes, a business with multiple places of business in the same State/UT can obtain separate GST registrations for each place of business as per Section 25(2) of the CGST Act.

8. What are the conditions for obtaining separate GST registrations within a State/UT?

The business must have more than one place of business as defined in Section 2(85) of the CGST Act.
If any place of business opts for the Composition Scheme (Section 10), all other places must also be under the Composition Scheme. However, if one place pays tax under the regular scheme (Section 9), then all other places must also follow the regular scheme.
Inter-branch supplies between separately registered places of business are treated as taxable supplies, requiring a tax invoice or bill of supply.

9. How to apply for a separate GST registration for a different place of business?

A separate application must be submitted using FORM GST REG-01 for each additional business location.
The verification and approval process will follow Rule 9 and Rule 10, similar to a regular GST registration.

10. How can a Non-Resident Taxable Person (NRTP) register for GST in India?

A Non-Resident Taxable Person (NRTP) must electronically submit FORM GST REG-09 at least five days before starting business in India. The application requires a self-attested copy of a valid passport (for individuals) or a Tax Identification Number (TIN) or PAN (if available) for foreign business entities. Additionally, a resident Indian with a valid PAN must be appointed as an authorized signatory. The applicant must also deposit advance tax before receiving the registration acknowledgment.

11. What happens if a person liable for GST registration fails to apply for it?

If a person fails to apply for GST registration despite being liable, the proper officer may register them suo moto (on his own motion) by issuing an order in FORM GST REG-12. This registration is temporary and effective from the date of the order. The person must apply for regular registration within 90 days (or 30 days if an appeal has been filed and upheld). The final GSTIN will be effective from the date of the suo moto registration order.

12. Where should a registered person display their GST registration certificate and GSTIN?

Every registered person must:

Display the GST registration certificate at a prominent location in their principal place of business and all additional places of business.
Exhibit their GST Identification Number (GSTIN) on the name board at the entry of their principal place of business and all additional places of business.

13. How can a registered person amend their GST registration details, and what is the process if the amendment is rejected?

A registered person must submit an application in FORM GST REG-14 within 15 days of any change in registration details through the GST portal, along with supporting documents. Changes in business name, address, or key personnel require approval from the GST officer, who must verify and approve the amendment within 15 working days. If the officer finds the amendment unjustified or documents incomplete, a show-cause notice (FORM GST REG-03) is issued, and the applicant must respond within 7 working days using FORM GST REG-04. If the response is unsatisfactory or not provided, the officer may reject the amendment through FORM GST REG-05. However, if no action is taken by the officer within the prescribed time, the amendment is automatically approved, and the updated registration certificate is made available on the GST portal.

14. What is deemed registration under GST?

Deemed registration means that if a taxpayer obtains GST registration or a Unique Identity Number (UIN) under the State GST (SGST) or Union Territory GST (UTGST) Act, it is automatically considered valid under the Central GST (CGST) Act, provided that:

The application for registration is not rejected under the CGST Act within the prescribed time under Section 25(10).
If the registration application is rejected under SGST/UTGST, it will be automatically rejected under CGST as well.

15. What are the special provisions for casual taxable persons and non-resident taxable persons under GST?

Under Section 27 of the GST Act, the following special provisions apply to casual taxable persons (CTP) and non-resident taxable persons (NRTP):

1. Validity of Registration:

The registration certificate is valid for the specified period in the application or 90 days from the effective date of registration, whichever is earlier.
The proper officer may extend this period by another 90 days if a valid reason is provided.

2. Advance Tax Deposit:

At the time of registration, CTPs and NRTPs must prepay their estimated tax liability for the registration period.
If an extension is sought, an additional tax deposit equivalent to the estimated tax for the extended period must be made.

3. Utilization of Advance Deposit:

The advance tax deposit is credited to the taxpayer's electronic cash ledger and is adjusted against actual tax liabilities as per Section 49.

16. When is physical verification of business premises required under GST?

As per Rule 25, physical verification of a business premises may be conducted in the following cases:

1. After Grant of Registration:

If the proper officer deems it necessary, they may conduct physical verification of the place of business after registration.
The officer must upload the verification report, photographs, and other documents in FORM GST REG-30 within 15 working days of verification.

2. Before Grant of Registration:

If the circumstances specified in Rule 9(1) proviso require verification before registration, the officer must conduct the physical verification before granting registration.
The verification report, photographs, and supporting documents must be uploaded in FORM GST REG-30 at least 5 working days before the time limit specified in Rule 9(1) proviso.

FAQs – GST Registration