Introduction: The 122nd Constitution Amendment Bill ('Bill') , A bill to amend the constitution of India, widely known as GST Bill that will enable the introduction of Goods and Services Tax (GST), was passed in the Lok Sabha on 12 May 2015 & in Rajya Sabha on 03 August 2016.
The introduction of GST would be a major step in the reform of Indirect Taxation in India. The GST bill would be a Value Added Tax (VAT) to be implemented in India from April 2017. GST is proposed to be comprehensive indirect tax levy on manufacture, sale and consumption of goods and services.
On 14June 2016, the Ministry of Finance released Model Goods and Service Tax “GST” Law comprising of the draft Central / State Goods and Service Tax Act, 2016 which consists of XXV chapters, 162 Sections, 4 Schedules & GST Valuation (Determination of the Value of supply of Goods and Services) Rules, 2016.
Chapter VI- REGISTRATION
Registration (Section 19):
- Applicability: Every person who is liable to be registered under schedule III
- Place: Every such State where he operates
- Time Limit: within 30 days when he becomes liable to registration
- Person with multiple business verticals in a state may obtain separate registration for each business verticals.
- A person may get himself voluntarily registered even if not liable to be registered under schedule III
- Permanent Account Number “PAN” is must for grant of registration Exemption: Non-resident taxable person may be granted registration on the basis of any other prescribed document.
- On failure to obtain registration, where a person is liable to be registered, proper office may proceed to register such person
- Exemption:• As per sub section (6) of section 19 of this Act, : -
- Specialized agency of the United Nations Organization or -Multilateral Financial Institution or
- Organization notified under the United Nations (Privileges andImmunities) Act,1947 or
- Embassy of foreign countries or
- Any other person or class of persons as may be notified Exemption from registration: By notification by Central / State Government
- Obtain a Unique Identity Number
- The registration or Unique identity number may be granted or rejected
- Show cause: No rejection of application without giving show cause notice Opportunity of being heard: No rejection of application without giving reasonable opportunity of being heard
- Deemed registration in case no deficiency communicated within period prescribed
- Grant/ rejection of registration under CGST Act/ SGST Act shall be deemed to be grant/ rejection of registration under SGST Act/ CGST Act.
Special Provision (Section 19A):
- Applicability: Casual taxable person & non-resident taxable person
- Validity: 90days from effective date of registration
- Extension: Further period of upto 90 days by proper officer
- Condition: To make an advance deposit of tax of an amount equivalent to estimated tax liability. On extension of registration to deposit an additional amount of advance tax equivalent to estimated tax liability.
Amendment of registration (Section 20):
- Inform the proper officer of any changes in the information furnished at time of registration or furnished subsequently
- Power of approval/ rejections of amendments in information lies with proper officer Exemption: In respect of amendment in information as m a y b e prescribed
- Show cause: No rejection of amendments in information without giving show c a u s e n o t i c e Opportunity of being heard: No rejection of amendments in information without giving reasonable opportunity of being heard
- Rejection/ approval of amendment under CGST Act/ SGST Act shall be deemed to be rejection approval under SGST Act/ CGST Act.
Cancellation of Registration (Section 21)
- Authority: Proper officer Cancellation request by: On his own motion by proper officer, or Application by registered taxable person, or Application by legal heirs (In case of death of registered person)
- Business has been discontinued, or
- -Business transferred fully, or
- -Death of proprietor, or
- -Amalgamated with other legal entity, or
- -Demerged, or
- -Otherwise disposed off, or
- -Change in constitution of business, or
- -No longer liable to be registered in schedule III, or
- -If registered person contravened prescribed provisions of act, or
- -Default in furnishing of returns for three consecutive tax periods or continuous period of six months as the case may be, or
- -Non commencement of business with in a period of six month in case of voluntary registration
- -Registration obtained by means of fraud, wilful misstatement or suppression of facts
- Show cause: No cancellation of registration without giving show cause notice Opportunity of being heard: No cancellation of registration without giving reasonable opportunity of being heard
- Tax liability: No effect on tax liabilities and other dues for any period before / after cancellation of registration • Cancellation of registration under CGST Act/ SGST Act shall be deemed to be cancellation of registration under SGST Act/ CGST Act
- Payment of taxes: by way of debit in the electronic credit or cash ledger Amount: Equivalent to higher of credit of input tax on input, semi finished goods, finished goods or output tax payable Capital goods: Higher of amount equal to ITC taken reduced by prescribed percentage or tax on transaction value of such capital goods Basis of calculation: Generally accepted accounting principals
Revocation of cancellation of registration (Section 22)
- Revocation request by: Registered taxable person
- Authority: Proper officer Time Limit: within 30 days from date of service of cancellation order
- Show cause: No rejection of application for revocation without giving show cause notice Opportunity of being heard: No rejection of application for revocation without giving reasonable opportunity of being heard
- Revocation of cancellation of registration under CGST Act/ SGST Act shall be deemed to be revocation of cancellation of registration under SGST Act/ CGST Act