Sec 23 lays down that persons specified in Schedule V of the act should get themselves registered in every such state in which they are liable to be registered within 30 days from the applicable date. Casual Traders and Non Resident persons should be registered within 5 days before commencement of business.
For existing assesses under the various laws which will be subsumed on introduction of GST, a provisional registration will be issued through the relevant tax authority and the final registration will be issued on approval of the prescribed documents submitted along with provisional registration.
The persons required to be registered are
The following persons are specified in schedule V to take registration irrespective of turnover limit and other conditions –
The GST law u/s 23(2) is giving an option to businesses with multiple verticals to have separate registration for each such vertical. The registrations will be based on the same PAN with an identifying code for each vertical. Major drawback is that once separate registration is taken for verticals, the excess input in one vertical cannot be setoff against GSt payable in other verticals creating an additional cash flow.
As per Sec 2(18) “business vertical” means a distinguishable component of an enterprise that is engaged in supplying an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business verticals;
Explanation: Factors that should be considered in determining whether products or services are related include:
(a) the nature of the products or services;
(b) the nature of the production processes;
(c) the type or class of customers for the products or services;
(d) the methods used to distribute the products or provide the services; and
(e) if applicable, the nature of the regulatory environment, for example, banking, insurance, or public utilities.
The registration number is a 15 digit alpha numeric code based on PAN of the assesse. The first 2 digits are state code, next ten digits represent PAN, next digit is for business vertical, next digit has been left blank now and the last digit is a check sum to ensure completeness of the rest of the digits.
State Vertical Check
Code PAN No. Blank Sum
XX XXXXXXXXXXX X X X
Also for Non Resident Taxable Person suitable document to be used will be specified.
For assesses required to only deduct GST 46 the registration will be based on their TAN under the income tax act.
Sec 23 (2) provides for voluntary registration for any person even if criterias for registration under Schedule V are not fulfilled. Once Voluntarily registered, all provisions of the act will apply to such person as it applies to any other registered person.
As per section 23(7) – UIN will be issued for any specialized agency of United Nations Organisation, Multilateral Financial Institutions, Organisation notified under United Nations (privileges and Immunities Act 1947, Consulate or Embassy of a Foreign Country and such other class of persons as may be notified by the commissioner will be issued UIN on account of not having a PAN/ TAN.
As per Sec 24 casual Taxable person shall take registration irrespective of turnover at least 5 days before commencement of business. The period of Validity of such registration shall be as specified in the certificate or ninety days which ever is lower. Proper officer can extend the validity of registration for further 90 days on an application by him. For getting the registration, the person should make an advance deposit of estimated tax liability and make further deposit in case of extention of further ninety days as above. Such persons are not entitled to make supplies without certificate of registration. Casual Taxable persons includes suppliers in Exhibitions, temporary stalls etc.
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