Latest GST Registration Changes
GST has brought various business reforms. Intention of any law is not to give pain but to provide gain. For achieving goal of Ease of doing business in India, various measures are taken and one of the prime focus is on GST. Since long business community was demanding to allow to take one or more registration in the same state under same PAN even in the same line of Business, Government took proactive step and allow it through CGST Amendment Act 2018 which was notified w.e.f 1st Feb 2019. Second area to cry was filing of nil GST returns between the time period of applying for GST registration cancellation and it’s final approval by department which is also resolved.
Separate registration for multiple places of business within a State or a Union territory
Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business under sub-section (2) of section 25 shall be granted separate registration in respect of each such place of business subject to the following conditions, namely:-
(a) such person has more than one place of business as defined in clause (85) of section 2;
|Section 2(85) of CGST Act 2017 “place of business” includes–– (a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or (b) a place where a taxable person maintains his books of account; or (c) a place where a taxable person is engaged in business through an agent, by whatever name called;|
(b) such person shall not pay tax under section 10 for any of his places of business if he is paying tax under section 9 for any other place of business;
Section 10 of CGST Act deals with Composition Levy and for all places of business either opt composition scheme or regular scheme.
It is clarified that where any place of business of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other registered places of business of the said person shall become ineligible to pay tax under the said section.
Example: If Mr. A has already taken GST registration under regular Scheme in Punjab and as allowed in GST amendment Act, he can opt to take another registration in Punjab under regular Scheme only and cannot take Composition Scheme for second registration in Punjab.
(c) all separately registered places of business of such person shall pay tax under the Act on supply of goods or services or both made to another registered place of business of such person and issue a tax invoice or a bill of supply, as the case may be, for such supply.
Procedure to Take separate Registration in the Same State
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.
The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule
There is not any other new form prescribed for taking separate registration in the same state and Form GST REG-01 is to be filed for the same.
Treatment of ITC
Transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory- Procedural aspect
(1) A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business, shall furnish within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronically on the common portal, either directly or through a Facilitation Centre notified in this behalf by the Commissioner
Provided that the input tax credit shall be transferred to the newly registered entities in the ratio of the value of assets held by them at the time of registration. Explanation.- For the purposes of this sub-rule, it is hereby clarified that the ‘value of assets’ means the value of the entire assets of the business whether or not input tax credit has been availed thereon.
(2) The newly registered person (transferee) shall, on the common portal, accept the details so furnished by the registered person (transferor) and, upon such acceptance, the unutilised input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger.
Suspension of registration
(1)Where a registered person has applied for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion of proceedings for cancellation of registration under rule 22.
(2) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29 or under rule 21, he may, after affording the said person a reasonable opportunity of being heard, suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22.
(3) A registered person, whose registration has been suspended under sub-rule (1) or sub-rule (2), shall not make any taxable supply during the period of suspension and shall not be required to furnish any return under section 39.
(4) The suspension of registration under sub-rule (1) or sub-rule (2) shall be deemed to be revoked upon completion of the proceedings by the proper officer under rule 22 and such revocation shall be effective from the date on which the suspension had come into effect.”
|Section 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for “Suspension” of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation.|
Conclusion: Before taking decision to take multiple registration in the same state various points and parameters to be judged and calculated.
Contributed by CS Payal Kataria
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