GST Registration Window open till 30th July

Section 22 (1) of CGST(Central Goods and Services Tax) Act, 2017 provides that every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees.

Section 22(2) of CGST Act, 2017 further provides that every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day. Thus all those who are already registered with Service Tax or Central Excise are liable to get themselves registered under GST with effect from the appointed day(i.e. the date GST comes into force as per the Notification which is yet to be issued by the Government).

Section 25 (1) of CGST Act, 2017 prescribes that every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed.

Thus if the appointed date for GST is 1st July 2017; all the persons have time till 30th July 2017 to apply for GST Registration. In case the appointed date is 1st September 2017; there is time till 30th September 2017. The Government has yet to take a decision on the appointed date and it is expected that the Notification notifying the appointed date will be issued at least 3 months in advance of the appointed date so that the Industry is well prepared for the transition. The Government is still working on 50-odd Notifications which are required to be issued before the appointed date and the process of issue of Notifications may take at least 4 months’ time as all the rules and procedures are to be approved by GST Council. Nest GST Council Meeting is slated on 18th May in Srinagar and the Government is trying to bring Jammu & Kashmir Government on Board as the GST Acts are not applicable to J & K. In case J & K Assembly passes a Special Resolution; GST can apply to J & K. Besides several Authorities required under GST Acts are yet to be constituted and there should not be any surprise if the appointed date is a date beyond 1st September 2017. Time is already running out for the Government. Though there is constitutional requirement for implementation of GST by September 2017; but it can be  got extended by the Government through an amendment.

Further, the provisions of Act require a single registration in a State or Union territory. However, a person having multiple business verticals in a State or Union territory has the option to obtain a separate registration for each business vertical. But having more than one registration within one State is no more lucrative to most of the Companies as the supply from one Registration no. to another Registration no. is subject to GST under the law as it is treated as supply to distinct person. Besides the Companies will be required to maintain separate GST Credit accounts in such cases and cross-utilization of credit is not allowed under the rules.

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