What are the benefits of registration under the GST laws?

What are the benefits of registration under the GST laws? What are the types of registration under GST? Explain.

Ans.

Benefits/Need for Registration

Registration under GST law provides the following benefits:

If turnover of the person exceeds the threshold limit, registration is the mandatory requirement; and violation thereof is subject to the imposition of the penalty;
It legally recognizes the person as supplier of goods and/or services;
It authorizes the collection of GST from the customers;
It allows the claim of input tax credit of GST paid on purchases of goods and/or services and utilizing the same for payment of taxes due on supply of goocl and/or services;
It allows the seamless credit of the input tax from the manufacturer/importer to the last supplier in the chain;
Proper accounting of taxes paid on the input goods and/or services.

Mandatory Registration Sce copy

Every supplier shall be liable to be registered in the State/UT from where he makes a taxable supply of goods if his aggregate turnover in a financial year exceeds the threshold limit of 40 lakh in general or 20 lakh and 10 lakh for special category States.

Attention is drawn that threshold limit as above is in cases of supplier of goods only and for supplier of services, threshold limit has not been increased. Therefore, for service providers, threshold limit of aggregate turnover is as usual 20 lakh and 10 lakh has been maintained.

Voluntary Registration [Sec. 25(3)]

(1) Any person, who is not liable to obtain registration mandatorily. may register voluntarily. All provisions of the GST Law as are applicable to the registered person shall be applicable after registration.

(2) The proper officer may, in the prescribed manner, cancel the registration of taxable person, who has taken voluntary registration and has not commenced business within 6 months from the date of registration.

(3) However, now application for cancellation of registration shall also be considered in case of a taxable person, who has been registered voluntarily, before the expiry of a period of one year from the effective date of registration (Notification No. 03/2018 CT Dated 23.01.2018). Earlier voluntary registration was not cancellable before the expiry of one year of such registration.

Registration by Department (Suo-Moto Registration)

[Sec. 25(8)]

(1) Where a person, who is liable to be registered failed to obtain registration, the proper officer may proceed to register such person.

(2) Where, during the course of any survey, inspection, search, enquiry by the proper officer finds that a person liable to registration has failed to apply for registration such officer may register the said person on a temporary basis by issuing an order. Such registration shall be effective from the date of order granting registration.

(3) Every person to whom a temporary registration has been granted, within 90 days from the date of the grant of such registration, shall submit an application for registration unless the said person has filed an appeal against the grant of temporary registration. The application for registration shall be submitted within 30 days from the date of the issuance of an order upholding the liability to register by the Appellate Authority.

(4) The provisions relating to verification and issue of certificate of registration, under normal registration shall, mutatis mutandis, apply.

The GSTIN shall be effective from the date of the order of grant of registration.