Saturday, April 29, 2017

Frequently Asked Questions on GST (Goods and Services Tax) - Part IV

FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI
FAQ on GST (Goods and Services Tax) - Part VII

This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q& A are derived from above document with modifications.

46. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration? 


A person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration.

PAN is not mandatory for a non-resident taxable person who may be granted registration on the basis of any other document as may be prescribed. 

47. Whether the Department through the proper officer, can Suo-moto proceed to register of a Person under this Act? 


48. Whether the Registration granted to any person is permanent? 

Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked. 

49. Is it necessary for UN bodies to get registration under GST? 

Yes. All notified UN bodies, Consulate or Embassy of foreign countries and any other class of persons so notified would be required to obtain a unique identification number (UIN) from the GST portal. The structure of the said ID would be uniform across the States in conformity with GSTIN structure and the same will be common for the Centre and the States. This UIN will be needed for claiming the refund of taxes paid on notified supplies of goods and services received by them, and for any other purpose as may be notified.  

50. What is the responsibility of the taxable person supplying to UN bodies?

The taxable supplier supplying to these organisations is expected to mention the UIN on the invoices and treat such supplies as supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier. 

51. Is it necessary for the Govt Organization to get registration? 

A unique identification number (ID) would be given by the respective state tax authorities through GST portal to Government authorities/PSUs not making outwards supplies of GST goods (and thus not liable to obtain GST registration) but are making inter-state purchases. 

52. Whether the job worker will have to be compulsorily registered? 

No, a Job worker is a supplier of services and will be obliged to take registration only when his turnover crosses the prescribed threshold of 20/10 Lakhs. 

53. Whether the goods will be permitted to be supplied from the place of business of a job worker? 

Yes.  But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker as his additional place of business. 

54. At the time of registration will the assessee have to declare all his places of business? 

Yes. The taxpayer will have to declare the principal place of business as well as the details of additional places of business in the registration form. 

55. Is there any system to facilitate smaller dealers or dealers having no IT infrastructure? 

In order to cater to the needs of taxpayers who are not IT savvy, following facilities shall be made available,

Tax Return Preparer(TRP): A taxable person may prepare his registration application /returns himself or can approach the TRP for assistance. TRP will prepare the said registration document/ return in prescribed format on the basis of the information furnished to him by the taxable person. The legal responsibility of the correctness of information contained in the forms prepared by the TRP will rest with the taxable person only and the TRP shall not be liable for any errors or incorrect information. 

Facilitation Centre (FC): shall be responsible for the digitisation and/or uploading of the forms and documents including summary sheet duly signed by the Authorized Signatory and given to it by the taxable person. After uploading the data on common portal using the ID and Password of FC, a print-out of acknowledgement will be taken and signed by the FC and handed over to the taxable person for his records. The FC will scan and upload the summary sheet duly signed by the Authorized Signatory. 

56. Is there any facility for digital signature in the GSTN registration? 

Taxpayers would have the option to sign the submitted application using valid digital signatures. There will be two options for electronically signing the application or other submissions - 
by re-signing through Aadhar number, or through DSC i.e. by registering the tax payer’s digital signature certificate with GST portal. 

However, companies or limited liability partnership entities will have to sign mandatorily through DSC only. 

Only level 2 and level 3 DSC certificates will be acceptable for signature purpose.  

57.  What will be the time limit for the decision on the on line registration application? 

If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond to the application within 3 common working days. If they communicate any deficiency or discrepancy in the application within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such communication. Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have 7 days from the date when the taxable person communicates removal of deficiencies. In case no response is given by the departmental authorities within the said time line, the portal shall automatically generate the registration. 

58. What is the process of refusal of registration? 

In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The applicant shall have the right to appeal against the decision of the Authority. Any rejection of application for registration by one authority (i.e. under the CGST Act / SGST Act) shall be deemed to be a rejection of application for registration by the other tax authority (i.e. under the SGST/UTGST/CGST Act)

59. What are the necessary elements that constitute supply under CGST/SGST Act? 

In order to constitute a ‘supply’, the following elements are required to be satisfied, i.e.- 
(i)  the activity involves supply of goods or services or both; 
(ii) the supply is for aconsideration unless otherwise specifically provided for; 
(iii) the supply is made in the course or furtherance of business; 
(iv) the supply is made in the taxable territory;  
(v) the supply is a taxable supply; and 
(vi)the supply is made by a taxable person. 

60. Whether Works contracts  and Catering services will be treated as supply of goods or supply of services? Why? 

Works contracts and catering services shall be treated as supply of services. 


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