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Registration under GST
Registration under GST
Registration simply means enrolment in a system or an institution. Like children are registered in schools, adults register themselves in clubs and societies, similarly businesses are also registered under various systems. Registration under GST is rather complex if you go through the draft GST provisions. Let me explain you the registration provisions under GST through the story of Mr. Gupta. A businessman
Mr. Gupta, a businessman manufactures tyres at his factory in Delhi and sells them all over India through his branches.
He has branches in all major Indian cities.
According to GST, Mr. Gupta is required to obtain registration in ALL THE STATES WHERE HE CARRIES HIS BUSINESS.
Thus, Mr. Gupta will obtain as many registrations as many branches he own in different states.
If he has branches in 6 different states, he shall obtain 6 registrations. Each registration will be treated as a distinct person for the purpose of this act.
If he has branches in 10 states out of which 2 branches are in same states. Eg, he has 8 branches in 8 different states but 2 branches are in different cities of 1 state, then he will be required to obtain 9 registrations.
Emphasis here is on the no. of states where a person does his business.
If a person has 5 branches in different cities of 1 state, he will require only 1 registration.
Since GST is consumption based tax, a person liable to pay tax shall obtain registration in every state where he supplies.
Any supply made by 1 branch of 1 entity to another branch in another state of same entity will be considered as supply.
For eg, branch of Mr. Gupta in Karnataka supplies to another branch in Mumbai will be considered as supply.
There are many more provisions relating to registrations under GST, like the threshold limit, persons who shall obtain registration, Reverse Charge Mechanism etc. Follow this series for all wholesome infotainment on registration.
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