Understanding GST Registration Procedures under CGST Rules Chapter 3

Updated on: Jan 15th, 2025 6 min read

This document explores the regulations for Goods and Services Tax (GST) registration as outlined in Chapter 3 of the Central Goods and Services Tax (CGST) Rules. The information presented is derived from the official CGST Rules document dated July 1, 2017, available here.

Application for Registration

1. Most individuals and entities required to register under GST, excluding non-resident taxable persons, tax deductors, tax collectors, and specific online information providers, must first declare their Permanent Account Number (PAN), mobile number, email, and State or Union territory. This initial declaration is made in Part A of FORM GST REG-01 on the common portal, either directly or through a designated Facilitation Centre.
   • However, businesses operating units in a Special Economic Zone (SEZ) or SEZ developers must submit a separate registration application for each SEZ unit, treating it as a distinct business vertical.
   • Similarly, an Input Service Distributor (ISD) must file a separate application for its ISD registration.
2. The system performs several verifications:
   • The PAN undergoes online validation against the Central Board of Direct Taxes database.
   • The declared mobile number is verified using a one-time password (OTP).
   • The provided email address is also confirmed via a separate OTP.
3. Upon successful validation of the PAN, mobile number, and email, a temporary reference number is generated and sent to the applicant's registered mobile number and email.
4. Using this reference number, applicants proceed to electronically submit Part B of FORM GST REG-01. This submission must be duly signed or verified with an electronic verification code, accompanied by all necessary documents specified in the form, either directly on the common portal or through a Facilitation Centre.
5. After the application under sub-rule (4) is received, an electronic acknowledgment is issued to the applicant in FORM GST REG-02.
6. For casual taxable persons applying for registration, a temporary reference number is first issued by the common portal to facilitate the advance deposit of tax as per section 27. The electronic acknowledgment (FORM GST REG-02) is only issued once this advance deposit has been made.

Verification and Approval of Registration Applications

1. The submitted application is forwarded to the proper officer, who reviews the application and supporting documents. If everything is found to be in order, the officer must approve the registration within three working days from the submission date.
2. Should the application submitted under rule 8 contain deficiencies, such as missing information or documents, or if the officer requires further clarification, a notice is issued electronically in FORM GST REG-03 within three working days. The applicant must then provide the required clarifications, information, or documents electronically in FORM GST REG-04 within seven working days of receiving the notice.
   • Clarification for this sub-rule includes modifications or corrections to the registration application particulars, excluding the PAN, State, mobile number, and email address initially declared in Part A of FORM GST REG-01.
3. If the proper officer finds the applicant's clarifications, information, or documents satisfactory, the registration is approved within seven working days of their receipt.
4. If the applicant fails to respond to the notice issued under sub-rule (2), or if the officer deems the furnished clarification unsatisfactory, the application will be rejected. The reasons for rejection must be documented in writing, and the applicant is informed electronically via FORM GST REG-05.
5. If the proper officer fails to act within:
   • Three working days from the date of submission of the application; or
   • Seven working days from the receipt of clarifications/information/documents under sub-rule (2), the application for registration is considered automatically approved.

Issuance of Registration Certificate

1. Following the approval of a registration application under rule 9, and subject to section 25(12), a certificate of registration in FORM GST REG-06 is made available to the applicant on the common portal. This certificate details the principal and any additional places of business. A Goods and Services Tax Identification Number (GSTIN) is also assigned, consisting of:
   • Two characters for the State code.
   • Ten characters for the Permanent Account Number (PAN) or Tax Deduction and Collection Account Number (TAN).
   • Two characters for the entity code.
   • One checksum character.
2. If the registration application is submitted within thirty days from the date a person becomes liable for registration, the registration's effective date will be the date they became liable.
3. However, if the application is submitted after thirty days from the date of liability, the effective date of registration becomes the date the registration was granted under rule 9, sub-rule (1), (3), or (5).
4. Every registration certificate must be duly signed or verified by the proper officer using an electronic verification code.
5. If registration is granted under rule 9(5), the applicant receives the registration number. The electronically signed or verified certificate of registration (FORM GST REG-06) is then made available on the common portal within three days following the expiry of the period specified in rule 9(5).

Distinct Registration for Multiple Business Verticals Within a State or Union Territory

1. A person operating multiple business verticals within the same State or Union Territory may obtain separate registrations for each vertical under section 25(2), provided they meet certain conditions:
   • The person genuinely operates more than one business vertical as defined in section 2(18).
   • A business vertical paying tax under the Composition Scheme (section 10) cannot be registered if any other vertical of the same person is paying tax under the regular scheme (section 9).
   • All separately registered business verticals of such a person must pay tax under the Act on supplies of goods or services made to another registered business vertical belonging to the same person, issuing a tax invoice for such supplies.
   • Clarification: If a business vertical with separate registration becomes ineligible for the Composition Scheme (section 10), then all other business verticals of that same person also become ineligible for the Composition Scheme.
2. A registered person eligible for separate registrations for business verticals can submit a distinct application in FORM GST REG-01 for each such vertical.
3. The procedures for verification and grant of registration outlined in rule 9 and rule 10 apply to applications submitted under this rule, with necessary modifications.

Registration for Tax Deductors and Collectors at Source

1. Entities mandated to deduct tax under section 51 or collect tax at source under section 52 must electronically submit an application in FORM GST REG-07 for registration. This application must be signed or verified electronically and submitted via the common portal, either directly or through a Facilitation Centre.
2. After verification, the proper officer may grant registration and issue a certificate in FORM GST REG-06 within three working days of the application submission.
3. If an inquiry or other proceeding under the Act reveals that a person issued a FORM GST REG-06 certificate is no longer obligated to deduct or collect tax at source, the officer may cancel that registration. Such cancellation is communicated electronically in FORM GST REG-08, following the procedure specified in rule 22 for registration cancellation.

Registration for Non-Resident Taxable Persons

1. Non-resident taxable persons must electronically submit a registration application in FORM GST REG-09, along with a self-attested copy of their valid passport, at least five days before commencing business. The application must be signed or electronically verified and submitted through the common portal or a Facilitation Centre.
   • For business entities incorporated outside India, the application must also include their tax identification number or unique identification number from their country, or their PAN if available.
2. A temporary reference number is provided by the common portal for non-resident taxable persons to make an advance tax deposit as per section 27. The acknowledgment under rule 8(5) is issued only after this deposit is credited to their electronic cash ledger.
3. The verification and registration grant procedures described in rule 9 and rule 10 apply to these applications with necessary adaptations.
4. Applications from non-resident taxable persons must be signed or electronically verified by an authorized signatory who is an Indian resident with a valid PAN.

Registration for Providers of Online Information and Database Access or Retrieval Services (OIDAR) from Outside India

1. Any person supplying OIDAR services from outside India to a non-taxable online recipient must electronically submit a registration application in FORM GST REG-10. This application must be signed or electronically verified and submitted through the common portal or a Facilitation Centre.
2. Applicants under sub-rule (1) are granted registration in FORM GST REG-06, subject to conditions and restrictions notified by the Central Government based on Council recommendations.

Extending the Period of Operation for Casual Taxable Persons and Non-Resident Taxable Persons

1. If a registered casual taxable person or non-resident taxable person wishes to extend their initial registration period, they must electronically submit an application in FORM GST REG-11 through the common portal (directly or via a Facilitation Centre) before their current registration expires.
2. This application for extension is acknowledged only upon payment of the amount specified in section 27(2).

Suo Moto Registration (Initiated by Proper Officer)

1. If a proper officer discovers, through a survey, inquiry, inspection, search, or other proceedings, that an individual liable for GST registration has not applied for it, the officer may temporarily register that person and issue an order in FORM GST REG-12.
2. Registration granted under sub-rule (1) becomes effective from the date of the order granting it.
3. Any person temporarily registered under sub-rule (1) must submit a full registration application as per rule 8 or rule 12 within ninety days from the temporary registration date.
   • However, if the person appeals against the temporary registration, the application must be submitted within thirty days of the Appellate Authority's order upholding the registration liability.
4. The provisions of rule 9 and rule 10 regarding verification and certificate issuance apply with necessary modifications to applications submitted under sub-rule (3).
5. The GSTIN assigned after verification under sub-rule (4) is effective from the date of the order granting temporary registration under sub-rule (1).

Unique Identity Number Assignment for Specific Entities

1. Entities requiring a Unique Identity Number (UIN) under section 25(9) can electronically submit an application in FORM GST REG-13. This application, signed or electronically verified, follows the procedure in rule 8 on the common portal, either directly or through a Facilitation Centre.
2. Upon receiving or completing the FORM GST REG-13 application, the proper officer may assign a UIN to the entity and issue a certificate in FORM GST REG-06 within three working days of the application submission.

Displaying Registration Certificate and GSTIN

1. Every registered person must prominently display their certificate of registration at their principal place of business and all additional business locations.
2. Additionally, every registered person must display their Goods and Services Tax Identification Number (GSTIN) on the name board exhibited at the entrance of their principal place of business and all other business locations.

Amending Registration Details

1. If any details provided during registration (in FORM GST REG-01, 07, 09, 10, or for UIN in FORM GST REG-13) change, the registered person must submit an electronic application in FORM GST REG-14 within fifteen days of the change. This application, signed or electronically verified, should include relevant supporting documents and be submitted on the common portal or through a Facilitation Centre.
   • Specifically, for changes related to:
     • The legal name of the business;
     • The address of the principal or any additional place(s) of business;
     • Adding, deleting, or retiring partners, directors, Karta, Managing Committee, Board of Trustees, CEO, or equivalent individuals responsible for daily business affairs (provided such change does not necessitate registration cancellation under section 29). The proper officer will verify and approve the amendment within fifteen working days of receiving FORM GST REG-14, issuing an order in FORM GST REG-15 electronically. This amendment takes effect from the date the change occurred.
   • Changes to the legal name or details of partners/directors (as specified above) apply to all registrations held by the person under this Chapter with the same PAN, across any State or Union territory.
   • For changes to particulars not specified in clause (a), the registration certificate is deemed amended upon submission of FORM GST REG-14 on the common portal.
   • If a change in business constitution leads to a new PAN for the registered person, a fresh registration in FORM GST REG-01 is required.
   • Changes to the mobile number or email of an authorized signatory must undergo online verification via the common portal, as described in rule 8(2).
2. If the proper officer believes the requested amendment is unwarranted, or if the documents provided are incomplete or incorrect, they may issue a notice in FORM GST REG-03 within fifteen working days of receiving FORM GST REG-14. This notice requires the registered person to explain within seven working days why the amendment application should not be rejected.
3. The registered person must respond to the show cause notice issued under sub-rule (2) in FORM GST REG-04 within seven working days of its service.
4. If the reply to the show cause notice is unsatisfactory or if no reply is submitted within the stipulated period, the proper officer will reject the amendment application (FORM GST REG-14) and issue an order in FORM GST REG-05.
5. If the proper officer fails to act within:
   • Fifteen working days from the application submission date; or
   • Seven working days from the receipt of the reply to the show cause notice under sub-rule (3), the registration certificate is deemed amended as applied for, and the updated certificate is made available to the registered person on the common portal.

Request for Cancellation of Registration

A registered person, excluding those with temporary registration under rule 12 or a UIN under rule 17, seeking to cancel their registration under section 29(1) must electronically submit an application in FORM GST REG-16. This application must include details of inputs, semi-finished or finished goods, and capital goods held in stock on the desired cancellation date, along with any associated liabilities and payments. Supporting documents may also be furnished. The application should be submitted on the common portal within thirty days of the event necessitating cancellation, either directly or through a Facilitation Centre. However, a voluntarily registered taxable person cannot apply for cancellation before one year has passed since their effective date of registration.

Cases Where Registration Must Be Cancelled

Registration granted to a person is subject to cancellation if that person:

1. Does not conduct business from their declared place of business.
2. Issues invoices or bills without supplying goods or services, in violation of the Act or its rules.
3. Violates the provisions of section 171 of the Act or its associated rules.

Process of Registration Cancellation

1. If the proper officer has reasons to believe that a person's registration should be canceled under section 29, a notice in FORM GST REG-17 is issued. This notice requires the person to provide a justification within seven working days as to why their registration should not be canceled.
2. The response to the show cause notice issued under sub-rule (1) must be submitted in FORM REG–18 within the specified period.
3. For persons who applied for cancellation or whose registration is liable for cancellation, the proper officer issues an order in FORM GST REG-19 within thirty days from the application date (rule 20(1)) or the date of reply to the show cause notice (sub-rule (1)). This order cancels the registration from a determined date and directs the taxable person to pay any outstanding tax, interest, or penalty, including amounts due under section 29(5).
4. If the reply furnished under sub-rule (2) is deemed satisfactory, the officer will drop the cancellation proceedings and issue an order in FORM GST REG–20.
5. The provisions of sub-rule (3) apply with necessary modifications to the legal heirs of a deceased proprietor, treating the application as if submitted by the proprietor.

Revocation of Registration Cancellation

1. A registered person whose registration was canceled by the proper officer's own initiative may apply for revocation of cancellation in FORM GST REG-21. This application must be submitted to the proper officer within thirty days of the cancellation order's service, via the common portal or a Facilitation Centre.
   • An application for revocation cannot be filed if the cancellation was due to failure to furnish returns, unless those returns have been filed and all due tax, interest, penalty, and late fees have been paid.
2. (a) If the proper officer is satisfied, with recorded reasons, that sufficient grounds exist for revocation, they will revoke the cancellation via an order in FORM GST REG-22 within thirty days of receiving the application and communicate this to the applicant. (b) In other circumstances, the proper officer may reject the application for revocation of cancellation with recorded reasons, issuing an order in FORM GST REG-05, and communicate this to the applicant.
3. Before issuing a rejection order under sub-rule (2)(b), the proper officer must issue a notice in FORM GST REG–23. This notice requires the applicant to explain within seven working days why their revocation application should not be rejected. The applicant must respond in FORM GST REG-24.
4. Upon receiving the information or clarification in FORM GST REG-24, the proper officer must process the application as outlined in sub-rule (2) within thirty days of receiving the information or clarification.

Migration of Existing Law Registrants

1. (a) Individuals and entities (excluding tax deductors and Input Service Distributors) registered under previous laws and possessing a PAN must enroll on the common portal by validating their email and mobile number, either directly or through a Facilitation Centre. (b) Upon enrollment, provisional registration is granted, and a certificate in FORM GST REG-25, including the GSTIN, is made available on the common portal.
   • A taxable person holding multiple registrations under prior law based on a single PAN will receive only one provisional registration under the current Act.
2. (a) Every provisional registrant under sub-rule (1) must electronically submit an application in FORM GST REG–26, signed or electronically verified, along with required information and documents, via the common portal or a Facilitation Centre. (b) This information must be furnished within three months or an extended period as approved by the Commissioner. (c) If the proper officer finds the information and particulars in the application correct and complete, a certificate of registration in FORM GST REG-06 is made electronically available to the registered person on the common portal.
3. If the particulars or information specified in sub-rule (2) are not furnished or are found to be incorrect/incomplete, the proper officer will issue a show cause notice in FORM GST REG-27. After providing a reasonable opportunity to be heard, the provisional registration granted under sub-rule (1) will be canceled, and an order in FORM GST REG-28 issued.
   • (3A) If a registration certificate is not made available on the common portal within fifteen days of furnishing information under sub-rule (2)(c), and no notice under sub-rule (3) is issued within that period, the registration is deemed granted. The electronically signed or verified certificate is then made available on the common portal.
   • The show cause notice in FORM GST REG-27 can be withdrawn by issuing an order in FORM GST REG-20 if, after hearing the person, it is determined that no grounds for the notice exist.
4. Any person registered under existing laws who is not liable for registration under the current Act may, within thirty days from the appointed day, choose to submit an electronic application in FORM GST REG-29 on the common portal for cancellation of their registration. After appropriate inquiry, the proper officer will cancel the said registration.

Physical Verification of Business Premises

If the proper officer deems a physical verification of a registered person's business premises necessary after registration is granted, such verification may be conducted. The verification report, along with supporting documents like photographs, must be uploaded in FORM GST REG-30 on the common portal within fifteen working days following the verification date.

Method of Authentication

1. All applications (including replies to notices), returns (including details of outward and inward supplies), appeals, and other documents required under these rules must be submitted electronically. This submission requires a digital signature certificate, e-signature as per the Information Technology Act, 2000, or any other signature/verification mode notified by the Board.
   • However, a person registered under the Companies Act, 2013, must furnish documents or applications verified via a digital signature certificate.
2. Each online document, including returns, must be signed or verified using an electronic verification code by:
   • An individual: The individual themselves, or an authorized person if they are absent from India, or a guardian/competent person if mentally incapacitated.
   • A Hindu Undivided Family (HUF): The Karta, or another adult member/authorized signatory if the Karta is absent or incapacitated.
   • A company: The chief executive officer or authorized signatory.
   • A Government or Governmental agency/local authority: An authorized officer.
   • A firm: Any partner (not a minor) or authorized signatory.
   • Any other association: Any member or authorized signatory.
   • A trust: The trustee, any trustee, or authorized signatory.
   • Any other person: A competent person acting on their behalf, or a person authorized under section 48.
3. All notices, certificates, and orders issued by the proper officer or other authorized officers under this Chapter must be issued electronically, using a digital signature certificate, e-signature as per the Information Technology Act, 2000, or any other signature/verification mode notified by the Board.