Validity of GST Registration Certificate in India
GST or the Goods and Service Tax is one of the eras changing tax schemes established in India, which brought various different taxes together and made the same into one. The GST registration should be obtained by the suppliers of goods or services or both when the turnover earned by them during the year exceeds the threshold limit specified by the GST Act. And for this, the GST Law categorises the taxpayers as:
– Regular or Normal Tax Payers
– Composition Tax Payer
– Casual Tax Payer
– Non-Resident Tax Payer.
Once the assessee becomes liable to pay GST, he should take the registration under GST within a maximum of 30 days from the date on which such liability becomes applicable. And in the case of casual and non-resident taxable persons, the registration application can be done before 5 days of the commencement of business.
The GST Registration Certificate which is issued by the GST Authority on successful registration shall hold the following details:
– The GSTIN of the taxable person
– Trade Name or the Legal Name of the taxable person
– Business Constitution say proprietorship, company, LLP, or such other type
– Address of the premise or place of business of the entity
– Date on which liability arises
– Period of validity of the registration certificate in case of the casual and non-resident taxable person. It shall not be given in case of regular or normal tax payers
– Type of registration obtained, say Casual or otherwise
– Particulars belonging to the Approving Authority of the GST like Name, Designation, Jurisdiction, and also DSC.
The certificate of registration that is issued to the normal taxable person or the normal tax payer does not hold any validity or expiry date and shall stay valid until and unless it is voluntarily canceled by the tax payer due to any reason.
But in the case of the casual and non-resident taxable person, there shall be a validity base for the certificate and this point is the base of discussion of the given article.
Validity of GST Registration of Casual and Non-Resident Taxable Person
The registration of GST certificate, which is passed as the original certificate under GST for a casual taxable person or a non-resident taxable person shall be held valid for a period of 3 months or 90 days from the date of registration or for a period which was mentioned by the applicant in the registration form, whichever is earlier.
This period can further be extended for a period of 3 months or 90 days by applying using the Form GST REG-11.
Pre-requisites for Submitting Application for Extension
Prior to filing an application for the extension of the registration certificate, there are certain pre-requisites that should be met with by the applicant and this includes:
– The applicant should be holding a valid GSTIN issued by the GST Authority and this should be holding the type of registration as a casual or non-resident tax payer.
– The application for the extension of the validity of the registration shall be applied before the original certificate expires.
– The tax payer should also make a proper deposit of the tax liability for the period of extension and the same should be reflected in his electronic cash ledger.
– All the returns due in the name of the applicant shall be filed by him before the application for extension of validity of certificate has been made.
Procedure for Extension of Validity of Registration Certificate
The following steps shall be followed by the casual taxable person and the non-resident taxable person for applying for an extension of the time limit or validity of the GST registration certificate held by the same:
- Login to the GST portal and click on the ‘Services’ tab. Now choose ‘Application for Extension of Registration period by Casual/Non-Resident Taxable Person’ under the ‘Registration’.
- Now the user will be led to the extension of the registration page which is having two other tabs. This tab would include, ‘Business Details’ and ‘Verification’ tabs.
- Under the ‘Business Details’ Tab choose the extension period using the calendar given. Now also enter the turnover details which include the estimated turnover and net tax liability that would arise for such period of extension.
- Now click on the Generate Challan option so as to make payment of the tax liability in advance and deposit the same in the electronic cash ledger.
- Once the payment has been made the same would be reflected or displayed on the screen. After this click, the button named, ‘Click and Continue’.
- Now go to the ‘Verification’ tab where the verification and authentication should be done. Click on the Verification checkbox. Here choose the name of the Authorized Signatory assigned and then authenticate using DSC (Digital Signature Certificate) or the EVC.
- Once the authentication is done using EVC OTP or DSC, a message reflecting the successful submission of the application shall be displayed on the screen.
- The status of application can be tracked using the following: Services – Registration – Track Application Status.
It shall be further noted that the application for extension of validity can be submitted only once and cannot be renewed thereafter. This would require the Casual taxable person or the Non-Resident taxable person to take a new registration. On completion of the application for extending the validity of the registration successfully, the system will auto-generate an ARN or Application Reference Number, which can be then used for tracking the status of the application and providing the extension of the validity.
Thus, we can now conclude that the validity of the GST Registration Certificate shall not be having any expiry date or validity period in the case of the normal tax payer or the regular tax payer. But in case the registration type of such tax payer is Casual or Non-resident then there shall be a validity period. And this validity period shall only be for 3 months or 90 days, for which a renewal application shall be made prior to the expiry date.