Procedure for GST Registration – Section 25 of GST

GST registration is a fundamental requirement for businesses operating in India. Section 25 of the CGST Act, 2017, outlines the procedure for obtaining GST registration, ensuring compliance with GST regulations. This article provides a comprehensive guide on the provisions under Section 25 and their implications for businesses.

Who Needs to Register Under Section 25?

As per Section 25(1), every person liable to register under Section 22 of the CGST Act threshold-based registration) or Section 24 of the CGST Act (compulsory registration in certain cases) must apply for GST registration within 30 days of becoming liable. Special provisions apply to certain taxpayers:

• Casual Taxable Persons (CTP) and Non-Resident Taxable Persons (NRTP): They must apply for registration at least 5 days before commencing business in India.

• Special Economic Zones (SEZ) and SEZ Developers: They must obtain a separate GST registration distinct from their other business locations within the same state.

Additionally, businesses making supplies from territorial waters must register in the nearest coastal state.

Single vs. Multiple GST Registrations

• Single Registration (Section 25(2)): Businesses are generally granted a single GST registration per State or Union Territory.

• Multiple Registrations (Proviso to Section 25(2)): A person having multiple places of business within a state may opt for separate registrations for each location, subject to prescribed conditions.

• Distinct Persons Concept (Sections 25(4) & 25(5)): When a business has multiple GST registrations (either in one or more states), each registration is treated as a distinct entity for taxation purposes.

Voluntary Registration

Under Section 25(3), even if a person is not required to register under Section 22 or 24, they can voluntarily apply for GST registration. Once registered, they must comply with all GST provisions like a regular taxpayer.

PAN and Aadhaar Authentication for GST Registration

• Permanent Account Number (PAN): Every person (except certain government entities) must possess a PAN for GST registration under Section 25(6).

• Aadhaar Authentication: Sections 25(6A) to 25(6D) mandate Aadhaar authentication for individuals and authorized representatives of entities. Failure to authenticate Aadhaar can result in invalid registration.

Compulsory Registration by GST Authorities

If a person liable for GST registration fails to register voluntarily, tax authorities can suo motu register them under Section 25(8). This ensures that businesses comply with GST laws and do not evade tax liabilities.

Unique Identity Number (UIN) for Special Entities

Under Section 25(9), specialized entities like United Nations agencies, embassies, and other notified organizations are granted a Unique Identity Number (UIN) instead of a GSTIN. This enables them to claim tax refunds on notified purchases.

Approval and Issuance of GST Registration

• Verification Process (Section 25(10)): GST authorities verify applications before granting or rejecting registration.

• Certificate of Registration (Section 25(11)): Once approved, a GST registration certificate is issued, specifying the effective registration date.

• Deemed Registration (Section 25(12)): If no response is received within the prescribed time, GST registration is automatically deemed approved.

Conclusion

Section 25 of the CGST Act ensures a streamlined and well-defined process for GST registration, making it easier for businesses to comply with tax laws. Whether mandatory or voluntary, obtaining GST registration is essential for legal operation and availing input tax credit benefits. Staying updated with the latest GST provisions helps businesses avoid penalties and maintain seamless tax compliance.

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