Registration: formula sheet

Key formulas

Aggregate turnover

Taxable supplies + exempt supplies + exports + inter-state supplies (all-India, same PAN) − taxes − inward supplies on reverse charge

Include exempt supplies and exports. Exclude all GST taxes and cess. Exclude inward supplies on which you pay tax under reverse charge. Sum across all registrations under the same PAN.

General threshold

Aggregate turnover > ₹20 lakh (₹10 lakh in special category states) → liable

The test is 'exceeds'. Turnover exactly equal to the limit does not trigger liability. For suppliers of services in special category states the limit is ₹10 lakh.

Goods-only suppliers

Notified higher limit of ₹40 lakh for intra-state supplies of goods only; ₹20 lakh in notified states

The ₹20 lakh limit applies in notified states, which include some special category states as well as Puducherry and Telangana. Certain goods, such as ice cream, pan masala and tobacco, are excluded from this relief. Inter-state supply of goods is not covered; it needs registration under s.24(i). Check the notification terms given in the question.

Inter-state supplies

Inter-state supply of goods → compulsory registration (s.24(i)), whatever the turnover. Inter-state supply of services → exempt from registration up to the threshold (Notification 10/2017-Integrated Tax)

The relief is for services only. It does not cover casual taxable persons, non-resident taxable persons, e-commerce operators and similar compulsory categories.

Compulsory registration categories

Inter-state supplier of goods | inter-state supplier of services above the threshold | casual taxable person | non-resident taxable person | recipient liable to pay tax under reverse charge, s.9(3)/9(4) (s.24(iii)), unless a notified exemption applies (e.g. Notification 5/2017-Central Tax for intra-state inward supplies where aggregate turnover is within the threshold) | ISD | TDS deductor | TCS e-commerce operator | notified e-commerce operator liable under 9(5) | OIDAR supplier from outside India to unregistered persons | agent | other notified persons

These do not depend on turnover, except where a notification gives relief. Learn this as a list. For reverse charge, the recipient who pays the tax is in the list, subject to notified exemptions; the supplier whose supplies are all taxed on reverse charge does not register.

Persons not liable

Only exempt/non-taxable supplies | supplier whose supplies are all taxable only on reverse charge in the recipient's hands | agriculturist selling own produce

These are exclusions from the liability to register, not mere reliefs from tax.

Time to apply (normal person)

Within 30 days from the date of becoming liable, in every State/UT of liability

Section 25. If you apply within 30 days, registration takes effect from the date you became liable. If you apply later, it takes effect from the date of grant.

Time to apply (CTP / NRTP)

At least 5 days before commencing business

Section 25 sets the 5-day rule for casual and non-resident taxable persons. Under section 27, registration is valid for the period stated in the application or 90 days from the effective date, whichever is earlier. It may be extended by a further period not exceeding 90 days. Under section 27(2), they make an advance deposit of estimated tax liability at the time of the application. That deposit is a separate requirement and does not change the timing of the application.

Application sequence

REG-01 (Part A → TRN → Part B) → REG-06 grant | REG-03 query → REG-04 reply → REG-06 or REG-05 rejection

Learn the form numbers. Examiners use them in case facts.

Time for officer to act

7 working days from the application; 7 working days from receipt of the REG-04 reply to the notice. The officer must grant registration or seek clarification within the first period, and decide within the second. No action in time = deemed granted under section 25(7) read with Rule 9

The 3-working-day period under Rule 9(1) applies to applicants whose Aadhaar authentication is completed, as notified. Check the current rule text for the notified cases. Once registration is deemed granted, the portal makes the REG-06 certificate available.

Section 26 deemed registration

Grant of registration/UIN under SGST or UTGST Act = deemed grant under CGST Act, provided the application has not been rejected under CGST Act. Rejection under CGST Act = deemed rejection under the SGST/UTGST Act

Section 26 gives deemed registration under the CGST Act where the State/UT Act has granted it and the CGST application has not been rejected. It is cross-recognition between the Acts, not a time-based deemed grant.

GSTIN structure

15 digits = 2-digit State code + 10-digit PAN + 1 entity code of the PAN in the State + 'Z' + 1 check digit

The entity code counts your registrations under one PAN in that State.

Special registrations

ISD: separate registration, applied for in REG-01 | TDS deductor / TCS collector (including an e-commerce operator collecting TCS): REG-07 | UIN holders: REG-13 | Non-resident OIDAR provider: REG-10

These are registered for specific roles, not for ordinary supplies.

Time limit to apply

Last date = date of change + 15 days

The application is made in FORM GST REG-14. Count 15 calendar days from the date of the change, not from the date you came to know of it.

Officer's period for a core field amendment

Officer approves (FORM GST REG-15) or serves notice (FORM GST REG-03) within 15 working days of the application

This applies to core field changes only. If the officer takes no action in this period, the certificate is deemed amended.

Non-core field change

Approved on the common portal without officer intervention

The officer's 15-working-day procedure does not apply. Check the current Rule and notified list to classify a field.

When the officer is not satisfied

Notice (FORM GST REG-03) → reply within 7 working days (FORM GST REG-04) → order within 7 working days of the reply

This sequence applies to core field changes, which the officer processes. He may reject the application by a reasoned order after hearing your reply. If the reply satisfies him, he drops the proceedings.

Amended certificate

Approval or deemed approval → amended certificate in FORM GST REG-15

Under Rule 19, the amendment is effective from the date of the event warranting it, not from the date of approval.

Change of PAN

Change in constitution leading to a new PAN → fresh registration, not amendment

Amendment keeps the same PAN-based registration.

Grounds for cancellation on application or own motion (section 29(1))

Business discontinued / transferred / amalgamated / demerged / disposed of OR change in constitution OR ceasing to be liable (non-voluntary registrant)

The proper officer may cancel from any date he thinks fit, including a retrospective date. The registered person or his legal heirs (on death) can apply.

Grounds for officer-initiated cancellation (section 29(2))

Contravention of prescribed provisions | Composition person: 3 consecutive tax periods of non-filing | Other person: 6 continuous months of non-filing | Voluntary registrant: no business within 6 months | Fraud, wilful misstatement, suppression

A notice and an opportunity of being heard are mandatory before cancellation.

Procedure steps (Rules 20 to 22)

Application in FORM GST REG-16 | Show cause notice in FORM GST REG-17 | Reply in FORM GST REG-18 within 7 working days from service of the notice | Order in FORM GST REG-19 within 30 days of the reply | Or drop proceedings in FORM GST REG-20

Confirm the latest form numbers and time limits against the current rules text before the exam. Revocation under section 30 is available only where the proper officer cancelled the registration on his own motion, not where it was cancelled on the registered person's application. The application for revocation must be made within 30 days from the date of service of the cancellation order. The Additional or Joint Commissioner or the Commissioner may extend this by up to 30 days, and the Commissioner may extend it by a further period of up to 30 days.

ITC payable on cancellation (section 29(5) read with Rule 44)

Amount payable = higher of (a) ITC on the stock or capital goods, and (b) tax on the transaction value of those goods

This computation applies to a registered person other than one paying tax under section 10. It covers inputs in stock, inputs in semi-finished and finished goods, and capital goods, as on the day immediately preceding the date of cancellation. A person who has paid tax under section 10 pays only the ITC actually availed on stock and capital goods (read with section 18(4)), not the "higher of" amount. Check the exact wording of the Act and Rule 44.

ITC on capital goods

ITC taken − 5 percentage points for every quarter or part of a quarter from the invoice date

Then compare with tax on the transaction value of the capital goods and pay the higher. Any part of a quarter counts as a full quarter.

Reporting and final return

Details of the reversal in FORM GST ITC-03 within 30 days of the cancellation date or order date, whichever is later | Final return in FORM GSTR-10 within 3 months of the cancellation date or order date, whichever is later

Read the question for the type of registrant. A regular person uses the higher-of computation. A composition person pays only the ITC actually availed on stock and capital goods.

Who can apply

Registered person whose registration was cancelled by the proper officer on his own motion

Cancellation on the person's own application under section 29 is not covered by section 30. A fresh registration is the route there.

Basic time limit

Apply within 30 days from the date of service of the cancellation order

Count from service of the order, not from the effective date of cancellation.

Extension of time

Additional/Joint Commissioner: up to 30 days. Commissioner: a further period up to 30 days (reasons in writing)

As amended. The extension needs sufficient cause. Total outer limit is about 90 days from service.

Form and manner

Application in Form GST REG-21 on the common portal; order of revocation in Form GST REG-22

Rule 23 of the CGST Rules deals with the procedure.

Officer's decision time

Order within 30 days from receipt of the application: revoke or reject

Rejection needs reasons in writing and an opportunity of being heard.

Cancellation for non-filing of returns

Pending returns up to the date of cancellation must be furnished, with tax, interest, penalty and late fee, before revocation is allowed

This comes from the proviso to section 30(1) as amended by the Finance Act 2023 and the related rule provisions, not from a separate condition in Rule 23.

Remedy if rejected

Appeal against the rejection order under the appeal provisions of the Act

Do not file a second REG-21. The remedy against rejection is appeal.

Quick revision

• Registration depends on the supplier being liable under the Act, either on turnover or compulsorily.
• The turnover threshold differs by type of supplier and by state, so check the category before applying it.
• Some persons must register irrespective of turnover, such as those making inter-State taxable supplies of goods, subject to the conditions in the law.
• Casual taxable persons and non-resident taxable persons have special registration rules, including advance deposit of tax.
• Registration is state-wise, so a person with business in several states registers separately in each.
• A person making only exempt or non-taxable supplies is generally not liable to register.
• Deemed registration arises when the officer takes no action within the prescribed time after the application, subject to the rules.
• Changes in registration particulars must be reported within the prescribed time, and some changes need officer approval.
• Cancellation can be on the registered person's application or by the officer for specified grounds.
• The effect of cancellation on input tax credit in stock requires a reversal, so link it to the credit chapter.
• Revocation applies to cancellation by the officer, not to cancellation applied for by the person, and must be sought within the prescribed time.
• Always confirm the current thresholds, forms and time limits from the latest text before the exam.

Common mistakes

• Leaving out exempt supplies and exports while computing aggregate turnover. Fix: Always include exempt supplies and exports. Exclude only taxes, cess and inward reverse charge supplies.
• Applying the threshold state by state instead of on a PAN-India basis. Fix: Add up turnover across all states and all registrations with the same PAN, then compare with the limit.
• Treating the 30-day limit as running from the date of starting business, or from the date of crossing the turnover limit at year end. Fix: Count from the date you become liable. For threshold cases, that is the day aggregate turnover crosses the limit.
• Applying the 5-day rule to all taxpayers. Fix: The 5-day advance rule is only for casual taxable persons and non-resident taxable persons. Others have 30 days after liability.
• Mixing 15 days with 15 working days. Fix: The taxpayer's period to apply is 15 days from the change. The officer's period to act on a core field application is 15 working days.
• Counting the 15 days from the date of discovery or from the date of the board resolution. Fix: Count from the date the change actually occurs, as stated in the facts.
• Saying the officer can cancel registration without a notice if the ground is clear, such as fraud. Fix: Write that a notice and an opportunity of being heard are required for every cancellation by the officer under section 29.
• Mixing the non-filing limits, using six months for a composition person or three periods for a regular person. Fix: Remember: composition person is three consecutive tax periods; any other registered person is six continuous months.
• Saying a person whose registration was cancelled on his own application can seek revocation under section 30. Fix: Always ask who initiated the cancellation. Self-cancelled means take a fresh registration.
• Counting the 30 days from the effective date of cancellation. Fix: Count from the date of service of the cancellation order.

Exam tips

• Write the aggregate turnover working in numbers. Examiners give marks for the correct inclusions and exclusions even when the final answer is wrong.
• Scan the case for compulsory-category keywords such as casual, non-resident, reverse charge, e-commerce, ISD and TDS, and for inter-state supply of goods, before doing any arithmetic. For a reverse charge recipient, also check whether a notified exemption applies to the facts.
• In MCQs, watch for traps: exempt supplies hidden in the figures, reverse charge inwards added by mistake, and goods versus services limits.
• Where the question gives a state, check whether it is a special category state and use the correct limit. For goods-only suppliers, check whether the state is in the notified list with a ₹20 lakh limit.
• Close each descriptive answer with a one-line conclusion: liable or not liable, and the reason.
• Memorise the form chain: REG-01, REG-03, REG-04, REG-05, REG-06, REG-07, REG-10 and REG-13. Examiners often hide the answer in a form number.
• Write the time limit with its starting point, for example '30 days from the date of becoming liable', not just '30 days'.
• For deemed registration, write the trigger (officer's silence in the allowed working days) and the result (deemed grant) in two lines.