looking to get a temp#
As per section 24 of the CGST Act, 2017, there are certain categories of persons who are subject to compulsory registration despite not exceeding the threshold limits specified under section 22 of the act.
Need for temporary registration
The category includes persons who are already engaged in business, but due to the nature of the business,
- They need to make the supplies from the state where there is no fixed place of business.
- The transactions are not frequent enough to open a registered office in that state
- Supplies are not restricted to a single state
Because of the above issues, it is not feasible to open a registered office and obtain registration for a single transaction in the whole year.
Therefore, for this category of persons, the GST law has allowed registration under special provisions to obtain a temporary GST number, which will be valid for:
- A period specified in the registration application or
- 90 days from the effective date of registration
The certificate can be extended for another 90 days.
After the maximum permissible period of 180 days (90 days + 90-day extension), depending on the nature of the business, the person must either
- apply for fresh registration or
- obtain regular registration
Eligible Persons
The persons who are eligible under the above provisions are
- Casual Taxable Person
- Non-resident taxable person
Casual taxable person: A person who occasionally undertakes transactions involving the supply of goods or services in the course or furtherance of business, where there is no fixed place of business
Non-resident taxable person: A non-resident taxable person is any person who occasionally undertakes transactions involving the supply of goods or services, who is located outside India, and who has no fixed place of business in India.
Procedure for registration
Under both categories mentioned above, the special registration procedure involves the following:
- They must obtain registration at least 5 days prior to commencement of business (they should not engage in any transaction without obtaining registration)
- PAN is mandatory to obtain registration, but since a non-resident person will not have PAN, other prescribed documents should be submitted by such persons.
- Form GST REG-01 and Form GST REG-09 should be filed for a casual taxable person and non-resident taxable person, respectively
- At the time of submitting the registration application, an advance deposit of the tax amount equivalent to the estimated tax liability for that period should be made.
- On depositing the amount, an acknowledgement is issued electronically to the applicant in FORM GST REG-02.
- The registration certificate is issued electronically only after the said deposit appears in the electronic cash ledger
- They are not eligible for registration under the composition levy.
Thus, temporary registration enables persons with occasional or short-term business activities in a state to comply with GST provisions without obtaining permanent registration.
The step-by-step procedure for applying for temporary registration can be understood by going through the link below.
Form GST REG-01: Apply_for_Registration_Normal_Taxpayer
Form GST REG-09 NRTP: https://tutorial.gst.gov.in/userguide/registration/index.htm#t=Registration\_-\_Non-Resident_Foreign_Taxpayer.htm