GST Section 25: Procedure for Registration under CGST Act 2017

Section 25 of the CGST Act, 2017 outlines the comprehensive procedure for GST registration in India, applicable to individuals and entities liable under Sections 22 or 24. It mandates timely registration within 30 days, with special provisions for casual and non-resident taxable persons, and requires separate registrations for SEZ units.

The section emphasizes PAN and Aadhaar-based authentication, introduces voluntary registration, and defines treatment of multiple registrations as distinct persons. It also provides for suo moto registration by tax authorities and grants Unique Identity Numbers (UINs) to specific international and government bodies. Adherence to these provisions ensures smooth GST compliance and avoids legal hurdles.

GST Section 25: Procedure for Registration under CGST Act, 2017

The Goods and Services Tax (GST) regime in India introduced a uniform process for registration applicable to all taxable entities. Section 25 of the Central Goods and Services Tax (CGST) Act, 2017 lays down the procedural framework for obtaining registration under GST. As your guide through this complex provision, AUBSP simplifies each subsection for better understanding.

Understanding GST Registration Procedure under Section 25

Let’s break down the provisions of Section 25 in a simplified and structured format to make it easier for you to understand how to approach GST registration under various scenarios.

1. Persons Liable to Register (Sub-section 1)

As per AUBSP, every person liable under Sections 22 or 24 must apply for registration in the concerned State/UT within 30 days of becoming liable.

Special Cases:

Casual Taxable Persons or Non-Resident Taxable Persons must apply at least 5 days prior to business commencement.

Entities in Special Economic Zones (SEZ) must obtain separate registration from their regular business operations.

Territorial Waters Clause:

Any supplier operating from India’s territorial waters must register in the nearest coastal State or UT.

2. Single and Multiple Registrations (Sub-sections 2 to 5)

A person is generally granted one registration per State/UT.

Separate registrations are allowed for multiple places of business in the same State/UT.

If a person obtains or is required to obtain more than one registration across States or within a State, each registration is treated as distinct for tax purposes.

3. Voluntary Registration (Sub-section 3)

Even if you’re not liable under the law, you can still opt for GST registration. Once registered voluntarily, all rules applicable to registered persons will apply to you. AUBSP recommends this route for businesses planning expansion or availing input tax credit.

4. PAN and Aadhaar Requirements (Sub-sections 6 to 6D)

PAN Requirement:

Every person must possess a Permanent Account Number (PAN) under the Income-tax Act to be eligible, except for TDS deductors who can use their TAN.

Aadhaar Authentication:

Introduced via Finance (No. 2) Act, 2019, Aadhaar authentication is mandatory for:

AUBSP notes that the authentication process is vital to reduce fraud and ensure genuine registrations.

Important Aadhaar Authentication Dates

5. Non-Resident Registration (Sub-section 7)

Non-resident taxable persons can apply for registration without PAN using other prescribed documents. This facilitates foreign business entities to operate legally within India.

6. Suo Moto Registration by Officer (Sub-section 8)

If someone fails to register despite being liable, the GST officer can initiate registration on their behalf. However, penalties or legal actions may still apply.

7. Unique Identity Number (UIN) for Special Entities (Sub-section 9)

The following bodies are granted a Unique Identity Number (UIN) instead of GST registration:

• UN bodies and Multilateral Financial Institutions
• Embassies or Consulates
• Persons notified by the Commissioner

This facilitates refund claims for specified purchases.

8. Verification and Issuance of Registration (Sub-sections 10 to 12)

All registrations or UINs are subject to due verification.

The certificate of registration is issued in a prescribed form with an effective date.

If no deficiency is communicated within the prescribed time, the registration is deemed granted.

Final Words from AUBSP

In conclusion, Section 25 of the CGST Act forms the backbone of GST compliance, ensuring that all entities, from large corporations to casual vendors, follow a transparent and structured process for registration. As your GST companion, AUBSP urges all businesses to remain updated with notifications, ensure timely Aadhaar authentication, and maintain compliance to avoid penalties or legal issues.

If you still have questions or face difficulties with the registration process, don’t hesitate to consult professionals—or better yet, follow updates and guidance regularly from AUBSP.

FAQs on Procedure for Registration

Who is required to register under GST as per Section 25?
Every person liable under Section 22 or Section 24 of the CGST Act must register within 30 days in each State or UT where they are liable.

Can a person register voluntarily under GST even if not liable?
Yes, voluntary registration is permitted under Section 25(3), and once registered, all provisions applicable to registered persons will apply.

What is the registration timeline for casual or non-resident taxable persons?
They must apply for registration at least five days before commencing business.

Is separate registration required for Special Economic Zone (SEZ) units?
Yes, a person must obtain a separate GST registration for each SEZ unit, even if located in the same State or UT as the regular business.

Can a person obtain multiple GST registrations in the same State?
Yes, if a person has multiple places of business in a State/UT, they may apply for separate registrations for each, subject to conditions.

Are separate registrations treated as distinct persons under GST?
Yes, each registration is treated as a distinct person for GST purposes, as per Section 25(4) and (5).

Is PAN mandatory for GST registration?
Yes, every person must possess a PAN issued under the Income-tax Act, except certain categories like TDS deductors who may use TAN.

Is Aadhaar authentication mandatory for GST registration?
Yes, Aadhaar authentication is mandatory for individuals and key persons of non-individual entities, unless specifically exempted.

Who is exempt from Aadhaar authentication under GST registration?
Foreign nationals, government departments, PSUs, local authorities, and certain notified persons are exempt under Section 25(6D).

What happens if Aadhaar authentication fails or is not completed?
If Aadhaar authentication is not completed or alternate ID proof not furnished, the GST registration is deemed invalid.

Can non-resident taxable persons register without PAN?
Yes, non-resident taxable persons can register using other prescribed documents instead of PAN, as per Section 25(7).

What if a person fails to register under GST despite being liable?
The proper officer can initiate registration on behalf of the person under Section 25(8), without prejudice to penalties or legal action.

What is a Unique Identity Number (UIN) under GST?
UIN is a special identification granted to UN bodies, embassies, and other notified persons for tax refund purposes under Section 25(9).

How is the GST registration or UIN verified?
Registrations are verified as per prescribed rules, and certificates are issued in the notified form and time under Section 25(10) and (11).

When is a GST registration deemed granted?
If no deficiency is communicated within the prescribed period, the registration is deemed granted under Section 25(12).

What is the relevance of territorial waters under GST registration?
Persons making supplies from territorial waters must register in the nearest coastal State or UT, as per Section 25(1) Explanation.

Can multiple registrations be consolidated under one GST number?
No, each registration is treated as a separate taxable person under the GST framework.

Are Aadhaar alternatives available for GST registration?
Yes, if Aadhaar is not assigned, alternate and viable means of identification are provided as per government-prescribed rules.

Are there special rules for Aadhaar authentication dates?
Yes, Aadhaar authentication has been enforced through various notifications, with different effective dates for individuals and officials.

Who is required to authenticate Aadhaar for non-individual entities?
Managing Director, partners, Karta, trustees, authorized representatives, and signatories must authenticate Aadhaar or provide alternatives.