GST Section 26: Deemed Registration Explained | CGST Act Compliance Guide by AUBSP

Section 26 of the CGST Act deals with the concept of deemed registration, ensuring that any registration or Unique Identity Number (UIN) granted under the SGST or UTGST Act is automatically considered granted under the CGST Act, provided it is not rejected within the prescribed time under Section 25(10). Conversely, if an application is rejected under SGST or UTGST, it is also deemed rejected under CGST.

This provision streamlines the GST registration process, reduces duplication, and ensures uniformity across central and state tax systems. AUBSP emphasizes the importance of understanding this section for smooth GST compliance and timely registration.

Understanding GST Section 26: Deemed Registration under CGST Act

Welcome to another authoritative explanation brought to you by AUBSP, your trusted source for insightful and authentic GST analysis. In this article, we break down Section 26 of the Central Goods and Services Tax (CGST) Act, which deals with the concept of Deemed Registration.

Whether you’re a taxpayer, tax consultant, or a compliance officer, understanding this provision is vital to ensure smooth registration processes and avoid any unintentional non-compliance.

What is Section 26 of the CGST Act?

Section 26 introduces the principle of “Deemed Registration” and provides clarity on the status of GST registrations under the State GST (SGST) or Union Territory GST (UTGST) laws vis-à-vis the Central GST (CGST).

In essence, if you obtain registration or a Unique Identity Number (UIN) under the SGST or UTGST Act, it is automatically treated as valid under the CGST Act—provided no rejection is communicated under specific conditions.

Let’s dive deeper.

Key Provisions under Section 26

Sub-Section (1): Deemed Registration under CGST

“The grant of registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a grant of registration or the Unique Identity Number under this Act subject to the condition that the application for registration or the Unique Identity Number has not been rejected under this Act within the time specified in sub-section (10) of section 25.”

🔹 Interpretation:

• If you are granted registration under SGST or UTGST, the same is deemed as granted under CGST.
• However, this is conditional—no rejection should be issued within the timeline defined under Section 25(10) of the CGST Act.

Sub-Section (2): Deemed Rejection

“Notwithstanding anything contained in sub-section (10) of section 25, any rejection of application for registration or the Unique Identity Number under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act shall be deemed to be a rejection of application for registration under this Act.”

🔹 Interpretation:

• If your application is rejected under SGST or UTGST, it is automatically rejected under the CGST Act as well.
• This ensures synchronization between different GST legislations and prevents contradictory registration statuses.

Important Dates Related to GST Registration

Here is a timeline table to help you understand when and how Section 26 fits into the registration process:

Why is Section 26 Important?

Section 26 serves the crucial purpose of:

• Reducing redundancy in processing registrations separately under central and state tax laws.
• Facilitating ease of doing business, especially for new applicants.
• Ensuring consistency—no conflicting status between CGST and SGST/UTGST applications.
• Saving time by leveraging deemed approvals.

At AUBSP, we often highlight how this provision supports a unified tax ecosystem, preventing legal and administrative chaos due to multiple registration interpretations.

Real-World Implication Example

Scenario:
A business located in Maharashtra applies for GST registration through the common portal.

• The SGST authority approves the application within 5 days.
• The CGST authority takes no action.

Result under Section 26(1):
The CGST registration is automatically deemed approved, unless CGST explicitly rejects it within the time allowed under Section 25(10).

Now suppose:
The SGST authority rejects the registration.

Effect under Section 26(2):
The CGST registration is also automatically deemed rejected.

In conclusion, Section 26 of the CGST Act simplifies the GST registration ecosystem through the principle of deemed registration and deemed rejection. It reflects the collaborative architecture of GST law across India, eliminating administrative delays and contradictions.

AUBSP encourages taxpayers and professionals to stay informed and leverage such provisions wisely to maintain smooth compliance and registration workflows.

For more updates, keep following AUBSP.com—your partner in simplifying the GST regime!

FAQs on Deemed Registration

What is GST Section 26 about?
Section 26 of the CGST Act deals with deemed registration, meaning registration granted under SGST or UTGST is also valid under CGST unless rejected.

What does “deemed registration” mean under GST?
It means if registration or a Unique Identity Number is granted under SGST/UTGST, it is considered granted under CGST too, unless CGST rejects it in time.

Does CGST need to separately approve the GST registration if SGST has already approved it?
No, if SGST or UTGST approves the registration and CGST does not reject it within the specified time, it is deemed approved under CGST.

What is the time limit for CGST to reject the application?
As per Section 25(10), the time limit is typically 7 working days from the date of application or from the date of additional clarification submitted.

What happens if SGST rejects my GST registration application?
If SGST or UTGST rejects the application, it is also considered rejected under CGST as per Section 26(2).

Is a Unique Identity Number (UIN) also covered under Section 26?
Yes, both GST registration and UIN are included under the scope of deemed registration and rejection in Section 26.

Does Section 26 apply to all states and union territories?
Yes, Section 26 applies uniformly across India under both SGST and UTGST frameworks, ensuring national GST registration consistency.

Can there be a scenario where SGST approves and CGST rejects the same application?
No, such a contradiction is avoided by Section 26. If SGST approves and CGST does not act within time, CGST registration is deemed approved.

Is deemed registration automatic if no action is taken?
Yes, if no rejection is issued within the specified timeline under Section 25(10), the registration is automatically deemed approved under CGST.

What should I do if my application is rejected by SGST?
If rejected, you must review the reason, correct the issues, and reapply, as the rejection also applies to CGST under Section 26(2).

What is the benefit of Section 26 to taxpayers?
It simplifies the registration process, prevents duplicate assessments, and saves time by avoiding separate approvals under CGST and SGST.

Is any action required from the taxpayer for deemed registration under CGST?
No separate action is needed; once SGST approves and no CGST rejection is issued within time, registration is deemed approved.

Can I appeal if my application is rejected under SGST or CGST?
Yes, you can file an appeal under GST laws if you believe the rejection is incorrect or procedural issues occurred during the application.

Does Section 26 impact existing GST registrations?
No, it primarily governs the process of granting new registrations and ensures they are synchronized across central and state systems.

Who should be most aware of Section 26?
New GST applicants, tax professionals, and registration consultants should understand Section 26 to ensure accurate and timely filing.

Does the GST portal handle deemed registration automatically?
Yes, the common GST portal is designed to automatically apply deemed approval if no action is taken within the prescribed period.

Can deemed registration under CGST be cancelled later?
Yes, like any GST registration, it can be cancelled for valid reasons such as non-compliance or misrepresentation, through proper procedure.

Is there a separate form for deemed registration?
No separate form is required. The application filed through the GST portal serves for SGST, CGST, and UTGST simultaneously.

How does AUBSP recommend handling Section 26 compliance?
AUBSP suggests tracking your application timeline closely, responding to notices promptly, and maintaining clarity in your documents to avoid rejection.

What if there is a technical delay on the portal—does deemed registration still apply?
Yes, if no rejection is recorded within the timeline due to system delays, deemed registration under Section 26 still applies.