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Declaration Format of GST Non-Enrollment

Updated on:  

08 min read

The introduction of GST led to a significant change in the way business is conducted. The first step that businesses had to take was to collect the GSTIN of their suppliers/recipients to ensure seamless flow of tax credits. Suppliers had to make sure that business-to-business (B2B) transactions were recorded accurately, and recipients had to ensure that they received the necessary input tax credit.

Updates on GST Registration

28th May 2021
Due date to file application for revocation of cancellation of registration falling between 15th April 2021 up to 29th June 2021 is 30th June 2021.

1st May 2021
The time limit to take actions, reply or pass orders as given under Rule 9 of the CGST Rules, 2017 that falls between 1st May 2021 and 31st May 2021 has been extended up to 15th June 2021.

5th March 2021
The Search ARN Functionality for Registration, post-TRN Login has been enhanced for the taxpayers.

31st January 2021
1. Persons applying for Registration in Form GST REG-01 as SEZ unit and SEZ developer would now be required to provide the validity period, as per Letter of Approval (LOA)/Letter of Permission (LOP).
2. A functionality has been provided to registrants to upload the copy of Notification issued by MEA /State while applying for Registration on GST Portal in Form GST REG-13.
3. Aadhaar Authentication for one Promoter and Primary authorized signatory has been implemented on the portal for existing taxpayers.

31st December 2020
1. For Taxpayers applying for new registration and opting for Aadhaar Authentication, the authentication would now be required to be done only for one Primary Authorized Signatory and one Promoter/Partner, instead of all.
2. A person registered as a GST Practitioner can now file an application for cancellation of their Registration, in Form GST PCT-06
3. While applying for a new Registration application, the taxpayers will now be shown some additional details related to the same PAN, in a table.
4. Immediately after initiation of GSTIN cancellation, the status of GSTIN for which cancellation is initiated will be shown as “Suspended” on the GST Portal.
5. Taxpayers can select the jurisdiction of CBIC and states/UTs on the basis of PIN code

20th August 2020
An option is given for Aadhaar authentication while obtaining the GST registration. The rules are amended with effect from 21st August 2020 as follows:
1. In case the aadhaar authentication is opted for, it must be completed while submitting the application. The date of application is earlier of the date of aadhaar authentication or fifteen days from the submission of the application in Part B of Form GST REG-01.
2. For the rest of the applicants, physical verification of place of business will be carried out, including document verification, as the case may be, with permission.
3. Cases of deemed approval have also been listed.

Click here to know more about aadhaar authentication.

27th June 2020
The time limit for completion or compliance has been further extended to 31st August 2020, where the time limit falls between the period from 20th March 2020 to 30th August 2020. But it does not include cases where a person needs to obtain GST registration under section 25 (Normal registration) and 27 (Registration as a casual taxable person/ non-resident taxable person) of the CGST Act.

3rd April 2020
The time limit for completion or compliance has been extended to 30th June 2020, where the time limit falls between the period from 20th March 2020 to 29th June 2020. It does not include cases where a person needs to obtain GST registration under section 25 (Normal registration) and 27 (Registration as a casual taxable person/ non-resident taxable person) of the CGST Act.

What is a declaration of GST Non-enrollment?

A declaration of GST non-enrollment is usually provided by a supplier whose supplies are not chargeable to GST under the GST law for any reason. It is generally prevalent in the case of freelancers, small service providers, labour contracts, contracts with small business, etc. where their annual aggregate turnover does not exceed the prescribed threshold limit for registration.  

Applicability of the Declaration of GST Non-enrollment

The declaration of GST non-enrollment is usually to be given by suppliers who are not taxable persons due to several reasons, including:

  • Aggregate turnover is below the prescribed threshold limit
  • They are engaged in making any supplies that are fully liable to reverse charge
  • They are involved in making only supplies that are exempt from GST

Read our article to get further information about a taxable person. There are mainly three reasons for the recipient to obtain a declaration of GST non-enrollment:

  • To know whether input tax credit should be claimed or not;
  • To know if TDS/TCS provisions under GST are applicable. For example, certain e-commerce operators are required to deduct tax at source before remitting the amount due to the e-commerce vendors. However, if the e-commerce vendors are not registered, then the e-commerce operator will not have to deduct any tax.
  • To protect himself against any penalties/losses that could be incurred due to defaults in GST payments by the supplier.

Format of Declaration of GST Non-enrollment

While there is no standard format provided under the GST law for this declaration, an illustrative format has been provided below. Note that this format may vary across various sectors, whether government or private. In case a business entity obtains registration at a future date, they will need to inform the recipient and receive the GSTIN of the recipient for declaration in the invoices and their GST returns. Further, the agreement between the supplier and the recipient should contain an indemnification clause so that the recipient does not suffer a loss due to the non-compliance, failure or oversight of the supplier. The following is to be printed on the letterhead of the business entity:

(Letterhead of the business entity)

DECLARATION OF GST NON-ENROLMENT


Dear Sir/Madam,

Sub: Declaration of non-requirement of registration under the Central/State/UT/Integrated Goods and Services Tax Act, 2017

I/We……………………(Name of the service provider/business entity), do hereby declare that I/we am/are not registered under the Goods and Services Tax Act, 2017 as (select and fill below for the relevant reason)
   -I/We deal in/supply the category of goods or services …………………………………………(Describe the nature of the services/goods) which are exempted under the Goods and Service Tax Act, 2017.
   -I/We have the annual aggregate turnover below the taxable limit as specified under the Goods and Services Tax Act, 2017.
   -I/We are yet to register ourselves under the Goods and Services Tax Act, 2017.
 

I/We hereby also confirm that if anytime during any financial year I/we decide or require or become liable to register under the GST, I/we undertake to provide all the requisite documents and information. 

I/We request you to consider this communication as a declaration for not requiring to be registered under the Goods and Service Tax Act, 2017. 

I/We hereby also confirm that ………………………(Name of the service recipient) shall not be liable for any loss accrued to me/us, due to any registration default with the GST. 

Signature of Authorised Signatory: 


Name of the Authorised Signatory:  

Name of Business:  

Date:  

Stamp/Seal of the business entity:
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