Section 26 of CGST Act, 2017 : Section 26: Deemed Registration

Explanation using Example

Imagine a business owner named Mr. Sharma, who operates a textile shop in Mumbai, Maharashtra. He applies for GST registration under the Maharashtra State Goods and Services Tax Act (SGST) and is granted the same. According to Section 26(1) of the Central Goods and Services Tax Act (CGST) 2017, Mr. Sharma's SGST registration will automatically be considered as a registration under CGST as well, provided that his application has not been rejected under CGST within the specified timeframe.

In another scenario, if Mr. Sharma's application for GST registration is rejected by the Maharashtra SGST authorities for some reason, Section 26(2) clarifies that this rejection will also be considered as a rejection under the CGST Act. This means that Mr. Sharma will not be registered under either the SGST or CGST, and he will need to address the reasons for rejection before he can successfully obtain GST registration.