Rule 12 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 12 is the registration route for a person who must deduct tax at source under section 51 or collect tax at source under section 52. Such a person applies in FORM GST REG-07, may be granted registration in FORM GST REG-06 within three working days, and can have the registration cancelled in FORM GST REG-08 once the liability has gone.
This article follows the Central Goods and Services Tax Rules, 2017 as amended up to 31 October 2025 in the compilation consulted; notifications issued after that date should be checked.
A person required to deduct tax under section 51 or to collect tax under section 52 applies in FORM GST REG-07, not through the ordinary application in rule 8. The proper officer may grant registration after due verification and issue a certificate in FORM GST REG-06 within three working days. Where the person is no longer liable, the proper officer may cancel the registration, communicated in FORM GST REG-08, following the procedure in rule 22.
The sections behind the rule
Rule 12 serves two sections of the CGST Act. Section 51 requires certain persons to deduct tax at source; see section 51: who must deduct tax at source. Section 52 requires an e-commerce operator to collect tax at source; see section 52: TCS rate, net value and when to collect. Both sections are in the Act and not in the rule, so the rule says who registers and how, and leaves who must deduct or collect, and how much, to the sections. For the registration work itself, see our GST registration for all types of persons.
Why a separate rule? Rule 8(1) excludes these two classes from the ordinary declaration of the Permanent Account Number and State in Part A of FORM GST REG-01; see rule 8. Rule 12 supplies their own route.
Sub-rule (1): the application
"Any person required to deduct tax in accordance with the provisions of section 51 or a person required to collect tax at source in accordance with the provisions of section 52 shall electronically submit an application, duly signed or verified through electronic verification code, in FORM GST REG-07 for the grant of registration through the common portal, either directly or through a Facilitation Centre notified by the Commissioner."
Three things to note: it is an electronic application; it must be signed or verified through electronic verification code; and it goes in FORM GST REG-07. No time limit for submission is printed in the sub-rule.
Sub-rule (1A): a State where there is no physical presence
A person applying for registration "to deduct or collect tax in accordance with the provisions of section 51, or, as the case may be, section 52, in a State or Union territory where he does not have a physical presence" must do two things in FORM GST REG-07:
- mention the name of the State or Union territory in Part A of the application; and
- mention in Part B the name of the State or Union territory in which the principal place of business is located, "which may be different from the State or Union territory mentioned in PART A".
The footnotes record that sub-rule (1A) was inserted by Notification No. 74/2018 - CT dated 31.12.2018, and that the words "deduct or" and "section 51, or, as the case may be," were inserted by Notification No. 33/2019 - CT dated 18.07.2019. The rule describes no other field of the Form.
Sub-rule (2): grant
"The proper officer may grant registration after due verification and issue a certificate of registration in FORM GST REG-06 within a period of three working days from the date of submission of the application." Two points: the word is "may", and the period runs from submission. The certificate is the same FORM GST REG-06 that rule 10 describes for the ordinary registration; see rules 9A and 10.
Sub-rule (3): cancellation when the liability ends
Where, "on a request made in writing by a person to whom a registration has been granted under sub-rule (2) or" upon an enquiry or pursuant to any other proceeding under the Act, the proper officer is satisfied that the person "is no longer liable to deduct tax at source under section 51 or collect tax at source under section 52", the officer "may cancel the registration issued under sub-rule (2)". The cancellation is "communicated to the said person electronically in FORM GST REG-08".
The words about a request made in writing were inserted by Notification No. 26/2022 - CT dated 26.12.2022. Before that insertion the officer's power depended on an enquiry or other proceeding; as the compilation now reads, the registered person may also make the request himself.
Proviso. "The proper officer shall follow the procedure as provided in rule 22 for the cancellation of registration." Rule 22 is explained in rule 22: cancellation of registration, notice, reply and order.
Who does what, by when
| Who | What | Form | Period | Sub-rule |
|---|---|---|---|---|
| Person required to deduct under section 51 or collect under section 52 | Electronic application, signed or verified through electronic verification code | FORM GST REG-07 | No period printed | (1) |
| Same person, no physical presence in the State or Union territory | Name that State or Union territory in Part A; name the State or Union territory of the principal place of business in Part B | FORM GST REG-07 | Not applicable | (1A) |
| Proper officer | May grant registration after due verification and issue the certificate | FORM GST REG-06 | Within three working days from submission | (2) |
| Registered person, or proper officer on enquiry or other proceeding | Request in writing, or enquiry, showing no longer liable | Not applicable | No period printed | (3) |
| Proper officer | May cancel; communication to the person; follows rule 22 | FORM GST REG-08 | As in rule 22 | (3) and proviso |
A worked example
Lotus Marketplace Private Limited, an invented e-commerce operator, is required by section 52 to collect tax at source. It operates from a State where it has its principal place of business but supplies through sellers in another State where it has no physical presence.
For the second State, the company applies in FORM GST REG-07, naming that State in Part A, and the State of its principal place of business in Part B, as sub-rule (1A) allows these to differ. The proper officer may grant registration within three working days from submission and issue FORM GST REG-06. Some years later, the company ceases the activity. Under sub-rule (3), the company can make a written request, or the proper officer may act on an enquiry, and if satisfied that it is no longer liable to collect tax under section 52, may cancel the registration in FORM GST REG-08, following rule 22.
Points to watch
- Two kinds of liability. Section 51 deduction and section 52 collection are distinct; the rule covers both.
- The officer "may" grant. The rule uses "may", not "shall", for the grant.
- Rule 22 applies to cancellation. Sub-rule (3) does not replace the procedure; the proviso brings rule 22 in.
- Another route for the same reason. A person who also needs ordinary registration for supplies applies under rule 8; see rule 8.
Need help registering as a deductor or collector?
An application with the wrong State in Part A or Part B can delay the certificate. We prepare FORM GST REG-07 for tax deductors and collectors, check the State entries against your places of business and follow the application to the certificate. Start with our GST registration for all types of persons.
Key takeaways
- Rule 12(1): a person required to deduct under section 51 or collect under section 52 applies electronically in FORM GST REG-07.
- Rule 12(1A): where there is no physical presence in the State or Union territory, name it in Part A and the State of the principal place of business in Part B.
- Rule 12(2): the proper officer may grant registration and issue FORM GST REG-06 within three working days from submission.
- Rule 12(3): the proper officer may cancel, in FORM GST REG-08, where the person is no longer liable, following rule 22.
- A written request by the registered person can start the cancellation under sub-rule (3).
Read next
- Rule 8 of the CGST Rules, 2017: application for registration
- Rules 13 to 15 of the CGST Rules, 2017: non-resident taxable person, OIDAR supplier and extension
- Section 51: who must deduct tax at source
- Section 52: TCS rate, net value and when to collect
Disclaimer: Based on the Central Goods and Services Tax Rules, 2017 and the GST Acts as amended up to 31 October 2025 in the compilation consulted, read with the Finance Act, 2026 where this article says so, as consulted on 2 October 2026. Notifications, circulars and amendments issued after that date, the forms on the common portal and the way the tax authorities apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.