The Union government has shown strong determination in implementing a Goods and Services Tax (GST) that will subsume a majority of the present indirect tax levies in India. This paradigm shift in indirect tax is currently underway and the final GST law is expected to be implemented starting 1 July 2017. As part of this change, every taxpayer or assessee registered under the present indirect tax levies and who meets the criteria laid down in the Model GST Law, is required to register under GST.
The registration process involves migration to the GST portal in a phased manner. The process of GST migration for state value added tax (VAT) assessees began in November 2016 and was extended to cover excise and service tax assessees starting January 2017.
Furthermore, the Central Board of Excise and Customs (CBEC) has recently, via a notice on its website, requested assessees to whom a provisional identification has been issued for migration to GST, to complete the migration process by 31 March 2017.
GST – FAQ’s
Q) Who is required to register under the GST regime?
Persons required to register under GST can be broadly classified into 3 categories:
(a) Persons having a valid PAN (permanent account number issued for tax purposes) and existing registration under present Indirect tax laws (VAT, service tax or central excise).
(b) Persons crossing threshold limit of turnover of GST or desirous to obtain voluntary registration under GST.
(c) Registration for certain key compliance/specified assessees such as causal traders, persons liable to TDS (tax deducted at source), non-resident persons, etc.
Q) What is GST migration?
GST migration means enrolment of existing Indirect tax assessees (i.e. assessees holding registrations under VAT, service tax or central excise) using the GST portal, in order to transfer such assessee to the GST regime.
Q) What is enrolment?
Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key information fields on the GST portal. In other words, the GST portal requires assessees holding existing registrations under the present indirect tax regime to validate their data as displayed on the GST portal and upload supporting information.
Q) What is last date for enrolment for existing assessees?
As per a notification on the CBEC website, existing assessees have been urged to enrol using the GST website on or before 31 March 2017.
Q) How are existing assesses enrolling on the GST portal?
Assessees have to obtain a provisional identification and password from the state VAT website or ACES website (as the case may be) and use them to access the GST portal. Having accessed or logged into the GST portal the assessee will be required to create a new user ID and password. The assessee can obtain a provisional GST registration number once the new user ID has been created.
Subsequently, the assessee is required to upload prescribed information such as proof of constitution of business, director details, etc. on the portal to generate an Application Reference Number (ARN) to complete the application for migration.
Q) What is the provisional ID and provisional GST number?
The provisional ID is a temporary ID provided by current indirect tax authorities to enable existing assessees to access the GST portal for the first time. The provisional GST number is the GST number allotted to the assessee, which will be finalised once the application is processed by the department.
Q) How many provisional IDs shall be granted in case of multiple central excise/service tax registrations on the same PAN in a state?
According to guidance issued by the CBEC, only one provisional ID shall be issued by the central indirect tax authority to assessees holding a valid PAN and not having a provisional ID issued by any state VAT authority.
Q) How many provisional IDs shall be granted in case of centralised service tax registration on the same PAN in multiple states?
As per documents issued by CBEC in relation to GST registration, one provisional ID shall be issued per state (which will cover all premises in that particular state). However, various centralised service tax assessees are facing issues where only one provisional ID is being issued for all premises under the centralised service tax registration. In such a case, given that GST registration is statewise, assessees are contacting the jurisdictional service tax office for a provisional ID and password for premises in different states.
Q) Is it mandatory that the Digital Signature Certificate (DSC) of an authorised signatory should be PAN-based while authenticating the application?
In case the primary authorised signatory is a citizen of India, PAN is mandatory. However, if the primary authorised signatory is not a citizen of India, then PAN is not mandatory but a passport number is. Accordingly, the DSC of the authorised signatory may or may not be PAN-based.
Q) When will the provisional GST number be finalised?
The date of finalisation of a provisional GST number has not been prescribed by the tax authorities as of now. However, as per the Model GST law, the provisional GST number shall be valid for a period of six months from the date of issue, that is, implementation date of GST. Given this, it is likely that the finalisation of applications filed will be concluded within six months from the date of implementation of GST.
Q) Will the provisional GST number change after finalisation?
It is likely that the provisional GST number will not change after finalisation of application.
Q) What is CBEC Mitra?
CBEC Mitra is a new CBEC GST helpdesk which has been launched to provide assistance to assessees who face any difficulty or if they have any query relating to GST registration.
This helpdesk is an Interactive Voice Response (IVR) based service and will be operational 24/7.
The assessee can email their difficulties/queries to email@example.com or call the helpdesk numbers – CBEC: 1800-1200-232 and GSTN: 0124-4688999
Q) Has the GST registration process been prescribed for assessee who are not registered under the present indirect tax levies regime?
No, the procedure for registration of assessees who are not registered under the present IDT regime has not yet been prescribed.
Q) What do I do if the legal name of the entity as per PAN and service tax or VAT registration is different?
In case of such a mismatch, the GST portal will not be able to generate an ARN. The GST helpdesk suggests that the relevant authority should be contacted to correct such error in name on respective records as well as request the VAT or CBEC authorities for a new provisional ID and password for access to the GST portal. In case of proprietors, the GSTN portal will allow for the name, as per PAN, editable in the application form.
Q) What should I do if I do not want registration under GST?
Some state VAT authorities are accepting an undertaking from assessees who do not want to register under GST regime along with the reason for not migrating or registering. However, presently, no procedure has been prescribed for the same and most of the state VAT authorities as well as CBEC are mandating assessees to register and migrate to the GST portal and opt for cancellation of registration under the GST regime in case they do not want a GST registration.
What is a meaning of Goods & Services Tax (GST)?
GST is an indirect tax which is applicable on all supply of goods & services in India. GST shall be levied in place of existing sales tax, VAT, excise duty, customs, service tax, luxury tax etc. If you are supplying goods and services in India, then it is mandatory to take the GST registration.
How to register for GST in India?
(1) Creation of User ID & Password on Common Portal: – This is the first step towards enrollment for migration to GST, which start with provisional ID and password as given to the taxpayer by respective State Vat department through dealer’s login. On entering provisional Id & Password, GST Common portal will ask for Email Id and Mobile number of authorized person on which two different onetime passwords shall be sent. Entering one time password of both Email Id & Password simultaneously is mandatory to create a new User Id & Password. Five questions shall be asked to reset the password in the event of forgot password. Taxpayers are therefore advised to take out a print before submitting a list of security questions. Initially i.e. up to 1st April 2016, Email Id and Mobile number of authorized person is Noneditable.
(2) Details of Business: –After successful creation of user Id & Password, taxable person need to login into GST common portal. After login on the dashboard itself a provisional GST number shall be seen, which shall start with state code followed by 10-digit pan number and 3 more system generated digits. In very first tab taxpayer has to enter various business details. Some details like PAN number, Legal Name are auto populated from the system and rest of the details such as various registration details along with the date of registration as provided underCentral Excise, Service tax, VAT, Luxury Tax, Entertainment Tax, IEC, CIN number etc. shall be filled manually.
In addition to above a scanned copy of proof of constitution i.e. Shop Act License/Factory License in case of individual, Partnership Deed in case of Partnership Firm, or Registration Certificate/Proof of Constitution in case of Society, Trust, Club, Government Department, Association of Person or Body of Individual, Local Authority, Statutory Body and Others etc.) shall be attached. Scanned copy of proof of constitution should be in jpeg or pdf format with maximum size of 1 MB.
(3) Details of Proprietor, Partner, Managing and Whole Time Director, Karta: – In this tab details (of Proprietor, Partner, Managing and Whole Time Director, Karta) such as Full Name, Full Name of Father/ Husband, DIN Number, Date of Birth, Mobile Number, Gender, Designation, PAN Number, Aadhar Number shall be entered.
In addition to above details of Residential Address (Building/Flat No, Name of Premises, Road, Locality, State, District, Pin code etc.) and Scanned copy of Photograph (In JPEG format only with maximum size of 100 KB) is also required to be uploaded on common portal. It is important to note that details as specified above such as name, date of birth etc. should be matched with the details mentioned on PAN Card. Validation error may occur in case of mismatch.
(4) Details of Authorized Signatory: – All the details as stated in point no 3 above are also common for authorized signatory. Apart from that a scanned copy of board resolution or authority letter evidencing appointment of such person as an authorized signatory along with acceptance letter shall be uploaded on GST common portal. For this purpose, board resolution or authority letter along with acceptance letter should be in pdf/jpeg format with maximum size of 100KB. Separate board resolution or authority letter should be made for each signatory.
Maximum 10 peoples including Proprietor, Partner, Managing and Whole Time Director or Karta as the case may be can be appointed as an authorized signatory for such business entity. Board resolution or authority letter is also required for Partner, Managing and Whole Time Director or Karta if they want to be act as an authorized signatory
(5) Details of Principal Place of Business: – Details such as Address (Building/Flat No, Name of Premises, Road, Locality, State, District, Pin code etc.), Official Email-Id, Mobile Number, Office Telephone Number, Nature of possession of premises (i.e. Own, Rented, Leased, Consent, Shared), Scanned copy of Proof of Principal place of business i.e. in PDF/JPEG format with maximum size of 1 MB is required to be given under this tab. Following documents can be used a proof of Principle place of business
|(a)||For Own premises –Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.|
|(b)||For Rented or Leased premises –A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.|
|(c)||For premises not covered in (a) & (b) above –A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties, also, the same documents may be uploaded.|
It is important to note that principle place of business means a place from where major activities of business are carried out. It may happen that the registered office and principle place of business are different. In addition to above nature of activities from such premises such as Factory / Manufacturing, Wholesale Business, Retail Business, Warehouse/Deport, Bonded Warehouse, Service Provision, Office/Sale Office, Leasing Business, Service Recipient, EOU/ STP/ EHTP, SEZ , Input Service Distributor, (ISD), Works Contract etc. are also to be mentioned at the time of registration
(6) Details of Additional Place of Business:- Additional places includes factory, office, godown, warehouse or any other place where taxable person stores his goods or provides or receives any goods and/or services. All the details as specified for principal place of business are equally applicable for additional place of business also.
If principle person send any input/capital goods to job worker for job worker and if he wants to supply such goods after such process from the premises of job worker and if job worker is not registered under GST, then principle has to declare place of business of job worker as his place of business in terms of proviso to Sub clause (b) to Sub Section (1) of Section 55.
(7) Details of Goods & Service supplied: – HSN wise details of 5 top goods should be specified. HSN codes as stated here are the same as stated under existing Central Excise Law. Similarly, details of top 5 services along with the Service Accounting code should also be given under the details of services. For this purpose, service accounting codes are same as stated under existing service tax law.
(8) Details of Bank Accounts: – A taxpayer needs to provide top 10 bank account numbers along with IFSC code and Scanned Copy of first page of Bank Statement/passbook of each bank account. Copy of bank statement can be scanned in PDF/JPEG format with maximum size of 500 KB in case of bank statement and 100 KB in case of bank passbook.
(9) Verification: – After filling an application a person can submit the application using Class-II or Class-III digital signature (DSA). Filling of an application with DSA is mandatory for Companies and Limited liability partnership. Taxpayer other than Company and LLP can also file an application by using e-signature option. i.e. by using Aadhar number of authorized person. GST Common portal shall send a request using inter-portal connectivity to UIDIA system to send one time password (OTP). UIDIA system shall send OTP to registered email ID & Mobile number registered against such Aadhar number.
Before validation of application, applicant must register his DSA on GST portal under register/update DSA. For this he must download Em-signer application, which is available on GST common portal. Apart from this Windows 32/64 bits OS must be installed in to his computer system. Applicant should also see whether browser version which he is using is 10+ in case of Internet Explorer, 49+ in case of Google chrome, and +45 in case of Mozilla Firefox. DSA of following person can be used for validation of GST enrollment application form
|Partnership||Managing / Authorized Partners|
|Hindu Undivided Family||Karta|
|Private Limited Company||Managing / Whole-time Directors and Key Managerial Persons|
|Public Limited Company||Managing / Whole-time Directors and Key Managerial Person|
|Society/ Club/ Trust/ AOP||Members of Managing Committee|
|Government Department||Person In charge|
|Public Sector Undertaking||Managing / Whole-time Director and Key Managerial Person|
|Unlimited Company||Managing/ Whole-time Director and Key Managerial Person|
|Limited Liability Partnership||Designated Partners|
|Local Authority||Chief Executive Officer ( CEO) or Equivalent|
|Statutory Body||Chief Executive Officer ( CEO) or Equivalent|
|Foreign Company||Authorized Person in India|
|Foreign Limited Liability||Partnership Authorized Person in India|
|Others||Person In charge|
After successful verification GST Common Portal system, will generate acknowledgement containing acknowledgement receipt number (ARN) within next 15 minutes after submission& that is the last step of enrollment for migration to GST. This number should be kept into the record for all future correspondence with GST common portal as far as registration of taxpayer is concerned. After the appointment date of GST Act taxpayer can track status of his application using ARN number.
GST registration is a complete online procedure which is done by applying on GSTN website directly. All supporting documents are uploaded on the GSTn directly and once, they are fine, registration is granted. Let us understand it in three steps:
# Arrange documents: The first step is to arrange all documents which are required for GST registration. Further, since GST is a completely new tax, one should get the documents checked by a professional to avoid the rejection from the department.
# File application:After arranging all the documents, one should file the documents along with online application on the GSTN website. Make sure all the documents uploaded are off appropriate size otherwise you will face uploading problem.
# GST registration: If the government officer finds all the documents in place, then they shall issue the GST registration certificate in India. It generally takes 3 to 5 days for GST registration along with DSC.