ARE YOU READY FOR GST REGISTRATION… ???
- December 4, 2015
- Posted by: Indirect Tax Professionals
- Category: Articles
Fate of GST…
In a meeting held on Friday 27th November 2015 on GST BILL attended by former Prime Minister Manmohan Singh and Sonia Gandhi. Issues from both the parties were discussed in the meeting. The fact that Sonia Gandhi appeared open to the points made by the ministers has further raised government hopes. GST will come into force after the constitution is amended and GST BILL is passed by both the houses and signed by the President Of India.
The initial step for GST would be to register. Now how to get yourself registered in GST.
Registration procedures for New applicants and Migration procedure for Existing assesee’s has been defined to a great extent in the Report issued by the Joint Committee dated July 2015. This meeting was headed by Officers of Government Of India, Different States, GSTN and from Empowered Committee of State Finance Ministers.
Some highlights of the Report for GST Registration:
- State specific registrations will be there i.e. if a supplier wants to trade in 2 states he has to get himself registered in both the states.
- Permanent Account Number (PAN) is basic need for registering under GST. If a supplier doesn’t have PAN then while filling the form the GST registration portal will redirect him to website of Income Tax Department for applying PAN. And for the existing registrants verification will be carried out with CBDT.
- The concept of Centralised and multiple registrations within a state for same business vertical is still present.
- A new term Non Resident Supplier has been introduced.
- A Unique Identification No. will be issued to suppliers registering under GST.
- A threshold for registration termed as Gross Annual Turnover(including exports and exempted supplies) will be quantified.
- No registration No credit.
- Taxable person liable to pay under Reverse Charge to get compulsorily registered.
- Casual Dealer a new concept.
Procedure for Registration:
1.For New Applicants
- The new applicant will either register himself through
- The GST Common Portal; or
- The Facilitation Centre (FC).
- Now after filling the form via the common portal the application portal will be passed on to the IT system of the concerned State/ Central tax authorities with the required information and documents.
- The IT system will forward this application further to the Jurisdictional Officers who will examine the information and documents submitted.
- If information and documents submitted are found in order the authorities will communicate the approval to the portal and portal will generate the Registration Certificate.
- If a query is raised by authority the applicant is required to reply and if on submission of additional information and documents authority is of the view that application can be granted the above step will follow.
- In case registration is refused it has to be a speaking order. And the applicant has the right to appeal against it.
Some Important Points:
- Real time verification of PAN with CBDT, Adhar No. with UIDAI, CIN and other identification documents with the respective departments will be carried out by the common portal.
- Option to sign with Digital Signatures will be there.
- For suppliers not having PAN a temporary registration system may be developed by GSTN which later on submission of PAN will be converted into PAN based registration as recommended by Joint Committee.
- If the authority doesn’t grant or refuse or raises a query on the application within 3 working days , the application will be deemed to be approved and registration certificate will be generated automatically by the portal.(Clarity needs to be there under law).
Issue: What is a Facilitation Centre (FC)?
The FC shall be responsible for the digitization and / or uploading of the forms and documents including summary sheet duly signed by the Authorized Signatory and given to it by the taxable person. After uploading the data on common portal using the ID and Password of FC, a print-out of acknowledgement will be taken and signed by the FC and handed over to the taxable person for his records. The FC will scan and upload the summary sheet duly signed by the Authorized Signatory.
2.For Existing Registrants
This process of registering existing registrants under GST will be of major concern. Here the committee has decided that the supplier who is registered with state or centre or both, his information will be collected with respective State VAT systems, CBEC, NSDL etc. to the extent available and for the rest taxpayer will be required to submit the information and the supporting documents.
After validation of information and the documents the identification number will be issued to the applicant.
Issue: Whether information collected from the aforesaid departments will help?
Since, lots of reports will be using registration database, purity of registration data will be of paramount importance. Migrating half-complete and incorrect data from existing registration databases to GST database will adversely impact the reports and intelligence derived out of it. Thus data will have to be collected afresh from the existing taxpayers.
*GST – IN*
GST-IN the Identification Number to be issued for the suppliers getting themselves registered under GST.
This will be a unique Identification Number for every supplier and is of a great importance because all the operations of and data relating to the business can be agglomerated and correlated via this identification number.
STRUCTURE OF GSTIN
- This will a 15 digit identification number having a mix of alphabets and numbers.
- State wise.
- It will be based on PAN.
- 13th place in the number will state the number of registrations a supplier has in the same state
- 14th digit will be for future use by the department.
- 15th digit is checksum.