The Government is striving hard to meet its ambitious target to roll out a pan India Goods and Services Tax (“GST”) from April 1, 2017. One of the biggest challenges in implementation of GST is migration of existing taxpayers to GST System to ensure smooth transition to GST regime. In series of events to witness the GST light of the day, enrollment is now open for the assessee presently registered with State Tax or VAT in Puducherry, the first in the Country (along with Sikkim), from November 8, 2016 which will continue up to November 23, 2016.
A proposal to introduce a national level Goods and Services Tax (GST) by April 1, 2010 was first mooted in the budget speech for the financial year 2006-07. Introduction of an Goods and Services Tax (GST) to replace the existing multiple tax structure of Centre and State taxes is not only desirable but imperative in the emerging economic environment. GST system is target to be a simple, transparent and efficient system of indirect taxation as has been adopted by over 160 countries around the world.
On the same day, GST System Portal www.gst.gov.in (“GSTN Portal”) has been launched by the Government of India. Mr. Navin Kumar, Chairman of GST Network (“GSTN”) said “The enrolment of other States will be done subsequently and the entire process completed by January 15, 2017”. Thus, the schedule of the GST enrolment plan State-wise has been provided by the Government, which is as follows:
|STATES||START DATE||END DATE|
|Puducherry, Sikkim||November 08, 2016||November 23, 2016|
|Gujarat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh||November 14, 2016||November 29, 2016|
|Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland,
Arunachal Pradesh, Manipur, Mizoram
|November 30, 2016||December 15, 2016|
|Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan||December 16, 2016||December 31, 2016|
|Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh||January 01, 2017||January 15, 2017|
|Service Tax Registrants||January 01, 2017||January 31, 2017|
|Delta All Registrants (All Groups)||February 01, 2017||March 20, 2017|
The assessee is required to complete the GST enrolment during the aforesaid specified dates. However, the window will be open till January 31, 2017 for those who miss the chance.
FAQS RELEASED BY THE GSTN
Recently, the GSTN, has released 56 Frequently Asked Questions (FAQs) for enrolment of the existing taxpayer on the GSTN Portal.
Indeed, these FAQs will be an effective tool in disseminating knowledge on Migration of existing taxpayers to GST System. We are summarising herewith key highlights of the FAQs for easy digest
I. Meaning of Existing Taxpayer:
• Central Excise
• Service Tax
• State Sales Tax / VAT (except exclusive liquor dealers if registered under VAT)
• Entry Tax
• Luxury Tax
• Entertainment Tax (except levied by the local bodies)
II. Enrolment under GST:
• Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key fields
• The data available with various tax authorities is incomplete. Thus, fresh enrollment is required for all existing taxpayers so as to ensure smooth transition to GST regime and enrollment process is common for all taxpayers registered under Centre/State/UT Tax Acts etc.
• No paper based enrollment will be allowed and taxpayers need to enroll as a user on the GSTN Portal to enable them for GST compliance requirement viz. return filing, tax payment, etc.
• The taxpayers registered under State VAT and Central Excise can start enrolling from November 8, 2016 (in FAQs, October, 2016 was mentioned) as per plan indicated supra, on GSTN portal. However, the taxpayers registered under Service tax will be enrolled on a later date for which separate intimation will be given.
• No concept of deemed enrollment.
• There is no fee/charge for enrollment with GSTN portal.
• Common enrollment for both Centre GST & State GST and there will be common registration, return and challan for the same.
III. Procedure for Migration of Existing Taxpayers under GST:
(i) Logon through GSTN Portal:
• For the first time login, username and password received from the State VAT/Centre Tax Department is to be provided and in case user name and password is not received, then, contact concerned jurisdiction State/Centre authorities.
• For subsequent login, username and password as created by the taxpayer while enrolling with GSTN portal.
(ii) Prefilled details in enrollment application
The following details will be auto-populated in the enrollment application based on existing data.
• PAN of the Business.
• No concept of deemed enrollment.
• Reason of liability to obtain registration.
• Email Address and Mobile number of primary Authorized Signatory entered during enrolling with GSTN Portal./p>
The legal name, State name and PAN cannot be changed in the enrolment application.
(iii) Information/ Documents required for enrolling with GST
Before enrolling with GSTN Portal, you must ensure to have the following information/ documents available with you:-
a) Provisional ID received from State/Central Authorities.
b) Password received from the State/Central Authorities.
c) Valid Email Address & Mobile Number (only of the primary authorised signatory* appointed by taxpayer or taxpayer himself and not of tax professional, which will be verified by separate one time passwords)
d) Bank Account Number (Bank accounts used for purpose of carrying out business transaction subject to maximum of 10 Bank accounts).
e) Bank IFSC.
Primary authorized signatory is a person who is primarily responsible to perform action on GSTN Portal on behalf of taxpayer. All communication from GSTN Portal relating to taxpayer will be sent to him. For example in case of proprietor, the proprietor himself or any person authorized by him etc.
• State jurisdiction in enrolment application is same as given in existing taxpayers VAT Registration certificate and Centre jurisdiction for Central Excise dealers is as given in Registration certificate. However, Centre jurisdiction for dealers registered only in VAT is to be found out based on the address of Principal place of Business of existing taxpayers.
• Every page of the application is to be saved after filling of the details.
• Aadhaar is not mandatory for filling of enrolment application. However, Digital Signature (DSC) or Aadhaar based E-signing would be required for submission of enrolment application
• Application for enrolment to be mandatory signed by DSC for enrolment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs).
• Application for enrolment can be signed through Electronic Signature (E-sign), which is an online Electronic Signature service to facilitate Aadhaar holder to digitally sign a document.
• Documents required
(a) Proof of Constitution of Business:
In case of Partnership firm - Partnership Deed of Partnership Firm (PDF and JPEG format in maximum size of 1 MB).
In case of Others – Registration certificate of the Business Entity (PDF and JPEG format in maximum size of 1 MB).
(b)Photograph of Promoters/Partners/Karta of HUF (JPEG format in maximum size of 100 KB)
(c) Proof of Appointmentof Authorized Signatory (PDF and JPEG format in maximum size of 1 MB)
(d) Photograph of Authorized Signatory (JPEG format in maximum size of 100 KB)
(e) Opening page of Bank Passbook/ Statement containing Bank Account Number of < Account Number>, Address of Branch, Address of Account holder and few transaction details (PDF and JPEG format in maximum size of 1 MB)
(iv) Generation of Application Reference Number (ARN)
• ARN will be generated after submission of enrolment application.
• It is a unique 15 digit number assigned to each transaction completed at GSTN Portal with first 2 digit regarding alphabets, next 2 digits will be State code, next 2 will be Month, next 2 will be year, next 6 digits will be system generated code and last digit will be check sum digit.
• ARN can be used to track the status of enrolment application.
(v) Acceptance/ Rejection of enrolment application
• The application for enrolment with GSTN Portal can be rejected (after reasonable opportunity of being heard) in case wrong or fake or incorrect document has been furnished/uploaded with DSC or E-Sign.
(vi) Issuance of Provisional and Final Registration certificate
• Provisional Registration certificate will be available on the dashboard of the taxpayer on the appointed date if enrolment application has been filed successfully.
• The final Registration certificate will be provided after verification of documents (within 6 months) by proper officer(s) Centre/State of concerned jurisdiction(s) after appointed date.
(vii) Registration of Multiple Businesses in One State:
• As one PAN allows one GST Registration in a State, register one business entity first. For the remaining business verticals within the State, please get in touch with the concerned jurisdictional authority.
(viii) Afresh registration for Input Service Distributor (ISD)
• An existing ISD taxpayer, need to apply afresh in the GSTN Portal for the State where it desire to seek registration. Concerned Central jurisdictional authority needs to be informed.
C A Vimal Jain, Taxguru.in