GST Registration Applicability of Existing Taxpayers
Goods and services tax (GST) is a major tax reform after the independence of India. After a long struggle the parliament passed the constitutional amendment act enabling passing of GST, which is proposed implementation effective from 1st April 2017 (FY 2017-18), there is wide ranging confusion with respect to seeking GST Registration, though this article we are answering some of the concerns which a taxpayer may have.
- For New Start-ups & entrepreneurs starting operation in FY 2016-17 : As the Goods and services tax is not in force now and shall be effective only after 1st April 2017, hence the business transaction is still to be taxed under the current regime of taxes ie, vat on sale and service tax on the provision of services. Those businesses which have not registered themselves with VAT or service tax department is still required to be registered with vat department and service tax department if they are dealing in transactions which make themselves liable for tax under current regime. Hence all start-ups are required to obtain registration under the old law of vat or service tax as may be applicable and after obtaining the registration have to seek a fresh round of registration under Goods & Service Tax Act so that they are able to continue doing business after 1st April 2017; The tax rate and compliance shall be as per existing law of vat and service tax until the GST comes in effect.
- Transition to GST of the registered business: All existing taxpayers & which seeks & obtain registration until 31st March 2017, need to obtain a fresh registration with the GST for the tax payment under GST & Compliance thereof. Recently government issued directions to the trade to seek registration under GST under transitory provisions which is applicable to all tax payer registered under one or more of following authorities
- Central Excise
- Service Tax
- State Sales Tax (VAT)Entry Tax
- Luxury Tax
- Entertainment Tax
- The registration with GST is open only for the existing registered tax payers, the new registration with GST is not effective now and it shall be available once notification is issued to that effect. In other words, the new companies or LLP which is incorporating now or before 31st March 2017 need to seek registration under old applicable law if the transactions are such which need registration.
- For the smooth transition to GST, the government has released a schedule within which the taxpayer need to seek registration with the GST authority. The schedule is as under
STATES START DATE END DATE Pondicherry, Sikkim 08/11/2016 23/11/2016 Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh 14/11/2016 29/11/2016 Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram 30/11/2016 15/12/2016 Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan 16/12/2016 31/12/2016 Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh 01/01/2017 15/01/2017 Service Tax Registrants 01/01/2017 31/01/2017 Delta All Registrants (All Groups) 01/02/2017 20/03/2017
- We shall be assisting the taxpayers in seeking the transitionary registration with the GST department, for this purpose they may contact us at email@example.com or call us at our customer care number
- The transition to GST for the existing tax payers is based on the data which is already with the tax department, the GST system will pull the data in the GST form by auto populating the same after the user verification is complete. The taxpayers shall not be able to change the PAN of the business, Legal name of the business, State, Reason of liability to obtain registration, Email and mobile number as such. However, in case the trade name is different from legal name then the same may be edited.
The process of registration with the GST
For existing tax payers is as per following steps
- Step 1: Enter the Username (Provisional ID) and Password provided by the state vat authority, the tax payer must approach the local vat office where they are registered to obtain temporary user id and password. For assistance on this setindiabiz can be contacted.
- Step 2: Enter Mobile Number and Email Address of the authorized signatory of the business entity All future correspondence from the GST portal will be sent on this registered Mobile Number and Email Address. The email id and mobile must be entered only of the AR of the tax payer and not of the professional which is assisting the tax payer in seeking registration with GST.
- Step 3: The GST department shall sent a one time password (OTP) on the email id and mobile number punched as per step-2 above, the same need to be entered in the application and be verified.
- Step 4: The necessary information pertaining to the taxpayer need to be entered with respect to business details of the taxpayer, details of its promoters & directors, its authorised signatory, principal place of business, details of any additional place of business, the particulars of goods as per HSN Code and Services as per SAC Code, details of Bank. The documents are required to be uploaded in support of the information so provided in the application, I am dealing with the list of information and documents in following paragraphs.
- Step 5: The application then need to be digitally signed, after application is submitted within 15 minutes the provisional number is sent to the registered email of the tax payer
- Step 6: After confirmation of all the information and completion of verification process the GST department shall issue the registration certificate.
- The Information needed for the GST registration is as under.
- Provisional ID & Password from the vat department, Please contact existing ward officer for issuance of the GSTIN and password.
- Valid email address, the email id must belong to taxpayer and not of professional as the notices in future shall be sent to this email id and any default have serious consequences and heavy fine under GST. The department shall be verifying the email by sending an OTP
- Mobile number, which shall be verified by way of OTP
- Bank Account number and IFSC Code of the Bank
GST Registration Documents which must be submitted for existing taxpayers are as under
- Proof of the Constitution of Business, ie; Certificate of Incorporation in case of company or LLP and any other certificate issued by government in any other cases. (file size must be less than 1 MB)
- The Copy of MOA & AOA in case of company, LLP Agreement in case of LLP and Partnership Deed in case of partnership deed. (file size must be less than 1 MB)
- The Photograph of promoters/partners/Karta of HUF (JPEG format in maximum file size of 100 KB).
- Any documentary proof of appointment of authorised signatory, in case he is director DIR 12 or FORM 32, and in all other cases appointment letter in case AR is employee and the Board Resolution is needed (file size must be less than 1 MB)
- . Photograph of the Authorised Signatory (file size must be less than 1 MB)
- Proof of principal place of business, which can be ownership papers of the premises if the premises is owned by the taxpayer, in case it is rented then rent agreement.
- The first page page of passbook/statement containing Bank account number, Address of branch, Address of account holder, Few transaction details (file size must be less than 1 MB)
- Digital Signature of Class 2 with validity.