With the Central Government, most likely to implement biggest tax reform in India by July 1st, 2017, the transition to the newer model is already underway. For this purpose, all the taxpayers or assesses that are presently registered under various indirect tax laws needs to understand the GST registration process as per the criteria laid down by the GST model law.
This transition is being carried on in a phased manner to avoid any complications. The state VAT assesses can begin the GST registration process starting November 2016 and excise and service tax assesses could also register them starting January 2017. Now, the GST migration window is again opening on June 1st, 2017 for another 15 days to give a last chance to those assessees who could not enroll earlier.
Here is a complete guide to the GST registration process:
1.Applicability of GST: Persons required to obtain registration under GST are classified in following three categories:
- Persons who hold a valid Permanent Account Number (PAN) for taxation purpose as well as presently registered under existing indirect tax laws;
- GST is applicable to all the businesses whose turnover is more than Rs. 20 lakhs. This limit has been kept at Rs. 10 lakhs for certain special category states that include Arunachal Pradesh, Manipur, Assam, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand;
- GST registration is mandatory for specified persons such as casual traders, persons who are liable to deduct TDS, agents of persons providing taxable services, non-resident persons, etc.
The turnover mentioned here is the aggregate turnover (includes value of taxable, exempt and export supplies) of the business in whole of India not as per state. So, if a business is having its businesses in two or more states, then the total turnover from all the locations will be considered to check the applicability of GST.
2.Migration to GST: GST migration means enrollment of the persons registered under present indirect taxation laws on the GST portal for transitioning them to GST regime. GST enrollment is being carried on for validating the data of the existing taxpayers and update their records with other key information.
- For this purpose, assessee need to obtain a provisional identification and password from the CBEC or State Commercial Tax Department that can be used to access the GST portal. Provisional IDs are issued only to those persons who have a valid PAN number (except for NRI who can get registration based on other documents);
- Then, the assessee will need to create a new user ID and password to obtain the provisional GST registration number in Form GST REG-25;
- Within 3 months, the assessee will be required to upload prescribed documents like proof of constitution of business, director details, etc. along with the Form GST REG-24;
- If all the information and documents are in order, final registration will be issued in Form GST REG-06.
- If there is any mismatch in the information provided then a show cause notice in Form GST REG-27 and a hearing is held before cancelling the provisional registration. If the assessee fails to provide required documents and information even after the hearing, then provisional registration is cancelled by issuing an order in Form GST REG-26.
As per the guidelines of CBEC, only one provisional registration will be issued by the Central indirect tax authorities in respect to each valid PAN number.
Also, if a person was previously registered under existing indirect tax laws, but is not required to register under the GST, then he can give application to cancel provisional registration in Form GST REG-28.
3.New GST registration process: Here are the steps for new registrations under the GST bill:
- First, you need to fill Part-A of the Form REG-01 (Which can be downloaded from here) including information regarding your PAN number (except for NRI who can get registration based on other documents), mobile number, email address, and then submit the form on GSTN portal or through Facilitation Centre (notified by board or commissioner);
- Then, the PAN get verified on GST portal and other information is verified by sending an OTP;
- Then, an ARN number is generated for all the future references;
- Now, fill Part-B of the GST REG-01 and submit the form after attaching all the required documents:
- Photograph of the proprietor, partners, managing trustee, or any other authorized signatory;
- Proof of constitution of business,
- Address proof of the location of the business;
- Bank statement or first page of bank pass book;
- Authorization form for each authorized signatory.
- In case any other additional information is required, it is requested by issuing Form GST REG-03. You need to respond to this form within 7 working days by providing all details in Form GST REG-04;
- If all the information and documents provided are seems to be satisfactory, a registration certificate is issued via Form GST REG-06 within 3 working days from receipt of Form GST REG-01 or GST REG-04;
- If the details provided by you is not satisfactory, the application is cancelled by issuing Form GST REG-05.
Note: A person having multiple business vertical in a state, then he is required to go for separate GST registration process for each business vertical. Click here to know how GST would impact small business.