GSTTaxation

GST Registration For VAT, Service Tax Holders

A simplified GST return format will be introduced from 1st April, according to the honourable Finance Minister's budget speech. As a result, SMEs and VAT & Service Tax holders will be able to move smoothly through the taxing system. Since the GST regime went into effect, over 1.03 crore businesses have been registered under it. Continue to read to know more ..

Introduction 

All indirect taxpayers must be overjoyed at the arrival of GST because they will not have to pay multiple taxes to various authorities anymore. Now, they will have to register for GST by getting a GSTIN and then they can handle the entire system with relative ease as compared to the previous system.

This year’s biggest announcement has been the rollout of GST or Goods and Services Tax. By registering to GST alone, traders and businesses can do away with copious amounts of registrations. With the implementation of GST looming (April 1, 2017 for all, and beginning November 29, 2016 for existing taxpayers), it is time to understand the procedure for registering into this new system.

What is GST Registration?

All businesses carrying out a taxable supply of the goods or the services under the GST regime and whose turnover exceeds the threshold limit of  ₹ 20 lakh/ 10 Lakh as applicable is required to register as a normal taxable person. This process of registration is referred to as GST registration.

Why is the GST Registration Important?

The GST registration is important because it will enable the taxpayer to avail the various benefits that are available under the GST regime. One such benefit is to avail the seamless input tax credit. Multiple taxes have been clubbed under the GST and hence the cascading of taxes that was prevailing earlier is no longer applicable.

The timely registration will help you to avoid any kind of interface with the tax authorities.

What is a Threshold Limit?

In order to provide a relaxation to small suppliers it has been provided that every supplier will be liable to be registered under this act in the State form where they make a taxable supply of goods or services if the aggregate turnover in a financial year exceeds ₹ 9 lacs. However, this limit is ₹ 4 lacs for people conducting business in the NE states including Sikkim.

Generally, aggregate turnover is the sum of all the taxable and non-taxable supplies, exempt supplies, and exports of goods and/or services of a person with the same PAN, calculated on an all-India basis, excluding taxes imposed by the CGST Act, SGST Act and IGST Act, respectively. The aggregate turnover excludes the value of supplies on which the reverse charge tax is levied and the value of inward supplies.

What is a Casual Registration?

A person who sporadically supplies the goods and/or services in a territory where the GST is applicable but doesn’t have a fixed place of business. Such an individual shall be treated as a casual taxable person as per the GST.

Example: A person who has a place of business in Pune supplies taxable consulting services in Bangalore where he has no place of business would be treated as a casual taxable person in Bangalore.

What are penalties for not registering under the GST?

An offender not paying the tax or making a short payment has to pay a penalty of 10% of tax amount due subject to a minimum of ₹10, 000. The penalty will be as high as 100% of the tax amount the offender has evaded i.e., in case of a deliberate fraud.However, for other genuine mistakes, the penalty is 10% of the total tax due.

GST Enrollment for Taxpayers

Taxpayers, who have already registered for taxes within their state or with the central government, are eligible to enrol for GST. With the state of Goa announcing the last date for GST switchover for existing taxpayers, it is time to ensure we have everything in hand before a similar announcement in other states too.

The taxpayers who are eligible for GST registration are those who have already registered with:

  1. Luxury tax
  2. Entertainment tax
  3. Sales Tax or VAT
  4. Service tax
  5. Central Excise

By enrolling with GST, the date given for the online GST registration will get automatically updated in the new integrated tax system.

Steps for enrollment of existing taxpayers under the GST:

The procedure for enrolling into the GST is as follows:

GST Registration

The registration of GST is totally online, through the authorised GST portal. The government has emphasised that the whole enrollment will happen through a paperless system wherein taxpayers visit the GST portal to enrol themselves for GST.

GST registrations are mandatory for all taxpayers with a supply turnover of over ₹ 20 lakh per annum.

Provisional ID

The concerned State authorities provide a ‘Provisional ID and password’ for all existing taxpayers. This Provisional ID is given by the state authorities (concerned for collecting taxes).

The Goa government, with the last date specified for GST registration as November 29, had given out the IDs and password between November 9 to 11, in their concerned government offices.

The Provisional ID is usually in the below-mentioned format:

State Code –> PAN of the Taxpayer –> Entry number of the PAN holder in the State –> ‘Z’ as default –> Unique Number

Documents required for GST registration:

The following are the mandatory documents required for GST registration in any state across the country:

  1. Provisional ID and password (collected from state authorities)
  2. Email address – where communications will be sent
  3. Mobile number- SMS intimations will be sent
  4. Bank details – Account number, IFSC code and so on
  5. Constitution of business – Documented proof, such as partnership agreement, registration certificate and so on, all in soft copy. The file should not exceed 1MB limit to upload on GST site)
  6. Appointment of authorised signatory (in PDF or JPEG, 1MB file size)
  7. Photographs of promoters/partners or karta (JPEG, with file size not more than 100KB)
  8. Copy of the opening page of bank passbook in PDF or JPEG, with file size not exceeding 1MB)

Ensure that the bank details (passbook page scanned) contains your account number, branch, IFSC code, and a few transaction details. The banks will provide the same.

GST Registration Form

Now, with all the documentation in hand, enter the portal with the provisional ID and password provided.

The page will open up to ‘GST registration form’. Fill in all the details, and upload the scanned (soft copy) documents already collected, and wherever relevant.

After submission, an acknowledgement form will be generated as a proof. This acknowledgement is very crucial for further communications. Save it on your PC or take a hard copy and keep it with you for future references.

The enrollment process itself is simple, and if you have all proof of documentation, the whole procedure will take a few minutes to complete.

 

Here are a few pointers to further expand your knowledge on the GST registration.

  1. Provisional ID and password are mandatory. Please collect it from State authorities whenever the announcement for the same comes across.
  2. A primary authorised signatory of a business, such as a proprietor, an authorised partner or any person who is authorised to sign on behalf of the business, is responsible for answering any queries and will register for GST on the portal.

Conclusion 

As a registered taxpayer, certain details about the business, such as the PAN and name, reasons for being required to register, and your email address and mobile number, will already be stored in the GST system. As they have been migrated from existing tax systems to GST, they cannot be changed. Those that are blank need to be filled in, and necessary documents need to be uploaded. For any help contact our team .

 

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