GUEST COLUMN
GST - FIRST LEAP OF FAITH - REGISTRATION AND MIGRATION
CA Aman S Haria
There is no iota of doubt that GST will have far reaching effects, and certain unforeseen impacts that no human mind would have anticipated. This Leap of faith into the unknown realm of GST needs to be least painful, least taxing for both the assessees and the department. If the transition is smooth, more focus can be directed towards critical impact areas and business process restructuring. As we approach 1st April 2017, the buzz and the noise around GST keeps getting louder and louder. Since, we have never witnessed such a swift action plan and quick implementation of such a huge tax reform on a pan India level, it is normal and very human to be sceptical and a little concerned.
One of the biggest talking point around GST has been the 'ALL INDIA SINGLE GST ONLINE PORTAL'. It is expected to handle all India web traffic seamlessly, and more importantly make us believe that our previous experiences with site crashes and slow uploading during peak season is a thing of the past. GST is predicted to widen the tax base and at the same time expected to see a steep rise in the number of assessees (registered persons under GST). So, here is the first leap of faith soon approaching and could hit us very soon Registration process and Migration from earlier laws to GST.
The draft rules and formats for registration have been in the public domain for quite some time and it is a critical time to understand these not-so-complicated processes. Two important processes namely Fresh Registration and migration from earlier laws shall be dealt with.
Fresh Application for Registration (except for non-resident taxable person, person required to deduct tax at source u/s 37 and a person liable to collect tax at source u/s 43C)
This process is to be followed by every person who is liable to be registered u/s 19(1) and every person opting for voluntary registration u/s 19(3). Steps to be followed are as under:
#1 Part A of GST REG-01 shall require applicant to provide with the three most important details. Valid PAN, Mobile number and an updated Email Id. PAN shall be validated with CBDT database, Mobile number and email verification via separate OTPs.
#2 After Successful validation of Part A of Form, electronically submit Part B duly signed, along with documents specified in the said Form.
#3 Application shall be forwarded to proper officer, who has to take action within 3 common working days. If Documents and application found in order, proper officer can issue registration certificate. He may require clarification or further information and call for the same in Form GST REG-03
#4 - Applicant has to submit clarifications and information sought by proper officer within 7 working days in Form GST REG-04
#5 In form GST REG-05, the officer can reject the application after recording reasons in writing within 7 common working days
#6 - Or, if no action is taken by proper officer within 7 common working days, the application for grant of registration shall be deemed to have been approved.
#7 - Application for grant of registration is approved by the proper officer within 7 common working days.
One of the most interesting and intriguing highlight of this fresh registration process is the time line. Could this be a reality that registration can be obtained in JUST 3 working days without actually visiting the proper officer personally?
"Only time will tell.."
Many of us are already registered with either our respective States or Central Government. So, ideally, we need not go through the entire registration process all over again. Separate procedure shall be adopted for the existing assessees migrating to GST from the earlier laws. As assessees, we need not burden ourselves much with the back end transfer of data from respective states and CG to the GST portal. Once the GST portal is ready to migrate, it shall send an email (on the existing registered email Id) and a message (on the existing registered mobile number) with the user ID and password generated for existing assessees. Vital and extremely important that one should have the current and functional email IDs and mobile numbers updated with the respective authorities. You would not want yourself stuck without the user Id or password only because the existing data was not updated, would you? The process for migrating assessees seems rather simple and much to the benefit of the assessees.
Migration shall happen for persons having a valid PAN and already registered in the earlier Indirect Tax Laws.
#1 Registered person with valid PAN shall be granted registration on provisional basis in Form GST REG-21 incorporating GSTIN.
#2 Such persons shall electronically submit the remaining / pending information to complete the registration formalities in Form GST REG-20 within specified number of days.
#3 If details found to be correct and complete by proper officer, certificate of registration shall be made available in Form GST REG-06.
#4 - Where the information specified in #2 have either not been furnished or not found to be correct or complete, the proper officer shall cancel the provisional registration granted under sub-rule #1 and issue an order in Form GST REG-22. SCN shall be issued in Form GST REG-23 and principals of natural justice shall be followed.
A natural doubt arises; what if an assessee is registered in Maharashtra under the Maharashtra Value Added Tax Act, 2002 and also registered with the Excise department having his manufacturing unit located in the State of Maharashtra? For each state, there shall be only one registration with one principal place of business. So what should one do? But obvious, use the smart move. The provisional GSTIN generated that requires lesser fields to complete the formalities must be the one used for migration purposes. (numerology-angle strictly not considered!)
The GST council has come out with a plethora of forms for registration, 26 - precisely. But this is not as scary as the number seems, since most forms are not really relevant as on date and further just so that forms do not get mixed up, a different number is assigned to every possible communication either by the assessee or the department.
Dont we all believe in the quote, First impression is the last impression (or in most of our cases, at least a long lasting impression)? The Government also would not want to start this reform on the wrong foot. First interaction with the GST portal will be in the course of registration and migration, and much shall be said and discussed (opinions will be made!) after the first interaction with the portal. A lot is riding on the back of a successful GST portal and as hopeful and optimistic professionals, we all hope that GST hits the right chord with the audience, when transition procedures get underway. In this era of remixes, hoping the GST-melody is as soothing as Mohammed Rafi songs are.
[The author is Manager at S B Gabhawalla & Co., Chartered Accountants. Views expressed are strictly personal]