Draft Rules for Registration under GST

Draft Rules for Registration under GST

Dear Readers,

In continuation of our previous paper, please find details of various draft forms prescribed under the Draft Rules for Registration, their purpose and timelines.

Form No.	Purpose	Time period
GST REG-01	Application for registration	Within 30 days of becoming liable.
GST REG-02	Acknowledgement for receipt of application for registration	On submission of REG-01
GST REG-03	Notice for seeking additional information for REG-01	Within 3 common working days from date of submission of REG-01
GST REG-04	Filing additional information	Within 7 common working days from date of receipt of REG-03
GST REG-05	Order of Rejection	Within 7 common working days of receipt of REG-04
GST REG-06	Registration Certificate	Within 7 common working days of receipt of REG-04
GST REG-07	Application for registration – TDS / TCS	RC in REG-06, within 3 common working days from date of submission of REG-07
GST REG-08	Order of cancellation of TDS / TCS	Officer satisfied for no requirement to be registered for TDS/TCS
GST REG-09	Application for allotment of Unique Identity Number	RC in REG-06, within 3 common working days from date of submission of REG-09
GST REG-10	Application for registration – Non-Resident	At least 5 days prior to commencement of business, shall be given temporary identification number for making advance tax payment
GST REG-11	Application for amendments for REG-01, REG-07, REG-09, or REG-10	Within 15 days of such change
GST REG-12	Order of amendment for – change in (a) name of business, (b) Principal place of business, (c) details of partners/directors/karta/managing committee/board of trustees/CEO For PAN change - For any other amendment -	Within 15 common working days from date of receipt of REG-11 Fresh registration required in REG-01 On submission of REG-11
GST REG-03	Notice for seeking additional information for REG-11	Within 15 common working days from date of submission of REG-11
GST REG-04	Filing additional information for REG-11	Within 7 common working days from date of receipt of REG-03
GST REG-05	Order of Rejection for REG-11	Within 7 common working days of receipt of REG-04
GST REG-13	Order of allotment of temporary registration – Suo Moto Registration	Within 30 days shall file REG-01 or appeal against temporary registration
GST REG-14	Application for cancellation of registration	Not before 1 year from effective date of registration in case of voluntary registration
GST REG-15	Show cause notice for why registration should not be cancelled	To reply within 7 days of receipt
GST REG-16	Order of cancellation of registration	Within 30 days of REG-14 or date of reply to REG-15
GST REG-17	Application for revocation of cancellation	Within 30 days from the date of service of order
GST REG-03	Notice for seeking additional information for REG-17	Within 3 common working days from date of submission of REG-17
GST REG-04	Filing additional information for REG-17	Within 7 common working days from date of receipt of REG-03
GST REG-18	Order of approval of revocation of cancellation	Within 30 days from date of receipt of REG-17 or REG-04
GST REG-19	Notice for clarification for application for revocation of cancellation	Within 30 days from date of receipt of REG-17
GST REG-05	Order of Rejection	Within 30 days from date of receipt of REG-17 or REG-04
GST REG-20	Application for Enrolment of Existing Taxpayer	As per Enrolment Schedule given at www.gst.gov.in
GST REG-21	Provisional registration Certificate	On filing of REG-20
GST REG-22	Order of cancellation of provisional registration Certificate	Where particulars furnished not correct
GST REG-23	Intimation of discrepancies in Application for Enrolment	Show cause
GST REG-24	Application for cancellation of registration for migrated taxpayer not liable for registration under GST Act	Person registered under earlier law who is not liable under the GST Act
GST REG-25	Application for extension of registration period by Casual/non-resident taxable person.	Before the last date of certificate
GST REG-26	Form for field visit report.	For physical verification of place of business

Cancellation of registration can happen in the following cases:

a)    Where the business is discontinued, or transferred;

b)   Where taxable person is no longer liable to be registered under Schedule V;

c)    Where registered taxable person has contravened provisions of the Act;

d)   Where Composition dealer has not furnished returns for 3 consecutive tax periods;

e)    Where any other taxable person has not furnished returns for continuous period of 6 months;

f)     Person who has taken voluntary registration has not commenced business within 6 months from date of registration;

g)    Where registration is obtained by fraud, wilful misstatement, suppression of facts.

Registration granted or amended or cancellation or revocation of cancellation under one Act (say CGST) shall be deemed to be under the other Act (say SGST) and vice versa.

Trust the above information is found useful to the readers. 

Comments, suggestions and improvements are most welcome.

Best Wishes,

Amol Mahajan

Registration under Proposed GST Regime

Registration under Proposed GST Regime

Dear Readers,

With positive signals coming from the resolution of the deadlock between the Centre and the States over ‘dual control’ issue, the possibility of implementation of GST in India is positively looked at 1^st July 2017.

In this backdrop, let us understand some important concepts under the GST, to begin with Registration.

Section 23 of the revised Model GST law requires every person who is liable to be registered under Schedule V of this Act, to register in every such State, within 30 days from when he becomes liable. 

Schedule V requires every supplier shall be liable to register in the State from where he makes a taxable supply, if his aggregate turnover¹ in a financial year exceeds Rs.20 lakhs.  However, if you make a taxable supply from the North-Eastern States, or Himachal Pradesh, or Uttarakhand, or J&K, you will have to get registered if your aggregate turnover¹ in a financial year exceeds Rs.10 lakhs.

Further if the Principal (Registered Taxable Person) who on intimation, supplies inputs without payment of tax to a registered job-worker, who intern supplies goods on completion of job-work within 1 year, with payment of tax within India or with/without tax for Export, shall be treated as supply of goods by the principal and shall not be included in the aggregate turnover of the registered job-worker. 

Schedule V further lists out the persons who are required / not-required to be registered:

Persons NOT liable to be registered:

a)    Exclusively in business of supplying goods and/or services which are not liable to tax or wholly exempt from tax.

b)   Agriculturist.

Persons liable to be registered irrespective of threshold:

1)         Person making inter-State taxable supply;

2)         Person liable to pay tax under reverse charge;

3)         Agents;

4)         Casual taxable person²;

5)         Non-resident taxable persons³;

6)         Person supplying Online information and database access or retrieval services (OIDARS) from place outside India to un-registered person in India;

7)         E-commerce operators;

8)         Person who supplies goods through e-commerce operators;

9)         Input Service Distributor (ISD)⁴ (separate registration);

10)      Person required to deduct tax at source (separate registration);

11)      Person required to collect tax at source (separate registration);

12)      Such other person as may be notified by the Govt.

Schedule V further states that every person who is registered under the earlier law, shall be liable to be registered with effect from the appointed day⁵.

Other requirements for registration are:

a)        For the purpose of registration PAN is compulsory, except for non-resident taxable person for whom any other document will be prescribed.

b)        For the purpose of tax deduction, TAN is compulsory.

c)         Specialised agency of UNO or organisations notified under United Nations (Privileges and Immunities) Act, 1947, shall be granted Unique Identity Number.  Any other person notified by Commissioner shall also obtain Unique Identity Number.

d)        Voluntary registration is permissible under the Act.

e)         Separate registration is permissible for multiple business verticals in a same State.

The Govt. may notify categories of persons exempted from obtaining registration.

Special provisions for casual taxable person or a non-resident taxable person:

1)        A casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to commencement of business.

2)        Casual taxable person or a non-resident taxable person can do supplies only after issuance of certificate of registration.

3)        Casual taxable person or a non-resident taxable person to pay advance tax for estimated tax liability at the time of application for registration.  He shall be given a temporary identification number for the same.

4)        Certificate issued to a casual taxable person or a non-resident taxable person shall be valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier, which can be extended on request by further period not exceeding 90 days. 

Certificate of Registration shall be effective from the date person becomes liable to register, where application is submitted within 30 days from such date, else date of grant of registration.

Every Registration Certificate shall be displayed at prominent location at the principal place of business and at every additional place of business.  The GSTIN (which will be 15 digit alpha numeric structure) shall be displayed in the name board exhibited at the entry of the principal place of business and at every additional place of business.

In the next paper we shall see the proposed draft forms prescribed under the Draft Registration Rules and cancellation of registration.

Trust the above information is found useful to the readers. 

Comments, suggestions and improvements are most welcome.

Best Wishes,

Amol Mahajan.

1.aggregate turnover = All India, Taxable + Exempt (Not Taxable + Nil Tax + Exempt u/s 11 by notification or order) + Exports + Inter-State, supplies of goods and/or services having same PAN, but does not include = CGST + SGST + IGST + Reverse charge supplies + Inward supplies.

2.Casual taxable person – means a person who occasionally supply goods and/or services in the course or furtherance of business, in a taxable territory where he has no fixed place of business.

3. Non-resident taxable person – means a taxable person who occasionally supply goods and/or services in India, where he has no fixed place of business.

4.Input Service Distributor (ISD) – means Office of the supplier of goods and/or services which receives tax invoice for receipt of input services and issues prescribed document for distribution of credit of CGST/SGST/IGST, to the supplier of taxable goods and/or services having same PAN.

5.Appointed day – means the day on which section 1 of the Act comes into effect.

GST Enrolment of existing VAT assesses

|| Om Shree Ganeshaya Namah ||

  

28-11-2016

 Dear Readers,

 GST Enrolment of existing VAT assesses

Amidst the demonetisation turbulence, the smooth transition to GST is facing some jerks in the form of various States expressing its disagreement on the proposed administrative control under the GST regime, the proposed highest tax slab rate (28%) being considered as regressive, etc. 

Regardless, the Centre is keen to roll out the GST law by 1^st April, 2017 and accordingly have initiated the enrolment process on the Common Portal maintained by GSTN @ www.gst.gov.in

All the existing taxpayers under the Central Excise, Service Tax, State Sales Tax/VAT, Entry Tax, Luxury Tax and Entertainment tax are required to get enrolled on this portal.  In the first phase the assesses who are registered with State VAT department are eligible to enrol as the prescribed time table.  There is no paper based enrolment or deemed (auto) enrolment.

The Procedure for Enrolment of existing VAT assesses is given below:

1.   To login to the GST common portal a provisional Id and the Password is required to be obtained from the existing Sales Tax/VAT Authorities. 

2.   With the use of the provisional Id and the Password, the assesse to login to the common portal and to create its new username and password, with a valid e-mail id and a valid mobile number, which will be used to access this portal thereafter.

3.   The enrolment form has a Dashboard with the following 8 tabs to enter the information:

(a)  Business Details with proof of constitution of business to be uploaded, (here the name as per PAN, the PAN, business name as registered with Sales Tax/VAT authorities and the State name shall be auto-populated in the system which will be non-editable)

(b)  Promoters/Partners Information with their photographs to be uploaded, (here promoters may be read as Directors in case of Company form of organisation)

(c)  Authorised Signatories Information (including who shall be the primary authorised signatory), with their appointment proof and photographs to be uploaded,

(d)  Details of Principle place of business (within the State),

(e) Details of additional place of business (within the State),

(f)  Details of top 5 Goods and Services dealing-in with their HSN and SAC coding respectively,

(g)  Details of at least one Bank Account with copy of front page of passbook to be uploaded, and

(f)  Verification of the application by signing and submitting the same.

          The form also provides to save and retrieve the information saved.

4.   There is a facility to upload and update the Digital Signature Certificate (DSC) of the Authorised Signatory, onto the portal.  It is mandatory to sign the enrolment form with DSC by the Company and LLP form of organisation, and for others it is optional.  Others can also sign the enrolment form with e-signature.  E-signature is linked to Aadhaar of the Authorised Signatory, which will generate a One-time password (OTP) on the Aadhaar registered mobile number.  The same has to be used to e-sign the enrolment form.  There is no third way to sign the form.

5.   Once the enrolment form is submitted, an Acknowledgement Receipt Number (ARN) will be generated, the same will be shown under the Migrated status and on the appointed date (i.e. the date on which the GST law shall come into force) the same will be changed to Active status automatically.  Any amendment to the enrolment application can be done only after the appointed date. 

6.   It is possible to submit the enrolment form without signing at this stage, however the same needs to be signed subsequently within 6 months, if not will be cancelled.

7.   On the appointed date a Provisional Enrolment Certificate will be issued.

     

A video based tutorial is provided under the Help tab on the www.gst.gov.in portal which is extremely helpful.  Users must once view the same to have more comfort in filing the GST enrolment form on the portal.

Trust the above information is found useful to the readers. 

Comments, suggestions and improvements are most welcome.

Best Wishes,

Amol Mahajan.

GST in India - An Overview

|| Om Shree Ganeshaya Namah ||

11-11-2016

Dear Readers,

Starting a blog with the title tax-laws, I intend to share my understanding on the subject of tax and other laws, in a very simple language, for the benefit of all.

Goods and Services Tax (GST) is around the corner in India (expected date of implementation being 1^st of April 2017), has created a lot of curiosity coupled with anxiety, not only in the minds of the business community but also the ultimate consumers at large.  GST is a unified consumption tax. Since GST is a uniform tax across the country, tax rate shall not determine the place of doing business in any part of the country.  Also since GST is a destination based or consumption based tax, it will be distributed amongst the states in the proportion of consumption of goods and services. 

Around 150 countries across the globe have GST mechanism, with France being the first country (in 1954) and Malaysia being the latest (in 2015).  USA does not have GST.

Most of the countries have a single tax as GST, however a very few countries like Brazil and Canada has “dual GST”.  India being a Federal country, has adopted ‘dual GST’ mechanism.

The Centre shall collect Central GST (CGST) and the States shall collect State GST (SGST) simultaneously levying it on a common base.  Also, Integrated GST (IGST) would be levied on inter-State supply (including stock transfers) of goods or services and shall be collected by the Centre.  Import of goods or services would be treated as ‘inter-State’ supplies and would be subject to IGST in addition to the applicable customs duties.  Exports would be zero-rated.

Unlike the Excise duty being levied on ‘manufacture’ of goods and Sales Tax/VAT being levied on ‘sale’ of goods and Service Tax is levied on ‘provision’ of services, GST shall be levied on “Supply” of goods and services.

Although India has walked in this direction in 2005, when the Value-Added Tax (VAT) was introduced to replace the Sales Tax regime across the country, a mega-merger of significant indirect taxes is now proposed under GST regime.  Taxes like Central Excise, Countervailing Duty (CVD) and Special Additional Duty (SAD) under the Customs law, Service Tax, Central Sales Tax, Sales Tax or VAT, Purchase Tax, Entry Tax, Entertainment Tax, Luxury Tax, and related Surcharges and Cesses thereto shall be included in the new GST.

GST is likely to apply to all goods and services except for (a) Alcohol for human consumption where State Excise and VAT will be applicable, (b) Electricity where Electricity Duty will be applicable and (c) Sale / purchase of Real Estate where Stamp Duty and Property Taxes will be applicable. GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural gas) would be applicable from a future date to be proposed. Tobacco and tobacco products would be subject to GST, in addition to the Central Excise duty levied by the Central Govt.

Necessary Constitutional amendments have taken place with Presidential assent.  A GST Council has been set by the Union Cabinet with Finance Minister as its Chairperson.  The GST Council shall play a very important role in implementation of GST in India and has a large number of recommendatory powers including tax rates.  The GST Council has recommended the 4 slabs of GST rates being 5%, 12% 18% and 28%.  The Council has also recommended threshold exemption to be fixed at Rs.20 lakhs for all the States except the States specified under Article 279A of the Constitution (North Eastern, Himachal Pradesh, Uttarakhand, J&K) where threshold exemption limit is fixed at Rs.10 lakhs.

The Model GST law is also released by the Ministry of Finance (MoF).  Central Board of Excise and Customs (CBEC) has also released draft rules on Registration, Invoice, Payment, Returns and Refund for public comments.

Goods and Services Tax Network (GSTN), a Public Private Partnership (PPP) Company under section 25 of the Companies Act, 1956 is formed, with Centre and States holding 24.50% shares each and the Financial Institutions (FIs) holding 51%.  GSTN would provide three basic front end services to taxpayers, namely registration, payment and returns.

GSTN is managing the GST Common Portal @ www.gst.gov.in .  Let us understand the migration process of existing registered tax payers to GST regime, in the next paper.

Comments, suggestions and improvements are most welcome.

Best Wishes,

Amol Mahajan.