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GST Registration

SAHU & ASSOCIATES: Who need to register under GST:

Chapter VI of proposed Goods and Services Tax Law 2016 explains the provisions regarding registration under GST. As per Section 19, every person who is registered under Central Excise law, Service tax law, Central Sales tax or under State VAT law shall be liable to be registered under this Act with effect from date of enactment of this Act.

The Goods & Services Tax (GST) Council has decided that businesses in the North-eastern and hill states with annual turnover below Rs.10 lakh would be out of the GST net, while the threshold for the exemption in the rest of India would be an annual turnover of Rs.20 lakh.

Any person whose turnover is within the above limit wants to apply for registration, can voluntarily do so under section 19(3).

Anyone who undertakes the following activities should register under GST irrespective of annual turnover :

(1) Inter-state supply
(2) Person liable for payment of GST under reverse charge basis
(3) Casual Taxable person
(4) Non-resident taxable person
(5) Person Supplying a goods on behalf of other person as an agent or otherwise
(6) Input service distributor
(7) Person supplying goods and/or services [other than branded goods] through electronic
commerce operator
(8) Electronic commerce operator.
(9) An aggregator supplying goods under his own brand name.

Time limit for registration :

For those who are registered under existing VAT law, Service tax law or Central Excise law will get automatically registration number based on PAN but for new dealers the time period will be :

Category Time limit
A dealer crossing threshold limit as specified limit. Within 30 days from crossing such under GST Law.
Other than above becomes liable. Within 30 days from the date on which he

Following documents are required for registration under GST :

For Private limited company -
1. Certificate of incorporation
2. Memorandum of Association
3. Articles of Association
4. PAN of the Company
5. List of directors
6. Address proof of directors
7. Board resolution
8. Identity proof of directors

For Limited Liability Partnership -
1. Certificate of incorporation
2. List of partners
3. Address proof of partners
4. Identity proof of partners
5. LLP agreement
6. PAN of LLP

For Sole Proprietorship -
1. PAN of Proprietor
2. Address proof of Proprietor

Registration Process :

GST registration process will be online through a portal maintained by Central Government of India. Government will also appoint GSPs (GST Suvidha Providers) to help businesses with the registration process.

Based on the information provided by GSTN (Goods and Service Tax Network), registration process will be:

1. Online application:

A person needs to apply online for registration either through GSTN Portal or through Facilitation center in such form along with such documents as may be prescribed. The application must be signed using digital signature. In absence of digital signature, taxpayer would have to send a signed copy of the summary extract of the submitted application form printed from the portal to a central processing center to be operated by GSTN.

2. Confirmation message:

Once a completed application is submitted online, a message asking for confirmation will be sent through e-mail and SMS to the authorized signatory of the applicant. On receipt of such confirmation from the authorized signatory, acknowledgement number would be generated and intimated to the applicant.

3. Verification of documents under GST laws:

The GST common portal shall carry out preliminary verification / validation before submission of the application form. The hard copy of the documents will not required to be sent to authorities if the same is digitally signed. In the absence of digital signature, taxpayers would have to send a signed copy of the summary extract of the submitted application form printed from the portal to a central processing center to be operated by GSTN. After verification if the uploaded documents and information are in order same will be approved by both the Centre and State authorities and registration certificate shall be generated automatically. If during the process of verification, one of the authorities raises some query or notices some error, the same shall be communicated to the applicant either by the Tax Authority directly or through the GST Common Portal and also simultaneously to the other authority and to the GST Common Portal within 3 common working days.

4. Grant of Registration Certificate :

The Central/State authorities must respond on application to GSTN portal within 3 working days, eithercommunicating approval or raising a query. In case non communication of approval or rejection, the application shallbe deemed to be approved by the authorities and GSTN portal shall generate the registration certificate and willcommunicate to the Applicant through e-mail and SMS.

Migration of existing registrants:

The Dealers registered under VAT laws of various States and registered under Service Tax or Central Excise will be granted GSTIN based on their validated PAN. On the basis of validated PAN GSTIN shall be generated and intimated to taxpayer through State and Central authorities. The remaining data shall also be collected by authorities and verification exercise shall be conducted without affecting the routine working of concerned departments.

Conclusion :

GST is now a reality and it is far more complex and stringent when it comes to compliance. Enrollment is only a procedural aspect; however, the real game will begin from April 1, 2017. I would recommend all the existing taxpayers or the newcomers to prepare for GST. The penalties concerning it could cost you few lakh even for a small mistake.

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GST Registration