What is GST Migration?
GST migration is related to the migration of taxpayers who were earlier registered under Central Excise, Service Tax which is to be replaced by Goods and service Tax from 1st July 2017.
In India, Goods and Services Tax (GST) has been implemented from 1st July 2017 and GST migration started from 2016. All the entities registered under VAT or Central Excise or Service Tax did not migrate to GST, therefore the time-limit for GST migration has been extended by another three months until the end of September 2017. It is required for all entities having VAT or Central Excise or Service Tax registration to obtain GST registration by migrating their data to the new system without fail. Goods & Services Tax (GST) will apply to all Indian service providers, traders, and manufacturers, once their turnover exceeds Rs. 20 lakhs. GST subsumes a variety of state taxes such as VAT, Entertainment Tax, Luxury Tax, octroi and central taxes such as CST, Service Tax, and Excise Duty. GST is required to be charged at every step of the supply chain, with complete set-off benefits available. The GST procedure is completely online and requires no manual intervention. There will be a composition scheme under GST for businesses with a turnover of fewer than Rs.50 lakhs.
To complete GST migration, entities registered under VAT or Central Excise or Service Tax would have to receive a provisional user id and password. GST migration can be completed by providing additional information under GST, using the provisional user id and password. After the completion of GST migration application, provisional GSTIN is provided to the business. Provisional GSTIN can be used by the taxpayer to transact business and the provisional ID would be confirmed and made final GSTIN by the Government automatically.
Provisions regarding the migration of existing taxpayers to the new Goods and Service Tax law are provided under RULE 24 of the CGST Rules, 2017.
Migration process divided in two stage
- In the first stage provisional registration is done.
- In the second stage, final registration is done.
Under these provisions, it clearly states that all such existing taxpayers having a valid PAN are required to enroll on the Common Portal and validate their E-mail ID and Mobile No. except for a person deducting tax at source and an Input Service Distributor.
After the completion of the enrollment procedure, the taxpayer will be granted registration on a provisional basis and a certificate for the same will be issued in FORM GST REG-25. The certificate will be made available on the Common Portal where the GST will be stated on this certificate.
If under the previous laws any taxpayer previously had more than one registration based on the same permanent account number, then the taxpayer will only be issued a single provisional registration under GST.
After the issuance of provisional ID in the first stage, it is required to file an application online by the taxpayer in FORM GST REG-26. With the application, all the required information and documents are required to be submitted and it must be electronically signed or verified through Electronic Verification Code.
The taxpayer can continue working with this provisional GSTIN issued for a period of 3 months. And within the prescribed period of 3 months, they are required to submit FORM GST REG-26 for final registration. After the verification of the application if the authorities are satisfied then a certificate of registration is to be issued in FORM GST REG-06. In case application for permanent registration is not filed within the specified time period and if filled then the information furnished is incorrect, then a show cause notice will be issued in FORM GST REG-27. In case applicants response to such show cause notice is satisfactory then such notice will be withdrawn by issuing an order in FORM GST REG-20.
An opportunity of being heard will be given to the taxpayer, his provisional registration will be canceled, and an order of such cancellation is issued in FORM GST REG-28. If the taxpayer wishes to withdraw his Provisional registration, then it is required to file an application for the same in FORM GST REG-29 electronically on the common portal.
Frequently Asked Questions
The term “GST Migration” means the process of granting provisional GSTIN to the existing taxpayers registered under the old indirect tax regime, such as Service Tax, Central Excise Tax, and Value Added Tax.
Form GST REG 28 means the order of cancellation of provisional registration.
Form GST REG 25 means the Application for the Extension of Registration Period by Non Resident and Casual Taxable Person.
No, the provisional GST registration will not be allowed in the case of invalid PAN.
The steps involved in the process of acquiring GST Provisional ID are, create a username or password, enrollment under GST, issuance of provisional registration.
No, two different companies cannot have the same GST or Goods and Service Tax Number.
The provisional GSTIN holder needs to submit an application within 3 months in Form GST REG 26 to the commissioner for the conversion of Provisional GSTIN to Final GSTIN.
Yes, the Provisional GST ID will become the Final GST Number.
The term Provisional GST Number denotes a 15 digits provisional ID which works as a GSTIN for the taxpayer for few initial months.
Form GST REG 27 means the Show Cause Notice for the Cancellation of Provisional Registration.
Form GST REG 29 means the Application for the Cancellation of Provisional Registration.