GST Update: Whether GST migration is mandatory for all existing dealers having turnover is less than threshold limit 20L/10L?

[NarendraKumar Thotamsetty]

 

GST Update: Whether GST migration is mandatory for all existing dealers having turnover is less than threshold limit 20L/10L?

The 101 Constitutional Amendment of the Goods and Service Tax (GST) is only Constitution amendment with reference the Goods and Service Tax in the place of existing Indirect Tax Mechanism. The Final bill is yet be approved by the House of Parliament and respective State Legislature Assembly. In this regard the Government of India has initiated enrolment schedule for the GST and specified enrolment schedule as follows:

States	Start Date	End Date
Puducherry, Sikkim	08/11/2016	23/11/2016
Maharashtra, Goa, Daman and Diu, Dadra and Nagar Haveli, Chhattisgarh	14/11/2016	30/11/2016
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram	30/11/2016	15/12/2016
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan	16/12/2016	31/12/2016
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh	01/01/2017	15/01/2017
Enrolment of Taxpayers who are registered under Central Excise Act/ Service Tax Act but not registered under State VAT	01/01/2017	31/01/2017
Delta All Registrants (All Groups)	01/02/2017	20/03/2017

Now the question is whether GST Migration is mandatory for all the existing Commercial Tax Registered dealers who registered under the State Commercial Tax Authority even if his turnover is less than the threshold limit and which is 20 Lakhs/10 Lakhs?

My answer is “Yes”. Till the date only constitutional amendment has come into existence and the Final Bill is yet be approved the by House of Parliament and respective State Legislature Assembly. Till the time it is only a draft law.  All the Commercial Tax dealers obligated to enrol for the GST migration. As per my understanding there is no Exemption as far as now. One may be covered under Reverse Charge Mechanism with reference to procurement of services and Un-Registered Dealer Purchases should come within the ambit of Goods and Service Tax. Hence they need to enrol for GST migration without fail. Submitting the documents for the GST migration is not a conclusive evidence that the GSTN is mandatory.

As per the existing Commercial Tax provisions, the dealer has to submit the information which is sought by the Commercial Tax Department without fail. With reference to the GST Migration, the data is required by the Commercial Tax Department is purely in relation to the dealers information such as constitution details of a  dealers entity, premises details, directors details, authorised person details etc.

Hence, it is obligation for the dealer to produce all the details which is sought by the Commercial Tax Department/Service Tax Department/ Excise Department without fail in order to avoid further penalty.

Discussions to this article

[Ganeshan Kalyani]

Nice article . My question is if the law is only draft then whether the requirement of enrolment within the time limit prescribed by GSTN and not by the Statute would attract any kind of penalty .

As you said that this is just provisional enrolment the procedure that the existing dealer has to carry out should also be lenient and not authoritative . Pls. share your view in this regard.

[Chandravijay Shah]

"Un-Registered Dealers should come within the ambit of GST and hence, they need to enrol for GST migration without fail." : Unregistered Dealers do not have TIN under the VAT Act and hence, they cannot get Enrolled, despite desire to do so. It is a Non-Starter for them.

Please give your feedback ASAP.

[CA.DILIP DOSHI]

1.PL. REPLY WHETHER GST REGISTRATION MANDATORY FOR ALL EXISTING DEALERS HAVING TURNOVER LESS THAN THRESHOLD 20L.

AND THEY ARE ALSO NOT COMING UNDER DEFINITION OF TAXABLE PERSONS UNDER DRAFT GST LAW.

2. IF ENROLEMENT IS MANDATORY THEN WHAT IS THE WAY OUT TO FILE SURRENDER OF PROVISIONAL REGISTRATION NUMBER BEFORE GST COMES IN

3. IT IS OK IF EXISTING DEALERS DONT MIAGRATE IF TURNOVER IS BELOW 20L