Provisional Enrollment under Goods and Service Tax (GST)

[Ganeshan Kalyani]

The Goods and Service Tax (GST) is expected to be implemented from July 1, 2017. In view of the same, the Central Board of Excise and Customs (CBEC) have initiated steps to ensure that all the existing taxpayers are migrated to Goods and Service Tax Network (GSTN). A provision for migration of existing taxpayers to GST is provided in the draft Model Goods and Services Tax Law. The FAQs to clear query of the taxpayer pertaining to enrollment is published by GSTN in their website www.gst.gov.in.

The taxpayers who are currently registered with any State or Central laws like Value Added Tax, Central Sales Tax, Central Excise, Service Tax etc. need to enroll themselves under GST. Enrollment under GST means validating the data and filling up the remaining key fields in the Enrollment Application at the GST Common Portal. The registered taxpayer will be receiving login ID and password from their respective VAT/Commercial Tax Department. Using the same, the taxpayer will have to go into www.gst.gov.in and complete the enrollment process. If the login credential is not received, the taxpayer can proactively approach and collect the login credential from their Jurisdictional VAT/ Commercial Tax department.

The GSTN had released the schedule for enrollment of existing taxpayers under Value Added Tax (VAT) law to GST. The process was started in the month of November, 2016. Pondicherry and Sikkim were the first States to start the enrollment process from 8^th November, 2016, followed by Gujarat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattissgarh from 14^th November, 2016. Thereafter, the remaining states set the enrollment dates as 30^th November, 2016, 16^th December, 2016 and 1^st January, 2017. It was mentioned in GSTN website that the window will be open till 31st January, 2017 within which the enrollment process has to be completed for the taxpayers registered under State Act. However, the window is still open to ease taxpayers to do the enrollment process.

A user manual on using the GST Common Portal is made available in GSTN. A video based tutorial explaining the process of filling up the enrollment form, registering digital signature certificate, uploading documents etc. is made available in the GSTN portal. Additionally, a mobile based application for GST enrollment is also made available by GSTN in their website.

The status of enrollment of taxpayers is published in GSTN website. As per the status of enrollment as on 24.03.2017, Karnataka State is ahead with 92.43% of their taxpayers being enrolled. Maharashtra State is second with 86.57%. Gujarat State has completed enrollment of 86.44% of the total taxpayers in the State. From the enrollment status as on the aforesaid date, it is seen that most of the States have completed the enrollment process of more than 50% of the taxpayers in their respective States. The enrollment process is still going on.

The enrollment of taxpayers who are registered under Central Excise Act but not registered under State VAT shows progress of 5.88%. And, 14.82% of taxpayers who are registered under Service Tax Act but not registered under State VAT have completed their enrollment. The process of migration to GST has been going on since 20.01.2017 in Central Excise and since 09.02.2017 in Service Tax. The last date for enrollment of Central Excise assesses and Service Tax assesses to GST is set to be 31^st March, 2017.

In order to assist the taxpayers in enrolling themselves into GST, various states have set up Help Desk in the VAT/ Commercial Tax Department. In some States, the taxpayers are invited to the office of the VAT / Commercial Tax Department along with the requisite information and document and the department’s officers assist them in completing the enrollment process. The Central Board of Excise and Customs (CBEC) have set up an online toll free helpline / Help Desk which can be reached at 1800-1200-232 and query related to GST enrollment can be emailed to [email protected]. The GSTN has also flashed their Help Desk number as 0124-4688999 and email id – [email protected] in their website.

Once GST is implemented, the registered taxpayers under current laws with valid PAN and those having completed the enrollment process shall be issued a certificate of registration on a provisional basis in such form and manner as may be prescribed on the appointed day. The certificate of registration so issued shall be valid for a period of six month from the date of its issue. Every taxpayer to whom a certificate of registration has been issued shall furnish such information as may be prescribed and upon furnishing the same the certificate of registration shall be furnished on a final basis by the Central/State Government.

Though the taxpayers are encouraged to enroll into GST by conducting seminars, training, advertisements etc. some States are yet to provide login credentials to the taxpayers for many reasons. In any case, the enrollment activity is one of the crucial steps toward GST which is proposed to be implemented from July 1, 2017.

Discussions to this article

[KASTURI SETHI]

Very useful article in a capsule form. Gaagar Mein Saagar.

[Ganeshan Kalyani]

Thank you sir.

[Ganeshan Kalyani]

The voluntary enrollment process started six months ago and 73 per cent of the businesses have registered. The last date for enrollment was March 31, 2017. Now the same has been extended till April 30, 2017.