The GST migration is the first step towards implementation of GST, which legally recognized a person as a supplier of goods/services under GST. Without registration a person cannot collect GST from his customers, nor claim any input tax credit of GST paid by him, and also cannot pass the credit of taxes paid on the goods/services supplied to the purchaser or the recipient.
Nevertheless, the government has scheduled a detailed process for the GST migration of the existing tax payers, who are currently registered under existing laws i.e. State Sales Tax/Vat, Central Excise, Service Tax etc. In this article, we will go through the process migration to GST, including the provisional registration and final registration. Every taxpayer will enroll on the Common Portal by validating his e-mail address and mobile number, either directly or Facilitation Centre notified by the commissioner. The process of migration will work like this:
- Once the taxpayer enrolls, he will get a provisional certificate of registration in FORM GST REG-25, which will have the GSTIN.
- Under the previous law, the taxpayer had multiple registrations. He will be allowed only one provisional registration under GST.
- A person will be permitted with only one GST provisional registration in the State which he is registered under the service tax.
- A person is obliged to register under GST (or wishes to voluntarily register under GST), and he will submit an application electronically in FORM GST REG–26. In case of any missing information, the person has had to furnish it within a period of three months.
- After the complete evaluation, the final GST registration will be given in FORM GST REG-06.
- In case of mistrustful information, the officer will issue a show cause notice in FORM GST REG-27. The said applicant will be provided with an opportunity to appear before the authorities, after which the provisional registration will be cancelled in FORM GST REG-28.
- If the applicant is able to provide faithful information, the show cause notice issued can be annulled by issuing an order in FORM GST REG- 20.
Cancel Provisional Registration
- Migration registration is voluntary under this new regime. In case of anyone who is not liable to be registered under GST then can cancel his provisional registration within 30 days from the appointed day.
- The said applicant needs to submit an application electronically in FORM GST REG-29 at the Common Portal for cancellation of the registration granted to him.
- The officer will review his application and after conducting an enquiry will cancel his registration.
One can be curious about the authenticity of this online procedure of migration under GST but this has proven to be quite trustworthy and easygoing. Besides this is a mandatory procedure and someone who hasn’t registered under GST migration he will not be eligible to claim the input tax credit of excise & VAT paid on stock and will be penalized accordingly.