Why GST Migration important?

Why GST Migration important?

What is GST Migration?

Those who are already registered under any of the following;

-          Central Excise

-          Service Tax

-          State Sales tax

-          VAT

-          Entry Tax

-          Luxury Tax

-          Entertainment Tax

Are required to migrate themselves to the GST regime to get GSTIN Number.

Where to migrate?

At their website i.e. www.gst.gov.in. The enrollment system is being taken up in stepped manner, so that taxpayers of each States shall get an appropriate time for enrollment.

The Migration process is as follows :

1)      Create User ID & Password on GST Portal: - 

This is the first step towards enrollment for migration to GST, which start by obtaining  provisional ID and password as given to the taxpayer by respective State Vat department through dealer's login.

On entering provisional Id & Password, GST Common portal will ask for Email Id and Mobile number of authorized person on which two different onetime passwords shall be sent.

(2)      Filling the form GST-REG-20

After successful creation of user Id & Password, taxable person need to login into GST common portal. After login on the dashboard itself a provisional GST number shall be seen, which shall start with state code followed by 10-digit pan number and 3 more system generated digits.

In very first tab taxpayer has to enter various business details. Some details like PAN number, Legal Name are auto populated from the system and rest of the details such as various registration details along with the date of registration as provided underCentral Excise, Service tax, VAT, Luxury Tax, Entertainment Tax, IEC, CIN number etc. shall be filled manually.

Documents Required

1.      Proof of Constitution of Business

•         In case of Partnership Firm: Partnership Deed of Partnership Firm

•         In case of Others: Registration Certificate of the Business Entity

2.      Photograph of Promoters/Partners/Karta of HUF

3.      Proof of Appointment of Authorized Signatory

4.      Photograph of Authorized Signatory

5.      Opening page of Bank Passbook/Statement containing Bank Account Number of , Address of Branch, Address of A/C Holder and latest transaction details .

In addition to above a scanned copy of proof of constitution i.e. Shop Act License/Factory License in case of individual, Partnership Deed in case of Partnership Firm, or Registration Certificate/Proof of Constitution in case of Society, Trust, Club, Government Department, Association of Person or Body of Individual, Local Authority, Statutory Body and Others etc.) shall be attached. Scanned copy of proof of constitution should be in jpeg or pdf format with maximum size of 1 MB.

(3) Details of Proprietor, Partner, Managing and Whole Time Director, Karta: -  such as Full Name, Full Name of Father/ Husband, DIN Number, Date of Birth, Mobile Number, Gender, Designation, PAN Number, Aadhar Number shall be entered.

In addition to above details of Residential Address and Scanned copy of Photograph also required to be uploaded on common portal.

(4) Details of Authorized Signatory

All details of an authorized signatory along with acceptance letter shall be uploaded on GST common portal.

(5) Details of Principal Place of Business: - Details such as Address ,Official Email-Id, Mobile Number, Office Telephone Number, Nature of possession of premises (i.e. Own, Rented, Leased, Consent, Shared), Scanned copy of Proof of Principal place of business is required to be entered Following documents can be used a proof of Principle place of business

(a)		For Own premises –Any document in support of the ownership of the premises like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(b)		For Rented or Leased premises –A copy of the valid Rent / Lease Agreement with any document in support of the ownership of the premises of the Lessor like Latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill.
(c)		For premises not covered in (a) & (b) above –A copy of the Consent Letter with any document in support of the ownership of the premises of the Consenter like Municipal Khata copy or Electricity Bill copy. For shared properties, also, the same documents may be uploaded.

It is important to note that principle place of business means a place from where major activities of business are carried out. It may happen that the registered office and principle place of business are different. 

(6) Details of Additional Place of Business:-

 Additional places includes factory, office, godown, warehouse or any other place where taxable person stores his goods or provides or receives any goods and/or services. All the details as specified for principal place of business are equally applicable for additional place of business also.

(8) Details of Bank Accounts: - A taxpayer needs to provide top 10 bank account numbers along with IFSC code and Scanned Copy of first page of Bank Statement/passbook of each bank account. 

(9) Verification: - After filling an application a person can submit the application using Class-II or Class-III digital signature (DSA). Filling of an application with DSA is mandatory for Companies and Limited liability partnership. Taxpayer other than Company and LLP can also file an application by using e-signature option. i.e. by using Aadhar number of authorized person. 

After successful verification GST Common Portal system, will generate acknowledgement containing acknowledgement receipt number (ARN) within next 15 minutes after submission& that is the last step of enrollment for migration to GST. This number should be kept into the record for all future correspondence with GST common portal as far as registration of taxpayer is concerned. After the appointment date of GST Act taxpayer can track status of his application using ARN number.

CURRENT STATUS OF GST MIGRATION

The commercial taxes department of each state have fixed a due date for GST migration and have began the validation of PAN data  of the dealers and communicated provisional id and password for GST migration .

Traders in some of the states who have enrolled themselves in the portal have been given a GSTN number.