A Guide to GST Migration- Procedure and Cases
What is GST migration?
GST will be a common indirect tax law which would subsume majorly all indirect taxes may it be VAT, CST, Service Tax, Excise Duty, Entry Tax, Entertainment Tax, etc. Now in order to bring the law in force, the data collation for all the existing assesses from different tax departments to one common pool needs to be done and further assesses having multiple law registrations like excise and VAT or excise and Service Tax etc would also provide in their details against one GST registration number. Hence this migration is required and surely it is a first step towards the Largest Tax Reform since Independence.
What is the need for migration into GST when the law has not been implemented yet?
The migration process is important in following ways:
– PAN and Contact details verification before hand
– Allotment of GST Number on the day GST is appointed, for issuing valid Tax Invoice under GST else one has to first apply for the provisional registration certificate since the data has not been updated with GSTN.
What if Provisional GST ID is not yet issued or Invalid as issued by the Department?
There has been cases where GST Provisional ID is not received or the issued ID is invalid when trying to login. It may be the case when the GSTN has not issued the ID’s to the concerned Excise and taxation department. In this case intimation to the concerned ward in the excise and taxation/ Service tax department can be made and the fresh ID will be issued or the issue can also be mailed to the helpdesk at firstname.lastname@example.org or call at 0124-4688999.
What if the mandatory fields are incorrect when logging in at www.gst.gov.in?
The data in the mandatory fields represents the data available with the concerned department against the assessee’s registration with the local department the same is shared with the GSTN. There can be cases where the data is not updated with the department or there has been recent change in the constitution and the department has shared the old data with GSTN.
So to change the mandatory field, required updation of data with the department needs to be made first and post that a fresh Provisional GST ID will be issued within a month’s timewith correct details as provided.
Is there any time lime for migration into GST?
As updated by the GSTN, the time limit for migration has been raised and the migration window will remain open till 30th April 2017.
Who has to migrate into GST?
The golden rule to judge whether to migrate or not is – Whether the assesse is an existing assesse under any of the existing indirect tax law. If the answer is yes, then he has to get the migration done and if the answer is no, then nothing is required to be done till the date GST is appointed.
If any assesse is supplying taxable and non-taxable goods and/ or services worth more than the maximum threshold limit of 20 lakh but the supply of taxable goods are below 20 lakh Whether migration to be done?
If the person supplying such combination of goods is registered under existing law, the he has to get himself registered. Further, post appointment of GST also, registration would be required since as per the Model GST law, to ascertain the maximum exemption limit, Aggregate turnover is considered that would mean taxable, exempt and non-taxable supplies will be taken together and if the total exceeds the threshold then GST registration is mandatory. Hence the total turnover of taxable and non-taxable goods/ services will be considered for judging the applicability of GST.
What if any assesse wants to shut down his business in near future. Migration should be done?
The Registration Certificate issued by the existing department has its validity unless until the same is surrendered. Now if nothing is done and no intimation is made to the department, GSTN will follow up and issue the Provisional Registration Certificate based on valid existing RC under existing law and would require compliance procedures under GST to be followed. Hence it is advised to migrate and surrender the RC under GST.
What if a single person is proprietor in multiple business under common PAN. How many registration under GST?
Since the assesse is proprietor in multiple assesse, there can be following cases:
- Single Proprietor, Multiple Business with in Same State – In this case, since the existing registrations are different for different business, hence both the businesses will be issued separate provisional ID’s and will migrate into GST separately.
Our advise: If the businesses fall under same business vertical, both the businesses can be migrated into GST and post GST rolls in, the GST registration of one business can be surrendered and the business space can be declared as additional place of business of the first business. This would reduce the compliance formalities from 74 returns per year to 37 years per year.
- Single Proprietor, Multiple Business in different States – In this case, both the business will be considered as two distinct persons and and separate migration procedures will be done for both the businesses.
What is Additional Place of Business under GST?
An Additional place of business under GST would mean any additional business space with in the same state. . In other words, any branch office in another state would not form part of additional place of business under GST, because separate registration has to be obtained and hence separate migration process will be done for any existing registrations in different state.
Assesse post migration on the GSTN portal gets a “PAN mismatch” mail on the registered Email ID from the GSTN. What do to?
GSTN verifies the data provided in the application form with the data with the NSDL under PAN. Any mismatch of name, Father’s name, date of birth etc will trigger the mismatch report. In this case, visit “My Submission” tab after logging into GSTN with GST ID and password and edit the details as per PAN and submit the form.
What is HSN Code and SAC in GST?
HSN Code (Harmonised System of Nomenclature) and SAC (Service Accounting Code) is a unique code given to each category of goods and servicesrespectively to help identify the classification of supply and accordingly apply the GST rate as notified by the GST Councili.e 0%, 5%, 12%, 18% or 28%. In India, HSN coding is currently used under Excise and Customs for classification of products and under GST as well, government shall continue the concept of classification based on HSN. The detailed list of HSN Codes with description of goods is available on the mentioned link https://www.gst.gov.in/documents/HSN.pdf
Services will be required to be classified per the Services Accounting Code (SAC).
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A Guide to GST Migration- Procedure and Cases