GST migration of person registered under existing law (rule 16)

GST is round the corner and the things need to be understood. The indirect tax is set to replace all the existing taxes levied by Central and State governments. It was introduced as Constitution (122nd Amendment) Act, 2017. It is governed by the GST council and the chairman is ArunJaitley. There are several tax rates under it and the people need to migrate under the existing law. There is additional tax on sin goods like cigarettes and luxury goods like Gold.

It is to be applicable from July 1 this year. Section 139 of CGST Act, 2017 read with Rule 16 of GST registration, prescribes the process of migration which can be summarized in the following manner:

1. As per rule 16, every person who is:

-Registered under any of existing laws and

-having valid PAN shall be required to enroll on the GST portal.

2. Provisional ID and password have been made available for enrollment under GST:

-one provisional ID shall be issued PAN and state are same.

-every state tax authority should issue the one provisional ID.

-a person who has multiple registers under one state shall be provided only one provisional ID.

3. After getting all the above, to get GSTIN registration is to be done.

4. After registration, Provisional Certificate of Registration (PCoR) shall be issued to every such person in form GST REG-25 incorporating GSTIN.

5. The provision certificate shall be valid for 3 months. After that either the certificate needs to be extended or the documents along with form GST REG-24 needs to be filled.

6. Any person who is registered under existing laws and not liable for registration u/s 22 or 24 of CGST Act, shall make application in form REG- 28 within 30 days from appointed date for cancellation of said registration.

7. If all information is correct, then final certificate of registration is issued in form GST REG-6.

8. If the information is not correct, then cause notice is issued under GST REG-27.

9. If taxpayer rectify the discrepancy as per GST REG- 27, he shall be given final registration in GST REG – 06.

10. If the officer is not satisfied, then he would cancel registration by issuing GST REG-26.