Learn the GST migration process in India, from provisional to final registration. Covers key updates on compliance deadlines and penalties.
This article details the Goods and Services Tax (GST) migration process, covering both provisional and final registration steps. Taxpayers currently registered under excise, VAT, or service tax are required to enroll on the Common Portal. This enrollment involves verifying their email address and mobile number, either independently or with assistance from a designated Facilitation Centre.
The migration procedure unfolds as follows:
Recent regulatory updates have introduced several changes to GST compliance timelines. For instance, in July 2022, the deadlines for GSTR-4 and CMP-08 for specific periods were extended with waivers for late fees. Earlier in May 2022, a late fee waiver was also announced for GSTR-4 filings for FY 2021-22. Additionally, composition scheme taxpayers were required to submit declarations by March 2022 for the FY 2022-23 option. Previous updates in May 2021 included interest relief for delayed CMP-08 filings, an extension for the GSTR-4 due date for FY 2020-21, and a cap on maximum late fees for GSTR-4.
Provisional Registration
Upon successful enrollment, taxpayers receive a provisional registration certificate, identified as FORM GST REG-25, which includes their Goods and Services Tax Identification Number (GSTIN). If an individual held multiple registrations under the previous tax laws with a single Permanent Account Number (PAN), they will now receive only one provisional GST registration. Similarly, taxpayers with a centralized service tax registration will be issued a single provisional GST registration within the state where their service tax registration was originally held.
Final Registration
Taxpayers who are required or choose to voluntarily register under GST must electronically submit an application in FORM GST REG–26. All necessary information must be provided within three months. If the submitted details are accurate and complete, final GST registration will be granted via FORM GST REG-06. Should the information be incorrect, the officer will issue a show cause notice in FORM GST REG-27. After providing a fair opportunity for a hearing, the provisional registration may be cancelled using FORM GST REG-28 if issues persist. However, if the applicant’s response is deemed satisfactory, the show cause notice can be nullified by an order issued in FORM GST REG-20.
Cancel Provisional Registration
Individuals currently registered under existing laws but not obligated to register under GST have a 30-day window from the appointed day to cancel their provisional registration. To do this, they must electronically submit an application in FORM GST REG-29 on the Common Portal. Following this application, the officer will conduct an inquiry and proceed with the cancellation of the registration.
An Electronic Verification Code (EVC) serves as a modern electronic verification method, utilizing an Aadhaar card. All forms uploaded to the GST Portal require either a physical signature or verification through EVC.
What are the repercussions if an existing entity, mandated to transition to GST, fails to do so?
Such an entity would lose its eligibility to claim input tax credit for excise and VAT previously paid on stock. Moreover, failing to register for GST despite being legally required constitutes an offense, subjecting the entity to penalties.
