A joint committee under the co-conveners hip of the Additional Secretary (Revenue) and member Secretary, empowered committee of state Finance Ministers was formulated in April 2014 to make suitable recommendations for the registration process under the GST. A number of meetings were held during the year and the report of the Joint committee on business process on registration was finalized in July 2015.
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When the business registers with the tax authorities, it will be allocated a unique identification code. All the data relating to the business will be correlated with this code. This will form the basis for the GST tax compliance and verification. By registering, the business will be legally recognized as supplier of goods or services. Proper accounting of taxes under GST will be possible and the business shall be able to pass on the credit of taxes paid to the purchaser.
The business will calculate its gross annual turnover including exports and exempted supplies on all India basis. If his gross turnover falls below the threshold limit prescribed for registration under GST, then he may not register with the tax authorities. Once the business crosses the required threshold, it must file for registration within 30 days.
Each taxpayer will be allotted a state-wise PAN based 15-digit, goods and services taxpayer identification number (GSTIN). The first two digits will denote the state code as defined under the Indian Census 2011. The third to twelfth digit would be the alphanumeric PAN number of the tax payer. The thirteenth digit would be the entity code, fourteenth digit would be blank for future use, and the fifteenth digit would be a check code.
For obtaining the registration the businessman would have to access the e-portal set up by the GST Network. The portal will have the backend integration with the respective IT system of the centre and states. A new applicant would be able to apply for registration without prior enrolment. He can submit the complete application online and receive the acknowledgement. On approval of application he will get the GSTIN along with the login ID and password.
Since the GSTIN is PAN based, the registration on the GST portal will not be allowed without a valid PAN. Even the government departments would be required to obtain PAN for the registration. For those businesses that are not tech-Savvy, help will be provided through tax return prepayer(TRP). The TRPs will be trained through a curriculum devised by the GST council and will be approved by the tax administration of the states and centre.
A number of documents would be required to be uploaded on the portal by new applicants as proof of the business, its jurisdiction, bank details and authorised signatories. Multiple applications will be allowed to be filed at one go, where the taxable person seeks registration in more than one state or for more than one business vertical located in single or multiple states.
In case of existing registrants, who are either registered with the state or centre, their data will be migrated to the GST common portal. However the existing data may have a lot of gaps with regard to the GST requirement. This may require collection of fresh data from the existing taxpayers for generation of GSTIN. The exercise will have to be started much in advance in order to be able to have a smooth transition at the time of switchover to GST.