In this article you will learn:
The government provided provisional GSTINs to the taxpayers registered under existing tax laws such as VAT, excise and service tax in order to migrate to the GST effortlessly. It rolled out the enrollment plan initially for the taxpayers registered under VAT and subsequently for taxpayers registered under Central Excise and Service Tax Laws state-wise.
Accordingly, taxpayers were required to furnish details and complete the enrollment process within the time stipulated for each State using the Provisional ID and Passwords provided by CBIC to taxpayers having a valid PAN.
This article talks about the step-by-step GST Migration process for the taxpayers registered under the then existing indirect tax laws to migrate to GST effortlessly.
Migration is nothing but the process of issuing provisional GSTIN to existing taxpayers registered under the indirect tax laws such as VAT, Central Excise and Service Tax. This is undertaken to help the taxpayers to shift to GST effortlessly.
Accordingly, all existing taxpayers registered under VAT, Central Excise and Service Tax Laws were provided Provisional ID and Password by the State Tax Authorities via SMS or email. Such Provisional IDs were issued to existing taxpayers who possessed a valid PAN in respect of their registration.
Therefore, PAN number is necessary in order to migrate to GST and avail a GSTIN. Accordingly, the taxpayers who did not have a valid PAN were first required to register with PAN in order to migrate to GST.
Therefore, Provisional ID would not be issued in cases where:
- Taxpayer has invalid PAN
- PAN is registered with the State Tax Authority and the Provisional ID has already been issued by such an authority
- There are several Central Excise, Service Tax Registrations on the same PAN in a specific State. In such a case, only a single Provisional ID would be issued for the first registration.
GST Migration Process
1. Create Username and Password Using Provisional ID
Existing taxpayers registered under VAT and those registered under Service Tax and Central Excise but not State VAT would be provided with the Provisional ID and password by the State Tax Authority. These details are provided via SMS or email.
In case the existing taxpayers do not receive provisional ID, they can obtain the same in the following ways:
- Visiting the ST/VAT department physically and asking the tax authorities to provide the Provisional ID manually.
- Sending an email at email@example.com from your registered email ID. In the subject field, write: “PID Required to Migrate to GST”. Further, specify your Service Tax or Excise Registration Certificate numbers. You can also make a mention of any other problem being witnessed while migrating to GST.
Once the Provisional ID and Password are received, the existing taxpayer needs to use such details to create username and password on the GST Portal to enrol under GST.
2. Enrollment Under GST
Every person other than Input Service Distributor and Person liable to Deduct TDS who is registered under the existing indirect tax laws and has PAN must enrol on the GST Portal. This is done by validating mobile number and email address either directly or via a facilitation centre.
Following steps need to be performed in order to enrol under GST.
- Visit the GST Portal using the URL gst.gov.in. The homepage of the GST Portal gets displayed.
- Click the login button towards the top right on the Homepage. This will direct the taxpayer to the ‘Login’ page on the portal. Since, you are logging in to the GST Portal for the first time, you need to click the link given against the ‘First Time Login’ towards the end of the Login Page as shown in the image below.
- On clicking the link mentioned against the ‘First Time Login’, you are directed to ‘New User Login’ Page. You need to fill the Provisional ID and Password provided by the State Tax or VAT department and the Captcha text in the fields provided. After filling such details, you must click the ‘Login’ button. This will take you to the ‘Provisional ID Verification’ Page.
- On the ‘Provisional ID Verification Page’, you need to fill details such as your registered email ID and Mobile Number and click ‘Continue’ button. Once you click the ‘Continue’ Button, you will be directed to the ‘OTP Verification Page’ Further, you will also receive two OTPs each on your email address and mobile number specified in the fields.
- On receiving the OTPs, you need to fill the email OTP in the ‘Email OTP’ Field and the mobile OTP in the ‘Mobile OTP’ Field respectively. Both these OTPs need to be used for verification. On filling the OTPs in the requisite fields, click the ‘Continue’ button.
- Once clicking the ‘Continue’ Button, you will be taken to the ‘New Credentials’ Page. In the ‘New Username’ Field on the ‘New Credentials’ Page, fill in the following details:
Make sure that the new username is 8 to 15 characters consisting of alphabets, numbers and special characters like dot, underscore or hyphen.
Make sure that the New Password is 8 to 15 characters consisting of at least one alphabet, one number, one uppercase letter, one lower case letter and one special character.
Re-enter the New Password as mentioned in the above field.
Once such details are filled, click ‘Continue’ Button.
- On clicking the ‘Continue’ button, you will be taken to the ‘Security Questions’ Page. Answer each of the questions given on the page and click ‘Submit’. A message such as ‘Username and Password Have Been Successfully Changed. Kindly Login Using These Credentials.’ is shown.
- You can now use such username and password details just created to Login the GST Portal.
- Once you Login the GST Portal using New Username and Password, the ‘Welcome’ Page is displayed. You need to click the ‘Continue’ Button. Once you click the ‘Continue’ Button, your ‘Dashboard’ gets displayed.
- Under the ‘Dashboard’ select ‘Provisional ID Enrolment’ to access the Enrolment Application. On this page, you will find eight tabs. These include Business Details, Promoters/Partners, Authorized Signatory, Principal Place of Business, Additional Place of Business, Goods and Services, Bank Accounts and Verification. Click on each tab and fill the requisite details.
3. Provisional Registration
- Once the enrollment is done, the taxpayer is given registration on a provisional basis. Furthermore, a Certificate of Registration in Form GST REG-25 containing the GSTIN is made available to the taxpayer via the GST portal.
- It must be noted that the taxable person who has been given multiple registrations under the existing tax laws based on the single PAN would be given only single registration under GST.
4. Final Registration
- Every person who has been given Provisional Registration as mentioned above is required to submit an application in Form GST REG-26 electronically. Such an application must be signed via electronic verification code.
- Furthermore, the taxpayer must also provide requisite information and attach documents as mentioned in the application on the GST portal either directly or via a Facilitation Centre.
- Taxpayer must provide the requisite information as mentioned above within three months or within such extended period as may be specified by the Commissioner.
- If the information provided by the taxpayer in the application are found to be correct and complete by a proper officer, Certificate of Registration in Form GST REG-06 shall be provided to such a person electronically via the common portal.
5. Cancellation of Registration by Tax Officer
If the information provided for the Final Registration is found to be incorrect or incomplete, the concerned officer will issue a show cause notice in Form GST REG-27. Furthermore, he will also provide such a taxpayer an opportunity of being heard.
If the tax officer is still not satisfied, he would cancel the provisional registration and issue an order in Form GST REG-28.
Furthermore, if the taxpayer is not issued the:
- Certificate of Registration within a period of 15 days from the date of furnishing of the information by the taxpayer and
- Show cause notice as mentioned above in Form GST REG-27
it will be treated as if the registration has been granted to the taxpayer. Accordingly, the Certificate of Registration signed via electronic verification code would be provided to the registered person on the common portal.
If the proper officer after giving the opportunity of being heard to the taxpayer finds no reason to issue the show cause notice, the tax officer can withdraw the show cause notice so issued in Form GST REG-27. This is done by issuing an order in Form GST REG-20.
Cancellation of Provisional Registration
Every person registered under the existing tax law can choose to cancel the registration if he is not liable to be registered under GST. This is done by submitting the application on the common portal in Form GST REG-29.
Accordingly, the registration is cancelled after a proper officer conducts a proper enquiry and considers it fit to cancel the registration.