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GST Update 10.10.2016

FAQ ON GST-PART-III

GST DAILY DOSE OF UPDATION:-
 
FAQ ON GST-PART-III:-
 
Question 27: This speaks about the non provision of centralized scheme of registration under GST. This scheme is currently operational under service tax law. Although business verticals within a state are allowed to have a single centralized registration but no provision of a nationwide registration has been made under the model law. This would create problems for the very big entities having pan India operations as they now have to de-centralize their accounting and business processes. This would also produce issues regarding current balances of cenvat to be carried forward
 
Question 28:This speaks that business verticals within a state will have an option to register separately or they can keep their registrations centralized for a state. Although no clarity has been provided on the cenvat balances lying with such business verticals and their treatment on whether such cenvat balances will merge or be considered as separate only.
 
Question 33: This speaks about the need of the existing assesses to provide requisite documents as may be prescribed to obtain the new GSTIN. It should have been considered that the complete data of the present assessees are already lying with the government and in such scenario; no further procedure should have been prescribed for obtaining new number. There should have been automatic migration of the current assesses to the new regime.
 
Question 37: This speaks about the facility of TRP and facilitation centre to be provided to small and medium scale businesses to comply with the GST requirements. But if it is seen overall, the complicacy of GST will prove too much for the small assessees and will increase their cost only. The returns and payment related procedures are too technical to be handles by any small assessee. They need to be simplified if smooth operation of GST is envisioned.
 
We will carry some other questions in our next update.
 
 
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