SECTION 142 MIGRATION OF EXISTING TAXPAYERS TO GST

GST Update 20.07.2016

GST DAILY DOSE OF UPDATION:-

TRANSITIONAL PROVISIONS

SECTION 142 MIGRATION OF EXISTING TAXPAYERS TO GST:-The existing taxpayers will be migrated to the new GST regime on complying with certain formalities and on submission of additional details as required. The procedure for migration is specified as follows:-

·        On the appointed day, every person registered under any of the earlier laws shall be issued a certificate of registration on a provisional basis.

·        The certificate of registration issued on provisional basis shall be valid for a period of six months from the date of its issue. However, its validity period may be extended for such further period as notified.

·        Every person to whom a provisional certificate of registration has been issued shall, within six months, furnish such information as may be prescribed.

·        On furnishing of such information, the certificate of registration issued under provisional basis shall be granted on a final basis by the Central/State Government.

·        The provisional certificate of registration issued to a person may be cancelled if such person fails to furnish information as prescribed within the stipulated time.

·        The provisional certificate of registration issued to a person shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 19.

The procedure appears to be simple but it is not so. In the Joint Committee Report of Procedure of Registration it was stated that the data presently available with the government will be used with additional information to be furnished by the taxpayers. In case of taxpayers under Excise and VAT, source of data for issuing GSTIN should be VAT data as in most cases Excise assessee will also be registered under VAT. For taxpayers under Service Tax, the source of data for issuing GSTIN should be Service Tax. However, sufficient provision should be there for confirmation of existing data available with government as regards its accuracy in present context. It is quite possible that the information available with the government has been changed but not updated in government records. Alternatively, the existing taxpayers should be asked to get registered as a new taxpayer with all details to be submitted afresh. The usage of data already available with the government may cause confusion and create complexities in smooth transition of existing taxpayers to new tax reform. Even feeding of data by Government department will create problems as was faced by assessees when the normal manual registration was converted into PAN based online registration. Half of the data was erroneously filled by the department.

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GST Update 20.07.2016

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