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While many existing indirect tax payers have got provisional GST numbers, there are a few who haven’t. Well, www.gst.gov.in asks them not to worry. Because, the tax department says:-

 

Your present registration position under GST What action should you take?
If you are a Taxpayer having received Acknowledgement Reference No You should be able to download the Provisional Registration Certificate from “Download Certificates” at GST website from 27th June 2017.
If you are a Taxpayer, who has saved the enrolment form with all details but has not submitted the same with DSC, E-Sign or EVC You will receive the ARN at your registered email ID, if the data given are successfully validated after 27th June 2017.In case of validation failure (data like PAN not matching), you should be able to login at the same portal from 27th June 2017 onwards and correct the errors. You can refer the registered email for details of the errors.
 If you are a Taxpayer, who has partially completed the enrolment form You can login at the portal on the above mentioned date and complete the rest of the form
If you are not an existing Taxpayer and wish to register newly under GST You would be able to apply for new registration at the GST portal from 25th June 2017.

 

www.gst.gov.in also states that enrolment window will reopen on 25th June 2017 and continue for 3 months as per Rule. We are not sure what Rule this is but should take comfort in the fact that the enrolment window is going to be open for three months. Another terse clarification from the portal is

“Also note that your provisional ID will be your GST Identification Number (GSTIN)”

The above clarifications force us to seek more clarifications. A few are listed below:

 

  1. If my provisional ID is my GSTIN, will I ever get a GST REG-03 and GST REG-06?
  2. Assume that I register on 10th August 2017 though I am supposed to register prior to the appointed day, what happens? Should I file my returns for June and July? Will I be penalized for late registration?
  3. Can we assume that there will be no window open for registration three months after 25th June 2017? What if I cross the magic number of Rs 20 lakhs on 20th December 2017?
  4. I have registered but my vendor has not been able to register because he is a small trader and has had difficulties in registering. Is there a way out for me to avoid paying tax on reverse charge?
  5. More clarity is needed on registering as a casual taxable person? Would anyone who carries on business in another State apart from the one in which he is registered need to register as a CTP?
  6. What is the process of correcting errors in my Registration Certificate?

 

It is apparent that there are no definite answers to any of these questions right now. We can expect some Notifications and Clarifications soon. Keep watching this space for all the latest!

 

As a law, GST has been structured on the fundamental principle of matching of invoices. The GST portal will do the matching and intimate both the parties with mismatch reports. One of the harshest provisions in the GST law is the one which states that if the mismatch that has not intimated is not rectified in the return for the next month, it will be added to the output tax liability. As a concept, when matching has not worked very well even for exciting areas like matrimony, one wonders how it would work with unexciting areas such as invoices. It is too early to slap the taxpayer with a tax liability within a month for the mistake of his counterparty. The GST Council would do well to retain the provisions for matching of invoices but defer the provision to add the mismatch to the tax liability of the supplier in the next month.

One look at the Mismatch report which form a part of the Rules is bound to put off anyone. This is how the complete form looks:

However, if we take a closer look at the form, we notice that it is broken up into four areas:

  • Finally Accepted Input Tax Credit
  • Mismatches/Duplicates that have led to increase of liability in the return for September filed by 20th October
  • Mismatches duplicates that will lead to increase of liability in the return for October filed by 20th November
  • Mismatches/Duplicates that may lead to increase of liability in the return for November to be filed by 20th December

The best part? It appears that all the columns will be autopopulated! Apart from this critical piece of information, everything else is mentioned in the format!
Considering the fact that GST is heavily dependent on forms, the CBEC should start providing detailed instructions on how to fill forms.

With the appointed day for GST nearing, all taxpayers should be preparing themselves to transition to the new regime. How is life going to be under GST?

While we still do not know the most important part of GST, the rates of GST that would be applicable to individual goods and services, we have a broad idea about the possible rates.

 

 

 

 

Being a tax that is based on technology, life in the GST era would be spent in front computer screens than in tax offices. There appears to be no limit to the number of forms that a taxpayer has to file under GST- there is a form prescribed for every conceivable act under GST. Filing of all these forms would require an enormous amount of patience. There will be problems in technology too- the portal could hang, there can be difficulties in filling particular columns in forms and such like. Many of such compliance issues can be tackled through a GST garage.