Migration Provisions under GST for Central Excise and Service Tax Assesses

Ashish M. Shaji

06 Nov, 2020

This article is all about the migration provisions under GST of taxpayers who were earlier registered under Central Excise and Service Tax. Here, we will elaborate on the preconditions for such migration as well as step by step guide to complete their GST registration.

Meaning of Migration provisions under GST

Migration under GST is the process of issuing provisional GSTIN to existing taxpayers that are registered under the indirect laws like Central Excise and Service Tax^[1]. It is undertaken so as to help taxpayers to effortlessly shift to GST.

Migration provisions under GST through Provisional ID

One of the most important points to be considered is that GST registration is based on the Permanent Account Number of the taxpayer. Every taxpayer registered under these old laws is provided with a provisional ID and password by the CBEC, which is to be used for migration to GST. However, this Provisional ID will only be issued to taxpayers who have PAN associated with their registrations.

Provisional Id will not be provided to any dealer or trader included in the following list:

1. Any dealer whose PAN associated with such previous registrations is not valid.
2. If dealer’s PAN is registered with any other State tax authority and provisional ID is issued by such tax authority.
3. If there are multiple Vat and other registrations under various laws, and all these registrations are to be summed up under GST on the same PAN in a State, then Provisional id is to be issued on the first registration in the alphabetical order.

Migration Provisions

All the migration provisions under GST for existing taxpayers from old laws to the new Goods and Service Tax law are provided under RULE 24 of the CGST Rules, 2017 under the head of Registration. These rules state that the migration process is divided into two stages:

• In the first stage provisional registration is done.
• In the second stage final registration is done.

Migration Provisions under GST: Provisional Registration

• These provisions clearly state that all such existing taxpayers having a valid PAN No. except for a person deducting tax at source and an Input Service Distributor are required to enroll on the Common Portal and validate their;
• E-mail ID and
• Mobile No.
• After the enrollment procedure is completed, taxpayer will be granted registration on provisional basis and a certificate for the same will be issued in FORM GST REG-25. GSTIN will be stated on this certificate which will be made available on the Common Portal.
• If any taxpayer was previously had more than one registration under the previous laws based on the same permanent account number, then he will only be issued a single provisional registration under GST.

Migration Provisions under GST: Final Registration

• After the provisional ID is issued in the first stage, taxpayer is required to file an application online in FORM GST REG-26. All the required information and documents are to be submitted with this application and it is to be electronically signed or verified through Electronic Verification Code.
• Taxpayer can continue working through this provisional GSTIN issued for a period of 3 months. And within this period of 3 months they are required to submit FORM GST REG-26 for final registration.
• After due verification of the application if the authorities are satisfied, then a certificate of registration is to be issued in FORM GST REG-06. 

Cancellation of Registration

The registration may be cancelled on the happening of following events:

• If the application for permanent registration is not filled within specified time period and if filled information that is furnished is found to be incorrect, then a show cause notice is issued in FORM GST REG-27. 
• If the applicant’s response to such show cause notice is satisfactory then such show cause notice will be withdrawn by issuing an order in FORM GST REG-20.
• After giving the opportunity of being heard to the taxpayer if the tax officer is still not satisfied then he may cancel the provisional registration, and an order of such cancellation is issued in FORM GST REG-28.

It may be noted that if there is a taxpayer who is not liable to be registered under GST, and wishes to withdraw his Provisional registration, then he will be required to file an application for the same in FORM GST REG-29 electronically on the common portal.

Conclusion

If any taxpayer fails to migrate as per the Migration Provisions under GST, till the specified last date, then the only option they are left with is to go ahead with fresh online GST registration. In case you have any query with respect to GST related laws, contact Enterslice.

Read our article: GST Practitioner – Enrollment and Responsibilities