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Anticipating the Reopening of GST Enrollment

The Goods and Services Tax (GST) enrollment period was set to reopen for businesses that missed previous deadlines. This came as welcome news, as approximately two million businesses were yet to register despite earlier extensions. The temporary closure was necessary for the Goods and Services Tax Network (GSTN) to conduct thorough system testing. Companies were advised to prepare essential documents for the upcoming final registration window.

📖 1 min read read🏷️ GST Enrollment

The enrollment period for the Goods and Services Tax (GST) was slated to reopen on June 25th for companies that missed the previous registration deadlines. A substantial number of businesses, approximately two million, had not yet registered on the GST portal, despite 6.05 million entities having already enrolled with the Goods and Services Tax Network since November 2016. The transition for taxpayers already registered under various state and central indirect taxes, such as VAT, Service Tax, and Excise Duty under the Central Board of Excise and Customs, began on November 8, 2016. Initially, the deadline for completion was January 31, 2017, but it was subsequently extended several times, eventually reaching April 30. This situation caused concern among businesses unable to complete their enrollment, making the announced reopening on June 25 a welcome development.

Reasons for the Enrollment Pause

The Goods and Services Tax Network (GSTN) is developing a sophisticated business software designed to transform India's business operations and GST compliance. This system, intended to be a major collaborative tax compliance platform, required thorough testing by stakeholders. Consequently, the enrollment process was temporarily halted to facilitate comprehensive system evaluations without interference.

The Revenue Secretary, Hasmukh Adhia, recently confirmed that registrations would resume on June 25, 2017.

Duration of the Upcoming Enrollment Window

The GST registration window was set to open for a final period starting June 25. The government demonstrated strong commitment to a timely GST implementation, taking all necessary measures to ensure a smooth transition before the launch. Businesses missing this last chance were advised not to worry, as the GST law allows individuals registered under the VAT system sufficient time and avenues to migrate to the new regime, given their Permanent Account Number (PAN) remains valid.

Steps to Prepare for GST Registration

To prepare for GST registration, businesses should gather all necessary documents. Upon the reopening of the enrollment portal, a notification would be issued. The required documents, along with their specified file sizes and formats for upload, include:

  • Provisional ID from State/Central Authorities
  • Password from State/Central Authorities
  • A current email address
  • A valid mobile number
  • Bank Account Number
  • Bank IFSC code

Detailed List of Mandatory Documents

S.No.DocumentsFile Size FormatMaximum Allowable Size
1.Proof of Business Constitution: For Partnership firms, a Partnership Deed (PDF/JPEG, max 1 MB). For other entities, the Business Entity Registration Certificate.PDF or JPEG1 MB
2.Photograph of Promoters/Partners/Karta of HUFJPEG100 KB
3.Proof of Authorized Signatory AppointmentPDF or JPEG1 MB
4.Photograph of Authorized SignatoryJPEG100 KB
5.First page of Bank Passbook/Statement: Must display Bank Account Number, Branch Address, Account Holder's Address, and recent transaction details.PDF and JPEG1 MB

Note: Digital Signature Certificate (DSC) e-signing is compulsory for companies, foreign companies, Limited Liability Partnerships (LLPs), and Foreign Limited Liability Partnerships (FLLPs) during enrollment. For other types of taxpayers, DSC e-signing is optional.

Further Reading

Frequently Asked Questions

What is GST in India?
GST, or Goods and Services Tax, is a comprehensive indirect tax introduced in India on July 1, 2017. It replaced multiple cascading taxes levied by the central and state governments, aiming to simplify the indirect tax structure and create a common national market.
Who is required to register under GST?
Businesses exceeding a certain turnover threshold (which varies by state and type of goods/services) are generally required to register under GST. Additionally, certain businesses, such as those engaged in inter-state supply of goods or e-commerce operators, must register regardless of turnover.
What are the different types of GST?
There are four main types of GST: CGST (Central Goods and Services Tax) collected by the Central Government, SGST (State Goods and Services Tax) collected by state governments, IGST (Integrated Goods and Services Tax) collected by the Central Government on inter-state supplies, and UTGST (Union Territory Goods and Services Tax) for Union Territories.
How does Input Tax Credit (ITC) work under GST?
Input Tax Credit (ITC) allows businesses to claim credit for the GST paid on purchases of goods and services that are used for business purposes. This credit can then be utilized to offset the GST payable on their output supplies, preventing the cascading effect of taxes.
What are the key benefits of the GST regime?
The GST regime offers several benefits, including tax simplification through a unified tax structure, reduction in the cascading effect of taxes, improved ease of doing business, increased transparency, and a boost to economic growth by creating a common national market and enhancing competitiveness.