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Navigating the GST Migration Procedure for Existing Taxpayers

This article outlines the crucial GST migration process for businesses previously registered under other indirect tax regimes in India. It details the steps involved in obtaining provisional and final GST registration, explains how to cancel provisional registration if not liable, and highlights the consequences of failing to migrate. Key updates on GST compliance deadlines from 2021 and 2022 are also summarized.

📖 3 min read read🏷️ GST Migration

Existing taxpayers, previously registered under excise, VAT, or service tax, must enroll on the Common Portal. This process involves verifying their email address and mobile number, which can be done directly or via a commissioner-notified Facilitation Centre. Taxpayers can find a quick guide for GST enrolment for existing central excise and service tax assesses here. The migration process unfolds in the following stages: Updates to GST compliance deadlines have been periodically announced by authorities. Here is a summary of key notifications:

Latest Updates regarding GST Compliance Deadlines

  • July 5, 2022: The due date for GSTR-4 for FY 2021-22 was further extended with a late fee waiver until July 28, 2022, as per Notification 12/2022. Additionally, the CMP-08 due date for April-June 2022 was extended to July 31, 2022.
  • May 26, 2022: CGST Notification no. 7/2022 waived the late fee for GSTR-4 for FY 2021-22 if it was filed between May 1 and June 30, 2022.
  • February 24, 2022: Composition taxable persons intending to opt into the scheme for FY 2022-23 needed to submit a declaration on the GST portal in Form CMP-02 by March 31, 2022.
  • May 28, 2021: Following the 43rd GST Council meeting, interest relief was provided for filing CMP-08 for the January-March 2021 quarter. No interest was charged until May 3, 2021, a 9% reduced interest applied for filings between May 3 and June 17, and 18% thereafter. The GSTR-4 due date for FY 2020-21 was extended to July 31, 2021. The maximum late fee for GSTR-4 was capped at Rs. 500 per return for nil filings and Rs. 2,000 for other filings.
  • May 1, 2021: The due date to file GSTR-4 for FY 2020-21 was extended from April 30, 2021, to May 31, 2021. Form CMP-08, due by April 18, 2021, for January-March 2021, received a relaxation in interest charges: no interest for filing on or before May 8, a 9% interest rate between May 9 and May 23, and 18% thereafter. The time limit to file ITC-03 for newly opted composition taxable persons for FY 2021-22 was extended to May 31, 2021.

Provisional Registration

Upon enrollment, taxpayers receive a provisional registration certificate, FORM GST REG-25, which includes their Goods and Services Tax Identification Number (GSTIN).

  • If a taxpayer held multiple registrations under previous tax laws using a single Permanent Account Number (PAN), they will now be granted only one provisional GST registration.
  • Individuals with centralized service tax registration will receive one provisional GST registration in the state where their service tax registration was originally held.

Final Registration

  • Taxpayers obligated to register under GST, or those opting for voluntary registration, must electronically submit an application in FORM GST REG–26. Any required information must be provided within a period of three months.
  • If the submitted information is accurate and complete, final GST registration will be issued in FORM GST REG-06.
  • Conversely, if the information is incorrect, the officer will issue a show cause notice using FORM GST REG-27. After providing a reasonable opportunity for a hearing, the provisional registration may be canceled via FORM GST REG-28.
  • If the applicant's response is deemed satisfactory, the show cause notice can be withdrawn by issuing an order in FORM GST REG-20.

Cancel Provisional Registration

  • Taxpayers registered under existing laws but not liable for GST registration can cancel their provisional registration within 30 days from the appointed day.
  • An electronic application for cancellation must be submitted on the Common Portal using FORM GST REG-29.
  • Following an inquiry, the officer will proceed with the cancellation of the registration.

Consequences of Not Migrating to GST When Required

Failure to migrate to GST, despite being liable, will result in the individual being ineligible to claim the input tax credit for excise and VAT paid on their stock. Furthermore, operating without proper GST registration when required constitutes an offense, leading to penalties.

Note: EVC (Electronic Verification Code) is a new electronic verification method based on Aadhaar. All forms uploaded to the GST Portal require either a signature or verification via EVC. For GST number verification, you can refer to relevant guides here.

Frequently Asked Questions

What is Goods and Services Tax (GST) in India?
GST is an indirect tax in India that has replaced many indirect taxes like excise duty, VAT, service tax, etc. It is levied on the supply of goods and services.
Who is required to register for GST in India?
Businesses exceeding a specified turnover threshold (which varies by state and type of supply) are generally required to register for GST. Certain businesses, irrespective of turnover, also need compulsory registration.
What are the different types of GST in India?
The main types of GST are CGST (Central GST), SGST (State GST), IGST (Integrated GST), and UTGST (Union Territory GST). CGST and SGST/UTGST are levied on intra-state supplies, while IGST is levied on inter-state supplies.
How does Input Tax Credit (ITC) work under GST?
Input Tax Credit allows registered businesses to claim credit for the GST paid on purchases of goods or services used for business purposes. This credit can then be used to offset the GST liability on their outward supplies.
What is the purpose of the GST Council?
The GST Council is the governing body for GST in India, chaired by the Union Finance Minister. Its role is to make recommendations to the Union and State Governments on issues related to GST, including tax rates, rules, and procedures.