GST REGISTRATION, ENROLMENT AND MIGRATION PROCESS

March 2017

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CONTENTS

1. Introduction

2. GST Registration Framework

3. GST Enrolment Process Flow

4. Documentation Checklist

5. FAQs

6. Registration for new assessees under the GST regime

7. Registration for other assessees

8. Scope Limitation

9. Annexures

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INTRODUCTION

A majority of the present Indirect Tax (IDT) levies in India are expected to be subsumed by the Goods and Services Tax (GST). This paradigm shift in indirect taxation is currently underway and the final GST Law is expected to be enforced from 1 July 2017. As part of this change, all assessees (i.e. individuals already registered under the present IDT Laws) or those who are liable to register as per the Model GST Law under the public domain, are required obtain registration under the GST regime.To register/enrol existing assessees into the GST regime, the government has started migrating the existing IDT registration numbers into the GST portal in a staggered manner. The process of GST migration for state VAT assessees began from November 2016 and was extended to cover Excise and Service Tax assessees from January 2017 onwards.

While the last date of completion for the migration process was 31 January 2017, it was withdrawn by the authorities.

Further, the CBEC has recently issued a ticker on its website requesting assessees to whom provisional ID for migration to GST has been issued to complete the GST migration process by 31 March 2017.

In view of this, we have summarised some the relevant aspects and actions required to be known and undertaken by you, as an assessee, under the GST migration process. Also, based on our practical experience in assisting clients undertake such processes, we have outlined some common industry challenges/questions along with the answers. Please refer to the link attached in the postcard for a brief reading on the same.

*Note: The postcard and linked slide deck is prepared based on the Model GST law (revised in November), Draft GST Registration Rules published on 26September 2016 along with combined reading of ‘User Manual for Web portal’ and ‘FAQ on using GST portal’, and other information available on theCentral Board of Excise and Customs (CBEC), state VAT and Goods and Services Tax Network (GSTN) web portal.

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GST REGISTRATION FRAMEWORK

428-02-2017

Registration under GST

Migration of existing assessees having valid PAN

(Refer to slides 5 and 6)

Registration for new assessees

(Refer to slide 8)

Assesses registered under State VAT Laws

Assesses registered under Central Excise

Law

Assesses registered under Service Tax

Law

Assesses liable for registration as per Section 23 r.w. Schedule

V of the Revised GST Law

Registration for certain key compliance/specified assesses

(Refer to slide 9)

Assesses liable for registration as per Section 23 r.w. Schedule

V of the Revised GST Law

Required to follow enrolment process as prescribed on www.gst.gov.in (Refer to Annexure I to have an overview of the enrolment schedule)

GST registration for new businesses post implementation

GST registration procedure for TDS, TCS, ISD, casual taxable person, non-resident taxable persons is to be prescribed

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GST ENROLMENT PROCESS FLOW

Step 1 Obtain Provisional ID and password from State/Central Authorities

Step 2 Visit the GST Portal (www.gst.gov.in) and click on the ‘New User Login’ Tab

Step 3 Log into the GST Portal using the Provisional ID and password, update and validate the email id and mobile number through OTP

Step 4 Create a new unique ID and password and answer five security questions. Once the same is done, a provisional registration shall be granted in Form GST REG 21

Step 5 Log in using the new unique ID and password on the GST Portal (www.gst.gov.in)

Step 6 Fill up the enrolment application form in Form GST REG-20 by providing the required information and documents as specified in Slide 7

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GST ENROLMENT PROCESS FLOW

1. Any person registered under the earlier law but not required to get registration under GST, may at his option, apply forcancellation of provisional registration in Form GST REG-24.

2. It is pertinent to note that all the applications, reply to notices shall be filed electronically and authenticated using theDigital Signature or E-signature as prescribed under the IT Act, 2000.

Step 7 Sign electronically through a Digital Signature (mandatory for corporate) or E-Signature (refer to note 2 below) and submit. An Application Reference Number (ARN) shall be generated.

Step 8(a) The proper officer, on verification of the details furnished in the application, shall issue a certificate of registration in Form GST REG-06. He may visit the premises if necessary.

Step 8 (b)(i) The proper officer may cancel the provisional registration by issuing an order in Form GST REG-22 if he believes that the information furnished is incorrect/incomplete

Step 8 (b)(ii) Before cancellation of registration, the proper officer shall issue a show cause notice in Form GST REG- 23 and provide reasonable opportunity of being heard.

Here, it is pertinent to note that process till Step 7 has been

activated by Govt. For enrolment

schedule,Refer Annex I

6

OR

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DOCUMENTATION CHECKLIST

7

Mobile number and email ID for generation of OTP (it is relevant to note that all future correspondence shall be made through this registered mobilenumber and email ID)

Copy of all existing registrations certificates (VAT/CST/excise/service tax/IEC/entry tax, etc.)

Proof of constitution of business (e.g. incorporation certificate in the case of company)

Information relating to principal and additional places of business within the State along with their address proof as stated below- in case of rented premises – rent agreement with electricity/telephone bill (not older than three months) along with an NOC of the owner- In case of owned premises – copy of ownership agreement along with electricity/telephone bill (not older than three months)

Copy of Form 32 appointing the directors, along with their photograph, copy of PAN, Aadhaar card/passport and mobile no.

List of directors and authorised signatory

Copy of board resolution appointing the authorised person along with their photograph, copy of PAN , Aadhaar card/passport and mobile no.

Digital Signature of authorised signatory (along with login key)

List of top five goods with their corresponding HSN code and category of services rendered

Details of all bank accounts of the business such as account no., type of account, name and address of the bank, IFSC code, along with proof such asa copy of first page of passbook or relevant extract of bank statement

*The above list is prepared based on ‘FAQs on using the GST Common Portal’ available on the public domain. Additional information/documents may be required at the time of enrolment

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FAQs

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1. How many provisional IDs shall be granted in case of multiple Central Excise/service tax registrations on the same PAN in a state?Ans. According to Guidance for GST enrolment for existing Central Excise/service tax assesses issued by the CBEC, only one provisional ID shall be issued by

the Central Indirect Tax authority, provided:- PAN is not invalid; and- No provisional ID has been issued by the State tax authority

2. What is the procedure to be followed in case the same legal entity has two registrations in one State today, and want to have two separateregistrations in one State under GST

Ans. As per the documents available on public domain in this regard, only one Provisional ID will be issued to a given PAN for a given state, irrespective of the number of registration on that PAN in that state.

For e.g. PAN ‘XXXXX1111X’ has 10 CE registrations in the state ‘Maharashtra’ from ‘XXXXX1111XXM001’ to ‘XXXXX1111XXM010’. In such cases, only one Provisional ID will be issued to the registration ‘XXXXX1111XXM001’. In case the assessee wishes to enrol in GST for the other 9 registrations as well, the details regarding the other registrations (address of premise) may be included as ‘Additional Place of Business’.

There is no express clarity with regard to procedure for migration of other registrations as separate registrations under the GST regime. Based on the legal provisions in this regard, it appears that where the assessee wants a separate GST registration for the other 9 business verticals, a process for new registration prescribed under GST may be required to be followed.

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FAQs

9

3. The assessee presently has a place of business in Karnataka and wants to start operations in the State of Delhi. What is the procedure to be followedto obtain GST registration for Delhi premises?

Ans. Given that the company does not have a present place of business and registration at Delhi, it appears that the assessee will have follow the procedure for fresh registration to obtain a new GST registration number for the Delhi premises.

4. Is It mandatory for the DSC of the authorised signatory to be PAN-based while authenticating the application?Ans. In case the primary authorised signatory is a citizen of India, a PAN is mandatory. However, if the primary authorised signatory is not a citizen of India,

then a PAN is not mandatory, however, the passport number is mandatory. Accordingly, the DSC of the authorised signatory may or may not be PAN-based.

5. What is CBEC Mitra?Ans. CBEC Mitra is a new CBEC GST helpdesk which has been started to provide assistance to assessees who face any difficulty or if they have any query

relating to GST registration. This helpdesk is an Interactive Voice Response (IVR) and will be operational 24*7. The assessee can email their difficulties/queries to cbecmitra.helpdesk@icegate.gov.in or call the helpdesk numbers given below: CBEC: 1800-1200-232 GSTN: 0124-4688999

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REGISTRATION FOR NEW ASSESSEES UNDER GST REGIME

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Taxable person before applying for registration shall declare his PAN, mobile no. and e-mail ID in Part A of Form

GST REG-01

On successful verification, an

application reference number

shall be sent to the mobile no. and email ID

Using the said reference no.

shall submit the application in Part

B of Form GST REG-01

On receipt of the said application,

an acknowledgement shall be issued in Form GST REG-02

Post verification of application by

the officer, if found correct, shall grant the

registration within three

common working days

A certificate of registration shall be issued in Form

GST REG-06 on the portal.

Registration process under GST:

Other important points:

The above mentioned taxable person shall be liable to be registered as per Sec 23 r.w. Schedule V and includes persons seeking voluntary registrationbut excludes non-residents, a person required to deduct tax at source or collect tax at source.

In case a deficiency is found on verification, the officer shall intimate in Form GST REG-03 within three common working days.

The applicant shall furnish the clarification in Form GST REG-04 within seven common working days from the date of receipt of intimation.

Further, if the officer is not satisfied with the clarification, he shall reject the application in Form GST REG-05.

It is pertinent to note that under Model GST Law, a taxable person having business verticals in various states will be required to get registered in eachsuch state. Further, a taxable person having separate business verticals in the same state may obtain separate registration for each of the verticalspresent in that state.

Separately, a registered person having a registration certificate is required to display the same in a prominent location at the place of business and ateach additional place of business.

Source: Rule 1 to Rule 4 and Rule 7 of the Draft GST Registration Rules

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REGISTRATION FOR OTHER ASSESSEES

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Grant of registration to persons required to deduct tax at source or collect tax at source:

Draft Registration Rules prescribe that the person required to deduct or collect tax at source under Section 46(1) or 56 of MGL

respectively shall apply for registration in Form GST REG-07.

The Registration Certificate (RC) shall be issued on verification by the officer in Form GST REG-06 within three common working days

Assignment of UIN to certain special entities:

In accordance with the provisions contained in Section 23 (7) of MGL, special entities such as UN Bodies or alike, shall have to obtain

registration (Unique Identification Number) for other purposes and to avail refund of the goods and/or service received by them.

Further, such entities shall have to file an application for registration in Form GST REG-09 electronically.

On verification, the officer shall issue the RC in Form GST REG-06 within three common working days.

Grant of registration to non-resident taxable person:

Draft Registration Rules prescribe that a non-resident taxable person liable to GST in India shall apply for registration in Form GST REG-10

A temporary identification number would be issued for making advance tax deposits as required under Section 24(2) of the Revised GST

Law.

Here, it shall be noted that the registration process for the above-mentioned assesses has not been notified yet by the Government.

Source- Rule 5, Rule 6 and Rule 8 of Draft GST Registration Rules

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SCOPE LIMITATION

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• The presentation is prepared based on the Draft GST Registration Rules published in public domain on 26 September 2016 with acombined reading of the ‘User Manual for Web portal’ and ‘FAQs on using GST portal’ available in public domain. Please note thatthe GST portal does not state the type of form in which data is being submitted for the enrolment process. We have relied on theDraft Rules to decipher the title/type of the Forms required to be submitted by the assessee on the GST portal.

• Any views expressed by us are not binding on any Regulators or Revenue Authorities. Also, there can be no assurance that theRevenue Authorities will not take a contrary view at the time of finalising the GST legislation.

• This slide deck presented is solely for the purpose of our discussion and may not be relied/copied/used or be construed as ouropinion in any manner without a case-specific study in place.

• Further, the slide deck may not be quoted in whole or in part or otherwise referred to in any document or delivered to any otherperson or entity without our prior written consent.

The contents of this presentation are intended for general marketing and informative purposes only and should not beconstrued to be complete. This presentation may contain information other than our services and credentials. Suchinformation should neither be considered as an opinion or advice nor be relied upon as being comprehensive and accurate.We accept no liability or responsibility to any person for any loss or damage incurred by relying on such information. Thispresentation may contain proprietary, confidential or legally privileged information and any unauthorised reproduction,misuse or disclosure of its contents is strictly prohibited and will be unlawful.

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1328-02-2017

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ANNEXURE I- GST ENROLMENT DRIVE

1428-02-2017

1. Overview of GST Migration Drive - The government has commenced a drive for migration of existing indirect tax registrations (VAT, service tax,central excise) to the GST regime. The GST common portal has been made available to enable existing assessees to register to meet the GSTcompliance requirements from the date of GST implementation.

2. Enrollment Process FAQs - As per the FAQs issued with regards to the Migration Process, enrolment under GST means validating the data of existingtaxpayers and filling up the remaining key fields. Existing assessees are granted registration under GST on uploading relevantinformation/documents, subject to the receipt of a provisional ID and password from State VAT/Central authorities.

3. Enrolment Schedule - The schedule of the enrolment activation drive for states and various assesses is given below:

States Start Date

Puducherry, Sikkim 8 November 2016

Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh 14 November 2016

Gujarat 15 November 2016

Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripura, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram

30 November 2016

Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan 16 November 2016

Kerala, Karnataka, Telangana, Andhra Pradesh 1 January 2017

Tamil Nadu 4 January 2017

Taxpayers registered under the Central Excise Act but not registered under State VAT 5 January 2017

Tax payers registered under the Service Tax Act but not registered under State VAT 25 January 2017

New registration under VAT/Service Tax/Central Excise after August 2016 1 February 2017 (not yet started)

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ANNEXURE I- GST ENROLMENT DRIVE

1528-02-2017

4. Steps post obtaining provisional registration - The GST authorities would commence the review of applications made in Form GST REG 21 postimplementation of GST. In case of any incorrect or insufficient details found, the application could be rejected. The overview of enrolment activitythat shall be taken up by the government post implementation of the GST Law is given in the Registration FAQ issued (the link of the same is givenbelow)

In case the documents are found correct as per the requirements, the GST registration would be issued to the assessee.

Portal link : www.gst.gov.inUser guide: http://tutorial.gst.gov.in/userguide/#t=First_Topic.htmFAQ link: http://tutorial.gst.gov.in/faq/#t=Goods_and_Services_Tax_FAQ_Tutorial_Pipepline.htm.

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ANNEXURE II- RELEVANT PROVISION OF MODEL GST LAW

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Sec 166 - Migration of existing taxpayers to GST

1. On the appointed day, every person registered under any of the earlier laws and having a valid PAN shall be issued a certificate of registration on a provisional

basis in such form and manner as may be prescribed.

2. The certificate of registration issued under sub-section (1) shall be valid for a period of six months from the date of its issue, provided that the said validity period

may be extended for such further period as the Central/State Government may, on the recommendation of the Council, notify.

3. Every person to whom a certificate of registration has been issued under sub-section (1) shall, within the period specified under sub-section (2), furnish such

information as may be prescribed.

4. On furnishing of such information, the certificate of registration issued under subsection (1) shall, subject to the provisions of section 23, be granted on a final

basis by the Central/State Government.

5. The certificate of registration issued to a person under sub-section (1) may be cancelled if such person fails to furnish, within the time specified under subsection

(2), the information prescribed under sub-section (3).

6. The certificate of registration issued to a person under sub-section (1) 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 23.

7. A person to whom a certificate of registration has been issued on a provisional basis and who is eligible to pay tax under section 9, may opt to do so within such

time and in such manner as may be prescribed:

provided that where the said person does not opt to pay tax under section 9 within the time prescribed in this behalf, he shall be liable to pay tax under section

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ANNEXURE II- RELEVANT EXTRACT OF DRAFT REGISTRATION RULES

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Rule 14 - Migration of persons registered under the earlier law

1. Every person registered under an earlier law and having a PAN issued under the Income Tax Act, 1961 shall be granted registration on a provisional basis and a

certificate of registration in Form GST REG- 21, incorporating the Goods and Services Tax Identification Number (GSTIN) therein, shall be made available on the

common portal.

2. a. Every person who has been granted a provisional registration under sub-rule (1) shall submit an application electronically in Form GST REG–20, duly signed,

along with the information and documents specified in the said application, on the common portal, either directly or through a facilitation centre, notified

by the Board or Commissioner.

b. The information asked for in clause (a) shall be furnished within the period specified in Section 142 or within such further period as may be extended by the

Board or Commissioner in this behalf.

c. If the information and the particulars furnished in the application are found to be correct and complete (by the proper officer), a certificate of registration in

Form GST REG-06 shall be made available to the registered taxable person electronically on the common portal.

3. Where the particulars and/or information specified in sub-rule (2) have either not been furnished or not found to be correct or complete, the proper officer shall

cancel the provisional registration granted under sub-rule (1) and issue an order in Form GST REG- 22:

- Provided that no provisional registration shall be cancelled as aforesaid without serving a notice to show cause in Form GST REG-23 and without affording the

person concerned a reasonable opportunity of being heard.

4. Every person registered under any of the earlier laws, who is not liable to be registered under the Act may, at his option, file electronically an application in Form

GST REG-24 at the common portal for cancellation of the registration granted provisionally to him and the proper officer shall, after conducting such enquiry as

deemed fit, cancel the said provisional registration.