The GST Constitutional Amendment Bill has been passed by the Rajya Sabha and is now likely to be implemented by April 1, 2017.
It will pave the way for a single tax structure and do away with delays and checks and taxes at every stage.
Here is a brief procedure to register for the GST:
1) Existing vendors/dealers/sellers
Existing dealers and vendors, who are already depositing value added tax, central excise and various other state taxes, do not have to register under the Goods and Services Tax or the new GST.
2) New vendors/dealers/sellers
New vendors, dealers and sellers will have to register first. They need to fill a single application. This is to be filed online, after which a registration with the GST is possible.
a) At the time of the registration, you have to provide your (Permanent Account Number) PAN number and the registration for the GST would be done based on this PAN number. Remember, irrespective of whether you are in the private sector or the government sector, you would need to register for the same.
This will serve the purpose of the State and the Centre's GST.
2) Interestingly, there would be joint application to both tax authorities, while registering for the GST.
3) Each dealer, will be given a unique ID called the GSTIN. It is really simple and there would be no need to remember several numbers as in the past.
4) The beauty of the entire process is that the deemed approval for such a registration number will be done within three days.
5) Post registration verification will be done only when there is a risk based case, which is likely to be very rare.
As is the case with any registration, you would need to submit documents for the registration of the GST. Remember, there are a list of documents that you would need to upload. These include your bank details, business details etc.
7) Migration for present registration
Those who are presently registered would be migrated to the new system. At the moment, it is difficult to say what and how the system would be. The GST itself is new and there would be a need to have checks and balances.
Why you need to register for the GST?
Doing business in the country is going to improve tremendously after the GST is implemented. Looks like it is going to be the case from April 1, 2017. If you are a prospective or aspiring business person, you should register for the GST.
Doing so early is much better. We are not sure how the other processes involved would be.
Remember, that while the main IT infrastructure and the other backbone pertaining to the system is largely in place, it has to be tested.
At the very beginning there maybe some procedures that are less seamless than others, however, once the mechanism evolves, GST is going to be a far solid procedure.
So, register quickly if you have not registered as yet.