The Goods and Services Tax (GST) is set to become the biggest fiscal reform that India will witness post-independence. A new and unified tax structure will be followed for indirect taxation, eliminating the cascading effect of tax on the transaction of products and services. This will result in an increase of availability of products and services to consumers at a lower price, transforming the way small and medium sized businesses operate in India.
Despite this massive change, the government is planning a smooth transition by launching a GST portal on www.gst.gov.in for existing VAT, service tax and excise taxpayers. Existing dealers can collect their Provisional ID from their tax officers, update their profile information and upload the required documents on the GST portal.
The GST Portal
The GST portal will ensure collection of data from existing taxpayers. Hence, this provides a strong foundation and advance preparation for a seamless GST transition. Currently, existing taxpayers can enrol themselves on the GST portal through the Provisional ID provided to them by respective VAT department or service tax department. Moreover, they can then update their business-related details on the GST portal.
Steps for GST Enrolment
- State VAT Department communicates the Provisional ID and Password to all registered taxpayers
- Contact the State VAT Department if you have not received your Provisional ID and Password
- Use the Provisional ID and Password to access the GST common portal, gst.gov.in . Create a unique username and new password using your Provisional ID and Password
- Ensure that you have a valid email address and mobile phone number for validation on the GST portal
- After the User ID and Password are created, you must log-in to the GST common portal, gst.gov.in
- Fill Enrolment Application and provide business details
- Verify the auto populated details from state VAT system
Additionally, ensure that before you enrol on the GST portal, you have the following information with you:
- Provisional ID and Password received from VAT authority
- Valid e-mail address
- Valid mobile number
- Bank Account Number
- Bank IFSC code
- Proof of Registration of Business (Shop Establishment Certificate in case of Proprietorship, Partnership Deed in case of Companies and Memorandum of Association for Companies)
Status of GST Registration
Image Credit: gst.gov.in
Finally, you can review the status of the GST Registration. You will receive a message to state that it has been moved from Migrated to Active or Suspended.
GST will revolutionise the Indian economy, especially benefitting small businesses. GST will strengthen the economy by being transparent, easy to comply with, easy to pay, and lastly impossible to avoid. Being able to navigate the maze that is GST will determine whether GST helps or hurts your business.