Dealers transition to GST
Dealers transition to GST:
GST is being influencing the Economy of India in many ways. As the days are passing by the date of GST getting closer. There are many ways in which GST will be replacing current taxes. The main of all is VAT, it will be replaced by GST. That will be the plus point of SME because there will not be different VAT problems in different states. There are basically three types of GST, they are SGST (State goods and service tax), CGST (Central goods and service tax), IGST (Integrated goods and service tax). Here there are very simple steps for to existing dealers who are registered under current tax structure. Dealers transition to GST involves the following steps.
With these there will be replacements in different tax structures. That is Service Tax, Central Excise Duty, Duties of Excise, Cess and Surcharges and Customs Duty will be acquired by CGST. VAT, State Cesses and Surcharges, Central Sales Tax, Tax on Advertisements, Lottery, Gambling, Purchase Tax, Luxury Tax and Entertainment Tax. will be acquired by SGST. This will even change the taxation criteria. Now, entity with annul Income of 10 Lakhs has to register for GST. These are all the positives that will allow our business to flourish in our country.
All existing dealers registered with any of the current laws (VAT/Excise/Service Tax) will also need to register under GST by default. There are persons whom registration is the most needed and those are, Taxable person carrying on interstate supply, Casual and non-resident taxable persons, Businesses liable to pay tax under reverse charge, Agents supplying on behalf of a taxable person, Input service distributor, Sellers on e-commerce platforms, All e-commerce operators, Person supplying online information and database access or retrieval services from outside India to an unregistered person in India.
If you are a dealer registered under existing tax structure:
- The dealers that are registered under existing system and having a PAN, are to be enroll themselves on the portal by validating his e-mail ID and Mobile Number.
- After the enrollment, a dealer will be allotted with a provisional certificate of registration in Form GST REG-25. dealer will be granted only one provisional Registration even if he has registered multiple under single PAN. A dealer will be granted with single provisional registration in the state or union territory in which the he was registered earlier.
- All the dealers are required to submit Form GST REG-24 within 3 months in the GST Portal along with information and documents as prescribed.
- If the information provided is complete and satisfactory, final registration certificate will be issued in Form GST REG-06.
- If the details submitted are not satisfactory, a show cause notice will be issued in Form GST REG-27, and there will be a hearing before cancelling the provisional registration.
- If the show cause hearing is not successful, or if the details are not provided within the stipulated period, the provisional registration allotted in Form GST REG-25 will be cancelled by issuing an order in Form GST REG-26.