Important Things to know about Goods and Service Tax & GST Portal
With the dawn of July 1, 2017, the Rajya Sabha of India flagged off the most awaited constitutional amendment to bring about a system of Goods and Service Tax (GST) in India. This is one of the most significant economic reforms in India in the history since its independence. With the introduction of it, it also became a talk of the town around the country. GST is a multi-stage, a comprehensive and destination-based tax which is levied on each and every value-added service. In other words, GST is the indirect tax which is levied on the goods sold and the service provided and taxpayers use a service initiated by Government of India which is called GST portal. GST has taken place of many indirect tax laws such as Central Excise Law, Service Tax Law, VAT, Entry Tax, Octroi etc., which were already in effect in the country.
There are several advantages of GST such as defined treatment for e-commerce, Online Simpler Procedure under GST, increased efficiency in logistics, regulating the unorganized sector, composition scheme for small businesses, removing cascading tax effect, and many others. There are three different taxes applicable under GST which are Central GST (CGST) which Central Government collects; State GST (SGST) which State Government collects; and Integrated GST (IGST) which is also collected by the Central Government.
GST Portal: Introduction
With the launching of GST in India, many small and medium businesses had a bulk of doubts about what GST actually is, and difficult to understand how to file GST. To ensure the smooth transaction system, Government of India launched a GST Portal on its website www.gst.gov.in for already existing VAT, Service Tax, and Excise taxpayers. If you are an already existing dealer, you can get your Provisional ID from your tax officer. In addition to this, you suppose to update the information which is in relation to your profile and also upload the documents on the GST portal.
GST portal collects the data provided by all the existing taxpayers. Thus it forms a strong foundation for the smooth future preparations. Presently, the existing taxpayers can enroll themselves for GST on GST Portal using the Provisional ID which has been provided to them by the respective VAT or Service Tax Department. After that, they are free to update all the information related to their business on the GST portal.
Steps for Enrollment on GST Portal:
If you want to enroll yourself on the GST portal, there are several steps through which you can enroll yourself. First of all, the State VAT Department will provide you the Provisional ID and password. It is essential for you to create a unique username and passwords using the previously provided Provisional ID and password. After logging in, you have to file the Enrollment Application and provide all the information related to your business. It is important that you do not miss the mandatory fields.
In next step, you have to verify the auto-populated details from the State VAT System. After attaching the mandatory documents, you have to sign the Enrollment Application electronically. Once you have signed and submitted the documents, they will be further verified by the GST System. If the information which you have provided is satisfactory, an Application Reference Number (ARN) will be issued on your business name. Provisional ID status will remain ‘Migrated’ till appointed date. On the date of appointment, your Provisional ID status will become active. After that, you will get a Provisional Registration Certificate (PRC).
There are several documents you will suppose to produce while enrolling yourself on GST Portal. The documents include Provisional ID and password issued by the VAT Authority, a valid email address, a valid mobile number, bank account, the IFSC code of the bank, and the proof of the registration of the business you own.