Goods and Services Tax – GST – By: – CA Surender Gupta – Dated:- 11-4-2017 Last Replied Date:- 16-4-2017 – Here, we like highlight the ambiguity between the provisions of the statute and intention of the legislature relating to Registration under the GST regime. As we know unlike the Service Tax or Central Excise regime, in the GST regime, a person once registered, will be liable to discharge GST liability irrespective of the turnover. Therefore, the question arises, when the turnover of a person was much below Rs. 20 lakhs (or ₹ 10 lakhs as the case may be), but since he was registered under the existing law (i.e excise, service tax or vat etc.), whether he would be eligible to avail the benefit of exemption from the GST on the basis of turnover? As per the provisions of the Sub-Section (2) of the Section 22 – Persons liable for registration of the THE CENTRAL GOODS AND SERVICES TAX ACT, 2017, for the existing registered assessee, it is mandatory to seek GST registration, as re
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nge in the constitution of the business; or (c) the taxable person, other than the person registered under sub-section (3) of section 25, is no longer liable to be registered under section 22 or section 24. As per the provisions of Section 25(3), a person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily. Therefore, a person who is registered under the existing laws (i.e. central excise, service tax, VAT etc.) is required to obtain without any option since it is not voluntary by virtue of section 22(2) as above. However, as per the all the information and statements from the Central Government, the persons who has turnover upto 20 lakhs will be out of GST. Therefore, it is absolute necessary that Central Government must issue suitable clarification in time to avoid unwarranted litigation that may arise since this issue is going to effect lakhs of existing registered persons who otherwise would not be falling within the GST framewo
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ndering his registration number, the dept is not processing the same. These assesses are also facing the issue. Hopefully, some clarification should be issued sooner than later. – Reply By A SUBRAHMANYAM – The Reply = Prima facie the migration should be automatic and system based than asking the assessee to meddle with original pan name or aadhar card telephone links. Next, the system should migrate those persons only whose turnover was above 20 lacs, as per the periodical returns filed by the assessees hitherto. This will prove that the e-sytems of Excise, Serv Tax and VAT have been effectively functional as of now.Complications will initially be there when there is one India and Four Taxes, instead of one Tax. Lets hope the clouds disappearing as the D-day approaches. – Reply By KASTURI SETHI – The Reply = Sir, It is really a problem/enigma pointed by you. Now you have pointed out. Govt. may find remedy to this problem in order to avoid hotch potch situation. Before enactment of GST,
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