GST, Outsourcing

GST for Central Excise and Service Tax Assesses – Migration Provisions

This article is all about the migration of taxpayers who were earlier registered under Central Excise, Service Tax which is to be replaced by Goods and service Tax from 1st July 2017. Here, we will elaborate on the preconditions for such registration as well as step by step guide to complete this migration.


Migration through Provisional ID

One of the most important point to be considered is that GST registration is based on the Permanent Account Number of the taxpayer. Every taxpayer registered under these old laws is provided with a provisional ID and password by the CBEC, which is to be used for migration to GST. However, this Provisional ID will only be issued to taxpayers who have PAN associated with their registrations.

Provisional Id will not be provided to any dealer or trader included in the following list;

  1. Any dealer whose PAN associated with such previous registrations is not valid.
  2. If dealer’s PAN is registered with any other State tax authority and provisional ID is issued by such tax authority.
  3. If there are multiple Vat and other registrations under various laws, and all these registrations are to be summed up under GST on the same PAN in a State, then Provisional id is to be issued on the first registration in the alphabetical order.

Migration Provisions

All the provisions relating to migration of existing taxpayers from old laws to the new Goods and Service Tax law are provided under RULE 24 of the CGST Rules, 2017 under the head of Registration. These rules state that migration process divided in two stage;

  • In the first stage provisional registration is done.
  • In the second stage final registration is done.


Provisional Registration

  • These provisions clearly state that all such existing taxpayers having a valid PAN No. except for a person deducting tax at source and an Input Service Distributor are required to enroll on the Common Portal and validate their;
  • E-mail ID and
  • Mobile No.
  • After the enrollment procedure is completed, taxpayer will be granted registration on provisional basis and a certificate for the same will be issued in FORM GST REG-25. GSTIN will be stated on this certificate which will be made available on the Common Portal.
  • If any taxpayer was previously had more than one registration under the previous laws based on the same permanent account number, then he will only be issued a single provisional registration under GST.

Final Registration

  • After the provisional ID is issued in the first stage, taxpayer is required to file an application online in FORM GST REG-26. All the required information and documents are to be submitted with this application and it is to be electronically signed or verified through Electronic Verification Code.
  • Taxpayer can continue working through this provisional GSTIN issued for a period of 3 months. And within this period of 3 months they are required to submit FORM GST REG-26 for final registration.
  • After due verification of the application if the authorities are satisfied then a certificate of registration is to be issued in FORM GST REG-06. 
  • However, if this application for permanent registration is not filled within specified time period and if filled the information furnished is found to be incorrect, then a show cause notice is issued in FORM GST REG-27. 
  • If the applicant’s response to such show cause notice is satisfactory then such show cause notice will be withdrawn by issuing an order in FORM GST REG-20.
  • After giving the opportunity of being heard to the taxpayer, his provisional registration will be cancelled, and an order of such cancellation is issued in FORN GST REG-28.

However, if there is taxpayer who is not liable to be registered under GST, and wishes to withdraw his Provisional registration, then he will be required to file an application for the same in FORM GST REG-29 electronically on the common portal.