What Every Business Should Know about GST Before Registration?

A provisional certificate of GST registration is issued to all the dealers registered under Central Excise, State VAT, Service Tax, etc. and having a valid PAN in Form GST REG-25. After issuing the provisional certificate, the dealer will have 90 days where prescribed documents should be submitted to migrate to the final registration.

If the information provided for online GST service is correct and complete, they get the final GST certificate in Form GST REG-06. In case a taxable person doesn’t need to register under GST during the transition but was registered under State and Central law, he can cancel the provisional registration which is issued after submission of the Form GST Reg-28 within 30 days of implementation of GST.

Input Tax Credit of Previous Returns filed in Existing Regime

A registered taxable individual shall also be responsible to take credit in their credit ledger, of VAT, CENVAT, and Entry Tax which is carried ahead in return and furnished by them under the previous law for the quarter or month ending June 30, 2017. However, a dealer can claim the Input Tax Credit only when he has furnished all the returns needed under the current law for 6 months preceding the GST implementation, i.e. July 1, 2017.

ITC on VAT

The ITC against capital goods purchase is currently not available quickly and it is offered for only some of the specialized capital gods. According to the CENVAT Credit Rules 2004, one can avail only 50% credit during the first year and the rest of 50% of the credit you can avail in any of the financial years.

At the same time, the ITC for capital goods can be available as installments in most states spread over several months and ITC is provided in some states only if the capital goods are used in business. One of the major changes in the GST regime is the dealer’s ability to claim the full balance of Excise/VAT credit as ITC on capital goods.

On Goods in Transit

If you are a registered taxable individual, you can claim ITC of both state and central taxes in the current regime on services and goods received after the regime passed. It is mandatory for the invoice to be recorded in account books within 30 days of implementation of GST. However, this limit may be extended to an extra 30 days for sufficient reasons. The taxable individual will submit the relevant documents or statement about the credit which has been taken.

On Goods in Stock

The most pressing concern here is probably all the transition rules and the excise duty which is levied on stocked goods. There are three cases -

• Availability of Credit Transfer Document
• Availability of Excise Invoice
• Neither Credit Transfer Document nor Excise invoice available

Despite these scenarios, all the registered individuals shall be able to submit a declaration online within 90 days.

Professional help

There’s no doubt that the GST registration online or offline (through visiting appropriate authorities) process is somewhat complex and needs professional knowledge. Thus, it is recommended that you seek help from professionals. Virtualauditor.in is a well-known company who consulting about online GST service and helps you how to register in GST online. You can contact them and complete the GST registration process easily.