Union Budget Highlights 2017

Union Budget Highlights 2017

Important points in finance bill 2017 related to direct taxes.

1. Domestic companies turnover upto 50 Crore Rupees, for Financial year 2015-16 to be considered for tax @25% in AY 2018-19

2. TDS on rent 194IB required to be deducted only once in a year in Last month of the year and TAN not required . Further tds cant be more than Last month's Rent. Applicable for individual or HUF not liable for tax audit w.e.f 1 june 2017

3. Sec. 45(5A) In case of joint development agreement between land owner individual or huf and builder, tax to land owner for transfer of land in year completion certificate issued by builder. Further, TDS under Section 194IC @10% w.e.f 1-4-17 in case any monetary consideration payable under specified agreement.

4. Section 54EC scope expanded so as to provide that investment in any bond redeemable after 3 years which has been notified by CG.

5. No cash donation w.e.f 1-4-17 exceeding 2000. Existing limit was 10000.

6. 40A Section limit reduced to 10000 from existing 20000 w.e.f 1-4-17. Further depreciation also to be disallowed if capital asset purchased in cash exceeding 10000 w.e.f 1-4-17 effectively A.Y 2018-19.

7. 44AD concessional rate 6% on digital/cheque receipts applicable to A.y 2017-18 also. Time limit for receipts from debtors before due date under Section 139(1).

8. Restrictions on cash receipt of 3 Lakh or more applicable if

a. Received in Aggregate from a person in a day

b. in respect of single transaction 

c. in respect of transactions relating to one event or occasion from a person.

9. Enabling 15G and 15 H on insurance commission w.e.f 1-6-17

10. 44AA books maintenance turnover revised to 25 Lacs and income to 2.5 Lacs from AY18-19. However Professional mentioned in sub sec. 1 such as legal medical etc. Gross income limit is still 1.50 Lacs. for books maintenance.

11. From A.Y 17-18 payment of expenditures to relatives will not be considered for limit of 20 Crore for domestic transfer pricing.

12. w.e.f A.Y 18-19 time for filling revised return shall be upto the end of relevant assessment year or before completion of assessment which ever is earlier.

13. Set off of losses under Income from House Property against any other head shall be restricted to 2 lakh rupees . w.e.f ay 18-19

14. TCS in case of no PAN 5% or twice the tcs rate which ever is heigher. w.e.f 1-4-17

15. Limitation of interest to associates restricted to 30% of earnings before interest tax depreciation. Excess interest can be carried forward to 8 assessment years Provisions applicable of interest exceed 1 crore.

16. Non deductions of tds on expenses against other sources income also subject to disallowance of expenditure.

17. 50CA introduced to provide that where consideration for transfer of unquoted shares is less than fair market value , the fair market value shall be deemed to be full value of consideration. W.E.F ay 18-19.

Warm Regards

CA Keyur Shah

Keyur Shah & Co.

+91 999 8484 564

keyur@keyurshahca.com

Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

RBI/2016-17/143
DBR.No.BP.BC.37/21.04.048/2016-17

November 21, 2016

All Entities Regulated by the Reserve Bank of India

Madam / Dear Sir,

Prudential Norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances

It has been represented to us that consequent upon withdrawal of the legal tender status of the existing ₹ 500 and ₹ 1,000 notes (SBN) small borrowers may need some more time to repay their loan dues. Taking these representations into consideration, it has been decided to provide an additional 60 days beyond what is applicable for the concerned regulated entity(RE) for recognition of a loan account as substandard in the following cases:

1. Running working capital accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is ₹ 1 crore or less;
2. Term loans, whether business or personal, secured or otherwise, the original sanctioned amount whereof is ₹ 1 crore or less, on the books of any bank or any NBFC, including NBFC (MFI). This shall include housing loans and agriculture loans.
   Note: The limits at (i) and (ii) above are mutually exclusive limits applicable to respective category of loans.

3. Loans sanctioned by banks to NBFC (MFI), NBFCs, Housing Finance Companies, and PACs and by State Cooperative Banks to DCCBs.
4. The above guidelines will also be applicable to loans extended by DCCBs.

2. The above dispensation will be subject to following conditions:

1. It applies to dues payable between November 1, 2016 and December 31, 2016. REs shall note to ensure that this is a short-term deferment of classification as substandard due to delay in payment of dues arising during the period specified above and does not result in restructuring of the loans.
2. Dues payable before November 1 and after December 31, 2016, will be covered by the extant instruction for the respective regulated entity with regard to recognition of NPAs.
3. The additional time given shall only apply to defer the classification of an existing standard asset as substandard and not for delaying the migration of an account across sub-categories of NPA.

3. All REs, including DCCBs, are advised to be guided by the above instructions.

Procedure to Register / Update DSC on GST Portal

(A)How to Register DSC on GST Portal

To register your DSC with the GST Common Portal, you need to perform the following steps:

1. Access the www.gst.gov.in URL. The GST Home page is displayed.

2. Click the EXISTING USER LOGIN button.

3. The Login page is displayed. In the Username field, type the username that you created.

4. In the Password field, type the password.

5. In the Type the characters you see in the image below field, type the captcha text as shown on the screen.

6. Click the LOGIN button.

7. The Welcome page is displayed. Click the CONTINUE button.

8. The Dashboard is displayed. Click the Dashboard > Register / Update DSC command.

9. The Register Digital Signature Certificate page is displayed. In the PAN of Authorized Signatory drop-down list, select the PAN of the authorized Signatory that you want to register.

10. Select the I have downloaded and installed the signer checkbox.

11. Click the PROCEED button.

12. Select the certificate. Click the Sign button.

A successful message that “Your DSC has been successfully registered” is displayed.

 

(B) How to Update Digital Signature (DSC) on GST Portal

To update your DSC with the GST Common Portal, you need to perform the following steps:

1. Access the www.gst.gov.in URL. The GST Home page is displayed.

2. Click the EXISTING USER LOGIN button.

3. The Login page is displayed. In the Username field, type the username that you created.

4. In the Password field, type the password.

5. In the Type the characters you see in the image below field, type the captcha text as shown on the screen.

6. Click the LOGIN button.

7. The Welcome page is displayed. Click the CONTINUE button.

8. The Dashboard is displayed. Click the Dashboard > Register / Update DSC command.

9. The Register Digital Signature Certificate page is displayed. In the PAN of Authorized Signatory drop-down list, select the PAN of the authorized Signatory that you want to update.

10. Click the UPDATE button.

11. Click the CONTINUE button.

12. Select the certificate. Click the Sign button.

A successful message that “DSC has been successfully updated” is displayed.

Warm Regards
CA Keyur Shah
Keyur Shah & Co. 
+91 999 8484 564
keyur@keyurshahca.com

RBI Circular on Cash Withdrawal at Point-of-Sale (POS) - Withdrawal limits and customer fee/charges - Relaxation

RBI Circular on Cash Withdrawal at Point-of-Sale (POS) - Withdrawal limits and customer fee/charges - Relaxation

A reference is invited to our circulars DPSS.CO.PD.No.147/02.14.003/2009-10 dated July 22, 2009, DPSS.CO.PD.No.563/02.14.003/2013-14 dated September 5, 2013 and DPSS.CO.PD.No.449/02.14.003/2015-16 dated August 27, 2015 on cash withdrawal at Point of Sale (POS) enabled for all debit cards/open loop prepaid cards issued by banks with specified per day value limits for different locations.

2. Following the withdrawal of legal tender characteristics of existing ₹ 500/- and ₹ 1000/- Bank Notes (Specified Bank Notes – SBN), the Reserve Bank of India had advised banks, vide circular DPSS.CO.PD.No.1240/02.10.004/2016-2017 dated November 14, 2016, to waive levy of ATM charges for all transactions by savings bank customers done at all ATMs, from November 10, 2016 till December 30, 2016, subject to review.

3. As another customer-centric measure, it has been decided that (i) the limit for cash withdrawal at POS (for debit cards and open system prepaid cards issued by banks in India) has been made uniform at ₹ 2000/- per day across all centres (Tier I to VI) for all merchant establishments enabled for this facility and (ii) customer charges, if any, shall not be levied on all such transactions.

4. The above shall come into effect from the date of this circular and shall be applicable till December 30, 2016, subject to review.

5. All other extant instructions in this regard shall remain unchanged.

6. The directive is issued under Section 10(2) read with Section 18 of Payment and Settlement Systems Act 2007, (Act 51 of 2007).

Warm Regards
CA Keyur Shah
Keyur Shah & Co. 
Chartered Accountants
keyur@keyurshahca.com
+91 999 8484 564

Demonetisation to lower GDP growth by 0.3-0.5%: CARE Ratings (Source: Economic Times)

Abolition of Rs 500 and Rs 1,000 notes is likely to lower GDP growth by 0.3-0.5 per cent in the current fiscal as business in various sectors is expected to get adversely affected, says a report. 

According to CARE Ratings, while services and manufacturing sector would be impacted most from the move, the measure is positive for the banking sector and agriculture is expected to be the least impacted. 

In an attempt to curb black money menace, Prime Minister Narendra Modi-led government recently withdrew Rs 500 and Rs 1,000 notes as legal tender. It has instead introduced new Rs 500 and Rs 2,000 notes. 

The credit rating agency noted that the move is expected to have a significant effect on the economy, particularly on the GDP growth prospects "as various sectors would tend to get affected deferentially on this score". 

Prior to the demonetisation, CARE had estimated a GDP growth of 7.8 per cent for 2016-17. 

However, post-demonetisation, it has now projected that "the overall GDP growth would be affected by 0.3-0.5 per cent". 

According to CARE, the services sector is expected to be affected the most, mainly on account of losses in trade, hotel and transport, among others, due to the volume of cash transactions involved in these economic activities. 

"Importantly, these losses, due to their inherent nature, can't be recovered in the next quarter," it added. 

The agency also noted that SMEs will have a major problem in adjusting production schedules as both payments and receipts flow are in cash given their structures. 

"For the rest of manufacturing, demand side issues would exist till such time that conditions stabilize and could get reversed in the fourth quarter," CARE said. 

"Hence, the industry is also expected to be impacted which will be more significant in the first 2-3 weeks post the announcement," it added. 

On the Positive Side, the agency noted that the banking sector stands to gain from the move due to the increase in deposits, which will be somewhat countered by a slowdown in other sectors like Real Estate.

Interestingly, it noted that agriculture is expected to be the least impacted with major shock being absorbed in the first 2-3 weeks itself as there have been issues in sales at mandis due to the current cash crunch.

FAQ's for Withdrawal of Legal Tender Character of the existing Bank Notes in the denominations of 500/- and 1000/- (Updated as on November 16, 2016)

1. Why is this scheme introduced?

The incidence of fake Indian currency notes in higher denomination has increased. For ordinary persons, the fake notes look similar to genuine notes, even though no security feature has been copied. The fake notes are used for antinational and illegal activities. High denomination notes have been misused by terrorists and for hoarding black money. India remains a cash based economy hence the circulation of Fake Indian Currency Notes continues to be a menace. In order to contain the rising incidence of fake notes and black money, the scheme to withdraw has been introduced.

2. What is this scheme?

The legal tender character of the existing bank notes in denominations of ₹500 and ₹1000 issued by the Reserve bank of India till November 8, 2016 (hereinafter referred to as Specified Bank Notes) stands withdrawn. In consequence thereof these Bank Notes cannot be used for transacting business and/or store of value for future usage. The Specified Bank Notes can be exchanged for value at any of the 19 offices of the Reserve Bank of India or at any of the bank branches of commercial banks/ Regional Rural Banks/ Co-operative banks or at any Head Post Office or Sub-Post Office.

District Central Cooperative Banks (DCCBs) can allow their existing customers to withdraw money from their accounts upto Rs. 24,000 per week upto November 24, 2016. No exchange facility against the specified bank notes (₹ 500 and ₹ 1000) or deposit of such notes should be entertained by DCCB’s. The Reserve Bank has accordingly advised all banks to permit withdrawal of cash by DCCBs from their accounts based on need.

3. Does the scheme apply to pre 2005 banknotes of Rs. 500 and Rs. 1000?

Yes, specified banknotes (SBN) include pre 2005 banknotes in the denominations of 500 and 1000.

4. How much value will I get?

You will get value for the entire volume of notes tendered at the bank branches / RBI offices.

5. Can I get all in cash?

No. You will get upto ₹4500 per person in cash exchange over the counter irrespective of the size of tender and anything over and above that will be receivable by way of credit to bank account.

6. Why I cannot get the entire amount in cash when I have surrendered everything in cash?

The Scheme does not provide for it, given its objectives.

7. Rs. 4500 cash is insufficient for my need. What to do?

You can use balances in bank accounts to pay for other requirements by cheque or through electronic means of payments such as Internet banking, mobile wallets, IMPS, credit/debit cards etc.

8. What if I don’t have any bank account?

You can always open a bank account by approaching a bank branch with necessary documents required for fulfilling the KYC requirements.

9. What if, if I have only JDY account?

A JDY account holder can avail the exchange facility subject to the caps and other laid down limits in accord with norms and procedures.

10. Where can I go to exchange the notes?

The exchange facility is available at all Issue Offices of RBI and branches of commercial banks/RRBS/ Co-operative banks or at any Head Post Office or Sub-Post Office.

11. Need I go to my bank branch only?

For exchange upto ₹4500 in cash you may go to any bank branch with valid identity proof.

For exchange over ₹4500, which will be accorded through credit to Bank account only, you may go to the branch where you have an account or to any other branch of the same bank.

In case you want to go to a branch of any other bank where you are not maintaining an account, you will have to furnish valid identity proof and bank account details required for electronic fund transfer to your account.

12. Can I go to any branch of my bank?

Yes you can go to any branch of your bank.

13. Can I go to any branch of any other bank?

Yes, you can go to any branch of any other bank. In that case you have to furnish valid identity proof for exchange in cash; both valid identity proof and bank account details will be required for electronic fund transfer in case the amount to be exchanged exceeds ₹4500.

14. Can I exchange Rs. 4500 more than once?

No. You can exchange upto ₹ 4500 only once. As per the Standard Operating Procedure advised to banks, while exchanging the specified banknotes, the bank branch concerned, issue office of RBI or post offices would put indelible ink mark on the right index finger of the customer so as to identify that he/she has exchanged the old currency notes. The indelible ink will be applied before the old notes are taken or new notes are given. Indelible ink on the index finger of the left hand or any other finger of the left hand may not be used as a pretext to deny exchange of old notes.

This procedure would be introduced to begin with in the metro cities and later extended to the other areas.

15. I have no account but my relative / friend has an account, can I get my notes exchanged into that account?

Yes, you can do that if the account holder relative/friend etc. gives you permission in writing. While exchanging, you should provide to the bank, evidence of permission given by the account holder and your valid identity proof.

16. Should I go to bank personally or can I send the notes through my representative?

Personal visit to the branch is preferable. In case it is not possible for you to visit the branch you may send your representative with an express mandate i.e. a written authorisation. The representative should produce authority letter and his / her valid identity proof while tendering the notes.

17. Can I withdraw from ATM?

The ATMs are progressively getting recalibrated. As and when they are recalibrated, the cash limit of such ATMs will stand enhanced to ₹ 2500/- per withdrawal. This will enable dispensing of lower denomination currency notes for about ₹ 500/- per withdrawal. Other ATMs which are yet to be recalibrated, will continue to dispense ₹ 2000/- till they are recalibrated.

Banks have also been advised to increase the Business Correspondents’ limit of dispensing cash to ₹ 2500/- for withdrawal from bank accounts.

18. What will be the levied ATM charges?

It has been decided that banks shall waive levy of ATM charges for all transactions (inclusive of both financial and non-financial transactions) by savings bank customers done at their own banks’ ATMs as well as at other banks’ ATMs, irrespective of the number of transactions during the month. This waiver is applicable on transactions done at ATMs from November 10, 2016 till December 30, 2016, subject to review.

19. Does the limit of ₹ 10,000 withdrawal apply to withdrawals from bank account of one bank from another bank?

The daily limit of ₹ 10000/- per day stands withdrawn. These limits are not applicable to cash withdrawal from a bank account by one bank from another bank, Post Office, Money changers operating at International airports and operators of White Label ATMs. The branches maintaining Currency Chests have been advised to accommodate the requests from other branches in their vicinity – linked or otherwise – for supply of cash.

20. Can I withdraw cash against cheque?

Yes, you can withdraw cash against withdrawal slip or cheque subject to a weekly limit of ₹ 24000/- (including withdrawals from ATMs and over the counter) from the bank accounts. The ceiling of ₹10,000/- in a day stands withdrawn. The limits apply upto November 24, 2016, after which these may be reviewed.

Business entities having Current Accounts which are operational for last three months or more will be allowed to draw ₹ 50,000/- per week. This can be done in a single transaction or multiple transactions.

21. Can I deposit Specified Bank Notes through ATMs, Cash Deposit Machine, cash Recycler and bank branches multiple times?

Yes, Specified Bank Notes can be deposited in Cash Deposits machines / Cash Recyclers or at bank branches more than once till December 30, 2016. At bank branches, customers should use separate pay-in-slips for depositing specified bank notes and other legal tender bank notes. (If a depositor has a mixed bunch of SBN and legal tender notes, he has to segregate them and submit two separate Pay-in slips).

22. Can I make use of electronic (NEFT/RTGS /IMPS/ Internet Banking / Mobile banking etc.) mode?

You can use NEFT/RTGS/IMPS/Internet Banking/Mobile Banking or any other electronic/ non-cash mode of payment.

23. How much time do I have to exchange the notes?

The scheme closes on December 30, 2016. The Specified banknotes can be exchanged at branches of commercial banks, Regional Rural Banks, Urban Cooperative banks, State Cooperative Banks and RBI till December 30, 2016 and even beyond, at specified RBI offices. As there is ample time, people need not rush to exchange putting avoidable strain on the banking branch network.

24. I am right now not in India, what should I do?

If you have Specified banknotes in India, you may authorise in writing enabling another person in India to deposit the notes into your bank account. The person so authorised has to come to the bank branch with the Specified banknotes, the authority letter given by you and a valid identity proof (Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff)

25. I am an NRI and hold NRO account, can the exchange value be deposited in my account?

Yes, you can deposit the Specified banknotes to your NRO account.

26. I am a foreign tourist, I have these notes. What should I do?

You can purchase foreign exchange equivalent to ₹5000 using these Specified Bank Notes at airport exchange counters till November 24, 2016, provided you present proof of purchasing the Specified Bank Notes.

27. I have emergency needs of cash (hospitalisation, travel, life saving medicines) then what I should do?

Till the November 24, 2016 midnight, specified banknotes can be used as under:—

(a) for making payments in Government hospitals for medical treatment and pharmacies in Government hospitals for buying medicines with doctor's prescription;

(b) at railway ticketing counters, ticket counters of Government or Public Sector Undertakings buses and airline ticketing counters at airports for purchase of tickets;

(c) for purchases at consumer cooperative stores operated under authorisation of Central or State Governments and the customers shall provide their identity proof;

(d) for purchase at milk booths operating under authorisation of the Central or State Governments;

(e) for purchase of petrol, diesel and gas at the stations operating under the authorisation of Public Sector Oil and Gas Marketing Companies;

(f) for payments at crematoria and burial grounds;

(g) at international airports, for arriving and departing passengers, who possess specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character;

(h) for foreign tourists to exchange foreign currency or specified bank notes, the value of which does not exceed five thousand rupees to exchange them for notes having legal tender character.

(i) for making payments in all pharmacies on production of doctor’s prescription and proof of identity;

(j) for payments on purchases LPG gas cylinders;

(k) for making payments to catering services on board, during travel by rail;

(l) for making payments for purchasing tickets for travel by suburban and metro rail services;

(m) for making payments for purchase of entry tickets for any monument maintained by the Archaeological Survey of India.

(n) for making payments towards any fees, charges, taxes or penalties, payable to the Central or State Governments including Municipal and local bodies;

(o) for making payments towards utility charges including water and electricity -which shall be restricted to individuals or households for payment of only arrears or current charges and no advance payments shall be allowed

28. Can I use the Specified banknotes to settle outstanding in my loan account?

Deposits of Specified bank Notes into all types of deposit/loan accounts is allowed subject to CTR/STR reporting. Anybody depositing more than ₹ 50,000/- in cash in their bank account has to submit a copy of the PAN card in case the bank account is not seeded with PAN.

29. What is proof of identity?

Valid Identity proof is any of the following: Aadhaar Card, Driving License, Voter ID Card, Pass Port, NREGA Card, PAN Card, Identity Card Issued by Government Department, Public Sector Unit to its Staff.

30. Where can I get more information on this scheme?

Further information is available on our website (www.rbi.org.in) and the website of the Government of India (www.finmin.nic.in)

31. What steps have been taken for queue management?

Banks have been advised to make arrangements for separate queues for Senior citizens and Divyang (disabled) persons. Similarly, separate queues should also be arranged for those who come to exchange SBN for cash and those who come to deposit into bank accounts.

The last date for submission of the annual life certificate for the government pensioners which is to be submitted in November every year has been extended upto January 15, 2017 to facilitate.

The Reserve Bank assures members of the public that enough cash in small denominations is also available at the Reserve Bank and banks. The Reserve Bank urges that public need not be anxious; need not come over to banks repeatedly to draw and hoard; Cash is available when they need it.

Also see :

All You wanted to know from RBI about: Withdrawal of Legal Tender Status of ₹ 500 and ₹ 1000 Notes

32. If I have a problem, whom should I approach?

You may approach the control room of RBI by email or on Telephone Nos 022 22602201/022 22602944

Warm Regards

CA Keyur Shah

Keyur Shah & Co

+91 999 8484 564

keyur@keyurshahca.com

FAQ's For Enrolment of the Existing Taxpayer on the GST System Portal

Part-A: - General Information

1. Who is an existing taxpayer?

An existing taxpayer is an entity currently registered under any of the Acts as specified below:-

a. Central Excise

b. Service Tax

c. State Sales Tax / VAT (except exclusive liquor dealers if registered under VAT)

d. Entry Tax

e. Luxury Tax

f. Entertainment Tax (except levied by the local bodies)

2. What does the word ‘enrolment’ under GST system portal mean?

Enrolment under GST means validating the data of existing taxpayers and filling up the remaining key fields.

3. Do I need to enroll for GST?

All existing taxpayers registered under any of the Acts as specified in Q1 will be transitioned to GST. Enrolment for GST will ensure smooth transition to GST regime. The data available with various tax authorities is incomplete and thus fresh enrolment has been planned. Also, this will ensure latest data is available in GST Database without any recourse to amendment process, which is the norm to update the data under tax statutes today.

4. Why do I need to enroll myself as a user on the GST System Portal?

GST System portal has been created for this purpose as no paper based enrolment will You need to enroll as a user on the GST system portal, so that you may be enabled as a registrant for GST Compliance requirement viz. return filling, tax payment, etc 

5. When do I need to enroll with the GST Systems Portal?

The taxpayers registered under any Acts as specified under Q1 are required to enroll at GST System Portal. State VAT and Central Excise can start enrolling from October, 2016 on GST System Portal as per plan indicated on GST System portal. The taxpayers registered under Service Tax will be enrolled on a later date for which separate intimation will be sent.

6. Is there any concept of deemed enrolment on GST System Portal? 

No. There is no deemed enrolment on GST system portal. All the taxpayers registered under any of the Acts as specified in Q1, are expected to visit the GST System Portal and enroll themselves.

7. Is there any fee/charge levied for the enrolment on GST System Portal? 

No. There is no fee/charge levied for the enrolment of a taxpayer with GST System Portal.

8. Is the enrolment process different for taxpayers registered under Centre /State/UT tax Acts as specified in Q1?

No. The enrolment process is common for all taxpayers registered under Centre /State/UT tax Acts as specified in Q1. 

9. Are taxpayers required to enroll separately with Central and State authorities under GST?

No, any person who wants to seek enrolment under the GST Act has to apply on the GST System Portal. Enrolment under the GST is common for both Central GST and the State GST. There will be common registration, common return and common Challan for Central and State GST.

10. What is the format of Provisional ID?

 

 11. What information should be readily available with me before I begin to enroll with GST? 

Before enrolling with GST System Portal, you must ensure to have the following information/ documents available with you:-

I. Provisional ID received from State/Central Authorities;

II. Password received from the State/Central Authorities;

III. Valid Email Address;

IV. Valid Mobile Number;

V. Bank Account Number

VI. Bank IFSC

Documents

a. Proof of Constitution of Business :

i. In case of Partnership firm: Partnership Deed of Partnership Firm (PDF and

JPEG format in maximum size of 1 MB)

ii. In case of Others: Registration Certificate of the Business Entity

(PDF and JPEG format in maximum size of 1 MB)

b. Photograph of Promoters/ Partners/Karta of HUF (JPEG format in maximum size

of 100 KB)

c. Proof of Appointment of Authorized Signatory (PDF and JPEG format in

maximum size of 1 MB)

d. Photograph of Authorized Signatory (JPEG format in maximum size of 100 KB)

e. Opening page of Bank Passbook / Statement containing Bank Account Number of

< Account Number>, Address of Branch, Address of Account holder and few

transaction details (PDF and JPEG format in maximum size of 1 MB)

Part-B: - System Specific Information

12. Which username do I need to provide during first time login. Can I use the same username and password which I used to login as State registrant?

For the first time login, you need to provide username and password that you received from the State VAT/Centre Tax Department. For subsequent login, you need to enter username and password as created by you while enrolling with GST System Portal.

13. What user ID can I choose after first login?

You may choose any user ID of your choice, provided it is available in the database while you are registering.

14. I have not received my username and password to apply for enrolment with GST. What do I do now?

In case you have not received your user name and password, you can contact your jurisdictional State/Centre authorities.

15. Can I give email address and mobile number of my Tax Professional during enrolment with GST?

No, you should not give the email address and mobile number of Tax Professional or anyone else. You MUST provide the email address and mobile number of the primary Authorized Signatory appointed by you or yourself. All future correspondence/communication from the GST System Portal will be sent on the registered mobile Number and email address only.

Tax professionals will be given separate user ID and password from GST system and they will provide their own email Id and mobile number for that purpose.

16. Who can be the Primary Authorized Signatory?

A Primary authorized signatory is the person who is primarily responsible to perform action on the GST System Portal on behalf of taxpayer. All communication from the GST System Portal relating to taxpayer will be sent to him. For example:- in case of proprietor, the proprietor himself or any person authorized by him, in case of partnership any of the partner authorized or any person authorized, in case of Company/LLP, Society, Trust, the person who is authorized by Board or Governing Body etc. can act as Primary authorized signatory. Copy of authorization needs to be uploaded.

In case of multiple authorized signatory for single business entity, one authorized signatory should be designated as primary authorized signatory and email and mobile number of that person shall be provided at the enrolment.

In case of single authorized signatory for a business entity, he shall be assumed as primary authorized signatory for that business entity.

17. How long the OTP is valid?

The OTP sent to your email address and mobile number is valid for <15> minutes. It expires after 15 minutes.

18. I have not received the OTP on my mobile? What do I do now?

Your OTP would be sent on your registered mobile number and e mail address on GST System Portal. If you have not received the OTP within 15 minutes, you may choose to receive it again by clicking the RESEND OTP button.

19. What if I don’t receive the OTP even after clicking the RESEND OTP button?

If you do not receive the OTP via SMS on your mobile number even after clicking the RESEND OTP button, please verify if the mobile number provided by you is correct. If you do not receive the OTP on your email address even after clicking the RESEND OTP button, please verify that your email address entered is correct and the Internet and mobile network are available.

20. Why I have received two One Time Passwords (OTPs) for email and mobile?

Separate OTPs are sent to on email address and mobile number to validate them. Thus two separate OTPs are sent. All future correspondence from the GST System Portal will be sent on the registered

email address and mobile number only. Therefore, there is need to validate both mobile number and email address.

21. I have received OTP in my mobile. I have entered the same OTP in the OTP verification page for Email OTP and Mobile OTP. Are these OTPs different?

You must have received two different One Time Passwords (OTPs) on your email address and mobile number. Enter the OTP received on your email address and mobile number in the Email OTP and Mobile OTP fields respectively. If you have entered same OTP in both of your email and mobile OTP fields, your validation would be failed with error message.

22. Which details are prefilled in the enrolment application for enrolling with GST?

Following details are auto-populated in the enrolment application based on your existing data:

· PAN of the Business

· Legal Name of Business

· State

· Reason of liability to obtain registration

· Email Address and Mobile number of primary Authorized Signatory entered during

enrolling with GST System Portal.

23. What does the red asterisk (*) appearing besides the fields in the enrolment application indicate?

Red asterisk (*) indicates mandatory field. Any field marked with the red asterisk need to be filled in necessarily to proceed ahead with the enrolment application.

24. Can I make changes in in my Legal Name, State Name and PAN in the enrolment application?

You cannot make changes to Legal Name, State name and PAN as appearing in the enrolment application. These details have been migrated from existing tax systems of State or Center, as the case may be.

25. How to find out my State Jurisdiction? 

Refer your VAT Registration Certificate to find your State Jurisdiction. It is the same jurisdiction as given in your existing VAT Registration Certificate.

26. How to find out my Ward / Circle / Sector No? 

Refer to your VAT Registration Certificate to find your Ward / Circle / Sector No. It is the same ward /Circle/ Sector where you are registered.

27. How to find out my Center Jurisdiction?

If you are registered with Central Excise, refer the Registration Certificate to find your Centre Jurisdiction. If you are only a VAT registered dealer, you need to find your central jurisdiction based

on the address of your Principal place of Business. You may visit CBEC website www.cbec.gov.in for details

(refer URL - http://www.cbec.gov.in/resources//htdocs-cbec/deptt_offcr/cadrerestruct/

cadre-restructg-notifications.pdf).

28. I am not able to upload any document. Why?

You first need to check your internet connectivity. You should also ensure that the format of document must be either PDF or JPEG with maximum size of 1 MB. In case of photographs, the format should be in JPEG and maximum size allowed is 100 KB.

29. I filled all the details in the Business Details page while filling the form. But now all the fields are appearing blank. Why?

You need to save every page after filling all the details. Click the Save & Continue button at the bottom of the page to save the entered details and then proceed further to enter details in the other tabs.

30. What is DIN?

DIN stands for Director Identification Number given to Directors of a Company by Ministry of Corporate Affairs. To know your DIN, refer your DIN allotment letterissued by Ministry of Corporate Affairs or visit the MCA portal - www.mca.gov.in.

31. I don’t have my Aadhaar Number. Is it mandatory to provide the Aadhaar Number?

For filing of enrolment application Aadhaar is not mandatory. However, at the time of submission of your enrolment application at GST System Portal, you would be required to use DSC or Aadhaar based E-Signing.

32. What is Principal Place of Business?

Principal Place of Business is the primary location within the State where a taxpayer's business is performed. The principal place of business is generally where the business's books of accounts and records are kept and is often where the head of the firm or at least top management is located.

33. What is Additional Place of Business?

Additional Place of business is the place of business where taxpayer carries out business related activities within the State, in addition to the Principal Place of Business.

34. What is HSN and SAC code?

HSN stands for Harmonized System of Nomenclature which is internationally accepted product coding system to maintain uniformity in classification of goods. Service Accounting Codes (SAC) are adopted by the Central Board of Excise and Customs (CBEC) for identification of the services.

35. Which bank account should I provide while enrolling with GST System Portal?

The Bank accounts used for the purpose of carrying out business transactions must be provided while enrolling with GST System Portal.

36. I have more than one bank account. Can I add all of them while enrolling with GST System Portal?

You can add maximum of 10 Bank accounts while enrolling with GST System Portal.

37. Is DSC mandatory for enrolment 

DSC is mandatory for enrolment by Companies, Foreign Companies, Limited Liability Partnership (LLPs) and Foreign Limited Liability Partnership (FLLPs). For other taxpayers, DSC is optional.

38. My DSC is not registered with GST System Portal? Will I be able to submit my enrolment application with DSC?

You cannot submit the enrolment application if your DSC is not registered with GST System Portal. Therefore, you need to register your DSC on GST System Portal by clicking “register your DSC”.

39. How can I register my DSC with GST Portal?

If you have valid DSC, you can visit GST System Portal and click on “Register your DSC” link. The PAN of the DSC holder should match with the PAN database of the CBDT. After validation the user should select the certificate link which is to be registered. Only class -2 or Class 3 DSC can be registered in the GST System Portal.

40. What is E-Sign? How does it work?

E-Sign stands for Electronic Signature. E-Sign is an online electronic signature service to facilitate an Aadhaar holder to digitally sign a document. If the Applicant opts to electronically sign using the E-Sign service, the following actions are performed:-

Taxpayer need to click on “E sign” button.

System will ask to enter Aadhaar number of Authorized signatory.

1. After validating the Aadhaar Number, the GST system Portal will send a request to

UIDAI system to send a One Time Password (OTP).

2. UIDAI system will send OTP to email address and mobile number registered against

Aadhaar number.

System will prompt user to enter OTP.

The user will enter the OTP and submit the document. The e-Signing process is complete.

41. Is there any charge applicable on submission of the application for enrolment?

No, there is no charge applicable on submission of the application for enrolment with GST System Portal.

42. What is ARN?

ARN is the Application Reference Number generated after the submission of the enrolment application with E-Sign or Digital Signature (DSC). It is a unique number assigned to each transaction completed at the GST System Portal. Note the ARN can be used for future correspondence with GSTN.

43. What is the format of ARN? 

 

   

44. I am an existing taxpayer registered under Central Excise/ Service Tax and State VAT legislations. I have successfully submitted the details sought by GSTN as per application prescribed under model GST Law. What will happen next?

Application Reference Number (ARN) will be generated after the successful submission of the enrolment application at the GST System Portal. You can use this ARN to track the status of your application.

45. I have not yet received the Application Reference Number (ARN). What should I do now?

If you don’t receive ARN within 15 minutes, an email will be sent to you with detailed instructions for further course of action.

46. While entering the details, internet connection was lost. How can I retrieve the saved enrolment form?

To retrieve the saved enrolment form, login to the GST System Portal with valid credentials. Go to Dashboard > My Saved Application menu. Click the Edit button to retrieve the saved enrolment form.

47. I got an email that there is a mismatch during PAN validation. What should I do now?

You need to login to the GST System Portal and fill the details as per your PAN details and resubmit the enrolment application.

48. My DSC has expired / revoked? What do I do now?

You need to re-register your valid DSC with GST. Login to the GST System Portal with valid credentials. Go to Dashboard > Register / Update DSC menu. In case of revocation, another valid DSC has to be registered with GST System Portal.

49. Is there any Help Desk Facility available? 

Yes, Help Desk facility will be available and it will be displayed on the GST System Portal.

Part-C: - Activities after appointed date

50. Can application for enrolment get rejected? 

Yes, the application for enrollment with GST System Portal can be rejected in case you have furnished/uploaded wrong or fake or incorrect document with your DSC or ESign. However, the applicant will be provided reasonable opportunity of being heard where applicant taxpayer can present his/her viewpoints.

51. Can I make amendments after I submit the enrolment application?

You can make amendments to the enrolment application from appointed date onwards.

52. Can I change mobile no. and email id as given at the time of enrolment?

You can change mobile no. and email id as given at the time of enrolment application after appointed date onwards through amendment process.

53. When will I get Provisional Registration Certificate?

It will be available on your dashboard on the appointed date if you have filled enrolment application successfully.

54. When will I get Final Registration Certificate?

The final Registration Certificate will be provided to you after verification of documents (within 6 months) by proper officer(s) center/state of concerned jurisdiction (s) after appointed date.

Part-D: - Miscellaneous

55. I have multiple businesses in one state under the same PAN. Do I need to enroll each business separately with GST?

As one PAN allows one GST Registration in a state, you may register one business entity first. For the remaining business verticals within the State please get in touch with your jurisdictional authority.

56. What is ISD Registration?

ISD stands for Input Service Distributor. An Input Service Distributor means the person who distributes credit, in respect of the tax invoices of the services received at the head office, to its branches where the services have been supplied actually. Tax invoice here means, the invoice issued under section 23 of the Model Goods and Services Act, if you are an existing ISD Taxpayer, you need to apply afresh in the GST System Portal for the State where you desire to seek registration. For that you need to inform your Central jurisdictional authority.

 ST Registration in a state, you may register one business entity first. For the remaining business verticals within the State please get in touch with your jurisdictional authority.

56. What is ISD Registration?

ISD stands for Input Service Distributor. An Input Service Distributor means the person who distributes credit, in respect of the tax invoices of the services received at the head office, to its branches where the services have been supplied actually. Tax invoice here means, the invoice issued under section 23 of the Model Goods and Services Act, if you are an existing ISD Taxpayer, you need to apply afresh in the GST System Portal for the State where you desire to seek registration. For that you need to inform your Central jurisdictional authority.

Warm Regards

CA Keyur Shah

Keyur Shah & Co.

+91 999 8484 564

keyur@keyurshahca.com