As the GST roll out gets closer, there are many questions that continue to confuse tax payers, including individuals and small businesses. The new tax system requires businesses, small and large, to adopt to new technology to file tax returns and be part of an economy driven by digital methods. After the roll out of the GST, businesses will have to furnish their tax details online. At present, they have the option to file returns manually.
So, here are three main points that tax payers need to know ahead of the GST :
What is GSTN?
GST Network Limited is a non-government, private limited company promoted by the Central and state governments with the specific mandate to build the IT infrastructure and the services required for implementing GST, including the software which tax payers will use to file returns. GST subsumes many existing indirect taxes and introduces one tax policy. But, to implement this is possible only through technology. So, the government has assigned the responsibility to GSTN to take care of the technological aspect of implementing the GST. Navin Kumar is the chairman of GSTN. It's his responsibility to make GST work seamlessly across the length and breadth of the country.
What is GSTIN?
As the government rolls out GST on July 1, it is important for tax payers to migrate to a new system of paying taxes. For this, tax payers will have to register themselves to get the Goods and Services Tax Identification Number (GSIN). This number will have 15 digits. GSTIN is somewhat similar to the existing Tax Identification Number (TIN). However, all the existing tax payers of those taxes that are getting subsumed in GST have to migrate to the new regime by getting GSTIN. Essentially, tax payers will have just one identification number which is the GSTIN.
How to apply for GSTIN?
The government will allot a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). In fact, 66 out of 80 lakh tax payers have already recieved it. Those who have not applied for GSTIN yet can do so from 25 June onward. The window will be open for three months. Tax payers can visit www.gst.gov.in. for this. New applicatns will get provisional certificates. Once they fill in the required details, their GSTIN will be confirmed. Those who have already applied can submit Acknowledgement Reference Number (ARN) and download the Provisional Registration Certificate from "Download Certificates" at GST website from 27th June 2017.