Circular No.ES/121/ 2016-17                                                               September 27, 2016

To: Members of the Council

Sub: - The Government issues draft rules on registration, invoice and payments under the goods and services tax (GST)

Dear Member,

This is to inform you that the Government on Monday 26^th September, 2016 released the draft rules for registration, payment and invoices under the goods and services tax (GST) regime with the objective of minimizing the physical interface between the taxpayer and the tax authorities that will check corruption and harassment. To view the Draft Rules under GST please visit http://cbec.gov.in/htdocs-cbec/gst.

With regard to the above, Central Board of Excise and Customs (CBEC) has invited comments on the Draft rules by Wednesday, 28^th September, 2016 which would be finalized by 30^th September, 2016 (Friday). Members are hence requested to send their comments to CBEC at gst-cbec@gov.in.

In order to prepare the groundwork for a smooth rollout of the Goods and Services Tax (GST), the tax department on 26.09.2016 released three sets of Draft Rules and their formats relating to registration, invoice and payments.

The government plans to implement GST from April 1, 2017.

CBEC has come out with 17 rules and 26 forms for Registration, five rules and one form for Invoice and four rules and seven forms for Payment.

The draft rules provide the following –

• Online registration by residents within three days of submission of application.
• Non-residents coming under the purview of GST will be required to electronically submit the application for registration at least 5 days prior to the commencement of business and shall also deposit full tax liability in advance.

According to CBEC –  Registered taxable person shall display his certificate of registration and GST identification number in a prominent location at his principal place of business and at every additional place or places of business.

As per the draft norms –

• The applicant seeking registration will have to submit permanent account number (PAN), mobile number, email address on the common portal or through a facilitation centre.
• The tax authorities will use PAN, one time password and Aadhaar number to verify the details of the applicant.
• In case all documents are in order, the tax official will approve registration in three working days from the date of submission of application.

In case there are defects –

• The applicant will be intimated within three working days and after receiving clarification, he will be granted registration within 7 days from the date for receiving of reply.
• There will also be a provision for grant of separate registration for business verticals of the same organization.

Members may make a note of the above and do the needful.

Thanking you,

V. ANIL KUMAR
EXECUTIVE DIRECTOR