All assesses / dealers who are already registered under existing central excise/service tax/ vat laws - What will happen when turnover is not exceeding ₹ 20 Lakhs (or ₹ 10 Lakhs in Hill areas) - Complications and Problems

In my view the dealer whose turnover is below threshold limit of GST will have an opportunity to surrender the number obtained under provisional basis once GST comes into effect.

Very true.

Further, if an assesse is surrendering his registration number, the dept is not processing the same. These assesses are also facing the issue. Hopefully, some clarification should be issued sooner than later.

Prima facie the migration should be automatic and system based than asking the assessee to meddle with original pan name or aadhar card telephone links. Next, the system should migrate those persons only whose turnover was above 20 lacs, as per the periodical returns filed by the assessees hitherto. This will prove that the e-sytems of Excise, Serv Tax and VAT have been effectively functional as of now.

Complications will initially be there when there is "one India and Four Taxes, instead of one Tax." Lets hope the clouds disappearing as the D-day approaches.

Sir,

It is really a problem/enigma pointed by you. Now you have pointed out. Govt. may find remedy to this problem in order to avoid hotch potch situation. Before enactment of GST, every direction in this aspect is just preparation for GST. Such migration has no statutory status. It is a sort of co-operation to Govt. and advance preparation in the interest of assessees. None of my clients whose turnover is below threshold exemption limit and remained below ₹ 20 lakhs for last five years, has applied for migration to GST. They are waiting for enactment of GST. Any change in the provision of the Act/ or Rules can take place at the eleventh hour. Even after enactment of GST, it is expected that Govt. will give sufficient time to get the assessee registered under GST Acts. After all Govt. also wants successful implementation of GST.

As per the current arrangement the provisions, existing registered person is required to obtain GST registration without any option as per section 22(2)

However, Central Government must come out with a Notification u/s 23(2) of CGST to grant relief to small traders or service provides who are already registered but not willing to migrate to GST.

Yes. Sir but from the appointed day i.e.the date of enactment.

Whenever there is flaw in the law, benefit goes to the assessee. There is judgement of Supreme Court in this context. Assessees whose turnover is below ₹ 20 lakhs, should not suffer at all. Why they should apply for registration ? On being pointed out by Chief Editor, TMI, this flaw in the law would come to the notice of Board and hope flaw would be removed before 1.7.17.

Since registration in GST regime, whose turnover is less than ₹ 20 lakhs, is automatic, in my view, he is not at all required to pay GST and later he may surrender his registration by mentioning the fact. However clarification is required in this regard. This point may be sent to the CBE&C for their consideration.