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GST enrolment driveled by 4 BJP-ruled states

Four  Bharatiya Janata Party- ruled statesā€” MadhyaPradesh,Gujarat and Chhattisgarhand Rajasthan ā€”are leading the race ins hifting those who pay the value-added tax(VAT) to the goods and services tax network (GSTN),with more than 70 percent of the dealers enrolled.
Despite the uncertainty over the GSTroll-out,theGSTN,which stands for the platform aswellas the body administering it,is in the process of being made ready on April1.
The GSTN plans to move most of  the eight million tax payers to the portal by the end of January.
Withtheenrolmentdrivestartinginall statesandUnionterritoriesinphases fromNovember8,roughlyhalftheVAT dealersinthecountryhaveregistered withtheGSTNportal.Of5.8million uniqueVATpayers,2.6millionhave listedthemselveswiththeGSTN.
ā€œOur idea is to complete the enrolment process by end-January.We are on course to providing backend support by April1,ā€ said a GSTN executive.
MadhyaPradesh and Gujarat have reported the most robust response,with78.3percent and 78.1percent of the people concerned enrolled on the platform.Enrolmentinthetwostates startedonNovember30.InPuducherry and Sikkim, the enrolment started onNovember8,butthetwohaveso far managedtoget 57 per cent and 44percentoftaxpayers,respectively,on board.Itwillbecompulsoryfordealers withanannualturnoverofmorethan Rs.20lakh to register with the GSTN.In the Northeasternstatesandhillystates,itis mandatoryforthosewithmorethana Rs.10lakhturnover.
Unitswithanannualturnoverof around~10lakhareexemptfrompaying theVAT,andthosehavinganannual turnoverofupto~20lakhwillnotbe requiredtoregisterunlesstheywantto availthemselvesoftheinputtaxcredit facilitybybeingintheGSTnet.
ā€œOne-thirdofthetaxpayersarebelow theexemptionlimit,butmanyofthem willregistertoavailthemselvesofthe inputtaxcredit.So,weexpecteightto10 percentpeoplewillnotregister,asthey willutilisetheexemption,ā€saidtheGSTN official. The laggards are Jammu & Kashmir,Assam,ArunachalPradeshand Meghalaya,withjustundera10percent enrolmentsofar.
Jammu&Kashmirhasmanagedjust 0.01percentregistrations.
TheGSTNhasgivenatimelineto switch all payers of the VAT, excise dutyandservicetaxtotheGSTNby March 20. Although the time given toenrolis15days,theGSTNhasdecided to keep it open-ended as of now to encouragemoreplayerstoregister.
ā€œWe will soon specify a deadline.But fornow,wewanttogiveeveryonea chancetoapply,ā€saidaGSTNofficial.
Under the enrolment procedure, tradersaresupposedtosubmittheir documentsandfulfiltheknow-yourcustomer norms and will get the registrationanduniqueidentityā€”GST identitynumbersā€”fromtheGSTN.
The GST Councilis yet to break the deadlock on key issues,including the division of control between the Centre and the states.Only after the Council passes the GST laws can they be table din Parliament and the assemblies.The next meeting is scheduled for January16.
The enrolment for the excise dutystartedonJanuary9andthatfor servicestaxwillbegininafewdays.
There are 2.2 million service tax payers.The GSTN is a private body developing the front-end infrastructure with the help of Infosys.It will provide a common plat form for registration,return filing and e-payment.It will also integrate the common GST portal with the tax administration systems of the Centre and states IthastakenaRs.550-crore loan from IDFC Bank on a government guarantee.
Business Standard New Delhi,11th January 2016

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