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CBEC comes up with 3 draft rules under GST regime

27 Sep 2016 Evaluate

Income tax department has issued three draft rules and their formats relating to registration, invoice and payment under the goods and services tax (GST) regime, which is expected to be finalized in the second meeting of the GST council to be held on September 30. The Central Board of Excise and Customs (CBEC) has invited comments on draft rules by September 28.

The draft rules provide for online registration by residents within three days of submission of application, while the 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.

The draft rules also provide that if a tax official fails to take action on registration application within a stipulated time frame, the application for grant of registration shall be deemed to have been approved. The applicant seeking registration will have to submit 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.

The government aims to implement the new indirect tax regime Goods and Services Tax (GST) from April 1, 2017, and to that effect the GST Council will hold its second meeting on September 30 and it would finalise rules for GST.  The first meeting of the GST Council agreed on issues regarding the exemption limit, dual control and base year for compensation to states. Till now, the 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.

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