After the implementation of the Goods and Services Tax, traders would have to declare only their GST Identification Number at the time of import or export.
After the implementation of the Goods and Services Tax, traders would have to declare only their GST Identification Number at the time of import or export, the commerce ministry said today.
Currently, all exporters and importers declare their IEC (import-export code). With the implementation of the GST, it said GSTIN would be used for purposes of credit flow of IGST on import of goods; refund or rebate of IGST related to export. Registration number under GST is GSTIN. It is a 15-digit alpha numeric number code with PAN prefixed by state code and suffixed by 3 digit details of business verticals of the PAN holder. "It has been decided that importer/exporter would need to declare only GSTIN at the time of import and export of goods," the ministry said.
It also said that to promote ease of doing business, it has been decided to keep the identity of an entity uniform across the ministries and departments. With the implementation of the GST, it said, PAN of an entity will be used for the purpose of IEC.
For the existing IEC holders, necessary changes in the system are being carried out by the commerce ministry so that their PAN become their IEC. Currently, PAN has no one to one correlation with IEC. IEC is a 10 digit number and is mandatory for undertaking any import, export activities.
Govt rules out centralised registration for banks
The government today ruled out centralised registration for banks under the Goods and Service Tax (GST) and has mandated separate registration for each state they operate in.
Banks have been demanding a single centralised registration system, like at present, as they feel multiple registrations would create procedural and compliance problems. "They have no choice. They have some issues relating to registration which will be resolved in due course," said a top finance ministry official.
At a meeting of finance ministry with the heads of public sector banks here today, a separate session was held on issues related to GST. "We have eased some of their problems. GST will be rolled out as per schedule from July 1," the official said. Currently, banks as well as non-banking finance companies (NBFCs) with pan-India operations can discharge their service tax compliances through a single 'centralised' registration.
But under GST, they would need to obtain a separate registration for each state where they operate. But they have been allowed to submit a single invoice per state per month instead of multiple invoices for each transaction. The GST Council has fixed a 18 per cent tax rate under GST for financial services. Currently, these services are taxed at 15 per cent and the hike in the tax rate means that individuals will have to pay Rs 3 more for every Rs 100 paid for banking transactions.
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