The Goods and Services Tax Network (GSTN) has informed Chief Commissioners/Commissioners of State Taxes about a crucial development regarding the migration of the Central Board of Indirect Taxes and Customs (CBIC) to the GSTN Back Office.
CBIC Goes GSTN Back Office: What It Means
A letter issued by GSTN vide F. No. GSTN/PMO/CBIC/2023 dated May 22, 2024, details the upcoming migration. Effectively, from June 1, 2024, CBIC will also be on board with the GSTN Back Office.
This migration might lead to a temporary surge in new registration applications for some states.
How New Registrations Will Be Handled During Migration
As a standard practice during such transitions, new registration applications are either “deemed approved” or assigned to the relevant tax administration. In CBIC’s case, all new registration applications received between May 25th and May 31st, 2024, will be directed to the concerned States.
This means that state tax administrations can expect a higher volume of fresh registration applications during this specific period.
What States Should Do
The GSTN advisory emphasizes that these taxpayers will continue to be under the purview of the States even after the migration is complete. Consequently, state tax authorities are encouraged to make necessary preparations to handle the potential increase in workload arising from these additional registration applications.
This information is intended to keep state tax administrations informed and facilitate them to take appropriate actions.
In a Nutshell
The migration of CBIC to the GSTN Back Office, while positive for streamlining processes, might lead to a short-term rise in new registration applications for some states. By being aware of this temporary shift and taking necessary steps, state tax authorities can ensure a smooth transition for new taxpayers.
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