In a significant move, the Goods and Services Tax Network ( GSTN ) has announced that the Central Board of Indirect Taxes and Customs ( CBIC ) will be transitioning to the GSTN Back Office ( GSTN BO ) from June 1, 2024.
As outlined in the communication dated May 22, 2024 from the President ( Services ) of GSTN, this transition involves many procedural adjustments.
Starting June 1, 2024, CBIC’s operations will be integrated into the GSTN BO framework. The migration involves handling new registration applications differently during the transitional phase from May 25 to May 31, 2024.
New Registrations
During the migration, new registration applications will be processed under special provisions. These applications will be either marked for ‘deemed approval’ or assigned to the counterpart tax administration, i.e., the state tax authorities.
To manage the new registration applications, all new registrations received between May 25 and May 31, 2024, will be directly assigned to the concerned state tax administrations.
These newly registered taxpayers will remain under the jurisdiction of the state authorities even after the migration is complete.
State tax departments should allocate additional resources and manpower to handle the expected surge in registration applications efficiently. Ensuring that systems and processes are equipped to manage the increased load will be essential in maintaining service levels.
Conducting training sessions for tax officials on the new procedures and systems integrated into the GSTN BO will be vital to ensure that everyone is upto speed. Further, providing adequate support to taxpayers during the transition will help in minimizing confusion and ensuring a smooth registration process.
Clear communication with taxpayers regarding any changes in the registration process during the migration period will be essential and a timely dissemination of information through official channels and support desks can help in addressing any queries and concerns.
Establishing a monitoring mechanism to track the progress of the migration and address any bottlenecks promptly and collecting feedback from both tax officials and taxpayers can provide valuable insights for further improvements.
Notably, the state tax administrations must gear up to manage the increased workload and ensure a smooth transition for all stakeholders involved.
For further information and necessary action, stakeholders are requested to refer to the official communication from GSTN and stay updated with any additional guidelines that may be issued in the lead-up to the migration date.
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