Section 17 of UTGST Act 2017: Migration of Existing Tax Payers (Transitional Provisions)

Provisions under Section 17 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 relating to “Migration of Existing Tax Payers (Transitional Provisions)”, are as under:

Section 17 of UTGST Act 2017: Migration of Existing Tax Payers (CHAPTER VIII – TRANSITIONAL PROVISIONS)

(1) On and from the appointed day, every person registered under any of the existing laws and having a valid Permanent Account Number shall be issued a certificate of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed, which unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with.

(2) The final certificate of registration shall be granted in such form and manner and subject to such conditions as may be prescribed.

(3) The certificate of registration issued to a person under sub-section (1) shall be deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section 24 of the Central Goods and Services Tax Act.

Amendments History:

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Commentary on Section 17 of UTGST Act, 2017

Section 17 of the Union Territory Goods and Services Tax (UTGST) Act, 2017 deals with the migration of existing taxpayers during the transition to the new GST regime. It outlines the process of obtaining provisional and final certificates of registration for those who were already registered under previous tax laws:

Section 17(1) of UTGST Act, 2017: Provisional Certificate of Registration

Sub-section (1) provides that existing taxpayers with a valid Permanent Account Number (PAN) will receive a provisional certificate of registration on the appointed day. This provisional certificate is subject to certain conditions and will be issued in a prescribed form and manner. If these conditions are not met, the provisional certificate may be canceled. This ensures a smooth transition for existing taxpayers while maintaining compliance with the new GST system.

Section 17(2) of UTGST Act, 2017: Final Certificate of Registration

Sub-section (2) provides that the final certificate of registration will be granted to taxpayers who meet the prescribed conditions. The form, manner and conditions for obtaining this certificate will also be prescribed. The final certificate signifies that the taxpayer has fully migrated to the new GST regime and is in compliance with the UTGST Act, 2017.

Section 17(3) of UTGST Act, 2017: Cancellation of Certificate

Sub-section (3) provides that if a taxpayer who was issued a provisional certificate under sub-section (1) later realizes that they were not liable for registration under Section 22 or Section 24 of the Central Goods and Services Tax Act, they may file an application for cancellation. If the registration is canceled as a result, it will be deemed that the certificate of registration was never issued in the first place. This provision safeguards taxpayers who, upon further evaluation, find that they are not required to register under the new GST regime.

In summary, Section 17 of the UTGST Act, 2017 establishes the procedures and conditions for the migration of existing taxpayers to the new GST system. It helps ensure a smooth transition while maintaining compliance with the new tax laws.

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Note: The UTGST Act 2017 has been notified vide GOI Notification dated 12/04/2017, which has subsequently been amended  through UTGST (Amendment) Act 2018, Finance Act 2019, Finance Act 2020, Finance Act 2021, Finance Act, 2022 and Finance Act, 2023 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective UTGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.