TRANSITIONAL PROVISIONSCentral

Section 139 of The Central Goods and Services Tax Act, 2017

(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.

Summary

This provision handles the migration of taxpayers who were already registered under old tax laws into the new tax system.
It grants a provisional registration certificate to existing taxpayers who have a valid Permanent Account Number.
The provisional certificate can be cancelled if the taxpayer fails to meet certain prescribed conditions.
A final certificate of registration will replace the provisional one once all conditions are fulfilled.
If a person tells the authorities they are not actually required to be registered under the new rules, their provisional certificate will be treated as if it never existed.

Practical examples

1Manish owned a shop and was registered under the old state sales tax law. On the appointed day, because he had a valid PAN, the new system automatically issued him a provisional registration certificate so he could keep doing business without stopping.

2Rekha received a provisional certificate during the transition. She realised her small business turnover did not require her to be registered under the new tax laws. She filed an application stating this, and her provisional certificate was cancelled and deemed never issued.

FAQ

1. How do existing taxpayers transition to the new law under Section 139 of The Central Goods and Services Tax Act, 2017?

Under Section 139 of The Central Goods and Services Tax Act, 2017, existing taxpayers with a valid PAN are issued a provisional certificate of registration.

2. Can a provisional registration be cancelled under Section 139 of the CGST Act?

Yes, Section 139 of the CGST Act states that the provisional certificate is liable to be cancelled if the prescribed conditions are not complied with.

3. What happens if I do not need to be registered under the new law, but got a provisional certificate under Section 139 of the GST Act?

Under Section 139 of the GST Act, if you file an application stating you are not liable for registration, your provisional certificate is cancelled and deemed to have not been issued.

Test yourself

Q1.Under Section 139 of The Central Goods and Services Tax Act, 2017, what is required for an existing taxpayer to get a provisional certificate?

Q2.What type of certificate is initially issued to migrating taxpayers under Section 139 of the CGST Act?

Q3.Under Section 139 of the GST law, what happens to the provisional certificate if the person files an application stating they are not liable to be registered?

Q4.What replaces the provisional certificate if conditions are met under Section 139 of The Central Goods and Services Tax Act, 2017?

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