CBIC Issues Instructions For Processing Of Applications For GST Registration

The Central Board of Indirect Taxes and Customs (CBIC) has issued the instructions for processing of applications for Goods and Service Tax (GST) registration.

The CBIC noted that several references have highlighted challenges faced by applicants in obtaining GST registration. These issues mainly arise due to unnecessary clarifications sought by officers regarding details submitted in FORM GST REG-01 and the demand for documents beyond those listed in the prescribed annexure. While it is essential to curb the registration of fake firms set up to fraudulently claim input tax credit (ITC), it is equally important to ensure that genuine applicants are not subjected to undue hardship.

Officers have been directed to strictly follow the prescribed list of documents in GST registration applications. Notices should not be issued for minor issues or non-essential documents. Any request for additional documents beyond the list must be approved by the Deputy/Assistant Commissioner.

The guidelines also simplify the documentation required for the constitution of the business. Only core documents such as partnership deeds or certificates of incorporation need to be submitted, and officers have been instructed not to ask for additional registrations like MSME certificates or trade licenses. Moreover, CBIC has emphasized that speculative or irrelevant queries by officers, such as questioning the type of property or whether the applicant resides in a different state, should be avoided.

The CBIC has directed zonal authorities to ensure proper implementation of these instructions. Chief Commissioners are to oversee the registration process, ensure adequate staffing, provide training to officers, and initiate disciplinary action if officers fail to follow these guidelines. The board has also encouraged them to issue trade notices to clarify acceptable documents in their jurisdictions.