Difficulties in GST registration

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Introduction GST was implemented in the country on 1st July, 2017 with a view of simplifying the tax structure on various goods and services. Various old taxes were abolished or merged under the umbrella of GST to streamline the indirect taxation structure in the country.

Who needs to get registered?

GST Registration must be completed by the following individuals and businesses:

  1. Individuals who have registered under the tax services before the GST law came into effect.
  2. Non-Resident Taxable Person and Casual Taxable Person
  3. Individuals who pay tax under the reverse charge mechanism
  4. All e-commerce aggregators
  5. Businesses that have a turnover that exceeds Rs.40 lakh. In the case of Uttarakhand, Himachal Pradesh, Jammu & Kashmir, and North-Eastern states, the turnover of the business should exceed Rs.10 lakh.
  6. Input service distributors and agents of a supplier
  7. Individuals who supply goods through an e-commerce aggregator.
  8. Individuals providing database access and online information from outside India to people who live in India other than those who are registered taxable persons.

New businesses can now secure their GST registration with the help of the Aadhaar. The process is simple and quick. The new process came into effect from 21 August 2020.

Power of State Jurisdiction Officer: where the application is found to be deficient either in terms of any information or any document required to be furnished or wear proper officer requires any clarification with any regard do any information provided in the application the jurisdiction officer make call upon the assessee for further information clarification or any document.

Ground reality of GST registration procedure: Registration with the help of aadhar was supposed to be simple and quick but in reality it has become a sore thumb for the taxpayers who want to get registered. Documents are being rejected merely on the grounds that they are not clear or readable. It has to be kept in mind that the portal accepts upload size of documents of only 100 KB. So documents such as rent agreements, deeds and other such supporting documents have to be super compressed to make them below 100 KB which diminishes the quality of documents.

Moreover queries raised by state jurisdiction officers are quite whimsical sometimes. Documents, in certain cases, are accepted without notary while a different officer will ask for notarised documents. ID proof such as PAN of promoters is being ask by the officers, however in the original application there is no place to attach the pan of promoters which makes one wonder if it was such a requirement, why the portal is not being updated till now!

 In one of one instance police verification report of the applicant was being asked by the jurisdiction officer.

These are just a few examples of what a small business has to go through just to register on GST portal. All these hassles are making the process of registration a lengthy process. This delay in process of registration makes the text taxpayer lose out on availing the advantage of GST such as

1 Availing of input tax credit on purchase of goods

2 online supply of goods or services across the country tree is

3 easy B2B transactions.

( CS Suraj Prakash is company Secretary from Ranchi, Jharkhand. You reach the author via mail or linkedin )

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