CBIC Simplifies GST Registration, Warns Officers Against Procedural Overreach

With clearer instructions and reduced procedural burdens, the move is expected to improve compliance, reduce delays, and restore trust in the GST administration process

The central government has issued simplified guidelines for GST registration, aiming to curb harassment and streamline the process.

The Central Board of Indirect Taxes and Customs (CBIC) has released an important circular about the Goods and Services Taxes (GST) registration process rules which are to be followed by a GST proper officer responsible for handling the GST registration process. The stress is on the word ‘registration process’, as CBIC noted that taxpayers were getting harassed by the GST registration process and this caused an increasing number of complaints being led by taxpayers.

Talking to Bizz Buzz, Subhash Varshney, former principal chief commissioner of GST in Mumbai said, “Of late, GST registrations were being delayed and denied due to one reason or another. There was an element of frustration and unease in the minds of those who had applied for registration. The government also became aware of the same. Accordingly, the government took a note of the problem and harassment inflicted on the businesses. Consequently, the government issued simple and clear guidelines for issue of the registration certificate.”

These instructions clearly specify the documents required or not required for obtaining the registration. There is a provision of punishment of those officers who do not follow and adhere to the instructions. As such, this is a welcome and positive stand taken by the government for the ease of doing business, he said.

The recent SOP in the form of instruction will bring uniformity and give clarity to officers, new applicants and also to professionals. For instance, for principal place of business officials were asking to submit Municipal Khata Copy or property tax receipt, water bill even if electricity bill is uploaded at the time of registration. Now this instruction will be useful as it’s not mentioned in bold that ‘any one of the documents’ is sufficient and ‘no additional document should be requested from the applicant for proof of ownership of the premises of the applicant’. Also, many times in rented premises cases, department was asking, PAN card, Aadhar Card, photograph of the lessor in front of/or inside the property, even if rent agreement and one of above documents were uploaded.

Ashish Niraj, Partner, ASN & Company, Chartered Accountants, said, “Practically many of our clients faced issue with this as many times landlord were not willing to share his PAN, Aadhar etc. Now in above instruction issued its clarified that for place of business any one of above documents such as electricity bill, municipal receipt is sufficient if rent agreement is registered and no identity proof of lessor should be sought.”

In case of unregistered rent agreement one identity proof of lessor can be asked. This will give much clarity to all. Also, in case of property owned by relatives many times officers asked for notarised consent with proof of principal place of business, now this instruction clarified that consent letter in plain paper by the concerned owner of the premises along with a copy of the identity proof of the person granting consent and along with any one of the documents as mentioned in list of documents appended to FORM GST REG-01 in support of ownership of the premises of the consenter should suffice. For constitution of business, in case of partnership along with partnership deed, many times officials were asking Udhyam certificate, MSME certificate, shop establishment certificate, trade license etc.

Now instruction has clarified that partnership deed is sufficient and these additional docs not required. These steps will make GST registration process smooth and user friendly, he added.