The Central Board of Indirect Taxes and Customs (CBIC) has provided comprehensive guidelines to standardise and expedite the GST registration process in response to increasing complaints about delays and issues.
Instruction No. 03/2025, released by the GST Policy Wing, addresses the irregular practices being complied with by the officers at the time of scrutinising GST registration applications furnished through FORM GST REG-01. Officers have reportedly raised unnecessary queries and demanded documents not listed officially, causing delays and rejections.
CBIC for Solving such Problems has Specified the Instructions-
Guidelines have been provided by the CBIC to resolve these issues concerning the GST registration process.
Highlights of the updated Guidelines:
Strict Adherence to Document List: Officers must adhere to the list of documents in FORM GST REG-01. Additional documents should only be requested if specifically required and approved by higher authorities.
Principal Place of Business (PPOB): Only one valid proof, such as a property tax receipt, electricity bill, or rent agreement, is sufficient. Additional documents like Aadhaar or photos of the lessor should not be requested.
Presumptive Queries Prohibited: Officers have been directed not to question applicants based on assumptions, such as discrepancies between residential and business addresses or perceived unsuitability of the business location for the suggested activity.
Faster Processing: Applications that are not flagged as risky should be approved within 7 working days, while applications that are flagged should be cleared within 30 days after physical verification.
Clear Grounds for Query or Rejection: Any clarification or document request shall be founded on particular shortcomings. Poor issues must not be used to delay or refuse registration.
Accountability Measures: Regularly, senior tax officials have been directed to review the registration process. Guidelines Deviations shall draw strict action.
The new directive replaces the previous instruction No. 03/2023-GST dated June 14, 2023, and aims to balance the prevention of fraudulent GST registrations with facilitating the ease of doing business for legitimate applicants.
Trade bodies and applicants are urged to report any problems faced at the time of implementation to the CBIC at gst-cbec@gov.in
