New Delhi, April 18 -- Businesses can now expect their Goods and Services Tax (GST) registration applications to be processed within seven working days, according to a revised instruction issued by the Central Board of Indirect Taxes and Customs (CBIC). Applications flagged as "risky" will be subject to physical verification and processed within 30 days.

The CBIC issued new guidelines to address complaints regarding delays and procedural complications in the registration process. The directive pointed out that several field officers were making excessive and unnecessary demands from applicants. "Some field formations are raising presumptive queries and demanding unwarranted documents, causing undue hardship," the CBIC said in its instruction.

To address these concerns, the CBIC released an indicative list of documents that officers can request online, clarifying that original physical copies should not be demanded during the registration process.

To prove ownership of the principal place of business, applicants need to upload one of the following documents: latest property tax receipt, municipal khata copy, electricity bill of the owner, or any other state-issued utility bill. In cases involving rented premises, a valid rent or lease agreement must be submitted along with one of the ownership documents.

Regarding the constitution of business, if the applicant is a partner in a firm, a copy of the partnership deed is required. "Additional documents like Udhyam certificate, MSME certificate, trade license, or shop establishment certificate should not be asked for," the CBIC noted.

The department also identified common queries raised by officers that have created roadblocks for applicants. These include questioning the applicant's residential address if it does not match the registration location or assuming business activities cannot be conducted from a particular site. "Such presumptive queries must be avoided," the CBIC instructed.

Field officers have been asked to verify documents from publicly accessible sources such as land registries, electricity providers, and local government portals to determine their authenticity.

"For applications not flagged as risky and found to be complete, approval should be granted within seven working days," the CBIC said. However, applications requiring Aadhaar authentication or flagged under risk parameters will undergo physical verification, with registration to be issued within 30 days.

Published by HT Digital Content Services with permission from Millennium Post.