Business

GST Registration May Get Simpler: Centre, States Work On Common Rules

Centre and state tax authorities are working on a common set of rules to standardise the documents required for GST registration.

According to media reports, the move aims to speed up the approval of applications from businesses that carry forward more than Rs 2.5 lakh in input tax credit (ITC) every month.

A senior official said the proposal will be placed before the GST Council, chaired by Finance Minister Nirmala Sitharaman and comprising Finance Ministers from all states and Union Territories, after it receives the consent of the Centre and all states.

Sanjay Mangl, Member (GST) at the Central Board of Indirect Taxes and Customs (CBIC), said tax authorities are discussing automation of the GST registration cancellation process and streamlining the grounds on which a GST officer can cancel a business’s registration.

Mangl said there is currently a lack of uniformity between the central GST system and various state systems in the procedures followed for granting GST registration to large businesses that carry forward more than ₹2.5 lakh in credit every month.

According to him, the differences create uncertainty among taxpayers.

Speaking at a national taxation conference organised by the Bengal Chamber of Commerce and Industry, Mangl said authorities are working towards introducing a uniform circular that would require approval from the GST Council. He said the proposed framework would provide uniform guidelines for both tax officials and taxpayers.

Authorities are holding discussions with states to develop a common standard operating procedure (SOP) or a uniform set of documents for GST registration.

The proposed standardisation will likely reduce procedural differences between central and state tax administrations and provide businesses with greater clarity and predictability during the GST registration process.

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Md Shadan Ayaz

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