Challenges Faced Due to Delayed Approval of Registration Applications

Introduction:

The Goods and Services Tax (GST) implementation aimed at unifying taxation across India, simplifying compliance procedures, and facilitating business operations. Initially, the registration process, governed by section 9(5), mandated a swift turnaround of 3 working days for the verification of applications by the designated authority.

Challenges in Approval Process:

Despite the stipulated timeframe for approval, delays have been observed, hindering the timely initiation of various businesses. The application of the 3-day approval deadline has faced inconsistencies, leading to confusion among applicants.

CBIC Notifications and Confusion:

The Central Board of Indirect Taxes and Customs (CBIC) issued notifications, including Notification no. 35/2020 on April 3, 2020, which extended deadlines for various compliances but excluded registration approvals under section 25 and rule 9. This exclusion created ambiguity among applicants regarding the approval process.

Authentication Issues and Clarity from CBIC:

Additionally, concerns arose regarding Aadhar authentication, as the lack of facilities on the portal hindered the validation process. Clarifications from CBIC regarding the utilization of Aadhar and the validation process were sought but did not fully address the concerns raised by applicants.

Revised Approval Timelines:

Further complicating matters, CBIC’s subsequent communication on July 17, 2020, restricted the deemed approval facility for applications filed during periods when central or state offices operated with minimal staff. This led to a revised timeline for deemed approvals, varying based on the submission date of applications.

Conclusion:

The complexities surrounding the approval process highlight the need for clearer guidelines and consistent enforcement mechanisms. Ensuring transparency and efficiency in the registration approval process is essential for promoting ease of doing business and fostering compliance with GST regulations.