CBIC vide latest instruction has Sets 7-Day Limit for GST registration and 30 Days for High-Risk Businesses

The Central Board of Indirect Taxes (CBIC) has released amended instructions. These instructions are being issued for the officers processing GST registration applications, which will make things easier for taxpayers and help ensure clear, rule-based processes, the government said on Friday.

Businesses can now get their GST registration within 7 days. However, if an application is marked as risky, it will take up to 30 days and will include a physical check of the business location.

The Central Board of Indirect Taxes and Customs (CBIC) noticed that some officers were asking for unnecessary documents and raising doubtful questions. To fix this, the CBIC has shared a sample list of documents that officers are allowed to ask for online.

In the new guidelines, CBIC clearly stated that officers should not ask for the original physical copies of these documents while processing GST registration applications.

The Central Board of Indirect Taxes and Customs (CBIC) stated that it has received several complaints relating to the problems faced by businesses in getting GST registration, mainly because officers are asking for unnecessary clarifications and extra documents that are not required by the Board.

As a proof of the Principal Place of Business (PPOB), the individual will be required to upload one of these documents: the latest Property Tax Receipt or Municipal Khata copy or copy of Electricity Bill of the owner, or any similar state-government document such as water bill, which defines the ownership of the property.

If the property is rented, the individual must upload a valid rent or lease agreement in addition to one of the documents listed above.

For documents that prove the type of business (called ‘constitution of business’), if the individual is a partner, they must upload the Partnership Deed.

The CBIC also stated that no extra documents, such as the Udhyam certificate, MSME certificate, shop license, or trade license, should be asked for.

CBIC pointed out that some officers are raising unnecessary questions that cause problems for applicants, like asking why the applicant’s residential address is in a different city or state, or claiming that certain business activities can’t be done from a specific location.

CBIC instructed officers not to ask questions that are not directly related to the documents or details submitted by the applicant.

Officers are also asked to carefully review the application and verify the address documents using publicly available sources, such as land records, electricity company websites, and local municipal websites.