GST Department rejecting more Applications than they approve: RTI Reports

As per recent RTI report, GST Department is rejecting more applications than they approve. During Apr 20- March 23, approx. 55% applications were rejected. Total 49,35,505 applications were received in Form REG 01. The Department has issued 26,93,179 rejection orders in Form Reg 05.

In this data Chandigarh is at Top on the basis of rejection rate with 75% rejection. Also 70% of GST registration applications rejected in Mumbai in last 3 years. All the other zones had rejection ratio more than 30% with exception of Thiruvananthapuram where this ratio is 24%. These figures should be eye opening for Finance Minister Nirmala Sitharaman and should come up with policy to reduce rejections. All over Rejection % in entire India is 55%.

It is also found out that the department is taking more than 21 days to even open the application and to check which division it should go. Assessees and experts have long complained that applications are rejected without appropriate consideration. They must pay a bribe to have their applications approved. It is incorrect to believe that every second application in our nation is made with malicious intent.

CBIC needs to form an Standard Operating Procedure(SOP) for better clarity for taxpayers and officers. Rejection ratio should ideally not be > 10%.