More Than 250,000 New GSTIN Numbers Been Registered Since Covid-19 Pandemic Began in Delhi

More Than 250,000 New GSTIN Numbers Been Registered Since Covid-19 Pandemic Began in Delhi From March 2020, when the coronavirus disease (Covid-19) epidemic began, to January 2022, over 250,000 persons in Delhi registered their new or existing enterprises under the Goods and Services Tax (GST), officials said on Sunday. According to papers obtained by HT, Delhi registered 140,238 new GST customers in 2020-2021 and 114,726 new customers in 2021-22. (till January 31, 2022). Prior to the pandemic, Delhi had 184,502 new registrations in 2019-20. Despite the pandemic and multiple lockdowns, GST commissioner Ankur Garg remarked that people's entrepreneurial spirit appeared to be high, which was aided by the convenience of filing for GST registration. "The Department of Trade and Taxes has made GST registration simple. Within a week of submitting a request, the applications are approved. The supplied documents are verified by the concerned ward officials, and if all of the essential paperwork are properly provided, GST registration is accepted. "The goal is to create a friendly corporate environment," Garg explained. GST registration applications can be submitted at https://reg.gst.gov.in/registration/. A GSTIN, a 15-digit unique tax registration number based on PAN and state, is assigned to each eligible trader. The department, on the other hand, does not save category-by-category data on new GST registrations. Prateek Chaudhary, a 34-year-old entrepreneur, said his salon in East Delhi opened in October 2020 and now employs roughly 18 people. "Despite the hurdles offered by Covid, I ventured into this industry despite running a dentistry office." I got a GST number because I need to buy a lot of different equipment and supplies, and I can claim input tax credit if I have a GST number," Chaudhary explained. The input tax credit (ITC) eliminates cascading taxes (taxes on taxes). This happens when items are taxed at each stage of production, lowering the tax burden on dealers. Aamir Khan, a 24-year-old Kashmiri entrepreneur who launched a wholesale walnut enterprise in Delhi in April 2020, said transporting the raw material to Delhi without a GST number was difficult. "I get the raw material in Uri, and transporting it without a GST number was difficult since sales tax officers and police would delay our shipment and spend time confirming documentation." We can show an e-way bill to the authorities anytime our goods are blocked in transit for inspection because we have a GST number, helping the procedure run more smoothly. "The GST number has also improved the company's goodwill," Khan added. When non-essential activities were shut down owing to limitations during the first wave of the pandemic, a trade and taxation department employee who did not want to be identified claimed, the department saw a spike in GST registrations. After losing their employment owing to the pandemic, several people appeared to have became entrepreneurs. "In addition to creating numerous online start-up enterprises, many young individuals launched home delivery services for necessary things such as groceries, veggies, and other essential household items. "They applied for GST registration even though they were not below the GST threshold because many large businesses prefer to purchase from GST-registered manufacturers or suppliers," the official explained. The cancellations of GSTIN numbers were also slightly higher during the epidemic, according to documents. 46,968 GST registrations were cancelled in 2019-2020. In 2020-21, the number grew to 150,617. A total of 86,453 GST registrations were cancelled in 2021-22. Suo motu cancellation and voluntary cancellation are the two methods for cancelling GST registrations. "Every month, all GST-registered traders must file income tax returns." If a trader fails to do so for three months in a row, a system-generated notification is given to them, and if they do not respond, their GST registration is cancelled," an official explained. An application to close the GST registration is submitted by persons who want to close their business or if a business owner dies. "During the pandemic, the number of cancellations is not especially large. Old registrations are cancelled in the event of death, and traders must apply for new registrations. Many of the cancelled registrations belonged to small enterprises who sought voluntary registrations but were unable to pay monthly tax filings," according to the commerce and taxation official quoted above. Source: Hindustan Times