In a move aimed at striking a balance between curbing tax fraud and facilitating ease of doing business, the Central Board of Indirect Taxes and Customs (CBIC) has issued fresh directives to ensure the Goods and Services Tax (GST) registration process remains smooth and transparent.
The instructions, issued on Thursday, are designed to reduce the compliance burden on businesses and prevent unnecessary hurdles faced by genuine applicants.
The CBIC acknowledged that applicants were facing delays and difficulties due to excessive document-related queries raised by field officers during the registration process.
To address this, the board has instructed officers to strictly adhere to the official list of documents required in the GST registration application form. Any deviation from this list must now be approved by the concerned Deputy or Assistant Commissioner.
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CBIC has said in a statement that officers have been clearly directed not to issue notices based on presumptive grounds, minor discrepancies, or for additional documents that are not essential to the application process, This measure will enhance transparency and ensure that legitimate businesses are not unduly harassed.
Senior field officers have also been tasked with closely monitoring the registration process, including the conduct of physical verifications and the nature of queries raised. Additionally, they have been advised to issue trade notices where necessary to clarify procedures.
Emphasizing accountability, the CBIC warned that strict action would be taken against officers who violate the new guidelines. The tax authority has also asked for the deployment of sufficient staff to handle GST registration applications promptly and efficiently.
The new instructions come in the backdrop of growing concerns over fraudulent entities securing GST registrations to illegitimately pass on input tax credit (ITC) without any actual supply of goods or services. While maintaining vigilance against such practices remains a priority, the CBIC acknowledged the need to avoid overburdening genuine taxpayers with excessive compliance requirements.
Industry experts have welcomed the CBIC’s initiative, saying it will help build trust between businesses and the tax administration, and encourage greater formalization of the economy.