According to Rule 8(1) of the Central Goods and Services Tax Rules, 2017, anybody seeking Goods and Services Tax (GST) registration must submit an application in Form GST REG-01. But how long does it take to obtain GST approval? Let’s find out.
The GST registration Approval process is entirely online, with no physical documentation required to be submitted to the GST department. It is critical to organize the paperwork in accordance with the rigorous regulations set in place in order to finish the steps to get GST Registration Approval, provided GST Registration Documents are in order. But how long does it take to obtain GST approval? Let’s find out.
Advantages of GST Registration Approval
- Registration is an essential need for accessing the Goods and Services Tax Network.
- Further, registration grants the registered person the authority to collect taxes on behalf of the government.
- Registration is a means for a registered person to obtain Input Tax Credit, moreover, there is a smooth flow of Input Tax Credit among registered persons at the national level.
Time Taken for Obtaining GST Registration Approval
Amended Rule 9 of the CGST Rules, now reads as under w.e.f. 22 December 2020:
Verification of the application and approval.- (1) The application shall be forwarded to the proper officer who shall examine the application and the accompanying documents and if the same are found to be in order, approve the grant of registration to the applicant within a period of seven working days from the date of submission of the application.
*Previously, GST Registration Approval was granted within a period of three working days following the date of submission of the enrollment application. Provided that Aadhaar verification is completed and no notices are issued.
Beginning 21 August 2020, the Central Board of Indirect Taxes and Customs (CBIC) has notified that Aadhaar identification will be necessary for GST registration.
Businesses that register for the Goods and Services Tax with an Aadhaar number will obtain GST registration Approval in seven working days. According to the notification, if a company does not provide an Aadhaar number, a GST registration: https://www.india.gov.in/ will be allowed only after a physical inspection of the business premises.
Unless a notice seeking clarification is made on the GST department’s behalf, a person who chooses Aadhaar authentication for new Goods and Services will receive it within seven working days and will not be required to wait for verification.
However, applicants who do not opt for Aadhaar identification for GST would be allowed to obtain approval for registering only after physical verification of their company location or documentary verification, which might take up to 21 working days or longer if a notice is issued.
Moreover, it must also be noted that if the proper officer fails to take any action – within seven working days from the date of receipt of clarification, information or documents furnished by the applicant, the application for grant of registration shall be deemed to have been approved.
Strategies to Expedite GST Registration Approval Time
To speed up the GST registration approval process, businesses can adopt several effective strategies:
- Provide Accurate Information: Ensure that all details entered during registration are correct and match the supporting documents. This prevents delays caused by discrepancies.
- Submit Clear Documents: Upload high-quality and valid documents such as PAN cards, Aadhar cards, and proof of business address. Clear documents facilitate quicker verification.
- Choose Aadhaar Authentication: Opt for Aadhaar-based authentication if available. This method typically accelerates the approval process to within three business days.
- Respond Promptly to Queries: Address any requests for additional information or clarifications from authorities without delay to avoid holdups.
- Utilise Digital Signature Certificate (DSC): Using a DSC can help speed up the registration process by verifying your identity electronically.
- Monitor Application Status: Regularly check your application status using the Application Reference Number (ARN) on the GST portal to ensure smooth progress.
- Follow Up with Authorities: If your application is delayed, proactively contact the relevant authorities to follow up on its status.
- Stay Updated: Keep abreast of any changes in regulations or procedures related to GST registration to ensure compliance.
- Avoid Peak Times: Submit your application during off-peak periods to avoid delays caused by high application volumes.
- Seek Professional Assistance: Consider engaging a professional to assist with the registration process, ensuring accuracy and efficiency.
Different Types of GST Registration
Under the GST Act, businesses and individuals can apply for different types of GST registration depending on their specific needs. Here’s a breakdown of the main types:
- Normal Taxpayer: This is the most common type of GST registration. Most businesses in India fall under this category. There is no requirement for a deposit, and there is no expiry for this registration.
- Casual Taxable Person: This registration is ideal for those who set up temporary or seasonal operations, like a stall or shop. An advance deposit equivalent to the expected GST liability for the duration of the operation is required.
- Composition Taxpayer: This option is for businesses wanting to benefit from the GST Composition Scheme, which simplifies tax compliance. Businesses must pay a flat tax rate under this scheme and cannot claim input tax credits.
- Non-Resident Taxable Person: If you reside outside India but supply goods to individuals within the country, you should apply for this registration. Similar to the Casual Taxable Person, a deposit equal to the expected GST liability is required during the period the registration is active.
Conclusion
The GST registration process has become considerably efficient with online submissions and minimal physical documentation. However, meticulous document organisation remains crucial for a smooth approval process.
As per amended Rule 9 (effective December 22nd, 2020), if the application meets all requirements and Aadhaar verification is complete, GST registration approval now takes just seven working days.
Businesses opting out of Aadhaar verification will undergo physical or document-based verification, which can take up to 21 working days or longer if clarifications are required.
FAQs
How many days will it take to approve GST registration?
Typically, GST registration approval takes 7 working days if you opt for Aadhaar verification. Without Aadhaar verification, it might take longer due to physical verification.
How long does GST registration pending for validation take?
If your GST registration is pending validation, it usually indicates that the tax authorities are verifying the information provided in your application. This process can take anywhere from a few days to several weeks.
What is the time limit for GST Reg 21 approval?
There's no specific time limit for GST Reg 21 approval. However, the general timeframe for GST registration approval applies. Delays might occur if additional information or verification is required.
Can we get GST registration in one day?
While it's theoretically possible to get GST registration approval in one day under exceptional circumstances, it's generally not the norm. The standard processing time is at least a few working days.
What is the time limit for GST site verification?
If the tax authorities require site verification, there's no fixed time limit. It depends on various factors like the workload of the assessing officer and the complexity of the case.
