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.
|Update – During its 39th meeting on 14 March 2020, the GST Council authorised the deployment of Aadhaar identification for new taxpayers, according to Finance Ministry sources.|
The GST registration 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.
- 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:
9. 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, registration under GST 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 approval in seven working days. According to the notification, if a company does not provide an Aadhaar number, a GST registration will be allowed only after a physical inspection of the business premises.
Unless a notice seeking clarification is made from the GST department’s behalf, a person who chooses Aadhaar authentication for a new Goods and Services would receive it within seven working days and will not be required to wait for physical 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.
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