Complicated process to get new GST registration number


- Sales Tax - Soham Mashruwala

The process of getting a new registration number under GST law is very complicated. Under Section 25 of the CGST Act, there is a provision for obtaining a registration number. Recently, the government has notified regarding the application of new number. Many of these practices are not supported by any provision under the GST Act. Today's article discusses this notification and informs about the future difficulties due to it. Strict measures must be taken to stop bogus billing. But not all applicants should be weighed in the same scales.

Spot check

In cases where Aadhaar authentication has not been done by the applicant, immediate on-the-spot inspection will have to be done by the officer. Many times the applicant's application is rejected in case the Aadhaar website is not working, or Aadhaar authentication is not possible due to some technical reason. In other cases, the officer has to take a decision and conduct an on-site inspection as deemed fit.

DGARM

In November 2022, the government has handed over the authority of the DGARM department to the area officer. The DGARM department is not given any recognition or legal jurisdiction under the GST Act. In this matter the hon. A noble judgment has been given by the Gujarat High Court that the IGST refund of the exporter cannot be withheld due to the report/flag of DGARM. In the process of allotment of registration number, the officer has been instructed to take extra care in case of flagging an applicant by DGARM. While there is no provision in this regard in the GST Act, the application of any registration number cannot be stopped on the basis of such DGARM's report. In case the DGARM flag is raised by mistake, the applicant who drops this flag will face water and most importantly, the applicant will not know that he has the DGARM flag. As long as no such unconstitutional notification Hon. DGARM not to make such allegation in all applications unless challenged before the High Court.

Time limit for issuance of REG-03

After applying for GST registration number by the applicant, it often happens that no response or action is taken by the officer before thirty days. As per notification dated 14-6-23, if Aadhaar authentication has been done, the officer has to give notice in GST REG03 within 7 days. In other cases it has to be given within 30 days.

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