Govt relaxed rules to increase GST registration under small businesses

Copyright © HT Digital Streams Limit all rights reserved. Officers were told to seek the minimum number of documents required for GST registration. Summary The move comes after MSMEs expressed concern about excess and non-uniform investigation in the registration process during consultations with stakeholders with the MSME ministry and CBIC, two sources told Mint. New -delhi: The number of micro, small and medium businesses (MSMEs) with the registration of goods and services (GST) will rise after the Central Council of Indirect Tax and Customs (CBIC) has asked its officials to relax the investigation into such businesses, according to two people who are aware of the development. MSMEs contribute about 30% of India’s GDP. CBIC’s move is coming after MSMEs expressed concern about excess and non-one investigation in the registration process during consultations with stakeholders with the MSME ministry and CBIC, people said. After the meeting, CBIC asked its registration officials to reduce physical verification and complete the process within seven days or the business is not risky during the general analysis. Enterprises with an annual turnover of £ 40 lakh for goods and £ 20 lakh for services are needed to register for GST and obtain a GST identification number (GSTIN). No standard procedure according to a copy of the CBIC order of April 17, which revised Mint, companies said that GST officials sought additional documents, along with the GST Reg-01 form, the first step to register for GST. These documents were not part of the list of documents to be attached to the form, they said. “It is noted that diverse practices are followed by the officers regarding the verification of documents and details provided in Form GST Reg-01. It was also noted that the officers were sought by the officers to avoid the application, and that the applications were delayed,” the CBIC command said. These elucidations are related to things such as proof of the most important place of business, the composition of business and identity details of the authorized signatory, the order states. “Although on the one hand there is a need to prevent the registration of fraudulent firms created to pass on input tax credit (ITC) without any underlying offer, on the other hand there is a need to ensure that sincere applicants seeking registration are not plagued unnecessarily,” the order is now told to seek the minimum number of documents. Entrepreneur An enterprise starts on a property owned by them, GST officials will only seek the latest receipt for property taxes, the municipal khata copy or a copy of the electricity bill, and any one it is enough to prove. Property tax receipts, the municipal khata copy or the copy of electricity bill adequately, he added. Types of businesses to GST income are very skewed, according to the data that the government was released seven years after GST was implemented. 7.31% contributed. SME Forum, an operating association. There are problems facing MSMEs about selling their goods and services between states, “he said.” While the CBIC took a progressive step through this circular, its complete implementation efficiency would be improved by supplementary circulars from the GST authorities. ” A synchronized approach to the central and state jurisdictions would help achieve the intended goal of a streamlined registration process. The small business hurdles reported in March that while looking simple to GST as a freelance or small business owner on paper, they are in fact much more complicated. This is because GST officials often ask for additional related registrations, such as stores and licenses for establishment, MSME Udyam certificates and no-object certificates, although not instructed by law. This makes the process difficult for sole traders, such as freelancers or those who operate a stock-free e-commerce platform, as it may not even qualify for some of these certificates or licenses. Ranjeet Mahtani, partner, Dhruva Advisors, told Mint at the time, standard industry procedures related to GST registration did not define well, and the soil practices followed. “As a result, the documentation requirements differ depending on the GST officer who handles the case.” This means that applicants will only know what extra paperwork is needed once the officer is conducting an investigation, causing unexpected delays. “These practical challenges often lead to confusion, delays and additional compliance burden,” VPuri, VPR & CO LLP partner Vijaykumar Puri told Mint at the time. Also read: Why ‘Record’ Gross GST collections do not tell the full story in April, catch all the business news, market news, news articles and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #GST #Msmes Read the following story