Ban Lifted on Deemed Approval for Registration Under GST Regime

As per a recent update, the imposed ban on deemed approval for new GST registration has been lifted by the Goods and Service Tax (GST) Department. The ban was imposed by the authority during the lockdown period due to fear that the registration facility can be misused when the department is not functioning properly. Several states had also reported that several newly registered businesses are involved in circular trading during the lockdown.

The

GST Registration Process

Get to know the complete GST registration procedure online on the Indian government GST portal official website. We have explained by the actual screenshot of every step

is simple and completely online and it just needs filling the GST Registration form on the portal, with a few documents. After the submission of the registration form, it will be either allotted to the central government or state government for approval. It will be processed in three working days but if no decision has been made then the application will be considered as deemed to be approved.

In last week the GST policy wing issued an instruction and stated that “all registration applications as on June 30 that have remained pending till July 15 be granted deemed approval”. Application received after June 30 and pending till 28 will be deemed approved too.

The released instruction also stated that a few registration applications were approved due to the technical glitches in

GST Network (GSTN)

Read out the complete guide of official GST return filing portal i.e. GSTN for Indian taxpayers. We explain all the important part with the brief introduction. Read more

. In this matter, the letter also said that “GSTN has been requested to forward such GSTINs who got deemed approval during the lockdown to the jurisdictional officers. In such cases, wherever required, proper officers may get the physical verification of the premises done,”.

During the lockdown, many business houses had experienced a long delay in getting their GST registration Confirmation and they are also not able to raise the issue with the authority. Most of these cases happened in April-May months. As per some sources, the commercial tax department of several states had found several cases of circular trading in which businesses are involved in issuing fake invoices between each other to avail input tax credit unethically. And they were doing that without actual

supply of goods and servicesGet to know GST provisions and rules on the free supply of goods. Also, we have included rules regarding ITC reversal on free supplies of goods and services

in these cases newly registered businesses are involved.

The senior partner at AMRG & Associates, Rajat Mohan stated that “Tax authorities witnessed a sudden surge in GST registrations during the pandemic period, even though other economic indicators like e-way bills, tax collections, and GDP nosedived. Since lockdown is practically over in all states, the process for deemed approval of the application for registration would be resumed from August 1”.