DRAFT REGISTRATION RULES- REVERSE GEAR

GST Update 29.09.2016

GST DAILY DOSE OF UPDATION:-

DRAFT REGISTRATION RULES- REVERSE GEAR:-With the advent of technological advancement and in consonance with the ‘ease of doing business’ motto of the government, the procedure of registration in Excise and Service Tax was streamlined with the result that registration is granted within 2 working days of filing the complete online registration application. The specified documents are required to be submitted within 15 days from date of filing registration application and if there is need of physical verification of premises, the same is also done post registration. Under the new simplified registration procedure presently in force, once the completed application form is received online, registration is granted within 2 working days and issued online without examination of documents or verification of premises thus initiating trust based registration. Moreover, there is no requirement of signed copy of Registration Certificate and Registration Certificate downloaded online is accepted as proof of registration. However, the draft registration rules depict an altogether different picture.

The time limit for grant of registration has been increased from 2 to 3 working days. Moreover, after filing of application online along with uploaded documents, if the proper officer finds the application deficient, he may intimate assessee to clarify certain issues within 7 days from the date of receipt of intimation by assessee. After satisfaction with clarification, the proper officer will approve registration within seven working days of receipt of clarification. In nut shell, registration will be granted within 3 common working days from date of submission of application if there is no query, and within 7 common working days from date of receipt of clarification if there is query. The proposal for introducing verification of documents before grant of registration tantamount to going back to old provisions where registration was time consuming process. The provisions for grant of registration should be simplified and aligned with the present provisions of grant of registration within 2 working days. It is submitted that we are heading towards digitization where every correspondence will be online. Hence, time of 7 days for grant of registration appears to be too long.

It is also specified in the Draft Rules that every registered taxable person shall display his Certificate of Registration at principal place of business and GSTIN in the name board exhibited at the entry of his principal place of business. This requirement also goes back to ancient times when manual registration was granted. However, when registration application is being filed online and the online status of assessees can be very well checked, the need of displaying registration certificate/GSTIN seems to be importation of old provisions without checking as regards its feasibility in the current scenario. As such, the procedures framed appear to take back assessees to ancient times and the government appears to have put reverse gear as regards procedural aspects are concerned.

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GST Update 29.09.2016

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