GST
GCCI said Section 22(1) of the Central Goods and Services Tax Act, 2017 requires businesses to register once their aggregate turnover crosses the prescribed threshold, while Section 25(1) requires eligible taxpayers to apply within 30 days. Under Rule 10(2) of the CGST Rules, registration for applications filed within the stipulated period should be effective from the date the taxpayer becomes liable. The chamber also sought clarity on voluntary registrations under Section 25(3), where the law does not expressly specify an effective date. GCCI said verification, Aadhaar authentication, scrutiny and, in some cases, physical verification can delay approval by up to 30 days, affecting businesses seeking to transact with registered counterparties.
However, the chamber said GST portal currently issues registration certificates from the date of grant rather than the liability date, creating a mismatch between the system and the rule. “Even when a taxpayer applies within time, the portal practice is not aligned with Rule 10(2), and that mismatch creates avoidable compliance risk,” said Nayan Sheth, chairman of GCCI’s indirect tax committee. “Whether it is late compulsory registration or voluntary registration, making the effective date the date of application—subject to approval—will prevent genuine businesses from being pushed into inactivity,” Sheth said.
Ahmedabad: The Gujarat Chamber of Commerce and Industry (GCCI) has urged Union finance minister Nirmala Sitharaman to amend GST rules and modify the GST portal to ensure that the effective date of registration is aligned with the date on which businesses become liable or apply for registration.