(HT)
The number of micro, small, and medium enterprises (MSMEs) with Goods and Services Tax (GST) registration is set to rise after the Central Board of Indirect Taxes and Customs (CBIC) asked officials to relax scrutiny for such businesses, according to two people aware of the development. MSMEs contribute around 30% of India’s GDP.
CBIC’s move comes after MSMEs raised concerns about excess and non-uniform scrutiny in the registration process during stakeholder consultations with the MSME ministry and CBIC, the people said.
After the meeting, CBIC asked registration officials to reduce physical verification and complete the process in seven days if the business isn’t found to be risky during common analysis.
“After the consultation, CBIC has issued guidelines to its officials to make the registration process easier for businesses. MSMEs are likely to be beneficiaries of these directions,” said one of the persons cited above.
Businesses with an annual turnover of ₹40 lakh for goods and ₹20 lakh for services are required to register for GST and obtain a GST Identification Number (GSTIN).
According to a copy of the CBIC order dated 17 April, which Mint has reviewed, businesses said GST officers sought additional documents along with the GST REG-01 form, the first step in registering for GST.
These documents were not a part of the list of documents to be appended with the form, they said.
“It is noted that varied practices are being followed by the officers in respect of verification of documents and details provided in FORM GST REG-01. It has also been observed that while processing the application, avoidable clarifications are being sought by the officers, leading to delay in getting registration as well as rejection of applications,” the CBIC order said.
