New GST Registrations Get Delayed Due to Lockdown

During the lockdown period, new registrations under Goods and Service Tax (GST) were delayed to as much as 60 days or more compared to the standard issuing time of approximately one week.

While several applicants faced a few weeks of delay, some of the applications filed before the lockdown on 25 March 2020 are yet to be issued. Many companies across various states have raised the issue with the Central Board of Indirect Taxes and Customs (CBIC).

In addition to starting up new businesses, Interim Resolution Professionals (IRPs) or Resolution Professionals who manage companies undergoing corporate insolvency resolution were struggling with new registrations. The GST Act requires IRPs to file for new registration in all states where the firm was registered earlier.

The registration delay acts as an active restraint for IRP/RPs appointed under IBC laws, slowing down the debt loaded companies revival process. The CBIC activated a separate IRP registration facility on the GST portal last week.

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According to officials, the delay in issuing new registration numbers was attributed to far fewer tax officers across various jurisdictions having access to remote or virtual private network (VPN) for processing the applications.

On 15 June 2020, the CBIC launched the e-Office service at more than 500 CGST and customs offices throughout India. The technology will be used by over 50,000 officers and employees, making CBIC one of the most significant branches in the government to simplify its internal office procedures. This move might help in clearing the pending approvals of new GST registrations.

For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in