CBIC points new directions to scale back compliance burden for GST registration
NEW DELHI: The federal government has directed Items and Companies Tax (GST) officers to not demand pointless paperwork from candidates and requested them to grant registrations in seven working days, the finance ministry mentioned on Friday.
The ministry additionally refuted stories that it was contemplating to levy GST on UPI transactions over ₹2,000.
The Central Board of Oblique Taxes and Customs (CBIC) has issued a directive to its discipline formations after receiving a number of complaints that candidates had been dealing with difficulties in the course of the GST registration course of, primarily on account of queries raised by officers searching for extra paperwork. A finance ministry spokesperson mentioned officers have been informed to strictly adhere to the prescribed listing of paperwork offered in registration utility kind.
“Requisite paperwork in particular instances to be uploaded with registration utility kind have additionally been delineated within the directions,” the spokesperson mentioned.
CBIC directed officers to not situation notices on presumptive grounds, minor discrepancies, or for extra paperwork that aren’t important for processing functions, the spokesperson mentioned citing the order dated April 17.
“Officers have been additionally directed to hunt approval of the involved deputy/assistant commissioner in instances the place doc aside from the listed paperwork is required to be sought,” CBIC order mentioned.
The federal government additionally refuted stories in a piece of the media that it’s contemplating levy of GST on Unified Fee Interface (UPI) transactions above ₹2,000. “The claims that the federal government is contemplating levying Items and Companies Tax (GST) on UPI transactions over ₹2,000 are utterly false, deceptive, and with none foundation. At present, there isn’t a such proposal earlier than the federal government,” the finance ministry mentioned in a press release.
GST is levied on costs, such because the service provider low cost charge (MDR), referring to funds made utilizing sure devices.
Efficient January 2020, the Central Board of Direct Taxes (CBDT) eliminated the MDR on person-to-merchant (P2M) UPI transactions via the gazette notification dated thirtieth December 2019. Since at present no MDR is charged on UPI transactions, there’s consequently no GST relevant to those transactions, it mentioned. The federal government is dedicated to advertise digital funds via UPI, it added.
UPI transaction values have seen an exponential improve, rising from ₹21.3 lakh crore in 2019-20 to ₹260.56 lakh crore by March 2025. Particularly, P2M transactions have reached ₹59.3 lakh crore, reflecting rising service provider adoption and shopper confidence in digital fee strategies, it mentioned.
