Deemed Approval for GST Registration applications filed in COVID

Registration drive by Department dated 17 July 2020 till 28th July 2020

The Central Goods and Services Tax (Third Amendment) Rules, 2020 notified via Notification No. 16/2020 – Central Tax dated 23rd March, 2020 where in amendment in rules 8, 9 and substitution of rule 25 was made and the provision to grant Aadhaar e-KYC based Registration was put into the law.

Notification No. 17/2020 – Central Tax dated 23rd March, 2020, Notification No. 18/2020 – Central Tax dated 23rd March, 2020 & Notification No. 19/2020 – Central Tax dated 23rd March, 2020 states that the notification shall come into effect from the 1st day of April, 2020 alongwith to which category of persons it is applicable and what are the other alternate and viable means of identification/authentication.

The word GST TAX under a magnifying glass with a notebook, glasses, pen and coins in a bank on a light concrete background.

The provision to grant Aadhaar e-KYC based Registration was made to curb/check fly-by-night operators who are taking advantage of easy registration system and to check bogus billing through laptop shops.

Where a person fails to undergo authentication of Aadhaar number as specified in rule 8(4A), then the registration shall be granted only after physical verification of the principle place of business in the presence of the said person, not later than sixty days from the date of application, in the manner provided under rule 25 and the provisions of sub-rule (5) shall not be applicable in such cases.

Looking at the COIVD scenario in India, CBIC came up with Instruction dated 17th July, 2020 stating that deemed approvals have been granted for all those applications pending as on 30th June, 2020, which had not been processed till 15th July, 2020.

It has been further decided that applications received thereafter which remain pending as on 28th July, 2020 shall be deemed approved on 31st July 2020.

Post this, deemed approval of registration as amended via Notification No. 16/2020 – Central Tax dated 23rd March, 2020 shall be resumed.

During the lockdown period, where registration applications have been deemed approved on the portal due to technical glitches, wherever required, proper officer may get the physical verification of the premises done.

The point to note here is that the CBIC came up with the Notification No. 35/2020 – Central Tax dated 3rd April, 2020 which is further amended by Notification No. 55/2020-Central Tax dated 27th June, 2020 where in specific exception was kept for Section 25 of the CGST Act, 2017. But now looking at situation, CBIC has come up with this instruction for the welfare of public at large.

Author’s ViewThe CBIC has come up with an opportunity for the persons, either making fresh application or whose application for registration is pending with CBIC. The advantage can be taken by the persons where there is some technical error due to which Aadhaar e-KYC based authentication is not getting done by the applicant or where the applicant is in urgent/quick need of registration. But it is to be noted and kept in mind that loop holes exists everywhere but when CBIC comes with thess provision for the benefit of taxpayers/applicant, then no undue advantage should be taken out of that because CBIC has the power to amend any provision to stop/track falsified/malafide activities in the interest of the taxpayers/revenue/applicant.

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January 2021