The government on Wednesday announced further simplification of the GST registration process to strengthen ease of doing business, particularly for small enterprises and low-risk applicants. Under the revised system, eligible applicants will receive registration within three working days.
Responding to a query, CBIC Chairman Sanjay Kumar Agarwal said that small businesses estimating they will not claim more than ₹2.5 lakh in input tax credit can opt for the simplified registration.
“Such registration will be granted automatically by the system within three working days. After operating this registration, if they grow and they want to transition to the normal registration, again, there is a provision and based on the risk analysis for the normal category of registration, they can be transitioned to the normal category,” Agarwal added. He noted that the announcement comes as the Centre rationalises the indirect tax structure, reducing the existing four GST slabs to two by removing the 12% and 28% rates while retaining the 5% and 18% slabs.
He further stated that there is a process which has been approved by the GST Council regarding the refund.
“There is a provision of granting 90% of the claimed amount on a provisional basis. Now, the GST Council has recommended an amendment in the rule, which prescribes that on the basis of identification after the risk evaluation by the system, this 90% amount can be granted within seven days by the officer,” the CBIC chief said.
Currently, there is no provision to grant 90% of the claimed refund on a provisional basis, prompting the GST Council to recommend an amendment to the law. CBIC Chairman Sanjay Kumar Agarwal noted that the change will take time, as it requires parliamentary approval.
Regarding monthly GST returns, Agarwal added that the GST Council has not recommended any changes.
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