Centre, States Work on Common Documents for Faster Processing
Key Highlights
- Centre and state tax officials are working on common guidelines for GST registration of larger businesses.
- The proposal targets applicants passing on tax credit of more than ₹2.5 lakh a month.
- A uniform list of documents and information is being discussed to reduce delays and repeated queries.
- Once agreed, the proposal will be placed before the GST Council.
- CBIC is also discussing automation in GST registration cancellation.
- Officers are reviewing the grounds on which registrations can be cancelled.
- Around 65 per cent of GST registrations are already being processed through the simplified route for small and low-risk businesses.
- About 1.68 crore businesses are currently registered under GST.
- GSTN may also add guidance and tooltips to help applicants file forms correctly.
New Delhi, August 21: The Centre and state tax authorities are working on a uniform set of documents and information requirements for GST registration applications filed by larger businesses, in a move aimed at reducing delays and bringing greater consistency across jurisdictions.
The proposed framework would primarily cover businesses that pass on tax credit of more than ₹2.5 lakh per month. CBIC Member-GST Sanjay Mangal said there is currently a lack of uniformity between central GST formations and different state authorities in the way such applications are processed, creating uncertainty for taxpayers.
Common SOP Under Discussion
Tax officials are discussing a common standard operating procedure that could specify the documents and information applicants need to submit. Once consensus is reached between the Centre and states, the proposal is expected to be placed before the GST Council for approval.
Mangal said the objective is to create uniform guidance not only for tax officers but also for taxpayers. The government is also looking at improvements in the GST Network system, including better guidance, tooltips and hand-holding for applicants to reduce mistakes and cut processing time.
The simplified GST registration scheme for small and low-risk businesses, approved by the GST Council in September 2025 and rolled out from November 1, already allows eligible applicants with output tax liability of up to ₹2.5 lakh per month to use a faster route.
Bigger Businesses Still Face Delays
Around 65 per cent of new GST registrations are now happening through the simplified route, Mangal said. The remaining roughly 35 per cent largely involve bigger businesses that intend to pass on credit above the ₹2.5 lakh threshold and therefore face more detailed scrutiny.
The Centre and states are also examining automation in the cancellation of GST registrations and ways to streamline the grounds on which officers can cancel a registration. Around 1.68 crore businesses are currently registered under GST, making faster and more predictable registration processes important for improving compliance and ease of doing business.
