GCCI Seeks SOP for GST Registration to Ease Business Operations
Date: December 18, 2024
Category: GST Recent News
Read Time: 4 Minutes
The Gujarat Chamber of Commerce and Industry (GCCI) has urged the government to implement a Standard Operating Procedure (SOP) for Goods and Services Tax (GST) registration. This step would streamline processes and remove unnecessary hurdles faced by genuine taxpayers.
Key Issues Raised by GCCI
1. Need for Better Checks and Balances
While fraud prevention is essential, GCCI stressed that the current checks and balances often create undue challenges for legitimate businesses seeking GST registration. A more balanced approach is necessary to distinguish genuine applicants from fraudulent entities.
2. Lack of Clarity on Required Documents
GCCI highlighted that GST officers frequently request additional documents not listed in official guidelines. This creates confusion and delays for businesses. To address this, GCCI recommended preparing and publishing a comprehensive list of required documents.
3. Biometric Verification Limitations
Currently, biometric authentication for GST registration is available in only 13 states, including Gujarat. Applicants from states without such facilities must travel to Gujarat for their verification. This logistical challenge complicates the registration process for many taxpayers.
4. Cross-State Biometric Authentication
To address this issue, GCCI proposed enabling taxpayers to complete their biometric verification at GST Seva Kendras in their respective home states. This would require real-time coordination and data sharing between state GST departments.
Suggestions for Improvement
1. Unified SOP for GST Registration
GCCI advocated for creating a nationwide SOP to standardize registration procedures. Such a move would reduce confusion and improve the ease of doing business for taxpayers across India.
2. Decentralized Biometric Authentication
To minimize travel burdens, GCCI suggested enabling biometric verification from any state. This decentralized approach would make the process more accessible to businesses operating in different regions.
3. Enhanced Data Sharing Between States
Real-time data sharing between GST departments of various states would facilitate smoother coordination. It would also expedite authentication and approvals, reducing delays for applicants.
Significance for Businesses
If implemented, these recommendations would:
- Reduce Administrative Burden: Businesses, especially small and medium enterprises (SMEs), would face fewer hurdles during GST registration.
- Encourage Compliance: A simplified and transparent registration process would motivate more taxpayers to comply with GST requirements.
- Promote Interstate Business Growth: Addressing logistical challenges would support seamless business operations across states.
Conclusion
The GCCI’s proposals aim to strike a balance between fraud prevention and the ease of doing business. By adopting a clear and uniform SOP and introducing decentralized biometric verification, the government can significantly enhance the GST registration process. These changes would benefit taxpayers while maintaining the integrity of the GST system
