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The Centre and state tax authorities are working on common guidelines for documents and information required for GST registration of businesses that pass on tax credit of more than INR 2.5 lakh per month. The move aims to reduce differences in procedures followed by central and state GST formations and speed up registration processing. The proposal will be placed before the GST Council after discussions with states. Tax officials are also examining automation of GST registration cancellation and clearer grounds for cancellation. Around 1.68 crore businesses are currently registered under GST, with 65 per cent of new registrations using the simplified route.
The Centre and state tax officers are discussing a uniform process for GST registration applications filed by businesses whose monthly output tax liability exceeds INR 2.5 lakh.
Sanjay Mangal, member GST at the Central Board of Indirect Taxes and Customs (CBIC), said the authorities are working towards standardising the documents and information required from such applicants. The aim is to reduce uncertainty for taxpayers caused by differences in registration procedures followed by central and state GST formations.
Once the Centre and states reach an agreement, the proposal will be placed before the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising finance ministers from all states and Union Territories.
Mangal said tax officers are working on a uniform circular that would provide common guidelines for both taxpayers and GST officials. Discussions are underway with state authorities to prepare a standard operating procedure (SOP), including a common set of documents and information to be submitted through the GST registration form.
The issue mainly affects businesses that fall outside the simplified registration route because they intend to pass on tax credit of more than INR 2.5 lakh per month. According to Mangal, differences in requirements across states and central GST formations can lead to additional queries and delays in processing applications.
The GST Council had approved a simplified registration scheme for small and low-risk businesses at its September 2025 meeting, which was implemented from November 1, 2025.
Under the scheme, businesses identified as small and low-risk through GST system data analysis can opt for simplified registration. Applicants can also choose the route through self-assessment if their monthly output tax liability does not exceed INR 2.5 lakh, including CGST, SGST/UTGST and IGST.
Mangal said around 65 per cent of GST registrations are now being completed through the simplified route. The remaining 35 per cent of applications largely come from relatively larger businesses that intend to pass on tax credit above the INR 2.5 lakh monthly threshold.
For these applications, tax officers from the Centre and states are working to standardise the documents and information required at the registration stage. The objective is to reduce repeated queries and make it easier for applicants to provide the required details correctly at the first stage.
Officials are also discussing improvements to the GST Network (GSTN) system to provide more assistance to taxpayers while completing registration applications. These changes could include clearer guidance and tooltips explaining how different sections of the application should be completed.
Mangal also said tax authorities are examining automation of the GST registration cancellation process and are discussing ways to streamline the grounds on which a GST officer can cancel a business registration.
The proposed changes are aimed at making GST registration more consistent across jurisdictions while reducing processing time and improving clarity for businesses. The final uniform guidelines will require agreement between the Centre and states before being taken to the GST Council for consideration.
Source PTI
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