GST Application Rejected?

GST Application Rejected

Why is Your GST Application Rejected? Know Everything about GST Registration and Rejection

GST registration in Bangalore receives an exclusive identification number from a supplier from the concerned tax authorities. It serves as the taxpayer's identification, and every business or supplier with an annual turnover of Rs. 40 lakhs or more must go for GST registration. But sometimes, your GST registration application gets rejected even after initiating the entire procedure carefully and filing all required documents. GST registration is rejected when an individual fails to offer clarification or provides a clarification that is not acceptable to the concerned authorities. But there's nothing to worry about, as there are provisions to appeal against the cancellation of GST registration.

GST Registration

The step-by-step GST registration process that individuals need to follow to complete their GST registration goes like this:

  • Get on to the official GST portal and click the Register Now option.
  • Now choose the New Registration option and fill in all the details in your GST registration application. You must choose your respective district and state and provide your business name, business PAN, mobile number and email ID.
  • You will get an OTP on your mobile and mail ID. Enter this OTP on the next page and select Proceed option.
  • This will give you a TRN or Temporary Reference Number. Note it down.
  • Get to the home page of the GST portal once again and click on the Register option.
  • Now choose TRN to enter the TRN number along with the captcha details. Next, click on Proceed.
  • You will get an OTP on your registered mobile number and email ID again. Give this OTP and choose Proceed option.
  • You will get to know your application status on the next page.
  • Fill in all ten sections in the next step and submit all required documents.
  • Now get to the verification page and check the declaration. Next, you can submit your GST registration application form.

Submission of GST Registration Application

You can submit your application for GST registration by using any one of the methods mentioned below:

  • Choose to submit your GST registration application form through EVC or Electronic Verification Code. This code will come to your registered mobile number.
  • Companies can register for GST by submitting their application forms through DSC or Digital Signature Certificate.
  • You can also submit your GST registration application form by using the e-Sign procedure, where an OTP will come to the mobile number linked to your Adhaar Card.

Once you submit your GST registration application form, you will get a success message on your screen. You will also get an Application Reference Number on the registered mobile number and email ID. You can check your ARN status on the GST portal.

Reason for GST Registration Application Rejected

There can be several reasons for the rejection of the GST registration application. These include:

  • You do not provide the required details accurately.
  • Inadequate address of premises or identity proof.
  • Your PAN card number does not match. This is one of the prime reasons the GST registration application was rejected: the GSTIN number is based on the PAN. If your GST registration gets rejected, file for fresh GST registration by filling in Form GST REG-01.
  • GST application gets rejected even when the relevant information or documents are not found in the application. In that case, the GST officer in charge in charge of processing the application issues a notice asking for clarification, documents, or additional information.

In case you cannot provide clarification to the notice issued by the tax officer who rejects your application, or if the GST officer is not satisfied with your clarification or the additional documents, he will reject the application initially filed in GST REG-01. This order is passed in Form GST REG-05. On GST registration application rejection, the authorised officer must write the reason for rejection.

How Are You Benefitted by Registering a Business Under GST?

In case of any error in GST registration, you can rectify it in the application either at the registration time or even afterwards. The same works if PAN does not exist an error in GST registration or DSC error in GST registration. In any case, you must submit Form GST RED-14 and all documents for the GST officer to verify and approve the same within 15 days in Form GST REG-15.

Benefits of registering a business under GST include:

  • GST is an all-inclusive indirect tax that brings all indirect taxes under a single frame.
  • GST comes with a higher registration threshold which means all businesses and individuals do not need to register for GST. This is not the case with the VAT structure of taxes.
  • Small businesses can greatly benefit from GST as it offers them the option to lower taxes using the GST Composition plan.
  • GST registration is an easy and simple online procedure.
  • Under GST, the limitations of inter-state movement of products have lessened, making it easier for logistics companies to operate within their capacity.

How to File an Appeal against Rejection of GST Registration?

You can file GST APL-01 online to appeal against the cancellation of GST registration. Along with your appeal for restoration of GST registration, you need to submit the physical copies of all supporting documents duly signed and verified to the appellate authority office within seven days of filing the appeal on the official GST portal. Once the documents are received, you will get a final acknowledgement. GST registration cancellation appeals can be made within three months of the date of rejection or cancellation order communicated to the said individual. The appellate authority can extend this time limit for a maximum of one month if it finds that, for some reason or the other, the taxpayer was prevented by enough cause from presenting the appeal within three months.

Frequently Asked Questions

How to know the reason for the rejection of GST registration?

You can check the entire summary for rejection of your GST registration on the GST portal by providing the ARN or Acknowledgement Reference Number you received while submitting your GST registration form.

Can we apply for GST registration after rejection?

Yes, you can opt for GST registration after rejection, but only if the rejection comes from an authorised tax officer. You can appeal against GST registration rejection within three months from the date of the rejection order.

How do I check my GST rejection order?

To check your GST registration order:

  • Get to the official GST site and its home page.
  • Login with your valid credentials and click on Services.
  • Next, access the User Services option to view your GST rejection order.

How do I reapply for a rejected GST application?

You can reapply for a rejected GST application by filing Form GST APL-01 online. You also need to submit physical copies of all required documents along with this form. Ensure the form and all credentials provided are duly signed and verified before being submitted to the concerned authority's office within seven days of filing an appeal on the official GST portal.

Who cannot qualify for GST?

People involved in supplying products and services that are not taxable under section 23 (1) or people involved in the supply of products and services completely exempted from taxes are not eligible for GST.

What is the maximum income to qualify for GST?

As per GST laws, businesses with an annual turnover of more than 20 lakhs qualify for GST. This is ten lakhs for special categories except for Jammu and Kashmir, which is completely exempted from GST registration.

How many times can we apply for GST after rejection?

There is no provision on the limitation of applying for GST after rejection.

Can I claim GST after 2 years?

Yes, you can claim GST after two years.