Critical Issues in registration under GST

For almost two years India has taken a major step in the tax system through GST. Although there are many benefits to GST, the same is not useful for the GST portal. Both the portal and portal help desk did not provide enough information, which is appropriate for taxpayers. After graduating one year in 2018, a survey on the GSTN portfolio, its complex processes and documentation, and compliance was conducted by the Federation of Indian Chambers of Commerce & Industry (FICCI).This article provides an insight into the critical issues in registration under GST.

Critical Issues in registration under GST: Input Tax Credit

A major problem that could affect the implementation of GST institutions is the Tax Credit Debt Registration requirements and the stage at which the said credit accumulates. The primary purpose of any additional tax system (such as GST) is to prevent double taxation. This is done by providing credit for every step of the production chain, effectively taxing only the additional value level.

An issue that arises under the GST of India, however, is a heavy document requirement that may have many unintended consequences. Under Section 16 (11) of the Model GST Law, the import tax credit can only be obtained if:

• Tax invoice has been received by the buyer from the supplier
• The buyer has received the goods/services
• Purchase taxes are paid by the supplier
• The provider has installed GST Returns

Critical issues involved in GST registration

• Data uploading delay : Applying for refunds may take up to two weeks. The time taken to review a payment takes more than 12 hours. The system usually crashes two days before the due date for compliance

• There is no provision for repairs or updates : There are no corrective measures available at the time of submission of the refund. This is a major error that creates a lot of controversy in matching invoices with credits.

• Additional financial burden : Return filing is time-consuming and small companies are facing the additional problem of spending too much money on hiring professional accountants. In addition installing GST recovery without the proper accounting systems in place is a busy task today.

• Delay in dealing with complaints : It takes a long time for the help desktop team to answer questions and complaints via email and phone. A ticket will be issued for all concerns submitted but no appropriate solution will be provided. In addition, people at the help desk respond only with standard templates and require additional skills and expertise in handling queries of stakeholders.

• No Provisional ID : If you do not have a provisional ID or username to start the GST registration process, all taxpayers applying for a new GST registration must provide their name, business name, PAN, email, and mobile number to begin the registration process. Once you have provided the above information, OTP is sent to the email id and mobile number for verification. Upon successful completion, a provisional reference number is provided to begin the GST registration process.
  If you are a non-resident taxpayer under GST and do not have an Indian mobile phone number to obtain OTP, use the Authorized Signature Mobile Phone Number. All non-resident taxpayers must nominate an Indian person to work as an Authorized Signer.

• Updating jurisdiction : This issue comes during the review of the authority. You are therefore informed that Jurisdiction can only be modified if it is incorrectly assigned.
  In that case, please contact your jurisdictional authorities to change the same. You can also search for the Jurisdictional Officer’s contact details by following these steps in the GST portal:Dashboard> Services> User Services> Contact.

• ARN Number Not Found : If you submitted all the information correctly and haven’t received any ARN number, contact the GST Helpdesk at:GST Help Desk 0124-4688999 or 1800-1200-232

• Invalid PAN details : When you sign up for GST, you will need to provide the PAN of the authorized signatory and the promoters. The PAN details provided in the GST portal must match the PAN website. Data sent to the GST portal is immediately verified on the PAN website. Therefore, in the event of a conflict, the application will not be able to proceed.If your PAN has incorrect information and you wish to enter the correct data into the GST registration system, you will need to first change the PAN data.

• Digital Signature Errors : Before starting the GST registration process, make sure you get a digital signature for class 2 or 3 of an authorized signatory. After receiving the digital signature, you must install emSigner and register DSC on the GST Portal. Once emSigner has been installed and launched, you will need to follow some steps to register for DSC Portal GST. Then try the GST registration process again to resolve the issue.

• Unable to select range code : During the GST registration process, you will be required to select a valid GST location based on Range Code. In some cases, the drop-down list containing the range code will not be complete. In such cases, make sure your browser is compatible with GST Portal.

Final words

Goods and services tax if used properly can do wonders for the Indian economy. With the removal of double taxes and lower commodity prices, GST could re-integrate the informal sector into India’s largest economy and provide much-needed development to countries that are flagging the export market.

The GST system can be seen as a boon to the country’s economy if used properly. Reducing commodity prices and the abolition of the double tax system and the implementing of GST could accelerate the growth of the export system and the economy.