An official from Bihar said the state’s commercial tax department has found several cases of circular trading — which involved businesses issuing fake invoices among each other to fraudulently avail input tax credit without actual supply of goods and services — with overwhelming participation from newly registered businesses. This had led to the state tax department going slow in approving new applications.
“Every business has a vested right to be registered under
GST and join the national market for supply of goods and services. Unnecessary delays in approving the GST registration application signal the constrictions of doing business in India, and are also pushing taxpayers to promote a parallel economy,” Rajat Mohan, senior partner, AMRG & Associates, said.
For registering as a GST business, a taxpayer has to file an application on the GST Network portal. This application is then allotted to either central or state tax officials depending on the jurisdiction decided as per the designated formula. According to the law, officials would process the application in three working days. If no action is taken, the same is deemed to be approved in 60 days.
Several taxpayers and tax consultant told FE that application filed during the lockdown are pending and calls to the helpdesk and tweets requesting a status check have gone unanswered.
Source:- financialexpress.com