What Should You Do If Your GST Registration Application Gets Rejected?

In India, the Goods and Services Tax (GST) enables simple tax businesses and runs a smooth commercial process between states. If turnover thresholds are met, businesses must mandatorily register for GST, while others may choose to get themselves registered voluntarily. However, many business owners face obstacles applying for GST registration, and if lucky, the application may get rejected.

Having your application for GST registration rejected can be a bitter pill to swallow. Still, one needs to understand that rejection does not mark the end of the road. There are some measures available that can be taken to rectify the situation so that there is a greater possibility of getting registered.

Steps to Follow in GST Registration Rejection in India

Understanding the Reasons for Rejection

The very first step after the rejection of your application for GST registration is learning the reasons for it. Rejection could be due to some or all of the reasons, and knowing what led to it is essential so that it can be rectified accordingly.

• Incomplete or Incorrect Application: If your application form carries some inaccuracies or is not filled, it can be referred to as rejection.
• Not falling under the Criteria of Eligibility: To register under GST, any business has to fulfill certain criteria regarding eligibility. If your turnover or the nature of your business activity does not sync with such criteria, your application is surely going to be rejected.
• Inconsistent or Invalid Documents: All your supporting documents have perceptible invalidity, are unclear, or are inconsistent with your business details, and that could form a base for rejection.
• Discrepancy in the Data of PAN or Aadhaar: If either your Permanent Account Number (PAN) or Aadhaar card data does not match with what you gave in your GST application, it may not pass through.
• Invalid Business Premises: If the address of the business premises is not correct or not verified, rejection could happen.
• Mismatch of GSTIN in Trade Name: If the trade name provided is mismatched with your GSTIN or any other registered details, it can be a ground for rejection.

Amend the Mistakes or Issues

• Correcting Inaccurate Information: For example, if your application had wrong business details (like turnover, PAN number, and trade name), then those incorrect details need to be changed in the updated GST registration form.

• Indicating Missing Documents: All the required documents presented as missing, for example, the address of the business, proof of identity, etc., will be made available in original form for upload in the correct file format.
• Eligibility Check: Verify that your business is acclimatized to all requirements for the GST registration, for instance, a business under the turnover threshold required for mandatory registration will just re-think the voluntary application for registration.
• Check Business Address: In case your business address is marked as unverifiable or incorrect, ensure that the address you’ve provided last is valid and possesses proper documents such as rental agreements, utility bills, or property tax receipts.
• Cross-check PAN and Aadhaar Consistency: Make sure the information in your PAN card and Aadhaar card is the same as that in the data portal of GST. Dealing with such discrepancies will get it rejected.

Respond to the GST Department’s Query

At times, the GST department might need further clarifications or documents to approve your application. If you receive a query or clarification notice, you need to respond within the given time slot.

Reapply for GST Registration

• Log into the GST Portal: The first step is to visit gst.gov.in, the Government Taxation Portal, and then log in to your account.
• Apply Again: Open a new application for GST registration, filling in the required fields precisely. Go through all entries carefully from business information to documents to criteria for eligibility.
• Submit Documents: None of the documents should be neglected; proof of identity, proof of business ownership, bank account details, and any other document required must be submitted to the GST authorities.
• Track the Application: Keep tracking the status of your GST registration application now that you have applied. Respond promptly in case any further action is required.

Seek Professional Help

• In case you do not know why your application was rejected or how to go about the reapplication process, you could opt for professional help. 
• Help from a qualified tax consultant or GST expert may go a long way for you in addressing the issues surrounding the complex process of GST registration. They will assist in checking documents, correcting errors, and providing a fully functional application.
• An expert can help you understand the fine line of GST eligibility and documents against the chances of rejection.

Maintain Regular Compliance

• Reacquiring GST registration is only the first of many steps. 
• GST has rules and regulations that need to be followed, one of which is filing returns, maintaining accounts books, and keeping all records updated. 
• Ignoring GST may lead to penalties and cancellation of GST registration. Therefore, compliance is very important.

It’s natural to receive a rejection letter for your GST registration application. View it as a chance to mend the errors and make your business legally compliant. Understand the causes of rejection, rectify the issues accordingly, and follow the process for re-application to once again acquire your GST registration.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online for free through Lead India.