CBIC issues new instructions to reduce compliance burden for GST registration
The government also refuted reports in a section of the media that it is considering levy of GST on Unified Payment Interface (UPI) transactions above ₹2,000
NEW DELHI: The government has directed Goods and Services Tax (GST) officials not to demand unnecessary documents from applicants and asked them to grant registrations in seven working days, the finance ministry said on Friday.
The ministry also refuted reports that it was considering to levy GST on UPI transactions over ₹2,000.
The Central Board of Indirect Taxes and Customs (CBIC) has issued a directive to its field formations after receiving several complaints that applicants were facing difficulties during the GST registration process, mainly on account of queries raised by officers seeking additional documents. A finance ministry spokesperson said officers have been told to strictly adhere to the prescribed list of documents provided in registration application form.
“Requisite documents in specific cases to be uploaded with registration application form have also been delineated in the instructions,” the spokesperson said.
CBIC directed officers not to issue notices on presumptive grounds, minor discrepancies, or for additional documents that are not essential for processing applications, the spokesperson said citing the order dated April 17.
“Officers have been also directed to seek approval of the concerned deputy/assistant commissioner in cases where document apart from the listed documents is required to be sought,” CBIC order said.
The government also refuted reports in a section of the media that it is considering levy of GST on Unified Payment Interface (UPI) transactions above ₹2,000. “The claims that the government is considering levying Goods and Services Tax (GST) on UPI transactions over ₹2,000 are completely false, misleading, and without any basis. Currently, there is no such proposal before the government,” the finance ministry said in a statement.
GST is levied on charges, such as the merchant discount rate (MDR), relating to payments made using certain instruments.
Effective January 2020, the Central Board of Direct Taxes (CBDT) removed the MDR on person-to-merchant (P2M) UPI transactions through the gazette notification dated 30th December 2019. Since currently no MDR is charged on UPI transactions, there is consequently no GST applicable to these transactions, it said. The government is committed to promote digital payments through UPI, it added.
UPI transaction values have seen an exponential increase, growing from ₹21.3 lakh crore in 2019-20 to ₹260.56 lakh crore by March 2025. Specifically, P2M transactions have reached ₹59.3 lakh crore, reflecting growing merchant adoption and consumer confidence in digital payment methods, it said.
