If your GST registration has been rejected, there is no need to panic. You can reapply for registration by identifying the reason for rejection. Expect to receive a communication from the GST department stating the reason for rejection. In most cases, seeking GST consultation at MPVD & Associates CA Firm in Kolkata puts you in touch with a host of tax and accounting services and the best practices for preparing a fresh application and getting things under control.
What Should Be Your First Step To Act Up Against GST Application Rejection
If or when your GST application is denied, you can start fixing the issue by investigating the reason behind it. Visit the GST portal and enter the unique Acquirer Reference Number (ARN). You will be able to check the entire rejection summary. The grounds for rejection will be stated in the notice and could include:
- Insufficient or erroneous application information
- Noncompliance with GST regulations
- PAN Card not matching your current address
- Missing any mandatory documents
You can appeal for another order registration application immediately by filing Form GST APL 01 with the Appellate Authority. You have a time limit of three months from the date of the order to appeal the decision. It is important to note that the reapplication process may differ depending on the specific reason for rejection. It is recommended that you seek assistance from a tax professional or GST expert to ensure that your application is correctly prepared and submitted.
- Note: Do check if you need a new email ID or phone number to reapply for GST registration after rejection.
Consequences for Failure to Register with GSTIN for Eligible Persons
Registration for the Goods and Services Tax (GST) is mandatory for Indian businesses and individuals engaged in selling or supplying goods and having an annual turnover that exceeds ₹ 40 lakhs in a financial year. The threshold limit is varied for a few states in India, such as Kashmir and other northeast Indian states; if the annual turnover of a business, vendor or wholesaler is ₹10 – ₹20 lakh in a financial year, they become GST-eligible.
According to Section 122 of the CGST Act, it is an offense and subject to fines starting at Rs. 10,000 if a GST-eligible person or business conducts business without registering and paying taxes.
The person or entity in question is required to pay 10% of the total tax in special circumstances where errors were genuine or inadvertent. This is only relevant, though, if the whole tax burden exceeds Rs. 1 lakh. The penalty increases if there is any indication of intentional mistakes or nefarious tax evasion.
Also read: MPVD & Associates Busts The Common Myths About GST Registration in India
Filing An Appeal, Outmaneuvering Human Error and Taking A Professional GST Consultation
There are very rare cases when there is a mistake made by the GST network. On the grounds that you don’t agree with the reason behind the rejection of your GST application, there is a way to “file an appeal,” indicating any errors, and submit all required supporting data to the right authority department to reverse the rejection.
There are many GST registration and rejection cases that are unique, rare, and complicated and do not fit in the general group. In such cases, there is always the help and support of MPVD & Associates chartered accounting and taxation services, and one-on-one GST consultation that resolves your problems with a humane and personalized approach.