In a move aimed at streamlining the GST registration process and reducing undue hardships for genuine businesses, the Central Board of Indirect Taxes and Customs (CBIC) has issued comprehensive new guidelines on April 17, 2025. These instructions address long-standing grievances regarding excessive documentation demands and arbitrary clarifications sought by GST officers during the registration process.
While preventing the registration of fraudulent entities remains a priority, the new directive acknowledges the need to balance regulatory vigilance with taxpayer facilitation. The goal is clear: to eliminate delays and inconsistencies without compromising the integrity of the GST system.
Key Takeaways from the New Instructions
- Standardization of Document Requirements
CBIC has clarified that only the documents listed in FORM GST REG-01 should be sought by officers. Any additional documents—especially unrelated ones like PAN or Aadhaar of landlords, or photos with the property—should not be demanded unless explicitly required by law or in cases of flagged risk.
- Simplified Proof of Address for Principal Place of Business
The new guidelines categorize the documentation process for different scenarios:
Owned Premises: One ownership proof such as a property tax receipt or utility bill suffices.
Rented Premises: A rent/lease agreement along with one ownership document of the landlord is adequate. Registered agreements eliminate the need for landlord ID proof.
Shared or Consent-based Use: A simple consent letter and one ownership proof from the consenter is sufficient.
Absence of Rent Agreement: A notarized affidavit and any proof of possession (like an electricity bill in the applicant’s name) will be accepted.
This greatly reduces the burden on applicants and curtails subjective demands by officers.
- Constitution of Business Clarified
Applicants need only upload the Partnership Deed, or Registration Certificate in case of entities like societies or trusts. Additional documents like trade licenses or MSME certificates are not mandatory.
- Strict Restrictions on Presumptive Queries
The CBIC has instructed officers not to raise irrelevant or speculative queries, such as questioning business feasibility based on the applicant’s location or doubting product categories without valid grounds. This aims to prevent arbitrary rejection or delay of applications.
Improved Timelines and Physical Verification
The instructions reinforce that non-risk applications must be processed within 7 working days, provided documents are complete. For flagged cases requiring physical verification, the process must be completed within 30 days, and officers must upload verification reports—including GPS-tagged photos—at least 5 days before the deadline.
Accountability and Oversight
Senior officers have been instructed to:
- Monitor registration processing closely.
- Review physical verifications and queries being raised.
- Take disciplinary action against officers violating guidelines.
- Ensure sufficient staffing and issue local trade notices for clarity on acceptable documents.
A Step Forward in Ease of Doing Business
These new CBIC instructions represent a progressive shift toward taxpayer-friendly governance. By minimizing discretion, ensuring uniformity, and promoting transparency, they are likely to boost confidence among entrepreneurs and businesses—especially MSMEs—who previously faced frustrating procedural roadblocks in getting GST registration.
