New GST Registration Process slows down due to Lockdown

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With the spread of the coronavirus, GST registration is facing huge delays. Obtaining a new GSTIN has become a bit difficult due to the COVID-19 lockdown.


Delay in New GST Registration Process due to the lockdown

New GST registration has been getting delayed to an extent of 60 days and if the situation gets worse during the lockdown periods then it can be put on hold for some more time as well.

As such, during the normal regular days, the time for GST Registration used to be about a week. There were many users who filled their GST applications before 25th March,  the lockdown began this day and still haven’t got the issued GST registration number or GSTIN.


Reason for delay in GST registration

The various issues which the taxpayers are facing due to the lockdown period are being raised by the business managers are that they haven’t got the exact information on when the process will start working. 

  • Many users have still not even completed their documentation on the issued registration number as well.
  • Apart from the new business which is starting up, IRP – Interim Resolution Professional or the resolution professional managing companies are merging with the corporate insolvency resolution and have been struggling with the gaining new GST registrations. 
  • Many rules have been mandated with the IRP in order to file the fresh registration for the companies which have registered themselves earlier throughout the states of India 

Rajat Mohan, an expert has quoted-

“ Delay in the grant of the registration is acting as an active restraint for IRP/RP’s appointed under IBC laws, slowing the revival process for the debt-laden companies”.


GST registration of IRP

A new GST registration facility was enabled for the IRP’s on the GST portal by the CBIC, last week. 

  • According to some of the officials, the delay in issuing new registration numbers has been seen due to the lesser amount of tax officers in various jurisdictions. 
  • These officers even have remote or a virtual private network also known as VPN access to the application processes.

An official has said –

“In many places, the jurisdictional officers of the area where a business is situated are now working from the home and many or may not have a VPN access or DSC”.

GST registration facility was introduced as a part of GST reliefs for Lockdown 3.0.

Government Announces GST Relaxations During Lockdown 3.0

The solution against GST registration delay

GST network has said that in the month of April they have provided secured network access to 1700 tax officers ranging in about 18 states and union territories to work from home. 

And it has been said that between March 25th and April 3rd, more than 10,000 new GST registrations have been issued. 

However, we can help you obtain easy GST registration in a faster way.

If you need any other sort of guidance with respect to the GST return filing, GST registration, and other GST compliance, please feel free to contact our business advisors at 8881-069-069.

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