New timelines give Aadhaar-authenticated applicants a clearer path to GST registration, while the CBIC tightens standards for tax notices and dispute proceedings.
The Central Board of Indirect Taxes and Customs has tightened the timetable for goods and services tax registration and introduced a deemed-approval safeguard for applicants who fall under the Aadhaar authentication route, in a move aimed at reducing delays and improving predictability for businesses. The changes are part of eight circulars issued to carry out process reforms recommended at the 57th GST Council meeting, and they also cover input tax credit treatment for demo vehicles and new guardrails for the start and conduct of GST proceedings.
Under the revised registration framework, applicants assessed as low risk, or those whose outward tax liability on supplies to registered persons does not exceed ₹2.5 lakh a month, continue to receive registration within three working days through the automated route, without officer intervention. The remaining applications are handled by tax officers, but the board has now laid down fixed deadlines: applicants selected for biometric Aadhaar authentication have 15 days to complete the process, officers have seven days to seek clarification if required, and then another seven days to approve or reject the application once the applicant responds. If the officer fails to act within the prescribed period, registration will be treated as approved.
According to the circular and a senior government official quoted by businessline, the intent is to bring greater certainty to cases where Aadhaar has been verified and no physical inspection is needed. Tax specialists said the guidance should reduce disputes over practical issues that have often slowed down registration, including the treatment of co-working spaces, consent-based premises, ATMs, telecom towers and state-specific disclosure requirements. They added that clearer documentation standards should make the process more consistent for legitimate taxpayers while leaving room for scrutiny where risks are identified.
The board has also tried to sharpen the language and structure of demand, adjudication and appeal notices in GST disputes. Practitioners said the new guidance is meant to curb the routine use of fraud allegations and encourage notices that are backed by evidence, with separate treatment for claims under Sections 73 and 74 and clearer year-wise break-up of multi-year show-cause notices. Legal experts said the circular reinforces that phrases such as fraud, wilful misstatement or suppression should not be used mechanically, and that an omission or mistake by itself does not automatically prove intent to evade tax. The direction to use cautious wording such as “it appears that” is intended to underline that a show-cause notice is a starting point for response, not a final finding.
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