CBIC Warns: Officers Demanding Unnecessary Documents for GST Registration to Face Strict Penalties

Key Directives Issued by CBIC

1. Strict Adherence to Prescribed Document List

CBIC reiterated that GST registration applications must be processed based solely on the documents listed under FORM GST REG-01. Officers are prohibited from asking for any additional documents unless absolutely necessary and justified.

2. Prior Approval for Additional Requirements

In exceptional cases where extra documentation is deemed essential for verifying the legitimacy of the applicant, officers must obtain prior written approval from the Deputy Commissioner or Assistant Commissioner before making such a demand. This measure is designed to ensure oversight and accountability.

3. Ban on Presumptive and Generic Notices

CBIC has strictly warned against the issuance of generic or presumptive notices—notices based on assumptions, minor clerical issues, or irrelevant discrepancies. The directive emphasizes that all queries should be specific, relevant, and in alignment with the nature of the application.

4. Penalties for Non-Compliance

To ensure enforcement, the CBIC stated that disciplinary action will be initiated against officers found violating these instructions. This includes those causing deliberate delays or harassing applicants through unjustified procedural hurdles.

---

Implications for Taxpayers and Businesses

This move is seen as a welcome relief for startups, MSMEs, and new business entities, who often face procedural bottlenecks during the early stages of registration. By ensuring that only relevant documentation is sought and introducing a chain of accountability, CBIC aims to foster a more business-friendly and corruption-free environment.