CBIC Issues Eight GST Circulars to Ease Registration, Export Payment and Tax Demand Compliance

New Delhi, Oct 28 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has issued eight circulars clarifying GST registration, export payments and tax demand proceedings to reduce compliance difficulties and ensure uniformity in tax administration.

The circulars follow decisions taken at the 57th GST Council meeting and address registration documents, pre-show-cause notices, evidence of fraud and the use of artificial intelligence (AI) in tax adjudication.

Clearer GST Registration Process

The CBIC noted that registration delays and rejections often result from missing information, inconsistent details and illegible documents. It directed officers not to seek unnecessary documents or raise queries unrelated to registration requirements.

For rented or leased premises, applicants must submit a valid registered rent or lease agreement. If the agreement is unregistered, it must be supported by a property tax receipt, municipal khata, property identification document, electricity bill or water bill in the landlord's name.

The existing registration thresholds are Rs 40 lakh for suppliers exclusively dealing in goods and Rs 20 lakh for those supplying services or both goods and services. Applicants opting for Aadhaar authentication generally receive registration within seven days, while other applications are processed within 30 days, subject to physical verification.

EY India Tax Partner Saurabh Agarwal said the guidance addresses practical issues involving co-working spaces, consent-based premises, ATMs, telecom towers and state-specific requirements, potentially making registration more predictable for genuine taxpayers.

Greater Scrutiny in Tax Demand Proceedings

The CBIC has asked officers to issue pre-show-cause notices (pre-SCNs) wherever feasible, allowing taxpayers to clarify their position before formal proceedings. Show-cause notices (SCNs) should clearly summarise allegations and specify the grounds for proposed action.

For invoking provisions relating to fraud, wilful misstatement or suppression of facts, officers must establish the taxpayer's intent to evade tax.

The circulars also mandate human oversight in the use of AI and other technological tools in adjudication. Their outputs must be independently verified before being relied upon in adjudication orders.

Clarification on Export Payments

The CBIC has clarified that export receivables set off against import payables, in accordance with Reserve Bank of India (RBI) directions under the Foreign Exchange Management Act (FEMA), will qualify as realisation of export proceeds for the purpose of export of services under the IGST Act.

Grant Thornton Bharat Partner and Tax Controversy Management Leader Manoj Mishra said evidence-based notices, clear tax quantification and disciplined adjudication could help resolve disputes at an early stage. However, the impact would depend on implementation at the field level.

Follow-Up to GST Council Decisions

The circulars follow the 57th GST Council meeting, which approved procedural reforms and measures to decriminalise GST offences. Key decisions included removing arrest powers of tax officers and raising the prosecution threshold from Rs 1 crore to Rs 5 crore.

The latest clarifications aim to simplify registration, align export payment rules with commercial practices and improve consistency in GST administration.

(KNN Bureau)