New Delhi, Apr 4 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has asked the tax officers to be careful while processing applications for fresh GST registrations by those businesses whose earlier registrations were cancelled due to non-compliance.

CBIC has also directed tax officers to analyses the information by an applicant in the fresh registration form regarding details of proprietor, director/members of managing committee of associations/board of trustees etc vis-a-vis any cancelled registration having same details.

Recently, a large number of registrations has been cancelled by tax officers on account of non-compliance.

"It is instructed that the proper officer may exercise due caution while processing the application for registration submitted by taxpayers, where the taxpayer is seeking another registration within the State although he has an existing registration within the said State or his earlier registration has been cancelled," the CBIC said in its communication to field offices.

"The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled," the CBIC said.

In cases where the registration has been cancelled due to non-compliance, the officer would have to check whether the business had filed application for revocation of cancellation of registration.

"It is advised that where the applicant fails to furnish sufficient convincing justification or the proper officer is not satisfied with the clarification, information or documents furnished, then, his application for fresh registration may be considered for rejection," the CBIC said.

"Many of the taxpayers are unable to cope with the burden of compliances and the pace of GST evolution, committing bonafide mistakes. A blanket push on tax officers to scrutinise all applications with a coloured lens would lead to presumption of guilt without giving even first opportunity of being heard," AMRG & Associates Partner Rajat Mohan said.

About 1.2 crore businesses are registered under GST, which was rolled out on July 1, 2017. (KNN/JM)