CBIC Mulls Single GST Authority For Businesses With Multiple Registrations

New Delhi, Jul 22 (KNN) The Central Board of Indirect Taxes and Customs (CBIC) has constituted a high-level working group to examine the feasibility of centralised administration for GST taxpayers holding multiple registrations under a single Permanent Account Number (PAN). 

The move is aimed at improving ease of doing business and addressing long-pending industry concerns.

Proposal Under Review

The proposal seeks to allow businesses operating across multiple states to be administered by a single central GST authority, instead of dealing with separate tax offices for each registration, ET reported. 

At present, companies must interact with multiple field formations for audits, assessments and compliance, depending on their state-wise registrations.

Panel Composition and Mandate

The 11-member panel, led by Chief Commissioner Vinayak Chandra Gupta, will assess the legal, administrative and technological changes required to implement such a system. 

It will also study past mechanisms such as centralised registration and the Large Taxpayer Unit (LTU) under the earlier excise and service tax regime, along with international practices.

The group will recommend whether the proposed framework should be optional or mandatory for taxpayers.

Timeline and Next Steps

The panel has been asked to submit its report within 30 days, along with a detailed implementation roadmap and draft proposals. The timeline indicates that the government is moving to fast-track a reform that has been under discussion for several years.

Background and Industry Demand

Before the rollout of the Goods and Services Tax (GST) in July 2017, service providers could opt for centralised registration, allowing them to deal with a single tax authority. However, under the GST regime, businesses are required to obtain separate registrations in each state of operation.

Industry stakeholders have consistently called for a return to a centralised administrative framework, stating that multiple audits and overlapping compliance requirements increase costs without significantly improving tax efficiency.

(KNN Bureau)