The Central Board of Indirect Taxes and Customs (CBIC) has issued eight circulars aimed at simplifying tax compliance, improving officer efficiency, and providing clarity to taxpayers. These circulars, which follow decisions from the 57th GST Council meeting, cover registration, tax demands, and export payments, including guidelines for foreign exchange management under FEMA.
To make the registration process more predictable, the CBIC has introduced specific timelines. Low-risk applicants can expect a decision within 3 working days, while those using biometric-based Aadhaar authentication have a 15-day timeline. For applicants responding to an officer's queries, a 7-day window is provided. These reforms address a system where 61% of registrations are currently handled through an automated route, while 39% require manual officer intervention.
A key feature of the new guidelines is the introduction of a deemed approval clause. This mechanism is designed to ensure the registration process remains efficient by providing a clear path for approval if timelines are met.
A key feature of the new guidelines is the introduction of a deemed approval clause.
Beyond timelines, the circulars provide guidance on practical issues that have previously caused disputes. Saurabh Agarwal, Tax Partner at EY India, noted that the detailed guidance addresses several practical issues that have often resulted in ground-level queries, including co-working spaces, consent-based premises, ATMs and telecom towers, and state-specific information requirements. By standardizing these requirements, the CBIC aims to reduce the need for subjective interpretation and streamline the overall tax demand and registration processes.