In anticipation of the upcoming Grievance Redressal Committee (GRC) meeting scheduled for May 23, the Sales Tax Bar Association (STBA), Delhi, has submitted a detailed representation to the Principal Chief Commissioner of CGST & Central Excise, Delhi. The letter outlines pressing issues faced by taxpayers under the GST regime and proposes actionable solutions to streamline the current processes.

The four-page representation, signed by STBA President Sanjay Sharma, highlights major systemic difficulties impacting businesses and professionals, calling for urgent administrative reforms.

1. Delay in GST Registration Cancellation Processing

The STBA raised concerns over persistent delays in the disposal of GST registration cancellation applications, despite the law mandating a 30-day resolution period. The letter criticizes the frequent rejection of applications without well-reasoned show-cause notices and the lack of a timeline for furnishing pending returns — both of which result in avoidable penalties for taxpayers.

Recommendations include:

• Strict adherence to the 30-day timeline,
• Issuance of reasoned show-cause notices,
• Introduction of documentary upload options for correspondence addresses.

2. Core Field Amendment Delays

Another significant issue pertains to core field amendment applications in GST registrations. Current system constraints prohibit filing new amendments until the previous one is resolved, causing delays and business standstills when officers fail to act promptly.

STBA suggests:

• Officers be mandated to act within the prescribed timelines,
• Mechanisms to track and escalate delayed cases,
• Conditional acceptance of subsequent amendment requests.

3. Arbitrary Suspension of GST Registration

STBA flagged instances where GST registrations were suspended immediately upon issuance of a notice, without providing taxpayers an opportunity for clarification. This, they assert, leads to unnecessary litigation and disrupts genuine business activities.

STBA urges for:

• A fair and balanced approach,
• Prior clarification requests from officers,
• Reasonable response windows before any suspension.

4. Jurisdictional Fragmentation Hindering Efficiency

The Association highlighted the operational inefficiencies caused by the dispersion of nine CGST jurisdictional departments across Delhi. This setup imposes logistical challenges and increases costs for professionals and businesses alike.

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