Many businesses have seen long delays in getting their GST registration approved, and have found no help on raising the issues with the authorities, sources said. Most such complaints are for applications submitted in April and May.
While the cause of delay wasn’t clear even to individual tax officials FE spoke with, a central tax official said the lack of manpower due to Covid-19 could be one the reasons, even though the number of applications drastically reduced in the last two months. For instance, at one zonal office, applications for new registrations dropped to about 90-odd from 900 in the same period a year ago.
An official from Bihar said the state’s commercial tax department has found several cases of circular trading which involved businesses issuing fake invoices among each other to fraudulently avail input tax credit without actual supply of goods and services with overwhelming participation from newly registered businesses. This had led to the state tax department going slow in approving new applications.