Common Reasons for GST Registration Application Rejected​ & How to Fix Them

Income tax is an important financial requirement for inGetting a GST registration application rejected can be difficult, especially for businesses prepared to start operations. However, understanding why a GST application is rejected by a tax officer can help applicants fix the issues and resubmit successfully. 

In this article, we will explore the common reasons behind rejected GST applications and guide you on how to correct them effectively.

Common Reasons for Rejected GST Application 

1. Incorrect or Incomplete Documentation

One of the primary reasons for a GST application rejection is incomplete or incorrect documentation. Missing essential documents like PAN, Aadhaar, business address proof, or bank statements can lead to rejection.

How to Fix:

• Verify the required documents before submission.
• Ensure all uploaded files are clear and legible.
• Seek guidance from a CA firm to double-check documentation.

2. Mismatch in PAN and Aadhaar Details

A tax officer may reject a GST application if the details in PAN, Aadhaar, and other business documents do not match.

How to Fix:

• Cross-check all details before submission.
• Ensure your PAN and Aadhaar are linked and updated.
• Make necessary corrections and reapply.

3. Invalid Business Address Proof

Providing an incorrect or invalid address proof can result in GST application rejection. This includes expired rent agreements, unsigned utility bills, or documents not in the business owner’s name.

How to Fix:

• Provide a valid rental agreement, electricity bill, or property tax receipt.
• If the property is rented, ensure the landlord’s NOC is attached.

4. Failure to Verify OTP or DSC Issues

The GST portal requires OTP-based verification and a Digital Signature Certificate (DSC) for companies. Missing this step can lead to application rejection.

How to Fix:

• Complete OTP verification promptly.
• Ensure your DSC is valid and properly registered.
• Reattempt submission after rectifying the issue.

5. Business Name or Trade Name Mismatch

If the business name in the GST application does not match official records, the tax officer may reject it.

How to Fix:

• Use the exact trade name as per your PAN and incorporation documents.
• Review details carefully before submission.

6. Not Meeting GST Registration Criteria

Businesses that do not meet the eligibility criteria, such as turnover thresholds or required business activities, may face rejection.

How to Fix:

• Check if your business qualifies for GST registration.
• If required, consult a CA to understand alternative tax registration options.

7. Failure to Justify Business Activity

If a tax officer is not convinced about the legitimacy of the business, they may reject the GST application.

How to Fix:

• Provide a proper business activity description.
• Attach invoices, contracts, or proof of business transactions.

8. Past Non-Compliance Issues

Businesses with previous tax violations or pending GST dues may face rejection.

How to Fix:

• Clear any outstanding tax liabilities.
• Submit proper explanations for past compliance issues.
• Work with a CA firm to resolve compliance concerns.

How to Resubmit a Rejected GST Application

If your GST registration application is rejected, you can take the following steps to resubmit it successfully:

1. Identify the Reason for Rejection
   • Check the rejection notice on the GST portal.
   • Understand the exact reason provided by the tax officer.
2. Correct the Errors
   • Make the necessary changes based on the rejection reason.
   • Ensure proper documentation and correct details before resubmission.
3. File a Fresh Application
   • If rejected due to minor errors, resubmit after corrections.
   • In case of major rejection, you may need to file a new application.
4. Respond to Show Cause Notices (If Applicable)
   • If the rejection notice includes a show cause notice (SCN), reply within the given timeframe.
   • Attach necessary documents and explanations to justify your application.
5. Seek Professional Help
   • Hiring a CA firm in India can guide you through the resubmission process and prevent future rejection.

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