Common Mistakes During GST Registration | GST Lawyer Patna

Introduction – Why GST Registration Errors Matter

Registering under the Goods and Services Tax (GST) is mandatory for most Indian businesses, yet thousands of applications are rejected each month due to small but costly errors. These common mistakes during GST registration can delay business operations, cause penalties, and even attract legal scrutiny.

This guide by Advocate Tabish Ahmad, a GST lawyer based in Patna, Bihar, explains the frequent registration errors, the relevant legal framework, and practical steps to avoid rejection under the CGST Act, 2017.

Understanding GST Registration in India

Who Needs to Register Under GST

As per Sections 22–30 of the CGST Act, 2017, every business with an annual turnover exceeding ₹40 lakh (₹20 lakh for service providers) must register under GST.
Special category states have lower limits. Voluntary registration is also allowed for startups and professionals wishing to avail input tax credit benefits.

The process is governed by Rules 8–26 of the CGST Rules, 2017, and applications are filed online through the GST portal.

Common Mistakes During GST Registration

Even experienced professionals and accountants sometimes overlook key compliance points. Below are the most common mistakes during GST registration that lead to rejection or legal complications.

1. Incorrect Business Details or PAN

Many applicants mistakenly use an individual’s PAN instead of the business entity’s PAN. For companies and LLPs, the business PAN is mandatory. Using the wrong PAN can invalidate the registration application.

2. Mismatch in Documents & Proofs

If uploaded documents (like Aadhaar, address proof, or utility bills) do not match the legal entity’s name or address, the application may be marked as “Pending for Clarification” or rejected outright.

3. Selecting the Wrong Business Category

Choosing an incorrect business constitution (e.g., “proprietorship” instead of “partnership firm”) affects tax liability and filing requirements. Always cross-check your business type before submission.

4. Ignoring Place of Business Verification

The Principal Place of Business (POB) is crucial. If the address proof or ownership documents (like rent agreement, electricity bill, or NOC) are invalid, the department may initiate physical verification under Rule 25 of CGST Rules.

5. Using Invalid or Non-Functional Email/Phone

All communications—including OTP verification and notices—are sent to the registered email and mobile number. Non-functional contacts can lead to rejection and missed compliance alerts.

How to Avoid These Mistakes – Step-by-Step Guide

Step 1: Pre-Registration Checklist

Before applying, ensure:

• Valid business PAN and Aadhaar of the proprietor/partners/directors.
• Proof of business address (ownership document, rent agreement, utility bill).
• Active email ID and mobile number for OTP verification.
• Bank account details in the business name.
• DSC (Digital Signature Certificate) for companies and LLPs.

Step 2: Verification & Validation Tips

1. Double-check each document for spelling or number mismatches.
2. Use the official GST registration process.
3. Avoid uploading scanned copies with low resolution or unclear text.
4. Keep acknowledgment receipts and ARN numbers safely for tracking.
5. Always cross-verify the jurisdictional officer details in Bihar or your respective state.

Legal Implications of Wrong GST Registration

Submitting incorrect information is not a minor clerical lapse—it can trigger consequences under Section 122 of the CGST Act, which imposes penalties for false or misleading information.

In Bhumika Enterprises vs Union of India (2022), the Patna High Court held that cancellation of GST registration without due process violates principles of natural justice. However, taxpayers must ensure the accuracy of data during initial registration to avoid such disputes.

Correction Process for GST Registration Errors

If errors are discovered after submission:

1. Log in to gst.gov.in.
2. Navigate to “Amendment of Registration Core Fields.”
3. Update relevant fields (business name, address, partners, etc.).
4. Submit changes with supporting documents.
5. Track the application via the ARN number.

If the application was rejected, you may reapply with corrected details or respond to the rejection notice within the specified time under Rule 9(5) of the CGST Rules.

Case Study: The PAN Error Incident

A small manufacturing firm in Patna mistakenly used the owner’s personal PAN instead of the company PAN while registering for GST. The application was rejected, delaying their ability to issue invoices.

Upon legal consultation, the firm reapplied correctly with a new application, ensuring proper documentation and address proof. The new GSTIN was issued within 5 days—demonstrating that preventive diligence saves time and cost.

Conclusion – Ensure Compliance, Avoid Penalties

GST registration is the legal foundation of every taxable business in India. Simple mistakes—wrong PAN, mismatched documents, or inactive contact details—can delay approval or invite penalties.

✔ Always verify your details
✔ Follow the official process
✔ Seek professional assistance where required

Need help with a flawless GST registration? Connect with a GST lawyer at gstlawyer.in today for expert filing and compliance support.

Frequently Asked Questions (FAQ)

Q1: Who needs to register under GST in India?
A1: Any business with turnover above ₹40 lakh (₹20 lakh for services) must register, except exempted categories.

Q2: What documents are required for GST registration?
A2: PAN, Aadhaar, proof of business address, bank details, and digital signature.

Q3: How long does it take to get GST registration approved?
A3: Usually within 7 working days if all documents are valid and verified.

Q4: Can I correct errors in my GST application after submission?
A4: Yes, errors can be rectified through amendment requests or by reapplying.

Q5: What happens if GST registration is rejected?
A5: You’ll receive a notice stating reasons for rejection; you can reapply with corrections.

Q6: Is GST registration mandatory for freelancers?
A6: Yes, if annual turnover exceeds ₹20 lakh (₹10 lakh in special category states).

Q7: Can a person have multiple GST registrations?
A7: Yes, for different states or business verticals under Section 25(2) of CGST Act.

Q8: What penalties apply for wrong GST registration details?
A8: Incorrect or fake registration may attract penalties under Section 122 of the CGST Act.

References

1. Central Board of Indirect Taxes & Customs – cbic.gov.in
2. Official GST Portal – gst.gov.in
3. CGST Act, 2017 – legislative.gov.in
4. Patna High Court Judgment – Bhumika Enterprises vs Union of India (2022)

About the Author – Advocate Tabish Ahmad

Advocate Tabish Ahmad (B.A. LL.B., LL.M., Diploma in Cyber Law – GLC Mumbai) is a Certified Cyber Law Practitioner and practising Advocate at the Patna High Court. He specializes in Cyber Crime, GST Litigation, and Tax Appeals, with extensive experience in representing clients before judicial and quasi-judicial forums.

He serves as President of the Cyber Lawyers Association and is a Member of the Advocates’ Association, Patna High Court. As a Mentor at the Indian Tax Academy and JurisCrack, he guides young lawyers and students in cyber and tax law practice.

Author of several books on Cyber Crimes, Taxation, and GST, Advocate Tabish Ahmad is recognized for his practical insights on digital law, data privacy, and cyber fraud defence.

Disclaimer: This article is for informational and educational purposes only. It does not constitute legal advice. Readers should consult a qualified GST professional for case-specific guidance.

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