The goods and services tax was implemented in 2017, it was meant to revolutionize the Indian system. One of the main changes was the shift to e-invoices and paying your taxes online. The rule mandated that all taxpayers earning over RS. 5 lakh per annum must file their taxes online in 2014.
This was also passed by the GST council members in 2017. Since GST filings are done online, the applications submitted can also be tracked online. Tracking your application is important as it lets you know if your applications have been submitted/accepted/pending/rejected. You can check your GST status on the official GST portal either by logging in or using your ARN (application reference number).
The 2 Techniques to Check your GST Status Online
A. The first method to check your GST application status is by logging onto the GST portal. Then go to services and click on Track application status. Once you have done this the status of your application will be displayed. There are 5 different types of statuses you will possibly see;
- Proviosnal: This GST status means that your application has not been filed but is under review and you are provided with a GST identification number (GSTIN).
- Pending Verification: It means the application has been filed but not verified yet.
- Validation Against Error: The details you have provided are either incorrect or do not match the information provided by the income tax department.
- Migrated: This GST status means your application has passed and has been migrated to GST.
- Canceled: It means your application has been rejected and needs to be resubmitted.
B. The second technique to track your GST, you have to go to the official GST.portal but you do not need to log in. Click on registration and select services. Then Select ‘track your application’. Once you have opened it, select the option of the track with ARN (application reference number). There will be a horizontal bar where you have to fill the ARN and hit search.
Should a Canceled GST Status or Validation Against Error Status Cause Caution?
These statuses will only appear if the officer examining your application finds that there is incorrect information or suspicious details. Although its no cause for concern as its department gives the applicant 7 days to reply. If you fail to reply within this period your GST registration stands canceled. However, if the mistake is genuine and your GST status is at validation against error, you can correct it. You will have to submit form GST reg-14 along with documents that support the change. This will be verified by officers and approved within 15 days.
Other changes such as the name of the business, number of partners and other such details can be done in the same procedure. However, this form has to be filled and submitted within a period of 7 days since the GST status has been updated by the officer. If there is an error in the PAN card information, there is no option but to file for fresh registration. This is due to the GSTIN being based on the PAN card details. These provisions are made to help taxpayers since GST is a dynamic tax system issues can be worked out.
The GST council members who make recommendations and suggestions to the government have placed a key focus on ease of paying and filing for GST. The last meeting which took place in September 2019, yielded positive results for various industries and businesses. This was due to decreased GST rates given to businesses to boost the economy.
How Do the GST Council Members Play a Key Role in Simplifying GST Procedures for Taxpayers
The GST council is a committee made up of 33 members and is headed by India’s Minister of Finance, Smt. Nirmala Sitaram, though GST was the brainchild of late finance minister Arun Jaitley. Nirmala Sitaram has stepped in and transformed GST into more comprehensive tax reform. The other members are representatives from each state and union territory.
The key function of the GST council members is to make suggestions to the central government on which goods should be taxed, at what rate. They also decide what the minimum annual income for GST is. Along with other key decisions such as special provisions for union territories and exemption of certain goods and services. The GST council members have been very robust in the progress of GST, they have held over 30 meetings since the implementation of GST in 2017.
Why is it important to keep track of your GST status
It is important because of delayed communication can affect your GST application. Only if you check your status on time, you will be able to make corrections in your applications. Although the consequences of not paying your GST on time may vary, depending on how late you are from the due date of tax payments. It’s even more crucial with invoices as suspicious invoices can result in large fines and legal charges of tax evasion. These heavy penalties have been a part of the Indian penal code since time immemorial.
However, they were further reinforced by the GST council members when it was decided that input tax credit fraud cases could result in double penalties for defaulters. If you are a business supplier and you default on your tax payments or tax filing, it could result in a dip of your GST compliance rating.