Problems & solutions · GST registration

GST registration problems and how to fix them

GST registration is fast when the documents are clean, and slow when they are not. Most rejections come down to the principal place of business: an old bill, a missing consent letter, a rent agreement in another name, or nobody present during physical verification. These are the problems Ahmedabad businesses and their consultants see most often, and how to clear them.

11 problems solvedFor founders, CAs, CSs and accountantsLast reviewed: 5 October 2026

Founders & professionals

GST application rejected (Form REG-05)

What you see

The application status shows "Rejected", and a REG-05 order gives the reasons.

Why it happens

  • No reply, or an incomplete reply, to a query notice (REG-03) within the time allowed.
  • The proof of principal place of business was unclear, did not match, or lacked the owner's consent.
  • Physical verification found no business at the address.

How to fix it

  1. Read the REG-05 order for the exact reasons.
  2. A rejected application cannot be edited. File a fresh application with corrected documents that address every reason.
  3. Make sure the documents are clear scans, the addresses match exactly, and someone will be available at the premises.

Avoid it next time

Use the latest utility bill, a signed consent letter or rent agreement, and a clear photo of the premises with the name board.

Law: Section 25, CGST Act 2017; Rule 9, CGST Rules 2017 GST registration service → #
Founders & professionals

Received a GST query notice (REG-03): how to reply

What you see

A REG-03 notice asks for clarification or extra documents on your registration application.

Why it happens

  • The officer needs clarification on documents, the nature of business, the premises or the identity of a promoter.

How to fix it

  1. Reply in Form REG-04 on the GST portal within seven working days of the notice.
  2. Answer each point specifically and attach the requested documents, clearly labelled.
  3. If you do not reply in time, the application can be rejected and you will have to apply again.

Avoid it next time

Watch the registered email and mobile closely in the days after applying.

Law: Rule 9(2), CGST Rules 2017 #
For founders

Aadhaar authentication for GST failed, or the link expired

What you see

The authentication link for a promoter or the authorised signatory was not received, expired, or failed OTP verification.

Why it happens

  • The mobile number linked with Aadhaar is different from the one in the GST application, or is inactive.
  • Applications flagged on data analysis and risk parameters, or where the applicant did not opt for Aadhaar authentication, are routed to biometric Aadhaar authentication, a photograph and document verification at a GST Suvidha Kendra (GSK) instead of OTP. Gujarat was the first state to use this, and it now applies across India.

How to fix it

  1. Resend the authentication link from the GST portal and complete the OTP within its validity.
  2. If the portal asks for biometric authentication, book an appointment at the GST Suvidha Kendra shown in the intimation, and attend with the original documents.
  3. Without successful authentication, expect physical verification and a longer processing time.

Avoid it next time

Make sure each promoter's Aadhaar-linked mobile number is active before applying.

Law: Section 25(6B)-(6D), CGST Act 2017; Rules 8 and 9, CGST Rules 2017 #
For founders

Proof of principal place of business rejected

What you see

The query or rejection says the address proof is insufficient or does not match.

Why it happens

  • A rent agreement was attached without a utility bill, or the bill is in someone else's name with no link to the owner.
  • Family-owned premises were used without a consent letter from the owner.
  • The address on the documents differs from the address entered, for example a different floor, unit or PIN.

How to fix it

  1. Owned premises: attach the latest property tax receipt, electricity bill or ownership document.
  2. Rented premises: attach the rent or leave-and-licence agreement together with the owner's document, such as an electricity bill in the owner's name.
  3. Premises of a relative or shared premises: attach a consent letter from the owner with the owner's ID and a property document.
  4. Enter the address exactly as it appears on the documents.

Avoid it next time

Pick the address documents before filling the form, and copy the address from them.

Law: Rule 8, CGST Rules 2017 (Form REG-01 documents) #
For founders

GST physical verification failed: nobody at the premises, or no name board

What you see

The officer's report says the business was not found or was non-existent at the address.

Why it happens

  • The premises were locked, there was no signage, or the address was a virtual office with nobody present.

How to fix it

  1. Put up a name board with the legal or trade name. Once registered, display the GSTIN on the name board and the registration certificate prominently.
  2. Keep someone present with the original documents during the verification window.
  3. If the registration was rejected, reapply after the premises are properly set up.

Avoid it next time

Do not apply from an address where you cannot show a functioning place of business.

Law: Rule 25 (verification) and Rule 18 (display of GSTIN), CGST Rules 2017 #
Founders & professionals

GSTIN suspended or cancelled for not filing returns

What you see

The status shows "Suspended" or "Cancelled", and customers cannot claim your ITC.

Why it happens

  • Returns were not filed for the continuous period that allows the officer to cancel registration, or the business was found non-operational.

How to fix it

  1. File all pending returns, with tax, interest and late fees.
  2. Apply for revocation of cancellation in Form REG-21 within 90 days of the date the cancellation order is served. If you show sufficient cause, the Commissioner can extend this by up to a further 180 days. Where the registration was cancelled for not filing returns, file all pending returns and pay the tax, interest, penalty and late fee before you apply.
  3. Reply to any show-cause notice (REG-17 or REG-31) within the time given, so that suspension does not turn into cancellation.

Avoid it next time

File every return, including nil returns, on time. Set reminders for GSTR-1 and GSTR-3B.

Law: Sections 29 and 30, CGST Act 2017; Rules 21, 21A, 22 and 23, CGST Rules 2017 #
Founders & professionals

Need to change the business name, address or partners in GST

What you see

You need to update GST registration details after a business change.

Why it happens

  • Changes to "core fields" (legal name, principal place of business, additional places, and adding or removing promoters, partners or directors) need officer approval. Other fields update directly.

How to fix it

  1. File a non-core amendment for simple changes such as contact details.
  2. For core fields, file the core-field amendment with supporting documents, and answer any query promptly.
  3. If the PAN itself changes, for example a proprietorship becoming a company, an amendment will not work. A new registration is needed.

Avoid it next time

File amendments within 15 days of the change.

Law: Section 28, CGST Act 2017; Rule 19, CGST Rules 2017 #
For founders

Turnover is below the threshold: do we still need GST?

What you see

Turnover is small, but a buyer, a marketplace or a sale to another state needs a GSTIN.

Why it happens

  • In Gujarat, the threshold is aggregate turnover of ₹40 lakh if you supply only goods (some notified goods are excluded from the higher limit), and ₹20 lakh if you supply services or both goods and services. Some cases need registration regardless of turnover: inter-state supply of goods, certain e-commerce sales, liability under reverse charge, and casual taxable persons.

How to fix it

  1. Check whether any compulsory registration case applies to your business model, including any current notified exemptions.
  2. If none applies and turnover is below the threshold, registration is optional. Voluntary registration lets you charge GST and pass ITC to business buyers, but brings regular return filing.

Avoid it next time

Decide based on your sales model, not only on turnover.

Law: Sections 22 and 24, CGST Act 2017 GST registration service → #
Founders & professionals

Converted a proprietorship or firm into a company: what happens to GST?

What you see

The new company or LLP has a new PAN, and the old GSTIN is in the old PAN.

Why it happens

  • GST registration is PAN-based. A new entity with a new PAN needs a new GSTIN.

How to fix it

  1. Register the new entity for GST.
  2. Transfer unutilised ITC on a change in constitution, through Form GST ITC-02, where the conditions are met.
  3. Cancel the old registration once the business has moved, and file the final return.

Avoid it next time

Plan the GST switchover date together with the conversion date.

Law: Section 18(3), CGST Act 2017; Rule 41, CGST Rules 2017 Business structure conversion → #
For founders

Business closed: how to cancel GST properly

What you see

The business has stopped, but GST returns and late fees keep accruing.

Why it happens

  • GST registration continues, along with its return obligations, until it is formally cancelled.

How to fix it

  1. File all pending returns.
  2. Apply for cancellation in Form REG-16, giving the stock and tax details.
  3. After the cancellation order, file the final return GSTR-10 within three months.

Avoid it next time

Cancel GST when you close the business, before late fees build up.

Law: Section 29 and Section 45, CGST Act 2017; Rule 20 and Rule 81, CGST Rules 2017 #
Founders & professionals

Opening an office or warehouse in another state or city

What you see

You are unsure whether one GSTIN covers a new location.

Why it happens

  • GST registration is state-wise. A place of business in another state needs a separate registration there, while a new place in the same state is added to the existing registration.

How to fix it

  1. Same state: add the location as an additional place of business through a core-field amendment.
  2. Different state: apply for a new registration in that state under the same PAN.

Avoid it next time

Register or amend before you start supplying from the new location.

Law: Sections 22 and 25, CGST Act 2017 #

Stuck on one of these right now? Send us the SRN, the notice or a screenshot of the error. We will tell you the fix and the deadline, and file it for you if you want.

Get help with this problem

More problems and fixes

This library gives general guidance on Indian company, GST and MSME rules as they stood on the review date. Portals and rules change. Check the current form instructions, or ask a professional, before acting on a deadline or a notice. Related: Founder help centre · Gst Registration

Last Note

If your startup could only get one thing right, make it the registration.

That is what we help you decide. Then we file it, register it, and keep it compliant year after year — from Ahmedabad, for Ahmedabad.

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