Common GST Registration Rejections and How to Avoid Them
Getting your GST registration application rejected is frustrating, especially when you need the GSTIN to start business operations. The truth is that most GST rejections happen due to avoidable mistakes in the application or documentation. Understanding the common rejection reasons and how to fix them can save you weeks of back-and-forth with GST authorities. This guide covers the most frequent causes of GST registration rejection and practical steps to ensure your application is approved on the first attempt.
Top Reasons for GST Registration Rejection
1. PAN and Aadhaar Mismatch
The most common reason for GST registration rejection is a discrepancy between the name on your PAN card and Aadhaar card. Even minor differences like the presence or absence of a middle name, spelling variations (e.g., "Rahul" vs "Rahul Kumar"), or different name formats cause the system to flag the application.
How to avoid:
- Ensure your name is exactly the same on PAN and Aadhaar before applying
- If there is a mismatch, update either document first through NSDL (PAN) or UIDAI (Aadhaar)
- Use the exact same name format (first name, middle name, last name) on the GST application as it appears on PAN
2. Invalid or Insufficient Address Proof
Address proof issues are the second most common rejection reason. The document must clearly show the complete address that matches what you have entered in the application form.
Common address proof problems:
- Old electricity bill: The bill must be less than 2 months old
- Unsigned rental agreement: The agreement must be signed by both landlord and tenant
- Address mismatch: The address on the proof does not exactly match the application address
- No consent letter: If operating from property owned by someone else, a consent/NOC from the owner is required
- Blurry scans: The uploaded document is not clearly readable
3. Incomplete or Blurry Document Uploads
The GST portal has specific requirements for document uploads that many applicants overlook:
| Document | Format | Max Size | Common Errors |
|---|---|---|---|
| Photograph | JPEG | 100 KB | Blurry, informal photo, too large/small |
| PAN Card | JPEG/PDF | 1 MB | Partially scanned, unclear text |
| Address Proof | JPEG/PDF | 1 MB | Old document, wrong address, unsigned |
| Bank Proof | JPEG/PDF | 1 MB | Missing IFSC, wrong account name |
| Authorization Letter | JPEG/PDF | 1 MB | Unsigned, no company seal, wrong format |
4. Failure to Respond to Officer Queries (REG-03)
When the GST officer needs clarification, they issue a notice in Form GST REG-03. You get exactly 7 working days to respond through the portal in Form GST REG-04. Many applicants miss this notice because they do not check the portal regularly, or they fail to provide the specific clarification requested.
How to avoid:
- Check the GST portal and your registered email daily after submitting the application
- Read the officer's query carefully and provide exactly what is asked
- Upload clear, complete documents in your response
- Respond well within the 7-day deadline, preferably within 2 to 3 days
5. Business Premise Verification Failure
In some cases, the GST officer orders a physical verification of the business premises. This is more common for applications from high-risk areas, applications without Aadhaar authentication, or cases where the officer has doubts about the genuineness of the business.
Verification fails when:
- No signboard or indication of business activity at the premises
- The premises are locked or inaccessible during the officer's visit
- The business activities described in the application do not match what the officer observes
- The landlord denies giving consent for business operations
6. Incorrect Business Category or Type Selection
Selecting the wrong constitution of business (proprietorship vs. partnership vs. company) or the wrong type of registration (regular vs. composition vs. ISD) causes processing delays and potential rejection. Some common errors include:
- Applying as a proprietorship when the business is a partnership or LLP
- Selecting composition scheme when the business has inter-state sales
- Choosing the wrong state for registration
- Listing incorrect principal place of business
How to Fix a Rejected Application
If your GST registration application has been rejected, follow these steps:
- Read the rejection order carefully: The order specifies the exact reason for rejection. This is available on the GST portal under your TRN/ARN status
- Correct the identified issues: If it is a document problem, get the correct documents ready. If it is a data mismatch, update your PAN or Aadhaar first
- File a fresh application: Submit a new application with all corrections. There is no penalty or restriction on reapplying
- Consider Aadhaar authentication: Applications with Aadhaar authentication get faster processing and fewer queries
- Alternatively, file an appeal: If you believe the rejection was unjustified, appeal before the Appellate Authority within 30 days
Checklist: Ensuring First-Attempt Approval
- Name on PAN, Aadhaar, and application form is identical
- All documents are clear, recent (within 2 months for utility bills), and properly signed
- Address on application matches address proof exactly (including pin code, floor, and unit number)
- Bank details match the business entity name
- Correct business constitution selected (proprietorship, LLP, company, etc.)
- HSN/SAC codes match your actual business activities
- Aadhaar is linked to mobile number for OTP authentication
- Authorized signatory details are correct and match DSC (for companies)
- All required fields in the application form are filled (no blank mandatory fields)
- Documents are in the correct format and within size limits
Timeline: Application to Approval
| Stage | Timeline | Action Required |
|---|---|---|
| Application submission | Day 1 | Submit with all documents |
| Officer review | Day 2 to Day 5 | Wait for processing |
| Query (if raised) | Day 3 to Day 7 | Respond within 7 working days |
| Physical verification (if ordered) | Day 5 to Day 15 | Be available at premises |
| Approval/Rejection | Day 3 to Day 30 | Download GSTIN certificate |
Conclusion
Most GST registration rejections are entirely preventable. By ensuring your documents are accurate, recent, and properly formatted, matching your personal details across PAN, Aadhaar, and the application form, and responding to officer queries promptly, you can get your GSTIN approved on the first attempt. If you have had a rejection already, there is no need to worry. Correct the issues identified in the rejection order and reapply.
IncorpX handles GST registration applications with a thorough document review process that catches common errors before submission. Our team monitors the application status daily and responds to officer queries immediately, ensuring the fastest possible approval.
