Getting GST registration can be tricky for independent contractors and small businesses. Here are some common challenges:
1. Complex Documentation Requirements
Many freelancers and small businesses struggle with providing all necessary documents (PAN, identity proof, address proof, business proof, etc.).
Errors or mismatches in documents can lead to delays or rejection.
2. Understanding Eligibility Criteria
Misunderstanding the turnover threshold (usually ₹20 lakh for services and ₹40 lakh for goods) can cause confusion about whether registration is required.
3. Technical Challenges
The GST portal can be complex to navigate for first-time users.
Poor internet connectivity or glitches on the portal during peak hours can delay registration.
4. Frequent Changes in Rules & Compliance
The GST framework is updated regularly, which makes it hard for small businesses to stay compliant without expert guidance.
5. Cost of Registration
Hiring professionals for registration can be costly for small enterprises trying to keep expenses low.
6. Unawareness of Composition Scheme
Some eligible small businesses and freelancers are unaware of the Composition Scheme, which offers a simpler compliance regime at a lower tax rate.
7. Fear of Increased Compliance Burden
Independent contractors and small businesses often avoid registration due to fear of complex tax filing processes.
8. Inconsistent Information & Misguidance
Relying on outdated or incorrect advice from unofficial sources can complicate the registration process.
Would you like me to show you a step-by-step process to get GST registration without hassle? Also, are you looking for tips to keep the compliance process smooth and cost-effective?