How to Get a GST Clearance Certificate?

Whenever a business is about to shut down its operations, merge with another company, or plan for government tenders, a GST clearance certificate is a must-have. It is the official proof that depicts that the taxpayer holds zero tax liabilities under his name.

​In other words, we can consider, GST tax clearance certificate to be the method of validating that all your dues are cleared and tax records are clean.

​This blog will further break down the complete know-how, i.e., definition, GST clearance certificate format, how to download it, documents needed, and everything you should know. Let’s get started now to avoid last-minute surprises. 

What is a GST Clearance Certificate? 

It is an official proof issued by the Indian tax officials, which symbolizes that the taxpayer has cleared all his tax dues or is exempted from paying GST.

​GST clearance certificate is issued with reference to compliance norms only to ensure that the taxpayers abide by regulations under the GST regime.

Why is the GST Tax Clearance Certificate Important? 

1. It serves as proof of compliance, signalling there are no outstanding tax dues under the taxpayer's name.
2. Updated clearance certificates avoid disruptions, audits, and penalties due to unverified tax records.
3. It’s the base-proof for government contracts and tenders that identifies the taxpayers as trustworthy entities.

GST Clearance Certificate for Government Tenders

Government tenders and contracts are one of the most common use cases of GST clearance certificates. Businesses bidding for tender opportunities need to reflect financial integrity and eligibility to participate in the bids. 

GST clearance certificate presents that the taxpayer can be trusted and has no tax liabilities signalling adherence to GST requirements. This reflects that the taxpayer is fit to appear for bids and contracts.  

How to Get a GST Clearance Certificate Online? 

1. Submit all the return copies to ensure that your financial records are updated and there are no tax liabilities involved.
2. Add all your details- full name, contact information, address, and GST number to your GST clearance certificate application.
3. Draft a letter to the assessing officer requesting the certificate. 

How to Download a GST Clearance Certificate? 

1. Navigate to gst.gov.in and scroll to the home page
2. Login to the GST portal with your credentials 
3. Now, scroll to “Services” > “User Services” > “View/Download Certificates”

Once you proceed ahead, you will see a list of certificates issued by the tax authorities on the screen. Click on the GST Clearance Certificate if it’s listed and download it in your system. 

What Documents are Needed to Get the GST Clearance Certificate? 

1. Add photographs of designated signatories to validate the truthfulness of your application.
2. Attach proof of identification and address of the authorized taxpayer.

For Limited Liability Partnerships (LLPs), check out the set of documents needed:

1. Certificate of Registration of the partnership firm
2. Board resolution that states the clauses of the GST Clearance certificate 

Read More: How to Pay GST Challan Online

What are the Components of GST Clearance Certificate Format? 

1. Certificate Number: It’s a unique series of numbers that distinguishes these tax certificates from each other. 
2. Date: The date on which the GST tax clearance certificate was issued. 
3. Issuing Authority: Details of the tax authority who issued and signed the certificate. 
4. Business name: Registered business name which has been requested for the clearance certificate. 
5.  GSTIN: Registered GSTIN is mentioned in the certificate. 
6. Statement of Tax Status: It highlights if all the tax liabilities have been paid and records are clear. 
7. Compliance Period: It depicts the time frame for which the returns are filed. 
8. Purpose of Certificate: This section in the GST Clearance Certificate highlights why it was issued. 
9. Signature and address of the authorized person. 

Conclusion 

While merging a business, bidding for tender, or signing a contract, GST clearance certificate isn’t just a procedural step; it’s a mandatory compliance requirement. It serves as proof of compliance, ensuring that the taxpayer has zero outstanding liabilities.

To get the GST clearance certificate, it's crucial to maintain all the tax records. Ensure transparency, credibility, and accountability in all processes with this certificate.

Check out how to download the GST clearance certificate and issue it. Bookmark the blog right away, and issue your clearance certificate effortlessly. 

FAQs on GST Clearance Certificate

1. How to Check GST Clearance? 

• Visit the GST portal and click on Search Taxpayer to verify the GSTN number. 
• Now, click and confirm regular filing with zero dues 
• Reach your nearest office and validate the certificate 

2. Who issues The GST Clearance Certificate? 

Indian tax authorities issue the GST tax clearance certificate. 

3. Is it mandatory to have a GST clearance certificate during tender? 

Yes, the GST clearance certificate highlights financial integrity and thus it’s important to have it for tenders. 

4. How long does it take to get a GST clearance certificate? 

It can take from a few days to weeks, depending on the processing time taken by the jurisdiction. 

5. Who Needs a GST Clearance Certificate? 

Businesses wanting to merge, avail tenders, or executing transactions should avail GST clearance certificate.

About the author