Deemed GST registration granted between August 21, November 16 under CBIC scanner

The Central Board of Indirect Taxes & Customs (CBIC) has instructed its officers to confirm deemed Goods and Services Tax (GST) registrations granted to enterprise entities with out Aadhaar authentication between August 21 and November 16 this yr to determine that they’re endeavor real enterprise actions, two officers stated.

It has been seen that many unscrupulous persons are misusing the simple GST registration system to con the exchequer by producing pretend invoices and misappropriating enter tax credit score (ITC), the officers stated, requesting anonymity. Currently, the GST regulation permits deemed registration after 21 days of software.

The CBIC, which is beneath the executive management of the Department of Revenue, an arm of the Union finance ministry, has additionally come out with customary working process (SOP) for officers to hold out bodily verification of entities which have been granted a deemed GST registration with out Aadhaar authentication, the officers stated.

“This SOP would effectively curb the fake invoices menace and ITC frauds while at the same time, this would ensure proper facilitation of ease of doing business for the genuine applicants/entities without any overreach,” one of many officers stated.

These choices have been taken not too long ago at a high-level assessment assembly of the division of income, he added.

Meanwhile, the federal government has additionally intensified its nationwide crackdown in opposition to pretend GST invoices. The Directorate General of GST Intelligence (DGGI) has to date arrested 92 individuals for availing or passing on ineligible ITC fraudulently via pretend invoices and have booked 994 circumstances in opposition to greater than 3,161 pretend GST registered, a second official stated.

An entity having deemed registration the place the applicant has not opted for Aadhaar authentication has to go for necessary bodily verification of the premises, he stated. “In cases where the physical verification is difficult, certain additional documents may be called for verification by the tax officer before deciding upon grant of registration,” he added.

“All such deemed registrations would be subjected to compulsory post registration verification and the list of such deemed registrations would be circulated zone wise to the field formations for confirmation which has to be completed in a time bound manner within three weeks and a weekly status report has to be submitted to the CBIC,” he stated.