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GSTN notify SOPs for verification of Taxpayers who have granted Deemed Registration
As of August 21, 2020, rule 9 of the 2017 CGST Rules provides that in cases where the applicant has either not opted for Aadhaar verification or where such verification has failed, the proper officer shall mandatorily initiate physical verification of the premises, Or where physical verification is difficult, certain additional documents may be sought for Verification by the appropriate GST officer prior for deciding on the grant of registration. Furthermore, the present provisions allow the registration to be deemed to have been completed after 21 days of application in such cases, provided that no notification has been issued by the proper officer within the said 21 days. Deemed registration was granted from 21 August 2020 to 16 November 2020, in many cases where Aadhaar Verification was not preferred or failed. Those registrations, issued on a deemed basis, require verification in order to verify that they have a genuine business or intend to do so.
As of August 21, 2020, rule 9 of the 2017 CGST Rules provides that in cases where the applicant has either not opted for Aadhaar verification or where such verification has failed, the proper officer shall mandatorily initiate physical verification of the premises, Or where physical verification is difficult, certain additional documents may be sought for Verification by the appropriate GST officer prior for deciding on the grant of registration. Furthermore, the present provisions allow the registration to be deemed to have been completed after 21 days of application in such cases, provided that no notification has been issued by the proper officer within the said 21 days. Deemed registration was granted from 21 August 2020 to 16 November 2020, in many cases where Aadhaar Verification was not preferred or failed. Those registrations, issued on a deemed basis, require verification in order to verify that they have a genuine business or intend to do so.
- For the period from 21 August 2020 to 16 November 2020, the list of registrations granted on a considered approval basis, on a zone-wise basis, was circulated to field formations by DG Systems.
- Rule 25 of the CGST Rules provides for in certain cases, physical verification of business premises and necessitates such verification after registration has been issued. All registrations deemed to be such will be subject to compulsory post-registration verification.
- When the verification has been completed, if the officer has a basis to say that the registration is liable for revocation, he shall initiate proceedings in compliance with the CGST Rules.
- The CBIC clarified that the notice in FORM REG17 may be given in specific cases, pending physical verification, on the basis of two risk criteria, seeking clarification from the registered individual as to the discrepancies and anomalies noted.
First, where FORM GSTR-1 is filed and FORM GSTR-3B is not filed in respect of either the tax period of August or September 2020.
Second, The difference in the amount of tax, as indicated in FORM GSTR-1 and FORM GSTR-3B is more than Rs. 1 lakh.
The GST officer shall carry out physical verification of the place of business and if possible, Of the additional place of business specified in the GST registration FORM REG-01 of the registrant concerned. While doing the physical verification, the officer would also validate, among other aspects, namely in the circumstance that the applicant plans to carry out manufacturing operations, if capital goods have been installed, if required for the said manufacturing operation; electricity connection; bills paid during the relevant period; the size of the premises, if it is commensurate with the activity to be carried out; If the premises are self-owned or rented and the paperwork related to the ownership/registered lease of the said land; in case of doubt, the proposal can also be submitted by the owner/owner of the property in the case of rented/leased premises; number employees already working and details of their recruitment Aadhaar and PAN of the applicant and its owner, partners, Karta, directors, as the case may be; And the authoritative signatories; and the Bank's letter for KYC up to date. Furthermore, the CBDT specified that in addition to the physical verification, the responsible officer would carry out the preliminary financial verification of the registrants by obtaining the various records and carrying out its investigation.
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