GST Council likely to make Physical Verification compulsory for High-Risk Category

47th gst council

GST Council likely to make Physical Verification compulsory for High-Risk Category: For checking the bogus registration, the GST council would seem to diminish the 30 days duration from 45 days at present, for the submission of PAN-linked bank account information of the individual asking for the registration with the tax council. The meeting of the council dated 11th, July would seem to furnish for the physical verification compulsory of the business premises of high-risk petitioners prior to allotting the GST registration.

Additionally, it is anticipated that the GST Rules will be changed to clarify that the individual whose company premises are being physically verified should not be present at the location.

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The GST Council, which is presided over by the Union finance minister, will weigh in on the amendments recommended by the Law Committee, made up of officials from the central government and the states, in an effort to prevent fraudulent registration for the Goods and Services Tax (GST).

A special drive for catching the bogus registration is been performed by the central and state GST officers at present. It seems that nearly 17000 GSTINs were non-existent during the time of the drive. Out of that the suspension of 11,015 GSTIN would have been performed and 4972 would get cancelled and Rs 15000 cr tax evasion would get detected.

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It is good to stringent the process of registration under GST by revising the provisions of Central GST Rules and making Physical Verification compulsory, wherever needed for the case of unscrupulous elements getting fake/ bogus GST registration.

According to the current GST Rules, a registered individual must provide information about a bank account connected to their PAN that is in their name within 45 days of receiving their registration, or as soon as their returns are due, whichever comes first.

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The Law Committee recommended shortening the time frame to 30 days from the date of outward deliveries of goods or services in GSTR-1 or using invoice furnishing capability, whichever occurs first.

In the case of a proprietorship business, the owner’s Permanent Account Number (PAN) must also be connected to their Aadhaar number.

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The Law Committee recommended that in ‘high-risk situations, registration be given 30 days after application, following a physical inspection of the location of the business.

The Committee also believed that the requirement for physical verification of business premises in the applicant’s presence presents a risk of manipulation by dishonest applicants who make temporary arrangements in advance of the officer as well as a risk of unjustified delays in the event of the applicant’s willful absence.

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As a result, reports claim that the Committee suggested to the Council that the need for the applicant’s actual presence at the company premises be eliminated.

At the 50th GST Council meeting on Tuesday, a final decision will be made regarding the Law Committee’s recommendation.

Read Also: GST Council Meeting on 11th July – 5 Top agenda of the GST Meet
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