Biometric Authentication Introduced at 46 GST Service Centres to Combat Registration Fraud
Indore: In a significant move to tackle fraudulent taxpayers, biometric-based Aadhaar authentication will be rolled out at 46 GST service centres across Madhya Pradesh. This initiative aims to streamline the GST registration process and eliminate dishonest applicants who contribute to revenue losses for the government.
These centres will be co-managed by both state and central GST departments, with the aim of becoming operational by the last week of November. “To address the issue of fraudulent registrations and to filter them out at the initial stages, sewa kendras are being set up in the state. Biometric authentication will involve capturing the applicant’s photograph and thoroughly verifying all original documents,” explained SGST additional commissioner Rajani Singh.
The common practice for establishing fake firms often includes forging invoices and submitting bogus documents of individuals not associated with the business. This new system at the service centres is designed to detect such cases early on, Singh added.
Experts highlight that unscrupulous taxpayers often manipulate the online GST registration system for fraudulent transactions, making the biometric Aadhaar verification a crucial tool in maintaining oversight over dubious registrations.
In Madhya Pradesh, the five GST service centres operated by the CGST will be located in Indore, Ujjain, Bhopal, Jabalpur, and Gwalior, while the remaining centres will be managed by SGST.
In Indore, around 15 applications for new GST registrations are submitted daily. “Our system will categorize applications based on historical data, and if any fraudulent registration associated with the same PAN or any suspicious activities are detected, those cases will be flagged. All such questionable cases will be directed to sewa kendras for Aadhaar authentication and thorough document verification, including rent agreements and electricity bills,” Singh stated.
At the service centres, appointments will be assigned to applicants, ensuring that the biometric authentication process is conducted efficiently.
Cancellation of GST Registration Overturned Due to Inconsistent Statements Regarding Response to Show Cause Notice
GST: The order for the cancellation of the GST registration, characterized by conflicting statements concerning the receipt of the petitioner’s reply to the show cause notice, has been annulled due to a lack of thorough consideration. The matter has been sent back for a fresh review, allowing the petitioner to submit a reply and have an opportunity for a hearing.
Legal Context: The petitioner contested the cancellation of GST registration, arguing that the cancellation order was issued without proper consideration. The order in question included contradictory statements about the receipt of the petitioner’s response to the show cause notice.
Ruling: The court determined that the registration cancellation order reflected a failure to engage with the facts appropriately. The conflicting statements in the order led to its annulment. The petitioner has been instructed to submit a response to the show cause notice within three weeks, and the adjudicating authority must reassess the situation and issue a new order after providing a hearing opportunity to the petitioner.
Case Reference:Surendra Bahadur Singh v. State of U.P. and Others, Writ Tax No.172 of 2023, decided on August 23, 2023.
Court Proceedings:
The matter was presented to the court, where the petitioner was represented by Sri Vishwjit, accompanied by the learned Standing Counsel for the State.
A writ petition was filed under Article 226 of the Constitution, challenging the original cancellation order issued on February 16, 2023, by the Assistant Commissioner, Sector-3, State Tax, Etawah.
The petitioner’s counsel emphasized that the cancellation order lacked due diligence, evident from the conflicting statements. The relevant excerpt from the order states:
The counsel highlighted the inconsistency, as the order first acknowledges a reply was filed but later claims none was submitted. He cited a precedent set by a Division Bench of this Court regarding the necessity of thorough consideration in such decisions.
The court emphasized that administrative or quasi-judicial bodies must provide reasons for their decisions, as these are crucial for judicial and administrative integrity. The order found no justification for the severe action of cancellation.
In conclusion, the court quashed the cancellation order dated February 16, 2023, and mandated that the petitioner file a response to the show cause notice within three weeks. The adjudicating authority is directed to hold a fresh hearing and make a new determination.
The petition was thus granted, with the outlined instructions in place.
The relevance of PAN in Income Tax exists as an important document but there is a GST number called GSTIN. It is issued to the people who are collecting and depositing GST.
The cancellation can either be initiated by the department on their own motion or the registered person can apply for cancellation of their registration. In case of the death of a registered person, the legal heirs can apply for cancellation. There are circumstances in which a taxpayer may not need GSTIN. In such a situation, taxpayers can apply for the cancellation of the GST registration number.
Surrender and Cancellation of GSTIN
There were two prominent concepts regarding the cancellation of the GSTIN. A person holding a Goods and Service Tax Identification Number or GSTIN to collect and submit GST to the government can either voluntarily surrender it or be cancelled by the GST officer. It only happens if the taxpayer violates any of the provisions or rules of the Act. For voluntary surrender, taxpayers can easily submit surrender applications online along with the necessary details.
Application for Surrender of the GST Registration
The following people can apply to surrender the GST registration obtained in India
All registered persons hold GSTIN under section 22 of the CGST Act.
The legal heir of the registered person in case of the death of such a registered person.
But a registered supplier who was not required to get GSTIN, but still obtained it voluntarily, can apply for the surrender of registration only after the expiry of one year.
What are the Circumstances for Applying for a Surrender of GSTIN?
Section 29 of the CGST Act 2017 lists the circumstances under which surrender or cancellation of GST registration can be initiated.
The following are the circumstances:
The registered person has discontinued the business or has completely shut it down.
The registered person has demerged the existing business, and now he will have to surrender the old GSTIN and apply for fresh registration for the new business.
A change in the structure or constitution of a business leads to the change of PAN. GSTIN is PAN-based, so in the event of a change of PAN, a fresh registration is required, and all registrations will be surrendered.
The GSTIN is required by any person whose total turnover during the year exceeds ₹20 lakhs in the case of services or ₹40 lakhs in the case of goods.
Any other reason that the applicant can successfully prove in the surrender application
After-Effects of the Surrender of GSTIN
After surrendering GST registration, the following happens:
There will be no need to fill out GST returns.
The person will not be able to continue business after the surrender. If he continues to operate his business, this will invite a penalty.
There will be no liability for collecting and depositing GST in the future.
The provisions and rules of GST will not apply to this individual.
Details for Surrender of the GST Registration
The surrender or cancellation of GST registration is filed in the form GST REG 16 within 30 days of the event that requires the surrender of registration.
The following are key details that should be included in the form:
The correspondence address, along with a valid mobile number and email address.
The reasons for which the applicant is applying for the surrender of registration.
Details of the stock in custody.
The detail of input tax availed on the inventory or stock in possession.
The details of capital goods and input tax credits are available on them.
In case of a merger, demerger or amalgamation, details of the new entity.
Details of the recently filled GST return.
Mention the amount of GST liability, if applicable, and provide the payment details.
There should be no pending GSTR-3B, GSTR-1 and GST annual returns.
Procedure for Surrendering GSTIN
The following steps are to be followed for filling out the application for surrender or cancellation of GST registration.
Log in to the portal using your user ID and password.
Select “services” on the dashboard and select “application for cancellation”.
The portal will show three tabs under “application for cancellation”, namely:
Basic details
Cancellation details
Verification
Provide basic details such as your business address, future correspondence address, valid email id and mobile number.
After completing the basic details section, click “save and continue”.
Now it is time to fill in the next tab, “Cancellation details”.
A drop-down list provides different reasons for the cancellation of registration. Choose the applicable option and provide the necessary details as required by the selected option.
Now it is time for the final tab, “Verification”. Under this tab, the applicant must state that all the above-provided information is true and correct. Mention the place and select the authorised signatory.
The application can be verified either by digital signature or EVC option. A digital signature is compulsory for companies and limited liability partnerships (LLPs).
The applicant will receive a confirmation message and an acknowledgement number. The applicant can track the status of the application through that number.
After this step, the GST officer will review the application and will issue an order of cancellation within 30 days of the application. The effective date of cancellation of registration will be mentioned in the order.
Grounds for Rejection of the Application
The GST officer can reject the application for the following reasons:
The application is incomplete or has incorrect information.
The GST liability is not paid in full.
In the event of transfer, sale, merger, demerger or amalgamation, the new entity has not applied for registration.
The GST officer will not reject the application directly. First, the officer will send an intimation to the applicant stating the reason for rejection. The applicant must rectify the application within seven days of the intimation’s receipt.
How to Delete GST Account?
To know how to close a GST account, you will need to follow the process set by the GST department in your country. Generally, this involves submitting a request to cancel your registration, along with any required documentation. It is important to ensure that all GST returns have been filed and taxes have been paid before requesting to cancel your registration. It is also advisable to check with the GST department for any specific instructions or requirements for terminating a GST account.
FAQs
Q: When can the commissioner revoke the GST registration?
Ans:
The commissioner can also revoke the GST registration if the registered person fails to comply with the rules and regulations of the act.
Q: What are the major tabs under “application for cancellation”?
Ans:
When selecting “application for cancellation” under Services on the dashboard. Three tabs appear: Basic information, cancellation information and verification.
Q: What is section 29 of CGST?
Ans:
Section 29 of the Central Goods and Services Tax (CGST) Act, 2017, deals with the powers of the Commissioner of GST to grant or cancel the registration of a taxable person. This section provides that the Commissioner of GST may, on an application made by a taxable person, grant or cancel the registration under the CGST Act.
Q: What is the importance of GST registration?
Ans:
There are several reasons why it is important to register for GST:
Legal Requirement: In many countries, GST registration is mandatory for businesses that exceed a certain annual revenue threshold or engage in specific types of activities. Failure to register for GST can result in penalties and fines.
Tax Compliance: GST registration helps businesses stay compliant with tax laws and regulations, including filing regular GST returns.
Input Tax Credit: GST registration allows businesses to claim input tax credit on the GST paid on their inputs, which can reduce their overall tax liability.
Better Cash Flow: GST registration can help businesses manage their cash flow more effectively, as they can claim input tax credits on a regular basis, rather than waiting for the end of the financial year.
Improved Transparency and Predictability: GST registration helps to create a more transparent and predictable business environment, as it makes it easier for businesses to understand their tax obligations and for the government to track and collect taxes.
Improved Competitiveness: GST registration can also help businesses become more competitive, as it allows them to claim input tax credits and reduce the overall cost of goods and services.
GST (Goods and Services Tax) is a significant indirect tax imposed on the supply of goods and services in India. It has streamlined the taxation system by replacing multiple indirect taxes with a single tax. Business owners and professionals providing taxable goods or services may be required to register for GST. This comprehensive guide outlines the process of GST registration, including necessary documents, fees, and how to check registration status.
Step 1: Determine Eligibility
Before proceeding with the registration process, it’s crucial to determine if you are eligible for GST registration. The following criteria determine the eligibility for GST registration:
1. Turnover limit: If your annual aggregate turnover exceeds the prescribed threshold, you are required to register for GST. The turnover threshold varies for different states.
2. Inter-state supply: If you are involved in the supply of goods or services across state boundaries, GST registration is mandatory, regardless of your turnover.
3. Specific businesses: Certain businesses, such as e-commerce operators, agents, and Input service distributors, are required to register for GST, irrespective of their turnover.
Step 2: Gather Required Documents
To initiate the GST registration process, you need to gather the necessary documents. The following are the commonly required documents for GST registration:
PAN card: Permanent Account Number (PAN) card of the business or the applicant.
Identity and address proof: Identity and address proof of the business owner or the authorized signatory.
Business registration proof: Depending on the type of business, you may need to provide registration documents like the certificate of incorporation, partnership deed, or any other relevant registration proof.
Address proof for place of business: Documents such as electricity bill, rent agreement, or property ownership proof to establish the address of your business.
Bank account details: Scanned copy of the first page of the passbook or a canceled cheque displaying the applicant’s name, bank account number, and branch details.
Step 3: Online Registration Process
The GST registration process is primarily conducted online through the GST portal. Follow these steps to register for GST:
Visit the GST portal: Go to the official GST portal (https://www.gst.gov.in/) and click on the “Services” tab. Select “Registration” and then choose “New Registration.”
Fill the application: Fill in the necessary details such as PAN, mobile number, email address, and state in which you are applying for registration. An OTP (One-Time Password) will be sent to the provided mobile number and email for verification.
Application reference number (ARN): After submitting the application, you will receive an Application Reference Number (ARN) on your registered mobile number and email address. Use this ARN for future reference and tracking of your application.
Verification and documentation: The GST officer will verify the details provided and may request additional documents or information. Make sure to respond promptly with the required documents to avoid any delays.
GSTIN and certificate: Upon successful verification, you will receive a GST Identification Number (GSTIN) and a GST registration certificate. The GSTIN is a unique 15-digit identification number for your business.
Step 4: GST Registration Application Status
After completing the registration process, you may want to check the status of your GST registration. Follow these steps to verify your GST registration status:
Visit the GST portal: Go to the official GST portal and navigate to the “Services” tab.
Select “Track Application Status”: Look for the option to track the application status or a similar option.
Enter ARN or TRN: Enter your Application Reference Number (ARN) or Temporary Reference Number (TRN) received during the registration process.
Click on “Search”: Click the “Search” or “Track” button to retrieve the status of your GST registration application.
Check the status: The portal will display the current status of your application, whether it is pending, approved, or rejected. You can also view any additional comments or requirements from the GST officer.
Step 5: Download GST Certificate
Once your GST registration is approved, you can download the GST certificate from the GST portal. Follow these steps to download your GST certificate:
Visit the GST portal: Go to the GST portal and log in to your account using your credentials.
Access dashboard: Once logged in, access your dashboard or the “Services” tab on the GST portal.
Click on “Downloads”: Look for the “Downloads” section or a similar option on the portal.
Select “Certificates”: In the downloads section, choose the option for “Certificates” or “GST Certificate.”
Download the certificate: Click on the “Download” button next to the GST certificate option. The certificate will be downloaded to your device in PDF format.
Finance minister Nirmala Sitharaman on Wednesday said the request from Parliamentarians to raise the sales threshold for Goods and Services Tax (GST) registration can be looked into by the GST Council; however, she added that most small businesses ideally should be part of the GST chain.
While replying to a discussion on the Central Goods and Services Tax (Second Amendment) Bill, 2023 in Rajya Sabha, Sitharaman also took note of the requests from Parliamentarians for setting up a national appellate authority for advance ruling as provided for in GST law.
The appellate authority for advance ruling is something the trade would love to have, the minister said, adding, “We recognize the concern of the member.”
In response to suggestions from Parliamentarians about inclusion of petrol and diesel in GST, the minister said, “I wish state governments see the point.
Raising GST registration threshold from ₹40 lakh to ₹60 lakh may be a good suggestion, the minister said. “I leave it to the Council to decide but it is also equally true that most small firms should also ideally come on board,” the minister said.
Sitharaman explained that amendments to GST law are now proposed in order to align the GST appellate tribunal in conformity with the tribunals reform of 2021 and a Madras high court decision.
The minister explained that there has been consistent growth in the monthly GST return filing which has now reached 90% compliance as against 71% three years ago.
The Central GST (Second Amendment) Bill, 2023—returned by Rajya Sabha on Wednesday— seeks to expand the pool of candidates for appointment of judicial members to the tribunal.
The amendments propose a minimum age of 50 years for eligibility for appointment as President and Members. The President and Members will have tenure up to a maximum age of 70 years and 67 years respectively.
The Provisional Collection of Taxes Bill, 2023 which was also returned by the Rajya Sabha on Wednesday replaces a law by the same name enacted in 1931. This Bill allows the government to give immediate effect to customs and excise duty changes proposed in the Finance Bills from the next day onwards without having to wait for the Bills’ passage.
The acquirer reference number (ARN) is a unique number that tags a credit card transaction from the acquiring bank to the cardholder’s bank. Banks could use this number to trace a transaction with an acquirer.
How to check GST registration status
First, make your way to the GST official portal
Then, proceed to the ‘services‘ tab. Under this tab, you will find a header by the name of ‘registration’
• Next, click on the ‘registration’ header to get three options: ‘New Registration’, ‘Track Application Status’, and ‘Application for Filing Clarifications’
• Now, click ‘Track Application Status’ and enter your ARN in the given space. Input the captcha code in the next step and click ‘search’
If you enter the right code without any spaces or typos, you will receive your GST registration status on your screen within seconds. However, each terminology represents a different set of information. Read on to the next segment to know what each entails.
What does each GST registration status mean?
At every stage of your registration application, you will get a written status basis of the stage it is. By decoding your status, it will be easy for you to gauge your application’s progress. Here are the terms you will come across when checking your GST registration status:
Provisional status
This means your application has not been filed yet. However, owing to the successful submission of your application, a provisional ID has been released for you.
Pending for verification status
This status means that your application has been successfully filed. However, the same has not been verified yet.
Validation against error status
This status means the PAN details you provided do not match with the details provided by the IT department. On seeing this status, proceed to rectify your application at the earliest.
Migrated status
This status gives you a positive head-up and mentions that your application for migration to GST has been made successfully.
Cancelled status
A cancelled status indicates that your application has failed. This means you will have to reapply by rectifying the problems or are not entitled to GST registration as per GST laws.
Based on your GST registration status, plan the way forward. Since you need to file GST within a prescribed timeline, it is best to initiate the process as soon as you get a heads-up on your status. This will allow you to be on track with GST returns.
