Centre, States Aiming to Tighten GST Registration Process

Centre, States Aiming to Tighten GST Registration Process

The Centre and states are hoping to additionally tighten the GST registration process and legal measures to manage the rising instances of fake invoicing. The advisory group, comprising senior central and state tax officers should likewise talk about the GST fake invoice frauds, further tightening tening of the GST registration process, and work out other legal measures including essential law amendment needed in the GST Act to control the threat of fake invoicing, they added.

Likewise, the provisions related to deemed registration under Goods and Services Tax (GST) law might be tightened to prevent the misuse of such provisions by counterfeit vendors and the provisions related to the suspension of registration may likewise be smoothed out to make the system of the strategy of suspension and cancellation of registration more proficient and quicker so that such fraud operators can be prevented in time from continuing to pass on fake credit.

The Directorate General of GST Intelligence (DGGI), the investigation unit under GST, has arrested 30 corrupt people dealing with fake invoices and recognized 1,282 entities, and booked 393 cases up until now. Goods and Services included were waste and piece of metals articles of iron and steel, copper wire, plastic granules, milk items (spread and ghee), electronic merchandise, cowhide, materials synthetic substances, programming, squander paper, concrete, TMT bar, tobacco products, construction services, works contract services, manpower supply services, advertisement, and animation services.

The law panel would likewise think about the effect of the issuances of fake invoices and strict actions/measures needed under the GST law to control these exercises and deliberate on measures that are needed to connect plugholes in the law that are being misused by the deceitful components to dupe the exchequer. Sources said that organizations, whose proprietors or advertisers don’t have a financial track record, such as filing of income tax returns and payment of income tax to the public authority may require nitty-gritty physical and financial verification by tax officers before their organizations can be considered for GST registration.

“The finance ministry is in the process of plugging these gaps in the GST registration process to ensure that only genuine businesses get a GST registration and those, who have intent to defraud the system, are purged out at the registration stage itself, one of the sources said ..

For more information, visit the website of All India ITR


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