Introduction of New Rules to Sign Up for Goods and Service Tax (GST)

Introduction of New Rules to Sign Up for Goods and Service Tax (GST)

An update of the Goods and Service Tax (GST) registration process and suspension of the registration of organizations recognized as dangerous are among the proposals of a board of authorities connected to the GST Council. The proposals by the law committee of the GST Council, involving central and state authorities who advise its ministerial individuals, intend to fix compliance measures and target restrictions on firms identified as hazardous, without affecting the ease of doing business in general.

The recommendations incorporate the utilization of Aadhaar or Aadhaar-like biometric ID for new registrations, steps to recognize businesses that represent a danger of income misfortune to the exchequer, utilization of income tax returns to verify the credentials of businesspeople looking for GST registration, and limitation on utilizing tax credits from the acquisition of crude materials to meet the last final tax liability.

Not filing Goods and Service Tax returns for six months could cost a business its registration. Right now, there are 600,000 dormant GST-registered firms among the 12 million entities with registration. Entities looking for Goods and Service Tax registration would be profiled based on their credentials and classified into dependable and others. Trustworthy Entrepreneurs are individuals who have a credible income tax history and have their identity confirmed by Aadhaar and have no history of having their GST registration canceled. These entrepreneurs will get GST registration within seven days. The others will be given the registration within two months of physical verification of business premises.

Those that are not trustworthy may also be asked to pay a part of their tax liability in cash instead of adjusting it fully against the tax credit available to them. The proposals set up by the law panel at a gathering held a week ago will be additionally discussed before they are placed before the committee, the authority stated. The move flags a major tightening of the three-year-old indirect tax system utilizing GST’s ability to track the whole supply chain utilizing the system of input tax credits. Discrepancies will get hailed, as the framework for filing GST returns turns out to be more mechanized with the utilization of e-invoices and auto-filled tax returns.

GST authorities have been on a nationwide compliance enforcement drive this month, which led to the busting of an invoice racket and the arrest of 48 people and three chartered accountants. As many as 648 cases have been registered so far this month.

For more information, visit the website of All India ITR


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