CBIC issues guidelines for processing of applications for registration under GST

 This Tax Alert summarizes the recent Instruction issued by Central Board of Indirect Taxes and Customs (CBIC) prescribing guidelines for processing of applications for registration under Goods and Services Tax (GST).

 It was observed that fake registrations under GST were obtained in certain cases to defraud the Government exchequer. Vide Instruction No. 01/2023–GST, CBIC had issued guidelines for field verifications of the place of business in the form of a Special All-India Drive against fake registrations.   

In view of the above, CBIC has now issued guidelines to strengthen the process of scrutiny and verification of applications for registration. The procedure inter alia includes:

• Close scrutiny of details of the places of business and the corresponding documents uploaded to verify completeness and correctness of such address.
• Special attention to be provided to the cases where “High” risk rating has been assigned to an application by Directorate General of Analytics and Risk Management based on data analytics and risk parameters.
• Where the applicant has either failed to undergo authentication of Aadhaar number or has not opted for the same, the proper officer shall initiate the process for physical verification of the place of business.
• The proper officer must ensure that the entire process relating to registration is completed within the prescribed timeline and no application is approved on deemed basis for want of timely action on the part of tax officers.
• In case registration is granted in specified cases without physical verification of the place of business, the jurisdictional Commissionerate shall conduct such verification of the place within 15 days of registration.

Comments

• CBIC has provided a clear and comprehensive framework for verification of applications for GST registration.

• Persons seeking new registration under GST may need to ensure that all the parameters laid down by CBIC in terms of proper documentation and other related compliance, particularly, relating to the place of business, are fulfilled.