After two-day deliberations, the law committee of the GST Council which contains central and state officers who advise its ministerial members has beneficial tightening the registration course of to weed out these issuing faux invoices, as per sources.
Here are the proposals that the committee made:
1. The committee has urged introducing an Aadhaar-like registration course of for brand spanking new candidates below the GST regime which implies that a brand new registration may be accomplished on-line with dwell picture and use of biometrics after doc verification. This facility may be offered at banks, submit places of work, and GST seva kendras (GSKs). The GSKs would operate equally because the passport seva kendras and supply new registration services with the necessary checks on faux registration.
2. Entities searching for GST registration can be profiled on the premise of their credentials and categorised into trustworthy and others utilizing earnings tax returns. Trustworthy entrepreneurs are those that have a reputable earnings tax fee historical past and have their id authenticated by Aadhaar and haven’t any historical past of having their GST registration cancelled and these entrepreneurs will get GST registration inside per week. The others shall be given the registration inside two months of bodily verification of enterprise premises.
Read More | GST registration may be linked to biometrics
3. Other proposals embrace cancelling registration of a enterprise which has not filed for GST returns for six months, figuring out companies that pose a threat of income loss to the exchequer and restriction on utilizing tax credit from the acquisition of uncooked supplies to fulfill the ultimate tax legal responsibility.
GST authorities have been on a nationwide compliance enforcement drive this month, which led to the busting of an bill racket and the arrest of 48 folks and three chartered accountants. As many as 648 instances have been registered to date this month. The new proposals may end in additional tightening of the GST regime which may assist in flagging discrepancies because the system for submitting GST returns will change into extra automated with the use of e-invoices and auto-filled tax returns.
(With company inputs)