The Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services in India. The GST Department has been striving hard to ensure that only genuine taxpayers are registered under the GST regime. However, there have been instances where fake GST registrations have been made, causing huge revenue losses to the government.
To counter this issue, the GST Department has announced a special all-India drive against fake GST registrations from tomorrow. The drive is expected to be conducted in all major cities across the country, including Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune, and Ahmedabad.
The objective of the drive is to identify and eliminate fake GST registrations, which are a significant threat to the GST system. The department has issued instructions to all field formations to carry out a comprehensive verification of all GST registrations and ensure that only genuine taxpayers are registered.
During the drive, the GST Department officials will carry out physical verification of business premises, cross-verification of invoices and bank accounts, and scrutinize the registration documents of all registered entities. The department has also warned that strict action will be taken against those who are found guilty of indulging in fake GST registrations.
The GST Department has urged taxpayers to cooperate with the officials during the drive and provide all necessary documents and information to verify their GST registration. The department has assured that the drive will not cause any inconvenience to genuine taxpayers and is only aimed at weeding out fake registrations.
The all-India drive against fake GST registrations is a welcome step by the GST Department, and it is expected to help in curbing the menace of fake registrations. The government is committed to creating a transparent and corruption-free tax regime, and such initiatives are crucial in achieving this goal.
Although this drive is specially for bogus and fake firms, however, the genuine registered persons may face some hardship during this drive. To overcome the same here are some checklist to avoid unnecessary harassments GST officials:
- According to Rule 18 of GST laws, it is mandatory for every registered person to display their GST registration. Failure to comply with this may result in a penalty of Rs. 50,000 under Section 125. Note that there is no specific format prescribed for displaying the GST number.
- If you have multiple GST registrations at the same address, it is recommended to clearly demarcate the area for each registration.
- It has been observed that some registered persons conduct business from places other than their principal place of business without registering these places. It is advised to register all such places of business as “Additional Place of Business.”
- If your Aadhaar has not been authenticated, it is recommended to do so immediately from the GST portal.
- Conduct a stocktaking and reconcile your stock as per the books of accounts and physical verification. Take note of any differences and reconcile them.
In conclusion, the GST Department’s special all-India drive against fake GST registrations is a much-needed step to ensure that only genuine taxpayers are registered under the GST regime. The department’s efforts are commendable, and taxpayers should extend their full support to the officials during the drive. This drive is expected to make the GST system more robust, transparent, and trustworthy.