Difficulties in new registration without Aadhaar verification, traders in Agra are worried
Cases of bogus firms and faux input decrease (ITC) in Goods and Services Tax (GST) are continuously arising. The exercise to prevent these frauds is additionally gaining momentum. The Finance Ministry has made Aadhaar mandatory in GST registration, but this has made the method more complicated for traders and traders. Also, the delay within the registration process is overshadowing them.
To crackdown on non-existent businessmen and bogus firms in GST, the Commerce Tax Department has started verification of GST registration from Aadhaar. For this, the trader or businessman has got to get their Aadhaar verification wiped out the said registration after registering online, the method takes a few weeks.
Business leader Vinay Kamra said that within the event of Aadhaar not being verified, the commercial tax authorities allow the firm to start trading by doing physical verification of the firm, but it’s taking from 25 days to a month, which allows traders and there’s tons of trouble for businessmen.
CA Saurabh Aggarwal said that the Aadhaar has been given more recognition within the GST law to unravel the matter of non-existent fake traders growing. Now GST registration is out there in seven days only after Aadhaar verification, but cases are being delayed without Aadhaar verification.
Previously this was the method
Earlier, all the traders wont to get auto approval in three days while taking the new GST registration. But now from August 21, 2020, the power of registration auto-approval is being provided only to the businessmen who have done their verification from Aadhaar.
Now it happened
Businessmen taking registration without Aadhaar verification are becoming auto-approval after 21 days. additionally, Rule-25 associated with physical verification of business place has also been amended within the new GST registration, consistent with which physical verification of business place of traders is being done if the choice of Aadhaar verification isn’t selected.
To curb the fraud of passing input decrease with the assistance of faux invoices of GST, the GST Council’s Law Committee has suggested some strict rules after a two-day long churn.
Under these, there are suggestions to feature rules for mandatory documents like Aadhaar and Aadhaar within the new GST registration process and another to spot and tighten the risky taxpayers from the old GST holders. It also suggested enacting a law to issue warrants against fraudsters.
In the last 10 days, the Directorate General of GST Intelligence has been campaigning against the GST fraudsters across the country. Under this, 48 people have also been arrested thus far. which incorporates one woman and three chartered accountants. So far, 648 cases are registered against 2385 firms for these frauds.
According to revenue department sources, the Law Committee has suggested forming some amendments within the registration process, suggesting increased systemic strictures. Alongside this, it’s also recommended to debate these suggestions with the states and other stakeholders. However, the ultimate decision is going to be taken by the GST Council.
The Law Committee said that while its suggestions would help in curbing the GST fraud, on the opposite hand, the convenience of doing business wouldn’t be affected. The method of registration of GST is going to be simplified and refunds also will be available easily. The committee has suggested increasing monitoring within the GST process.
In these places the registration
The committee suggested featuring more places for GST registration. Under this, the matter of providing registration facility through Aadhaar at banks, post offices, and GSI service centers is now included. Like Aadhaar at these places, there’ll be a system of GST registration through live photos supported by biometric information.