The CBIC has asked field offices to carry out physical verification of premises of businesses which have been granted deemed GST registration between August 21 and November 16 to ascertain that they have genuine business or intend to carry out so.
According to a report published in Economic Times, the Central Board of Indirect Taxes and Customs (CBIC) has also asked taxmen not to grant GST registration on deemed basis in cases where the applicant has not opted for Aadhaar authentication or the authentication has failed.
“These registrations granted on deemed basis require verifications to ascertain that they have genuine business or intends to carry out so,” the CBIC said while issuing Standard Operating Procedure (SOP) for carrying out physical verification of persons who have been granted deemed registration.
CBIC instructions
According to news agency Press Trust of India (PTI), the CBIC, in its instruction to field offices, said that data suggests that during the period from August 21, 2020 to November 16, 2020 deemed registrations have been granted in many cases where Aadhaar authentication has not been opted for or has failed.
“These registrations granted on deemed basis require verifications to ascertain that they have genuine business or intends to carry out so,” the CBIC said while issuing Standard Operating Procedure (SOP) for carrying out physical verification of persons who have been granted deemed registration.
“In addition to the physical verification conducted, the proper officer, in the interest of revenue, would carry out the preliminary financial verification of the registrants by seeking…documents and carrying out its scrutiny,” the CBIC said.
The documents include ITRs of the company/LLP from the date of incorporation or for last three financial years, whichever is less. ITRs of proprietor, partners, among others, may be taken in other cases.
“Field formations are advised that in cases where the applicant has not opted for Aadhaar authentication or where such authentication has failed, there should not be any case where registration is granted on deemed approval basis,” the CBIC added.
Author: Neha Keshri
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