Is In-person Verification Mandatory For GST Registration in India - PowerPoint PPT Presentation

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Is In-person Verification Mandatory For GST Registration in India

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The in-person verification has become compulsory from 21 August 2020 before registration is granted to the new applicant. The Finance Ministry has notified new norms for GST registration to check the menace of GST fake invoices fraud. – PowerPoint PPT presentation

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Title: Is In-person Verification Mandatory For GST Registration in India


1
Is In-person Verification Mandatory For GST
Registration in India
The in-person verification has become compulsory
from 21 August 2020 before registration is
granted to the new applicant. The Finance
Ministry has notified new norms for GST
registration to check the menace of GST fake
invoices fraud. After several rounds of
discussion at the GST Law Committee, it's
approved by GST Implementation Committee (GIC)
and deliberated among the 10 States' members and
the center's representatives, which helped tackle
the menace of fake invoices. According to the
new norm, "Now there should be in-person
verification compulsory to registration granted
to the new applicant. If the applicant goes for
Aadhaar authentication, he/she will undergo
biometric-based Aadhaar authentication at any of
the facilitation centers notified by the
Commissioner''. Objective behind introducing new
norms for GST registration The prime objective of
the Indian Government behind inserting this
provision is to reduce the fraudulent activities
of ITC and cut the frauds related to GST. Fake
invoices have been a big problem for GST
authorities and a nationwide drive
2
  • against fake' GST invoices' has led to the arrest
    of more than 160 fraudsters, including 5 CAs and
    more than 1700 cases being filed against 5700
    GSTIN entities over the past few months.
  • Additionally, fake GST invoices are used to evade
    GST and income tax and divert funds from
    companies. These invoices are also used for
    showing non-existent transactions to jack up
    figures in books to get fast loans from various
    banks and financial institutions. Finally, fake
    invoices are used to wrongfully claimed GST.
  • The PWC India partner national leader said, "A
    taxpayer registering under GST can go for
    Aadhaar authentication, in which case
    registration is deemed to be granted within 3
    days without any physical presence of the
    premise. But, in other cases, the time period
    could be up to 3 weeks, and authorities can
    undertake physical verification of the place of
    the business with a complete review of documents.
  • Also, one of the ARMG Associates senior
    partners has supported Aadhaar authentication
    for GST registration in India. He said that such
    rigorous verification procedures prior to GST
    registration would surely help address the issue
    of GST and tax evasion.
  • What is GST registration?
  • GST registration is a process by which taxpayers
    get registered under GST Amendment Act 2016. The
    GST identification number or GSTIN is provided
    once the registration process has been done.
    This is a 15 digit GST identification number
    that is offered by the central Government, and it
    helps to find out whether a business is liable
    to pay GST or not.
  • Who should register for GST?
  • Every business entity that is supplying goods and
    turnover is more than INR 40 Lakh in a financial
    year has to register with GST. But, the threshold
    limit is INR 10 lakh if the person has a
    business in the northeastern states such as
    Himachal Pradesh, Uttarakhand and Jammu
    Kashmir. The turnover limit is INR 20 lakh and
    INR 10 lakh for the service providers in the case
    of special category states. Some businesses for
    which online GST registration in India is
    necessary regardless of their turnover are
    mentioned below
  • Input service distributor (ISD) and the casual
    taxable person
  • TDS and TCS deductor

3
  • Supplier of goods through an online portal
  • Online data access or retrieval service provider
  • Interstate supplier of goods and services
  • Who is eligible for GST registration?
  • Individuals who still have not filed for GST
  • The non-residential taxable individuals are bound
    for the GST registration
  • Businesses whose turnover is more than INR 40
    Lakh yearly
  • Businesses that are associated with the online
    business categories
  • Individuals who are supplying online information
    from an outside place to any place within the
    country.
  • There are mainly four types of GST returns. They
    are- 1) Yearly GST Returns, 2) Monthly GST
    Returns, 3) GST filing related without output or
    supply and 4) GST Filing related with input or
    purchase. Remember, GST Monthly Filing will be
    compulsory for a private limited company after
    PVT LTD company registration.
  • What is the process of GST registration?
  • Step 1 Visit GST Portal
  • Step 2 Generate a Taxpayer Registration Number
    (TRN) by Completing OTP (One Time Password)
    Validation.
  • Step 3 OTP Verification and TRN Generation Step
    4 TRN Generated
  • Step 5 Now, log in with your TRN Step 6 Submit
    business information
  • Step 7 Submit promoter information Step 8
    Submit signatory information
  • Step 9 Now, fill in details of the principle of
    business Step 10 Details of goods and services
  • Step 11 Details of your bank account Step 12
    Verification of your application

4
  • Documents required for GST registration
  • Some of the key documents that you will need for
    your business GST registration are PAN Number,
    proof of your company registration or
    incorporation certificate,
  • copy of your Aadhaar card, bank account statement
    or canceled cheque, digital signature, identify
    and address proof of directors and promoters with
    a photograph.
  • GST Registration Through Aadhaar Card
  • You can secure your GST registration with the
    help of your aadhaar card. The process is fast
    and simple. The complete process for GST
    registration with an aadhaar card is mentioned
    below
  • You will be provided with the choose aadhaar
    authorization option when you apply for GST
    registration.
  • Just select "YES" You will get the authorization
    link on your registered email ID and registered
    mobile number.
  • Now click on this link
  • Enter your aadhaar number and select "Validate".
  • You will get an OTP on your mobile number once
    the details have been matched.
  • Now enter the received OTP to complete the
    registration process. You will get the GST
    registration within 3 to 5 working days.
  • Is there any penalty for not registering under
    GST?
  • Yes! There is a penalty. So, all businesses have
    to register under GST otherwise will have to pay
    a penalty of 10 of the taxable amount up to a
    maximum of INR 10000.
  • If you are confused by the complicated laws of
    GST or have any queries regarding it, take
    ExpertBells GST consultation services to get your
    issue solved by professional GST consultant.
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