In a bid to restrict undue harassment of taxpayers, the Central Board of Oblique Taxes and Customs (CBIC) has issued revised directions for its officers for the method of Items and Providers Tax (GST) registration. This comes amid a sequence of complaints raised by candidates in current days in regards to the want for submission of a number of paperwork and clarifications to GST officers on the time of their registration functions resembling proof of principal office, structure of enterprise, identification particulars of authorised signatory, proprietor and so on.
The CBIC identified that numerous unwarranted paperwork are being sought by elevating presumptive queries. Officers have been directed to not problem notices primarily based on presumptive grounds, minor discrepancies, or for added paperwork that aren’t important for processing functions. The Board has additionally supplied an e-mail id (gst-cbec@gov.in) to boost any issues about difficulties in implementation of those revised directions.
The explanation for revised pointers
The CBIC identified that there are assorted processes being adopted for verification of paperwork for GST registration by the officers at current and clarifications are being sought from taxpayers which are avoidable. “Whereas on one hand, there’s a want to forestall registration of fraudulent companies created for passing on enter tax credit score (ITC) with none underlying provide, then again, there’s a want to make sure that real candidates searching for registration will not be unduly harassed. It’s famous that assorted practices are being adopted by the officers in respect of verification of paperwork and particulars supplied in FORM GST REG-01. It has additionally been noticed that whereas processing the applying, avoidable clarifications are being sought by the officers resulting in delay in getting registration in addition to rejection of functions,” the GST Coverage Wing of CBIC mentioned within the directions dated April 17.
This new set of directions will change the sooner pointers for processing of functions for registrations issued on June 14, 2023.
The CBIC mentioned among the frequent queries raised are that residential deal with of the applicant/managing director/authorised signatory shouldn’t be in the identical metropolis or the state the place the registration has been sought; HSN code of products talked about by the applicant in registration utility is banned or prohibited on the market within the state the place the applicant needs to conduct enterprise; the sort of actions talked about within the registration utility can’t be performed from the actual premises and so on. “Officers dealing with registration functions mustn’t ask any presumptive question which isn’t associated to the paperwork or data submitted by the applicant,” it mentioned.
New set of directions
The CBIC has enlisted paperwork to be sought from candidates whereas processing functions for registrations.
For principal office:
1. In case of owned premises, the applicant has to add anyone doc out of property tax receipt or municipal khata copy or electrical energy invoice of the proprietor. The CBIC has directed its subject officers to not elevate any question searching for unique bodily copy of the paperwork whereas processing the registration utility of the applicant.
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2. For rented premises, the applicant has to add a sound lease/lease settlement together with any one of many paperwork — property tax receipt or municipal khata copy or copy of electrical energy invoice — to determine the possession of the premise by the lessor. The CBIC famous that extra paperwork of the lessor are being sought by the sector formations resembling PAN card, Aadhaar, {photograph}, which shouldn’t be required now.
3. In case the place lease/lease settlement shouldn’t be registered, then settlement together with any one of many paperwork talked about within the above record and a duplicate of the identification proof of the lessor might be adequate.
4. In case the place lease/lease settlement is registered, settlement together with any one of many paperwork talked about within the above record will suffice and no identification proof of the lessor might be sought. In case the electrical energy or water connection is within the identify of the applicant tenant,the doc of the identical together with the lease settlement might be accepted as a sound proof and no extra paperwork pertaining to the lessor might be sought.
5. The place the possession of premises is with partner, relative and so on., a consent letter in plain paper by the involved proprietor of the premises together with a duplicate of the identification proof of the particular person granting consent together with any one of many paperwork (property tax receipt or municipal khata copy or copy of electrical energy invoice) will suffice. Or related paperwork resembling water invoice or any doc prescribed underneath the state or the native legal guidelines which clearly establishes the possession of the premises by the consenter will suffice and no extra paperwork from the applicant might be sought.
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The CBIC additionally relaxed the circumstances for the registration course of with respect to the structure of enterprise. The place the applicant is likely one of the companions, partnership deed for the proof of structure of enterprise is required to be uploaded by the applicant. No extra doc like Udhyam certificates, MSME certificates, store institution certificates, commerce license and so on. might be sought from the applicant.
The place the applicant is society, belief, membership, authorities division, affiliation of individuals or physique of people, native authority, statutory physique and others and so on., registration certificates/proof of structure is required to be uploaded by the applicant.
Timeline for registration
The CBIC mentioned instances the place the functions haven’t been flagged as dangerous on the frequent portal primarily based on knowledge evaluation and threat parameters, and the identical are discovered to be full and with none deficiency, the officers will approve the applying inside 7 working days of submission of utility.
For functions which are flagged as dangerous after Aadhaar authentication, or the applicant doesn’t endure or go for Aadhaar authentication, the registration might be granted inside 30 days submission of utility after bodily verification of the office.
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In instances the place bodily verification must be carried out, the involved officer should be certain that the bodily verification report together with the opposite paperwork, together with images, is uploaded on the system in at the very least 5 days previous to the expiry of the time interval of 30 days from the date of submission of utility.
If any doc aside from the listed paperwork is required to be sought, the officer shall search the identical solely after the approval of the involved deputy/assistant commissioner. Nevertheless, the CBIC warned that no utility for registration needs to be accredited on a deemed foundation just for assembly the requirement of well timed motion on the a part of tax officers..
“The officer shall additionally be certain that no paperwork along with these as talked about above and no clarification/data/paperwork on the premise of presumptive grounds shall be sought from the applicant. Additional, the officer shall additionally be certain that queries will not be raised for minor deficiencies which aren’t related for establishing proof of office or structure of enterprise and so on,” it added.
The CBIC has instructed Chief Commissioners to intently supervise the standing of processing of the functions of registration, together with bodily verifications, nature of queries being raised, deemed registrations and so on. by way of periodic evaluation inside their zones. It additionally mentioned that strict motion could also be taken towards the officer deviating from these directions.