Government issues guidelines for officers to carry out GST checks

NEW DELHI: The Central Board of Indirect Taxes and Customs (CBIC) has unveiled standard operating procedures (SOPs) to be followed by tax officials carrying out physical verification of the entities that have been granted a deemed GST registration without Aadhaar authentication. 

This part of the Tax department’s strategy to counter GST fake invoice frauds through search and surveys leading to arrests and filing of cases against fake entities involved in availing and passing on input tax credit (ITC) fraudulently, According to sources the guidelines would effectively curb the fake invoices menace and ITC frauds and ensure proper facilitation of ease of doing business for the genuine applicants/entities without any overreach by tax officials. These measures come after a high level review held in the department of revenue to assess the impact. 

CBIC sources said that an entity having deemed registration where the applicant either has not opted for Aadhaar authentication or where such authentication has failed, has to go for mandatory physical verification of the premises, or in cases where the physical verification is difficult, certain additional documents may be called for verification by the tax officer (upon approval of an officer not below the rank of joint commissioner) before grant of any registration.