After two-day deliberations, the legislation committee of the GST Council which contains central and state officers who advise its ministerial members has advisable tightening the registration course of to weed out these issuing pretend invoices, as per sources.
Here are the proposals that the committee made:
1. The committee has recommended introducing an Aadhaar-like registration course of for brand spanking new candidates beneath the GST regime which signifies that a brand new registration will be performed on-line with dwell photograph and use of biometrics after doc verification. This facility will be supplied at banks, submit places of work, and GST seva kendras (GSKs). The GSKs would perform equally because the passport seva kendras and supply new registration amenities with the obligatory checks on pretend registration.
2. Entities looking for GST registration can be profiled on the premise of their credentials and labeled into reliable and others utilizing earnings tax returns. Trustworthy entrepreneurs are those that have a reputable earnings tax cost historical past and have their identification authenticated by Aadhaar and don’t have any historical past of getting their GST registration cancelled and these entrepreneurs will get GST registration inside per week. The others will probably be given the registration inside two months of bodily verification of enterprise premises.
Read More | GST registration could also be linked to biometrics
3. Other proposals embrace cancelling registration of a enterprise which has not filed for GST returns for six months, figuring out companies that pose a danger of income loss to the exchequer and restriction on utilizing tax credit from the acquisition of uncooked supplies to fulfill the ultimate tax legal responsibility.
GST authorities have been on a nationwide compliance enforcement drive this month, which led to the busting of an bill racket and the arrest of 48 folks and three chartered accountants. As many as 648 circumstances have been registered to this point this month. The new proposals might lead to additional tightening of the GST regime which might assist in flagging discrepancies because the system for submitting GST returns will grow to be extra automated with the usage of e-invoices and auto-filled tax returns.
(With company inputs)