In-person verification now must for GST registration

The Finance Ministry has notified new norms for GST registration to help check the menace of fake invoices.

According to the new norms, if the applicant opts for Aadhaar-based authentication, the application will be followed by biometricbased Aadhaar authentication and taking photograph. In case the applicant does not opt for this, the process involves taking biometric information, photograph and verification of various KYC (Know Your Customer) documents. Authentication will be done at one of the facilitation centres notified by the Commissioner. This amendment will come into effect after facilitation centres are set up on the lines of passport Seva Kendras or Aadhaar Seva Kendras. The new norms have been passed based on the basis of recommendations of the GST Council’s law committee.

The new timeline for grant of registration for Aadhaar authenticated applicant is now seven days. To counter cases of fake invoices in instances where a person has successfully undergone Aadhaar authentication, physical verification may also be carried out with the approval of an officer, authorised by the Commissioner.

The timeline for grant of registration in such cases would be 30 days.

Under the new arrangement, cancellations would be based on data analytics and mismatches.

A registration now is also liable for cancellation when the input tax credit (ITC) is availed of in violation of provisions of the CGST Act or the details of outward supplies in FORM GSTR-1 are in excess of the outward supplies declared in FORM GSTR-3B, for one or more tax periods.

Such cases lead to ITC being passed or availed of without payment of tax and would, therefore, be liable for cancellation. While the cancellation proceedings are on, these taxpayers would remain suspended.