NEW DELHI: Cracking down on tax evaders, the CBIC has asked tax officers to be wary whilst processing software for fresh GST registration through those businesses whose previous registration has been cancelled because of non-compliance. The central board of oblique taxes and customs (CBIC) also directed tax officers to analyse the guidelines through an applicant within the fresh registration form regarding main points of proprietor, director/members of managing committee of associations/board of trustees and so forth vis-a-vis any cancelled registration having same main points.
Recently, a lot of registrations had been cancelled through tax officers because of non-compliance.
However, it has come to notice of taxmen that such businesses proceed to operate with none registration and aren't applying for revocation of cancellation of registration however are as a substitute applying for fresh registration.
Instead, a lot of them are applying for fresh registration, with the intention to evade taxes which were due below previous registration.
"It is instructed that the proper officer may exercise due caution while processing the application for registration submitted by taxpayers, where the taxpayer is seeking another registration within the state although he has an existing registration within the said state or his earlier registration has been cancelled," the CBIC said in its conversation to box places of work.
The Goods and Services Tax (GST) law allows an individual to take separate registration on same Permanent Account Number (PAN) in the similar state.
However, a tax officer can reject the applying for registration if the guidelines or documents submitted through the applicant is found to be "deficient" if main points in relation to previous registration are suppressed.
Some of the main points that may be hid within the software for brand new registration are date of commencement of commercial, date on which legal responsibility to sign in arises, reason why to acquire registration and so forth.
Such individuals might also not furnish the main points of previous registrations, if any, got below GST at the same PAN.
"The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled," the CBIC said.
In cases where the registration has been cancelled because of non-compliance, the officer must check whether the trade had filed software for revocation of cancellation of registration.
"It is advised that where the applicant fails to furnish sufficient convincing justification or the proper officer is not satisfied with the clarification, information or documents furnished, then, his application for fresh registration may be considered for rejection," the CBIC said.
About 1.2 crore businesses are registered below GST, which was once rolled out on July 1, 2017.
"Many of the taxpayers are unable to cope with the burden of compliances and the pace of GST evolution, committing bonafide mistakes. A blanket push on tax officers to scrutinise all applications with a coloured lens would lead to presumption of guilt without giving even first opportunity of being heard," AMRG & Associates partner Rajat Mohan said.
Recently, a lot of registrations had been cancelled through tax officers because of non-compliance.
However, it has come to notice of taxmen that such businesses proceed to operate with none registration and aren't applying for revocation of cancellation of registration however are as a substitute applying for fresh registration.
Instead, a lot of them are applying for fresh registration, with the intention to evade taxes which were due below previous registration.
"It is instructed that the proper officer may exercise due caution while processing the application for registration submitted by taxpayers, where the taxpayer is seeking another registration within the state although he has an existing registration within the said state or his earlier registration has been cancelled," the CBIC said in its conversation to box places of work.
The Goods and Services Tax (GST) law allows an individual to take separate registration on same Permanent Account Number (PAN) in the similar state.
However, a tax officer can reject the applying for registration if the guidelines or documents submitted through the applicant is found to be "deficient" if main points in relation to previous registration are suppressed.
Some of the main points that may be hid within the software for brand new registration are date of commencement of commercial, date on which legal responsibility to sign in arises, reason why to acquire registration and so forth.
Such individuals might also not furnish the main points of previous registrations, if any, got below GST at the same PAN.
"The proper officer may compare the information pertaining to earlier registrations with the information contained in the present application, the grounds on which the earlier registration(s) were cancelled and the current status of the statutory violations for which the earlier registration(s) were cancelled," the CBIC said.
In cases where the registration has been cancelled because of non-compliance, the officer must check whether the trade had filed software for revocation of cancellation of registration.
"It is advised that where the applicant fails to furnish sufficient convincing justification or the proper officer is not satisfied with the clarification, information or documents furnished, then, his application for fresh registration may be considered for rejection," the CBIC said.
About 1.2 crore businesses are registered below GST, which was once rolled out on July 1, 2017.
"Many of the taxpayers are unable to cope with the burden of compliances and the pace of GST evolution, committing bonafide mistakes. A blanket push on tax officers to scrutinise all applications with a coloured lens would lead to presumption of guilt without giving even first opportunity of being heard," AMRG & Associates partner Rajat Mohan said.
CBIC: Process fresh GST registration cautiously
![CBIC: Process fresh GST registration cautiously]()
Reviewed by Kailash
on
April 04, 2019
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