GST Council is likely to tighten the registration rules in its meeting on July 11, 2023. One of the key changes being proposed is to make physical verification mandatory in "high risk" cases. This means that businesses that are considered to be at a higher risk of engaging in fraudulent activities will need to have their premises physically inspected by GST officials before they can be granted registration.
The other changes being proposed include
- Reducing the time period for submitting PAN-linked bank account details from 45 days to 30 days.
- Requiring businesses to provide more information about their directors and partners.
- Increasing the penalties for non-compliance.
The aim of these changes is to deter businesses from registering for GST with the intention of evading taxes or engaging in other fraudulent activities. The physical verification requirement is particularly important, as it will allow GST officials to verify that the business actually exists and is operating at the address that it has provided.
The GST Council is also considering other measures to strengthen the GST compliance regime, such as
- Introducing a risk-based monitoring system.
- Making it mandatory for businesses to file returns on a monthly basis.
- Increasing the number of audits conducted by GST officials.
These measures are being proposed in response to the growing problem of fake GST registrations and tax evasion. The GST Council is committed to ensuring that the GST system is fair and transparent, and these changes are a step in the right direction
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