Govt tightens GST registration and cancellation rules; here's what you need to know

The government recently came out with stringent rules for GST, where non-compliance would result in the cancellation of a taxpayer’s GST registration. The key objective of the government here is to curtail fraudulent business practices and the wrongful availing of the input tax credit by businesses.


Notification 94/2020 was released on December 22, 2020. This notification has a list of amendments to the Central Goods and Services Tax (CGST) Act and Rules spanning new GST registration, cancellation of registration, payments, returns, e-way bills and more.Notification 94/2020 was released on December 22, 2020. This notification has a list of amendments to the Central Goods and Services Tax (CGST) Act and Rules spanning new GST registration, cancellation of registration, payments, returns, e-way bills and more.


New rules regarding fresh registration

 

Notification 94/2020 has put in place strict conditions, where non-compliance would result in the cancellation of GST registration. Taxpayers applying for a new GST registration will now need to get Aadhaar authentication done, complete with providing both biometrics and a photograph. If Aadhaar authentication is not done at the time of registration, then KYC data along with a photograph and biometric information will need to be provided. The authentication is to be done for one promoter/partner and for the Primary Authorised Signatory, and the facility has already been enabled on the common GST portal.


Along with the aforementioned Aadhaar authentication, the applicant will further require to get the original documents verified, the copies of which were uploaded at the time of registration. This will be required to be done at one of the notified facilitation centres. The government has further made the registration process stringent by giving GST authorities the right to undertake a physical verification of the place of business before granting the GST registration in cases where Aadhaar authentication has not been successfully done, or if the GST authorities deem it fit to be done in certain casesTags


Source:https://www.cnbctv18.com/finance/govt-tightenss-gst-registration-and-cancellation-rules-heres-what-you-need-to-know-8340291.htm

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