A special all India has been launched by all Central and State Tax administrations during the period 16th May 2023 to 15th July 2023 to detect suspicious/fake GSTNs and to conduct requisite verification and further remedial action to weed out these fake billers from the GST eco-system and to safeguard Government revenue.
As part of this Drive, GST officers may visit your business premises during this drive.
Below are the 5 basic steps you need to take to ensure that no fine or penalty is levied on you during that drive.
1. Sign Board with GST Number and Display of Registration Certificate
As discussed earlier, the presence of a sign board displaying the GST number and the visible display of the GST registration certificate are fundamental requirements. These measures contribute to transparency, identifying registered businesses and establishing trust among stakeholders.
2. Display of Registration Certificate
Another important aspect checked by GST officers during visits is the display of the GST registration certificate.
3. Sale & Purchase Register
During a premises visit, GST officers may inspect the sale and purchase registers maintained by the business. These registers serve as a record of all transactions, including sales and purchases, and are vital for accurate tax compliance. The officers will verify whether the registers are properly maintained, contain all relevant details, and align with the information reported in the GST returns.
To ensure compliance, businesses must diligently maintain these registers, recording each transaction accurately with pertinent details such as invoice numbers, customer/supplier details, taxable amounts, and applicable tax rates.
4. Returns Filed
The GST regime mandates regular filing of returns, depending on the category of the taxpayer. During a premises visit, GST officers may verify the returns filed by the business. They will assess whether the returns have been filed within the prescribed deadlines, if correct tax calculations have been made, and if any discrepancies exist.
Businesses should ensure timely and accurate filing of GST returns, taking care to reconcile the information provided in the returns with the corresponding sales and purchase registers.
5. Registration of Additional Place of Business
In cases where businesses operate from multiple locations, GST officers may scrutinize the registration of additional places of business. It is essential for businesses to register all additional places of business as per GST regulations. Failure to do so may result in non-compliance and penalties.
Businesses with multiple locations should ensure that all branches or additional places of business are correctly registered, displaying the corresponding GST numbers and adhering to the necessary compliance requirements.
GST officers’ visits to business premises extend beyond the conventional checks on sign boards and registration certificates. The inspection also encompasses the sale and purchase registers, returns filed, and registration of additional places of business. Complying with these requirements is crucial for businesses to maintain transparency, adhere to tax regulations, and foster trust among stakeholders.
To ensure compliance during GST officer visits, businesses should maintain accurate and up-to-date sale and purchase registers, file GST returns within the specified timelines, and register all additional places of business as required.
The author is a GST, Accounting and Income Tax Practitioner and can be contacted at 9024915488.
the returns filed can easily be verified from the site itself. I think this drive is mainly for those vendors whom the gst intelligence department has flagged as non compliant or suspicious.
What are the docs to be maintained who are exempted From gst as their annual transaction is less than 20lakhs