Introduction: Article explains latest development in GST registration with the availability of geocoding functionality for the principal place of business on the Common Portal. This article explains the purpose of geocoding, its benefits, and how it ensures accurate address details in GSTN records. Furthermore, learn how this functionality facilitates the registration process and improves address verification.
The functionality for geocoding the principal place of business address is now available on real time basis for all States and Union territories in India. Geotagging functionality was initially rolled out in phases, and was only available to taxpayers registered in Delhi and Haryana which has been extended pan India now. This feature, which converts an address or description of a location into geographic coordinates, has been introduced to ensure the accuracy of address details in GSTN records and streamline the address location and proper verification process. It is understood that GSTN themselves has successfully geocoded more than 1.8 crore addresses of principal places of business of existing registrations.
2. Furthermore, one may be aware that all registrations and core amendments with new addresses post-March 2022 are geocoded at the time of registration itself, ensuring the accuracy and standardization of address data from the outset. In a way forward, CBIC is looking to further strengthen the process of Goods and Services Tax registration by using geotagging for verification in fullest extent. In the past it was found that an office place was created just for verification and it was not there subsequently. To prevent this, the geotagging location of the office of an entity will be made mandatory.
3. The purpose of this feature is to ensure the accuracy of address details in GSTN records and streamline the address location and verification process. This is important because the accuracy of the address details is crucial in determining the applicable GST rates, place of supply rules, and other compliance requirements. By allowing taxpayers to geocode their principal place of business address, the GSTN is helping to make the address verification process more efficient and accurate.
4. In order to facilitate the new registrants / taxpayers, the user interface in the Registration Application GST REG-01 with respect to the address fields has already been enhanced as follows:
- The module has been incorporated with a map tile with a drag and drop facility that will assist users to pinhead to the exact location of their address.
- Once the location is selected on the map, the details would automatically populate in the address input fields as the application provides. The user needs to review the details and make the edits as required.
- Also, the authorities have ensured that the address fields have been inter-linked to auto-fill other address entry fields as per the details entered by the user. For instance, once the users enter the PIN code, the system will auto-detect and populate the corresponding State and Districts.
- Another essential feature added by the GST authorities is that users could manually fill their address with the help of suggestive address input appearing in the dropdowns. The user can select the appropriate and the relevant address field. This would reduce the errors in the address texts and also ease the feeding of the appropriate address input fields in the GST portal by the user.
- Depending upon the address entries provided by a user, the longitude/ latitude of the address would get auto-generated and will get populated, which is non-editable once submitted.
5. So, how taxpayers can access and use this functionality:
5.1 Accessing the Functionality: One can find this functionality under the Services/Registration tab in the common portal.
5.2 Using the Functionality: The system-generated geocoded address will be displayed, and you can either accept it or update it as per your requirements. In cases where the system-generated geocoded address is unavailable, a blank will be displayed, and you can directly update the geocoded address.
5.3 Viewing the Geocoded Address: The geocoded address details will be saved separately under the “Place of Business” tab on the portal. They can be viewed under My profile>>Place of Business tab under the heading “Principal Geocoded” post login. Please note that this will not change your existing addresses.
5.4 One-time Activity: The geocoding link will not be visible on the portal once the geocoding details are submitted by you. This is a one-time activity, and once submitted, revision in the address is not allowed. The functionality will not be visible to the taxpayers who have already geocoded their address through new registration or core amendment. The address appearing on the registration certificate can be changed only through the core amendment process. This geocoding functionality would not impact the previously saved address record.
5.5 Availability: This functionality is available for
Normal registration
Composition registrants
SEZ units,
SEZ developers,
ISD, and
Casual taxpayers
who are active, cancelled, and/or suspended.
6. But, on the flip-side some practical concerns have been raised by few service sector companies, on this aspect especially with co-working spaces, as they do not typically fit in the brick-and-mortar rules as prescribed for GST registration. The service industry generally operates out of common work areas, not all business entities have a workplace of their own, so they work from such place under as obligated GST law which stipulates that one should have to have a definite place of business as it’s only then their records & accounts are kept there, for the tax authorities who want to audit, can look at the accounts. Therefore, there needs to be a brick-and-mortar location. There is a genuine difficulty in agreeing what they want specially in services sector and requires examination for exclusions.
Before bidding adieu……
7. Geocoding is the latest trend/tool used by a variety of industries, e-commerce, transport, gaming, marketing and more. Geocode applications transform a description of a location in text into a pair of coordinates, —to a location on the earth generally in latitude and longitude. They can provide location intelligence, risk assessment and location analysis, to route planning, address verification, data cleaning, and enhancing local search in GIS-based applications. Using geo-tagging will definitely help in location accuracy, security and more efficient optimisation of digital data.
8. The introduction of the geocoding functionality should definitely be seen as a welcome development for taxpayers as well. However, in developing country like India, which is more rural oriented and with limited technological infrastructure, geocoding may not be as widely available or accurate due to a lack of data or resources. Still, efforts are being made to improve geocoding capabilities in these areas through various digital initiatives. Geocoding is already implemented by the Corporate Laws in India, and sooner or later we may see all the Government organisations sharing seamless data. Digitalisation in tax technologies like geo-tagging will ensure accuracy and transparency in long run.
9. Further, to apprehend the fraudsters from getting fake registrations to avail pecuniary benefits, CBIC is also in the process of using biometric authentication for the existing registration, which it found suspicious or risky apart from the second layer of OPT validation with the registered mobile number linked with Aadhar and PAN for new registrations so that the Tax officers can be absolutely certain that this is the person whose Aadhaar card has been used.
10. The objective is to ensure that for those who continue to do nefarious activities the authorities will come down on them with a very heavy hand, while at the same time, the Government also wants a larger but clean taxpayer base so that honest taxpayer’s interest is protected and are given utmost respect.
Conclusion: Geocoding functionality on the Common Portal revolutionizes the address verification process for GST registration in India. It ensures accuracy, streamlines compliance requirements, and simplifies the identification of applicable GST rates and place of supply rules. The article highlights the user interface enhancements and availability of the functionality for various types of taxpayers, emphasizing the efforts to create a clean and transparent taxpayer base. While challenges exist, such as limited technological infrastructure and data availability in rural areas, the implementation of geocoding paves the way for accurate and transparent tax technologies in the long run.
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