The Circular No. 4/2024 issued by the Tamil Nadu Commercial Taxes Department introduces a Standard Operating Procedure (SOP) aimed at efficiently welcoming newly registered taxpayers under the GST regime. This initiative emphasizes the importance of establishing a meaningful relationship with taxpayers while ensuring compliance and preventing the misuse of the GST system.
Detailed Analysis
SOP Overview
1. Transition from RPAD to Welcome Letter: Historically, registration certificates were sent via Registered Post with Acknowledgement Due (RPAD). However, with the adoption of online registration facilities, the communication of hard copies ceased. The SOP now introduces a ‘Welcome letter’ sent by Territorial Joint Commissioners to new registrants.
2. Purpose and Procedure: The ‘Welcome letter’ serves as a gesture of goodwill towards new taxpayers and aids in verifying the existence of businesses. The SOP outlines the responsibilities of Joint Commissioners and Registering authorities, ensuring seamless implementation.
Key Actions
- Joint Commissioners’ Responsibilities: Drafting and sending bilingual ‘Welcome letters’ via RPAD, updating delivery status in the TSP Portal, and initiating follow-up actions for undelivered letters.
- Registering Authorities’ Actions: Issuing Show Cause Notices (SCN) for undelivered letters, conducting physical verifications, and taking appropriate registration actions based on responses received.
Implementation and Monitoring
- Workflow and Reporting: Additional Commissioner (System) provides the necessary infrastructure for implementing the SOP and generating Management Information System (MIS) reports.
- Ensuring Compliance: Joint Commissioners are tasked with implementing the procedure effectively and monitoring Registering authorities’ follow-up actions closely.
Conclusion
The introduction of Circular No. 4/2024 signifies the Tamil Nadu Commercial Taxes Department’s commitment to enhancing taxpayer engagement and compliance under the GST framework. By replacing traditional communication methods with personalized ‘Welcome letters’ and implementing stringent verification processes, the department aims to foster a culture of transparency and accountability.
GOVERNMENT OF TAMIL NADU
COMMERCIAL TAXES DEPARTMENT
OFFICE OF THE COMMISSIONER OF COMMERCIAL TAXES
EZHILAGAM, CHENNAI-600 005
PRESENT: Dr. D.JAGANNATHAN, I.A.S.,
COMMISSIONER OF STATE TAX
Circular No. 4/2024 Dated: 16.05.2024
(PP2/GST-15/29/2024)
Sub: GST – Newly registered taxpayers – Standard Operating Procedure (SOP) to be followed ’Welcome letter’ to be sent by Territorial Joint Commissioners – guidelines issued – regarding.
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Under the erstwhile TNGST Act, 1959, and TNVAT Act, 2006, the registration certificate of newly registered dealers was sent by Registered Post with Acknowledgement Due (RPAD). This communication served as a welcome bondage between the department and dealer. The acknowledgement received from Postal Department was also a proof of existence of business. However, with the introduction of online facility for registration under Total Solution Project (TSP) and TNGST Act, 2017, the communication of hard copy is not in practice and the proof of existence of place of business is available through physical verification only.
2) Further, the importance of eradicating the non-existent taxpayers and bill traders is emphasized in various forums and review meetings. It is felt that, the RPAD services could be effectively used for such verification in the initial stage. In order to welcome the newly registered taxpayer as a goodwill measure and also to prevent the proliferation of bill traders and nipping them in bud, the following Standard Operating Procedure, is prescribed to be followed by the field formations.
Action to be initiated by the Joint Commissioners
i. Once the registration task is approved by the Registering authority, a task will be created in the login of the jurisdictional Territorial Joint Commissioner in the TSP 2.0 Portal. The Joint Commissioners can download the draft ‘Welcome letter’ from the Portal. The bilingual format of ‘Welcome letter’ is enclosed in Annexure.
ii. The Joint Commissioners shall send the signed bilingual ‘Welcome letter’ to all the newly registered taxpayers through Registered Post with Acknowledgement Due (RPAD). The Reference number (RFN) and date of despatch shall be entered in the TSP Portal.
iii. Once the ‘Welcome letter’ is delivered, the date of delivery as per Acknowledgement shall be entered by the Joint Commissioners in the Portal and action is deemed to be completed. If the letter is undelivered, the date of return by post shall be entered by the Joint Commissioners in the Portal and the task shall be forwarded immediately to the Registering authority for further action.
Follow-up action by the Registering authority
i. A task shall be created in the login of the Registering authority in respect of those cases in which the ‘Welcome letter’ was not delivered/returned by post.
ii. Based on the above preliminary verification, the registering authorities shall issue a Show Cause Notice (SCN) to the taxpayer in GSTN backoffice system. The ARN, date and SCN shall be uploaded in the TSP 2.0 Portal. The Registering authority shall conduct immediate physical verification of place of business for existence of taxpayer and upload the physical verification report in FORM GST REG-30.
iii. Based on the reply received from the taxpayer for the SCN issued and physical verification report, the Registering authority may either drop or cancel the registration of taxpayer in the GST Portal.
3) The workflow in the system for above procedure and MIS report including the action taken on the cancellation initiated cases will be provided by Additional Commissioner (System) to all the Joint Commissioners.
4) All Joint Commissioners are instructed to implement the above ‘Welcome letter’ procedure seamlessly to create a meaningful relationship with taxpayer and monitor the follow up action by Registering authorities closely to prevent the non-existent registered taxpayers from misusing the GST system.
Sd/- D. Jagannathan
Commissioner of State Tax
To
All the Joint Commissioners (ST) Territorial Divisions in the State.
Copy to:
(1) All Additional Commissioners in the 0/o CCT, Chennai and LTU
(2) Director/Additional Commissioner, Commercial Taxes Staff Training Institute, Chennai -35.
(3) All the Joint Commissioners (ST) Intelligence.
(4) All the Appellate Joint commissioners in the State.
(5) Joint Commissioner (CS) for hosting in Departmental site.
(6) All Deputy Commissioners (Territorial and Intelligence)
(7) All the Appellate Deputy commissioners in the State.
(8) All Heads of Assessment circles in the State.
(9) Stock file/spare – 2.
/Forwarded by Order/
Deputy Commissioner (P&P)
Annexure
| <<Name »
<<Designation>>. |
Office of the Joint Commissioner,
………… Division… Address…………….. Landline……………… Mobile……………….. Email………………… |
RFN…………………………… Date : ………………….
To,
Tvl …………………………… (Legal Name)
Tvl ………………………. (Trade Name)
GSTIN……………………………..
Full address with pin code……………………………
…………………………………….
…………………………………….
…………………………………….
Dear Taxpayer,
Hearty welcome to the Tamil Nadu Commercial Taxes Department !!
I am happy to inform that you are now part of the State GST family consisting of about 7 lakh registered taxpayers. We value your contribution to the State’s growth by way of payment of taxes and are committed to resolve any difficulty in complying with GST Act and Rules, 2017.
As a newly registered taxpayer, a lot of effort goes to understand the requirements of the GST law and hence you are provided with a brief information for guidance in Annexure. For more detailed and elaborate information on GST, please refer to the GST law, rules, notifications, circulars and advisories issued by the Government from time to time, available in https://ctd.tn.ciov.in/home and https://ast.gov.in.
For any GST Portal Application issues, please e-mail to helodesk.ctdOtn.qov.in (or) Call Help Line number 1800-103-6751.
For GST Grievance Redressal, please contact Grievance Redressal Cell located in the Integrated Building for Commercial Taxes and Registration Department at Nandanam, Chennai, over phone at 9444099001, 9444099002 between 10.00 a.m. to 5.45 p.m., on all working days or email to dealergrievances.ctdatn.ciov.in.
In case of any Complaints, please contact Complaint cell in the Office of the Commissioner of Commercial Taxes, over phone at 044-28514250. between 10.00 a.m. to 5.45 pm on all working days or e-mail to ctdpetition.ctd@tn.gov.in.
I also welcome your feedback and suggestions at https://ctd.tn.gov.inifeedback to improve the taxpayer services rendered by the Department.
Wishing you all the best in your business venture.
Yours sincerely,
(Name)
Annexure
| Effective date of registration | ../………../…… |
| First return to be filed on | ../………../…… |
| Registration Type | Regular/Composition/Casual Taxable Person/ Non-Resident Taxable Person/ Input Service Distributor/Tax Deductor at Source/Tax Collector at Source |
| Return Type | GSTR-3B / GSTR-4 / GSTR-5 / GSTR-6 / GSTR-7 / GSTR-8 |
| Date of filing of monthly returns | GSTR-1: on or before the 11th of the succeeding tax period in case of monthly filing. If it is quarterly, it should be done before the 13th of the succeeding month following the quarter end. This return shall also include details of invoice, debit notes, credit notes and revised invoices issued during the tax period. |
| GSTR-3B: For regular monthly return filers, the due date for filing of Form GSTR-3B is 20th day of the succeeding month following the month (tax period) for which the return pertains. For quarterly return filers, the due date for filing of Form GSTR-3B, is 22nd day of the month following the quarter for which the return pertains. Filing of Form GSTR-3B is mandatory for all Regular and Casual taxpayers, even if there is no business in that particular tax period. | |
| GSTR-5: To be filed by non-resident foreign taxpayers engaged in taxable activities in India on or before 20th of the succeeding month. | |
| GSTR-6: To be filed by Input Service Distributor on or before 13th of the succeeding month. | |
| GSTR-7: To be filed by Tax Deducted at Source (TDS) Deductor on or before 10th of the succeeding month. | |
| GSTR-8: To be filed by Tax Collected at Source (TCS) deducting E-Commerce Operator on or before 10th of the succeeding month. | |
| Date of filing of annual return | GSTR-4: Annual Return to be filed by the Composition Tax Payers on or before the 30th day of the month succeeding the financial year. |
| GSTR-9: Annual Return to be filed by the Regular Tax Payers on or before the 31st day of the December of the succeeding the financial year. | |
| GSTR 9B: To be filed by the e-commerce operators who have filed GSTR 8 during the financial year on or before the 31st day of the December of the succeeding the financial year. |
|
| GSTR-9C: To be filed by Tax Payers whose aggregate turnover during a financial year exceeds Rs. 5 Crores along with audited annual accounts and reconciliation statement on or before the 31st day of the December of the succeeding the financial year. |
