“Understand the guidelines for processing GST registration applications by Proper Officers. Avoid rejection with clear documentation, matching details, and complying with risk assessments. Explore the benefits of Aadhaar authentication and expedite the physical verification process. Stay informed and compliant to ensure a smooth GST registration process.”
A lot of cases have been observed by Government wherein Fake GST Registrations have been obtained for the purpose of transfer of fake ITC which is causing huge damage to Government revenue. Therefore, guidelines have been issued by Government vide Instruction No. 03/2023-GST Dt. 14.06.2023 to Proper Officers on the manner of scrutinizing each and every applications for GST Registration received by them on their ACES-GST Portal.
Those who wish to obtain new GST registration or who wish to amend any information in their existing GST registration, should keep these guidelines in mind to avoid queries or rejections by Proper Officer.
Following guidelines have been issued by Government which shall be followed by all Proper Officers while scrutinizing any application for fresh GST registration:-
1. Details furnished in Form GST REG-01 (GST Registration Application Form) should be in line with the documents uploaded as proof. Eg. Applicant Name filled in application form should match with name in PAN Card and Aadhaar Card, Father’s Name, Date of Birth should be same as mentioned in PAN Card and Aadhaar Card.
2. Proper Officer should ensure that documents uploaded should be legible, complete and relevant.
3. Address of principal and additional place of business mentioned in the application form should be same as mentioned in the relevant document uploaded as proof. Document uploaded as proof of address should be complete and correct. Proper Officer should put efforts to ensure its authenticity. Proper Officer, wherever possible, should verify proof of address from other publicly available sources such as websites of the concerned authorities like land registry, electricity distribution companies, municipalities, and local bodies etc.
4. In addition to above, Directorate General of Analytics and Risk Management (DGARM), based on data analytics and risk parameters, shall give Risk Rating to each application for registration (ARN) in form of High, Medium and Low Risk. This will be available to Proper Officers in the form of Report Series 400 on DDM Portal on regular basis. While scrutinizing application for registration, Proper Officer should check risk rating of that ARN and special attention is to be given where risk rating is “High”.
5. Proper Officer shall check whether any other GSTIN exist on the same PAN and if yes, he shall check status and compliance record of the same. Special attention is to be given if:-
a. Any GSTIN obtained on the same PAN has been cancelled previously;
b. Any GSTIN obtained on the same PAN is suspended;
c. Any application for registration on the same PAN has been rejected previously;
d. Whether Place of Business appears to be risky based on local risk parameters;
e. Whether proof of address of business prima facie seems to be suspicious / doubtful.
6. During scrutiny of application for registration, if Proper Officer found any issue related to above stated points, he can seek further information/clarification by issuing notice to the applicant electronically in Form GST REG-03 within 7 working days, if Aadhaar authentication has been done or within 30 days, if Aadhaar authentication has not been done.
7. Applicant will furnish clarifications/information/documents in Form GST REG-04.
8. If Proper Officer is satisfied with the clarifications provided, he can approve the application for registration or if he is not satisfied, he can reject the application and record the reasons for rejection in writing and issue Form GST REG-05 to the applicant.
9. If applicant has not undergone Aadhaar Authentication process, Proper Officer should initiate physical verification process to verify place of business of applicant. He should ensure that physical verification report along with the other documents, including photographs, is uploaded on the system in Form GST REG-30 sufficiently in advance of the prescribed time limit.
10. Further, even if applicant has undergone Aadhaar Authentication process, if Proper Officer is of the opinion that physical verification of place of business is essential, he may get it done in time bound manner.
Till time, functionality for marking an application of registration for physical verification in Aadhaar authentication cases is made available on the ACES-GST portal, Proper Officer may get it done from jurisdictional officer.
11. While processing the applications for registration, including in those cases where physical verification is to be conducted, it will be ensured by the Proper Officer that the application is either rejected or accepted or relevant query is raised within the prescribed time limit and no application for grant of registration is approved on deemed basis for want of timely action on the part of Proper Officers. Strict view may be taken where any gross negligence is observed on part of the concerned officer(s).
12. The Principal Chief Commissioner/ Chief Commissioner of the CGST Zones may closely supervise the status of processing of the applications of registration, including physical verifications, within their zones. Wherever it is noticed that the application for registration has been granted deemed approval, the reasons for the same may be got examined by the Principal Chief Commissioner/ Chief Commissioner for taking subsequent remedial action, if any, in a time bound manner.
13. If GST Registration has been granted:-
a. On deemed approval basis; or
b. For cases covered under Point No.5 above as well as where Risk Rating assigned by DGARM is “HIGH” and physical verification was not conducted
The Centralized Processing Centre (CPC) officer shall communicate the details of such cases to the concerned jurisdictional Commissionerate immediately after registration and physical verification of the place of business shall be got conducted by the concerned Commissionerate within 15 days of such registration.
14. Wherever registered person is found non-existent or fictitious, Proper Officer should take remedial action(s) without any delay.
Based on above, person seeking GST registration should keep following checkpoints complied before filing application for GST registration:
1. Name of applicant in PAN Card and Aadhaar Card should be same and Mobile Number updated in Aadhaar Card should be active and available, in case of proprietorship.
2. Photograph of applicant should be clear enough.
3. Wherever possible, Applicant should opt for Aadhaar Authentication and should complete it immediately after filing application.
4. Document for address proof of principal place of business and Additional place of business, if any, should be legible, complete and relevant. Scanned PDF copy should be clear and visible enough. It should not contain anything which may create doubt in the mind of proper officer.
5. In case, physical verification is done by proper officer, applicant should ensure that place of business should be ready for inspection and relevant documents viz. Rent agreement or ownership documents, electricity bill, municipal tax receipt etc. should be readily available in original. If the inspection officer wish to take photographs of place of business, he should be assisted in that and place of business should look like a valid and legitimate business place. This will help to avoid possibility of rejection.
6. In case of Rent Agreement, it should be properly executed on sufficient value of stamp paper as per relevant state laws and should be properly notarized. Applicable stamp duty should have been paid. It should be properly signed by all the concerned parties and it should also be signed by two witnesses.
7. In case of already registered persons, they should ensure that all compliances are complied in time so that their Risk Rating should not be compromised at DGARM level.
Disclaimer: Views expressed in this article are strictly personal and for educational purpose only.
Author Bio
Its good information for new enterprenure
helpful and accurate info