GST Council defines some New rules to GST registration will be linked to biometrics authentication

GST Council defines some New rules to GST registration will be linked to biometrics authentication
New rules to GST registration

The proposals by the law committee of the GST Council, comprising central and state officials who advise its ministerial members, aim to tighten compliance measures and target restrictions on firms identified as risky, without affecting the convenience of doing business generally , said a finance ministry official.

The recommendations include the utilization of Aadhaar or Aadhaar-like biometric authentication for brand spanking new registrations, steps to spot businesses that pose a risk of revenue loss to the exchequer, use of tax returns to verify the credentials of entrepreneurs seeking GST registration, and restriction on using tax credits from the acquisition of raw materials to satisfy the ultimate liabilities .Not filing GST returns for 6 months could cost a business its registration. At the instant , there are 600,000 dormant GST-registered firms among the 12 million entities with registration.

Entities seeking GST registration would be profiled on the idea of their credentials and classified into trustworthy et al. .Trustworthy entrepreneurs are those that have a reputable tax payment history and have their identity authenticated by Aadhaar and haven't any history of getting their GST registration cancelled.These entrepreneurs will get GST registration within every week .

The others are going to be given the registration within two months of physical verification of business premises, said the ministry official cited above.Those that aren't trustworthy can also be asked to pay a neighborhood of their liabilities in cash rather than adjusting it fully against the decrease available to them.The proposals put together by the law panel at a gathering held last week are going to be further discussed before they're placed before the council, the official said, requesting anonymity.

The move signals a serious tightening of the three-year-old tax system leveraging GST’s ability to trace the whole supply chain using the system of input tax credits. Discrepancies will get flagged, because the system for filing GST returns becomes more automated with the utilization of e-invoices and auto-filled tax returns.

GST authorities are on a nationwide compliance enforcement drive this month, which led to the busting of an invoice racket and therefore the arrest of 48 people and three chartered accountants. As many as 648 cases are registered thus far this month.The government is best armed to enforce greater compliance with deep digital capabilities for automatically detecting evasion, leakages, defaults and delays, consistent with Rishi Agrawal, co-founder and chief military officer of Avantis Regtech Pvt. Ltd, a regulatory technology firm. “Sooner instead of later, India Inc. will got to specialise in accurate and timely compliance. Ignorance of the law won't be an excuse for non-compliance," said Agrawal.

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