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GST Special All-India Drive against Fake Registrations

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By uday

The Belgaum Chamber of Commerce and Industries, in conjunction with Tax Practitioners, met with JCCT Enforcement today at Belagavi to address concerns regarding a viral message about business premises inspections by the GST department. It was confirmed that the message is not fake.

SGST will be inspecting some dealers whose information will be provided by their software based on various probabilities. The premises will only be visited in certain cases, including:

– Less cash ledger payment
– Registration premises that are doubtful of being in existence
– Fake or bill trading cases
– More payment of GST through ITC
– Additional premises that have not been declared, but have a large stock stored
– Contractors/Builders who have not registered their additional place of business
– Businesses that are genuine will not be disturbed unless they are found to be engaging in unlawful acts or gains.

The department will take strict action against lawbreakers. This action is simply informative and is in response to the latest circular issued by CGST. SGST will even visit CGST jurisdiction assesses.

All business owners are informed that the GST Department will launch a campaign of place visits for all GST holders from 16.05.2023

This news may be concerning to some, but GST department assures all that this is simply a routine inspection to ensure that businesses are operating within the law. They encourage all businesses to comply with regulations and to maintain accurate records. If you have any questions or concerns, please do not hesitate to contact the GST department.

During the National Co-ordination Meeting of the State and Central GST officers held at New Delhi on 24th April 2023, the issue of unscrupulous elements misusing the identity of other persons to obtain fake/ bogus registration under GST, with an intention to defraud the Government exchequer, was deliberated. Such fake/ non-genuine registrations are being used to fraudulently pass on input tax credits to unscrupulous recipients by issuing invoices without any underlying supply of goods or services or both. This menace of fake registrations and issuance of bogus invoices for passing off fake ITC has become a serious problem, wherein fraudulent people engage in dubious and complex transactions, causing revenue loss to the government, hence this two-month-long drive has been planned.

The viral Message about GST department inspection of all businesses

All business owners are informed that the GST Department will launch a campaign of place visits for all GST holders from 16.05.2023, which will run for two months. Therefore, all business owners need to keep in mind the following points:

1. A board should be placed outside the factory or shop displaying the GST number, address, and name of the firm.

2. You must have a GST certificate.

3. It is important to update the address of your place of business in the GST certificate, primarily to ensure that it matches the address where your work is being carried out. Otherwise, there is a penalty of INR 50,000.

4. You must have bills for sales and purchases.

5. If you have rented your factory or shop, you must have a valid rental agreement.

Note: If your work is being carried out at a different location and a different address is registered in the GST certificate, the GST officer may declare your firm as bogus and take legal action.

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