What is special GST verification campaign? 

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In a recent meeting of Central and State GST officers held in Delhi, a decision was made to launch  a special drive aimed at relating and combating fake GST enrollments. GST officers will visit registered businesses to verify GST numbers and proprietors/partners/directors etc

This visionary measure aims to insure the integrity of the Goods and Services Tax( GST) system and maintain translucency in business deals.

 Questions  which is related to the GST verifications

•  What is the purpose of the special campaign against phoney GST Registrations?

A GST department officer will use a identify of techniques to verify the GST number. GST officers may visited a registere business location to confirme the operation of the enterprised and the existence and non-fictitiousness of the proprietor, partners, and directors.

This campaign will run from 16 May 2023 to 15 July 2023

• Will there be 100% verification of GST number?

Based on thorough data analytics and risk criteria, the GST system (GST network) identifies suspect GST numbers. The concerned Jurisdiction will receive the list. The only method of choosing a GST number that will be confirmed is in that way. 

Officers may add to this list in addition to the GST system based on their own research, human intelligence, other local learning, and prior experience.

• What safety measures are necessary?

A specific drive has been started to find fake GST numbers that are transferring ITC based on invoices without any actual goods being moved. There is no reason to be concerned if your business has been operating and you have not transacted business with a fictional entity. The GST registration certificate, the name of the firm, and the GST number must be displayed at the registered place/additional place in accordance with GST rules. Despite the fact that the purpose of the drive is not to verify that the aforementioned items are displayed, the GST officer may nonetheless impose a fine for this non-compliance during his visit. Keep all the owner, partner, director, and registered address documentation, as well. So, continue with the advised prudence. 

• Some Important information related to the gst verification

Analysis of the Guidelines for the Special All-India Campaign Against Fake GST Registrations and the Required Precautions Background While various system-based and policy measures are being taken to address the fake registration and fake input tax credit problem, it was discussed in the National Coordination Meeting on April 24, 2023, that there is a need for concerted and coordinated action on a mission mode by Central and State tax authorities to address this menace in a more systematic way. It was decided to begin a Special Drive on an All-India basis to detect such suspicious or false registrations and to conduct the necessary verification for prompt corrective action to stop the government from losing any more money.

the duration of the special drive to combat fraudulent GST registrations During the time frame of 16 May 2023 to 15 July 2023, all Central and State Tax administrations may launch a Special All-India Drive against fictitious GST registrations.

• What will become of fraudulent registration?

 The GST officer has the authority to suspend and terminate the GST registration in accordance with section 29 of the CGST Act, 2017. Other beneficial taxpayers of the aforementioned scam will be found, and action will be taken against them by blocking ITC and levying penalties in addition to the information provided by false GST registered persons in GSTR 1.

• Conclusion

The targeted campaign against bogus GST numbers demonstrates the GST department's dedication to ensuring an honest and reliable tax system. Businesses are recommended to follow GST requirements, keep proper records, and make sure that their transactions are legitimate. All stakeholders can benefit from a fair and prosperous business environment if the integrity of the GST system is maintained.