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Is In-person Verification Mandatory For GST Registration in India

The in-person verification has become compulsory from 21 August 2020 before registration is granted to the new applicant. The Finance Ministry has notified new norms for GST registration to check the menace of GST fake invoices fraud.<br>After several rounds of discussion at the GST Law Committee, it's approved by GST Implementation Committee (GIC) and deliberated among the 10 States' members and the center's representatives, which helped tackle the menace of fake invoices.<br>

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Is In-person Verification Mandatory For GST Registration in India

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  1. Is In-person Verification Mandatory For GST Registration in India The in-person verification has become compulsory from 21 August 2020 before registration is granted to the new applicant. The Finance Ministry has notified new norms for GST registration to check the menace of GST fake invoices fraud. After several rounds of discussion at the GST Law Committee, it's approved by GST Implementation Committee (GIC) and deliberated among the 10 States' members and the center's representatives, which helped tackle the menace of fake invoices. According to the new norm, "Now there should be in-person verification compulsory to registration granted to the new applicant. If the applicant goes for Aadhaar authentication, he/she will undergo biometric-based Aadhaar authentication at any of the facilitation centers notified by the Commissioner''. Objective behind introducing new norms for GST registration The prime objective of the Indian Government behind inserting this provision is to reduce the fraudulent activities of ITC and cut the frauds related to GST. Fake invoices have been a big problem for GST authorities and a nationwide drive

  2. against fake' GST invoices' has led to the arrest of more than 160 fraudsters, including 5 CAs and more than 1700 cases being filed against 5700+ GSTIN entities over the past few months. Additionally, fake GST invoices are used to evade GST and income tax and divert funds from companies. These invoices are also used for showing non-existent transactions to jack up figures in books to get fast loans from various banks and financial institutions. Finally, fake invoices are used to wrongfully claimed GST. The PWC India partner national leader said, "A taxpayer registering under GST can go for Aadhaar authentication, in which case registration is deemed to be granted within 3 days without any physical presence of the premise. But, in other cases, the time period could be up to 3 weeks, and authorities can undertake physical verification of the place of the business with a complete review of documents. Also, one of the ARMG & Associates senior partners has supported Aadhaar authentication for GST registration in India. He said that such rigorous verification procedures prior to GST registration would surely help address the issue of GST and tax evasion. What is GST registration? GST registration is a process by which taxpayers get registered under GST Amendment Act 2016. The GST identification number or GSTIN is provided once the registration process has been done. This is a 15 digit GST identification number that is offered by the central Government, and it helps to find out whether a business is liable to pay GST or not. Who should register for GST? Every business entity that is supplying goods and turnover is more than INR 40 Lakh in a financial year has to register with GST. But, the threshold limit is INR 10 lakh if the person has a business in the northeastern states such as Himachal Pradesh, Uttarakhand and Jammu & Kashmir. The turnover limit is INR 20 lakh and INR 10 lakh for the service providers in the case of special category states. Some businesses for which online GST registration in India is necessary regardless of their turnover are mentioned below: •Input service distributor (ISD) and the casual taxable person •TDS and TCS deductor

  3. •Supplier of goods through an online portal •Online data access or retrieval service provider •Interstate supplier of goods and services Who is eligible for GST registration? 1.Individuals who still have not filed for GST 2.The non-residential taxable individuals are bound for the GST registration 3.Businesses whose turnover is more than INR 40 Lakh yearly 4.Businesses that are associated with the online business categories 5.Individuals who are supplying online information from an outside place to any place within the country. There are mainly four types of GST returns. They are- 1) Yearly GST Returns, 2) Monthly GST Returns, 3) GST filing related without output or supply and 4) GST Filing related with input or purchase. Remember, GST Monthly Filing will be compulsory for a private limited company after PVT LTD company registration. What is the process of GST registration? Step 1: Visit GST Portal Step 2: Generate a Taxpayer Registration Number (TRN) by Completing OTP (One Time Password) Validation. Step 3: OTP Verification and TRN Generation Step 4: TRN Generated Step 5: Now, log in with your TRN Step 6: Submit business information Step 7: Submit promoter information Step 8: Submit signatory information Step 9: Now, fill in details of the principle of business Step 10: Details of goods and services Step 11: Details of your bank account Step 12: Verification of your application

  4. Documents required for GST registration Some of the key documents that you will need for your business GST registration are PAN Number, proof of your company registration or incorporation certificate, copy of your Aadhaar card, bank account statement or canceled cheque, digital signature, identify and address proof of directors and promoters with a photograph. GST Registration Through Aadhaar Card You can secure your GST registration with the help of your aadhaar card. The process is fast and simple. The complete process for GST registration with an aadhaar card is mentioned below: •You will be provided with the choose aadhaar authorization option when you apply for GST registration. •Just select "YES" You will get the authorization link on your registered email ID and registered mobile number. •Now click on this link •Enter your aadhaar number and select "Validate". •You will get an OTP on your mobile number once the details have been matched. •Now enter the received OTP to complete the registration process. You will get the GST registration within 3 to 5 working days. Is there any penalty for not registering under GST? Yes! There is a penalty. So, all businesses have to register under GST otherwise will have to pay a penalty of 10% of the taxable amount up to a maximum of INR 10000. If you are confused by the complicated laws of GST or have any queries regarding it, take ExpertBells GST consultation services to get your issue solved by professional GST consultant.

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