Benami GST Registration – Instructions on measures to prevent evasion of tax.
Circular No 19/2018 Dated:- 7-9-2018 Kerala SGST
GST – States
Office of the Principal Secretary & Commissioner
State Goods and Services Tax Department
Government of Kerala, Thiruvananthapuram
No.CT/11804/2018-C2
Dtd 07/09/2018
Circular No 19/2018
Sub:- SGST Act – Benami CST Registration – measures to prevent evasion of tax- instructions issued Reg.
For the effective tax administration the first and foremost effort is to widen the tax net. Therefore, during GST regime transition, initial efforts were taken to ensure migration of VAT dealers to GST from 1st January 2017 onward and later the focus was brought to new registrations from July 2017.
The registration procedure under Goods and Services Tax Act is simplified with the objective of ease of doing business. After online application, the applicant is deemed registered within 3 days. Therefore, since Oct 2017 in every Quarterly Performance
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ging of leakages, which in turn will improve revenue.
Under the circumstances mentioned above, in order to curb such tax evasion practices and leakage of revenue. the following instructions are issued for strict compliance.
1. As the procedure for taking registration under Goods and Services Tax Act is liberalized, the assessing authorities as well as the enforcement wing shall closely monitor the activities of such suppliers.
2. The precautionary measures have to be taken in such cases from the stage of submission of registration application in common portal. In such cases, immediately on receipt of the registration application, the assessing authority shall conduct field visits. Unless timely action is taken in these cases, they might get 'Deemed Registration'. Once GSTIN is assigned, they can do the business.
Once registration is obtained, immediately they are doing huge volume of business within a short span of time and disappearing from the scene after creating substan
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native of that District and possesses sufficient area with reference to the nature of business. In case the nativity of the dealer is outside the District, an immediate enquiry should be conducted through Intelligence wing. Assistant Commissioner (Intelligence) shall conduct an enquiry in such cases and furnish an enquiry report on the next working day itse f. If any suspicious activities are noticed, then a show cause notice may be issued to the dealer. In such cases, the mode of procuring capital investment details needs to be recorded. In case the financial assistance is provided by an individual other than any Financial Institutions, then a copy of the PAN of such person may be obtained during field visit.
6. Plywood and veneer being an industrial output, it can't be procured from unregistered fellows. If such purchases are disclosed in return, Intelligence wing shall conduct enquiries to locate such unregistered persons and take necessary steps to bring such dealers under th
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