GST Special Drive : What you should do
Objective of All India Special drive – To identify fake/ non-genuine registrations.
Period of Special Drive–16th May 2023 to 15th July 2023
Safeguarding rights of Taxpayer
- No on-spot cancellation of GST , blocking of ITC and recovery of taxes can be done by officer. Tax department has to follow proper procedure and issuance of notice in this regard.
- There is no requirement to specifically keep ready your financial statements, Income Tax returns, purchase and sales register, purchase and sales invoices for verification. These documents and information has no bearing to identify genuine taxpayers.
- Tax officer can inspect the business premises only if specific approval is provided by officer not below the Rank of Joint Commissioner. Without such approval, officer cannot inspect the business
- No officer can search and seize any invoices, sales/purchase register or any other documents without the specific approval by officer not below the Rank of Joint
- All such authorisations should pre-date the date of visit to
Precautions to be taken by taxpayer
- GSTIN Certificate displayed at registered place of business
- GSTIN on the Name Board on the entry of registered place of
- If multiple GST registrations are obtained from same address, proper demarcation of area should be
- Ensure that all the locations from where business is done have been declared as additional place of
- Ensure that documents uploaded at time of GST registration are
Following are the actions which can be taken by the Tax Officer as per guidelines if any non-existent or fictitious taxpayer is found
- Suspension and cancellation of the registration
- Only If registration was obtained by means of fraud, wilful misstatement
, or suppression of facts or if no business is conducted from the declared place of business.
- Officer will issue FORM GST REG 17 and a period of 7 days will be allowed to taxpayer to
- Opportunity of hearing will be provided to the Without that, registration cannot be canceled by an officer.
- Blocking of input tax credit in the Electronic Credit Ledger
- It can be done only by the officer not below the rank of Assistant
- ITC is availed by the taxpayer from such supplier who is non- existent, or without receiving any
- Such blocking cannot exceed a period of 1
- Blocking of credit is not the final step and the officer has to issue notice u/s 73/74 for the determination of
- Demand and recovery of ITC from parties to whom invoices were issued by such non-existent/fraudulent
- Issuance of notice under section 73/74 by the jurisdictional