GST
TRT-2025-
Date:-10-05-23
In:-
Issue Favourable to Tax Payer ?:-
Key Pointers –
- Many persons having no functional business existence have managed to obtain registration and have issued fake invoices without actual supply of goods and/or services; generated e-waybills. Due to inaction of the concerned Proper Officers (in charge of registration) within the prescribed time, as many as 1168 numbers of registration applications have been approved automatically (deemed approved) in the GST IT system during the year 2022-23.
- Timely action of the Proper Officers at the stage of examination of information and documents furnished in the application for registration and immediate physical verification of business premises post registration is extremely crucial to prevent grant of registration to fake entities and also to weed out the fake registrants.
- In order to achieve the above objectives, it is, therefore, impressed upon the Circle Heads to ensure that the Proper Officers (in charge of registration) should act upon the following instructions diligently.
- In case, it is found that the applications for registration are deemed approved, the concerned Proper Officer in charge of registration will be held responsible. It is to be ensured that the cancellation of registration of fake registrants may be done retrospectively from the date of registration.
- Care should be taken by the Proper Officer(s) that the application for revocation of registration of cancellation submitted by the applicants, whose registration has been cancelled on the ground that they are functionally non-existent, may be considered for rejection following the principle of natural justice.
Download Case Law
