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Benami GST Registration: Kerala to Conduct Verification in premises of Newly Registered Persons under Central Jurisdiction [Read Circular]

By Mariya Paliwala -

The Commissioner of State Tax, Kerala issued circular empowering the enforcement squads to conduct verification in the business place of such new GST registration under Central Jurisdiction also.

The Commissioner of State Tax, Kerala issued instructions to the Registering Authority measures to prevent evasion of tax by the way of Bogus and Benami GST Registration.

“Even after issuing such instructions, it has been noticed that bogus and Benami registrations are been reported in the state. This is very critical especially in the case of evasion prone commodities such as lottery, Iron and Steel, flooring material, grass timber, hill produce, plywood, arecanut, cardamom etc.,” the department said.

The department issued strict instructions to the Registering Authority to conduct site visits and detailed verification of application.

“After conducting business in large volume for two or three months, they may disappear either by not filing returns or by filing returns with fake credits in some cases these registrations are used for taking and supplying credit through circular trade,” the Commissioner while emphasizing to control such persons from freely taking the registrations said.

“As instructed earlier, the Registering Authority has the primary liability as far as the registration is concerned and they shall adhere to the instructions already issued in this regard,” the circular said.

“It is also noticed that some of the new cases under Central Jurisdiction are also vulnerable. Our enforcement squads can conduct verification in the business place of such new registration under Central Jurisdiction also. For this GST info team will provide district wise new registration details under Central Jurisdiction to Joint Commissioners (Intelligence). GST Info shall take steps to make available these details to Deputy Commissioners (Intelligence) in the GST backend. Till that time GST Info shall make arrangements to extract and provide such details to Joint Commissioner (Intelligence). On receipt of such details from the Joint Commissioner (Intelligence), Deputy Commissioners (Intelligence) shall do the same work as done in the case of new registrations under state jurisdiction. Enquiry report of such cases with recommendation shall be forwarded to Deputy Commissioners, Central Goods and Services Tax Department concerned by Deputy Commissioners (Intelligence), State GST,” the Commissioner said.

To Read the full text of the Circular CLICK HERE