GST registration only after physical verification of the premises if aadhaar authentication not opted
CBIS issued notification to amend the Central Goods and
Services Tax Rules, 2017. As amended businesses registering under GST can opt for Aadhaar authentication to get GST registration within three working days, if no notice has been received within 3 working days from the date of application. However, if applicant fails to undergo authentication of Aadhaar, GST registration would be granted only after physical verification of the premises of the business, which may take up to 21 days.
The CBIC, vide notification no 62/2020 dated 20th August 2020, said when an applicant for GST registration opts for authentication of Aadhaar number, he shall, with effect from August 21, undertake the aadhaar authentication while submitting an application.
Important points w.r.t aadhaar authentication :
- Persons already registered on GST portal are not required to undergo Aadhar authentication at this stage.
- Persons who are not resident /citizen of India are exempted from the Aadhaar authentication process.
Here is the full notification no 62/2020, dated 20th August 2020
Physical Verification
CBEC issued instruction No. 4/3/2020-GST dated 27th November 2020 for verification of taxpayers to whom deemed GST registration granted from 21st August 2020 to 16th November 2020.
Details to be verified by the GST officers:
During the physical verification, the officer, among other things, would also verify the following details:
a. In case the applicant intends to carry out manufacturing activity, whether capital goods, if required for the said manufacturing activity, have been installed.
b. Electricity connection, bills paid in the relevant period.
c. Size of the premises – whether it is commensurate with the activity to be carried out by the applicant.
d. Whether premises is self-owned or is rented and documents relating ownership/ registered lease of the said property. In case of doubt, enquiry may also be made from the landlord/ owner of the property in case of rented / leased premises.
e. No of employees already employed and record of their employment
f. Aadhaar and PAN of the applicant and its proprietor, partners, Karta, Directors as the case may be and the authorised signatories.
g. Bank’s letter for up to date KYC.
In addition to the physical verification conducted, the proper officer, in the interest of revenue, would carry out the preliminary financial verification of the registrants by seeking the following documents and carrying out its scrutiny:
a. ITRs of the company / LLP from the date of incorporation or for last three financial years, whichever is less. ITRs of proprietor, partners, Karta, etc. may be taken in other cases.
b. The status of activity from the date of registration of all the bank account(s) linked to registration; the same may be taken through a letter / undertaking from the applicant. Phone number declared / linked to each of the bank accounts may also be obtained.
c. Quantum of capital employed/proposed to be employed.
d. Out of the amount mentioned at (c) above:
(i) Own Funds:
(ii) Loan Funds: (indicate the names, complete address, PAN and amount borrowed from each such lender separately):
e. In case of own funds, also check the audited balance sheet for previous financial year, where available, in addition to the Income Tax Returns mentioned in (a) above.
f. In case of loan funds check the proposal submitted to the Bank/FI for approval of the loan and the maximum permissible bank finance as per such proposal, where the amount is proposed to be borrowed from a Bank and/or FI.
