GST officers to immediately suspend taxpayer’s registration for ‘significant anomalies’ in sales return

NEW DELHI: GST officers will immediately suspend registration of taxpayers whose sales return or GSTR-1 varieties present “significant differences or anomalies” from the return filed by their suppliers, a transfer aimed toward curbing tax evasion and safeguarding revenues.

The Central Board of Indirect Taxes and Customs (CBIC) has issued a Standard Operating Procedure (SOP) for suspension of registration of an individual on observance of such discrepancies /anomalies which point out violation of the GST Act.

As per the SOP, the registration of specified taxpayers shall be suspended and system generated intimation for suspension and spot for cancellation of registration in kind GST REG-31, containing the explanations of suspension, shall be despatched to such taxpayers on their registered e-mail handle.

The registration can be suspended in instances the place a comparability of the returns furnished by a registered particular person with the small print of outward provides furnished in kind GSTR-1, or the small print of inward provides derived primarily based on the small print of outward provides furnished by his suppliers in their GSTR-1, present ‘vital variations or anomalies’, indicating contravention of the provisions of the GST Act.

“Till the time performance for FORM REG-31 is made accessible on portal, such discover/intimation shall be made accessible to the taxpayer on their dashboard on the widespread portal in Form GST REG-17.

“The taxpayers will be able to view the notice in the ‘View/Notice and Order’ tab post login,” the SOP mentioned.

Goods and Services Tax (GST) officers have already intensified their drive towards faux invoicing and this has additionally contributed to enhance in tax collections in the previous couple of months.

GST collections have crossed the Rs 1 lakh crore mark for 4 consecutive months and surged to an all-time excessive of about Rs 1.20 lakh crore in January.

The SOP additional mentioned the taxpayers whose registrations are suspended can be required to furnish reply to the jurisdictional tax officer inside 30 days from the receipt of such discover / intimation, explaining the discrepancies / anomalies and the explanations as to why their registration shouldn’t be cancelled.

Reply has to be despatched to the jurisdictional officer by way of the widespread portal inside 30 days from the receipt of discover / intimation.

In case the intimation for suspension and spot for cancellation of registration is issued on floor of non-filing of returns, the mentioned particular person could file all of the due returns and submit the response, the SOP added.