CBIC makes Aadhaar authentication of taxpayers mandatory for claiming GST refund

The federal government has made Aadhaar authentication of taxpayers obligatory for claiming GST refund. The Central Board of Oblique Taxes and Customs (CBIC) has amended GST guidelines bringing in varied anti-evasion measures, together with disbursal of GST refunds solely within the checking account, which is linked with similar PAN on which Items and Companies Tax (GST) registration has been obtained.

The notification additionally states that from January 1, 2022, companies who’ve defaulted in submitting abstract return and paying month-to-month GST will be unable to file GSTR-1 gross sales return of the succeeding month.

The notification follows the selections taken on the assembly of the GST Council in Lucknow on September 17.

AMRG & Associates Senior Accomplice Rajat Mohan mentioned, “To arrest tax evasion, the federal government has made Aadhaar authentication for proprietor, companion, karta, Managing Director, complete time Director, and authorised signatory obligatory earlier than submitting an software for revocation of cancellation registration and refund software.”

EY Tax Accomplice Abhishek Jain mentioned with the target of stopping income leakage, the federal government has made Aadhaar authentication obligatory for a taxpayer to have the ability to declare refunds.

“The transfer will assist in decreasing instances of fraudulent refunds as solely the verified taxpayers will receive the refunds now,” Jain added.

With regard to taxpayers not carry in a position to file their GSTR- 1 in the event that they haven’t filed their GSTR-3B of the earlier month, Jain mentioned it is a effectively thought restriction and a vital management test to get rid of the instances the place taxpayers though report their provide invoices in GSTR-1 (as a result of fixed observe ups from recipients’ aspect) however they don’t submit their corresponding GSTR-3B return via which tax is definitely paid to the federal government.

“Compliant taxpayers would admire this transfer as until now their enter tax credit score was additionally in danger in case distributors don’t file their GSTR-3B though such bill is showing in GSTR-2A,” Jain added.

At present, the regulation restricts submitting of return for outward provides or GSTR-1 in case a enterprise fails to file GSTR-3B of previous two months.

Whereas companies file GSTR-1 of a specific month by the eleventh day of the next month, GSTR-3B, via which companies pay taxes, is filed in a staggered method between Twentieth-Twenty fourth day of the succeeding month.

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