The Tamil Nadu Goods and Services Department, vide Circular No: 10/2022 dated June 07, 2022, has issued instructions regarding the identification and prevention of bill traders in the newly applied cases for registrations under the Tamil Nadu’s GST Act, 2017 (“the TNGST Act”) referring to Notification No. 6/2022, dated June 07, 2022.
In the case of controlling the bill traders while permitting the new enrollments under GST, the Tamil Nadu Government as the piece of taking the precise disciplinary actions, authorizing the Proper Jurisdictional Officers in other words, Additional Commissioners, State Tax Officers, and Deputy State Tax Officers to undertake pre-verification of new applications with below-mentioned parameters:-
1) Place of business
2) Permanent Account Number (PAN)
3) Mobile Number
4) Email ID
5) Authorized signatory
6) Bank account details.
In the concerned state, 771 bill traders involving approximate revenue of Rs. 1,648 crores have been detected by the Department and their registrations have been canceled. Appropriate action is being sought against the beneficiaries.
The mechanism aims to prevent the bill traders from entering the GST fields. Under the circular, it is brought to the notice that the bill traders, after the enrollment provides the invoices without the supply of the goods or services for larger amounts in a short time.
TNGST Rules 8 and 9 have been subsequently amended to introduce the process of Aadhaar Authentication in case of new registrations. The proviso (b) to rules 9(1) and 9(2) of the Tamil Nadu GST Rules provides that provided that where the proper officer, with the approval of an officer authorized by the Commissioner and is not below the rank of Assistant Commissioner, deems it necessary to carry physical verification of places of business. The registration shall be granted, within thirty days of the date of the submission of the application. That is after physically verifying the place of business and documents in the presence of the said officer and as the proper officer may deem fit.
The council also revealed that the bill trading activities were there when they furnished the return on the 20th day of the next month. By the time they disappear from the declared place or become non-existent even on or before the date of registration. There is no course to find them out by the GST Department. Once more, the bill traders were shown into the system with another name and continued the identical bill trading activity. So it is the need of the hour that the council makes a more substantial investigation of the new applicants to find out the bill traders at the entry-level on its own.
Also, the application for the upgraded registration furnished shall undergo the same process of matching the mentioned parameters concerning revocation of the GST registration.
The Deputy Commissioners are requested to closely monitor to determine the bill traders at the time of entry only. And The IT wing shall provide the list to the appropriate officer of the circle daily.