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Second Level Verification of New GST Registration

As per the new circular issued by the Kerala GST authority the enforcement squad now has to physically verify the place of business of the new GST registrations. This verification is also known as second-level verification of new GST registration because the first level of verification under GST is the verification of documents uploaded by the taxpayer.

This measure was taken by the GST Commissioner to prevent the evasion of tax using Bogus and Benami GST registration. However, even after the issue of this circular, it was found that there Bogus or Benami GST registrations were still persistent in the state of Kerala. The circular of second-level verification of GST Registration was issued for the goods and services that are prone to tax evasion such as lottery, Iron and Steel, flooring material, grass timber, plywood, cardamom, and so forth.

The circular of physical verification of new GST registration mentions that the Registering Authority has to adhere to the instructions stated and will be primarily liable as far as the GST registration is concerned.

State GST Jurisdiction Guidelines

Here are the instruction outlined in the second level verification of new GST registration circular for State GST jurisdiction:

  1. After the GST Registration is issued to the taxpayers, the details of the same will be available on the GST portal.
  2. The data of the GST registration will be collected by the Deputy Commissioner (Intelligence) of the concerned jurisdictional district.
  3. Post collection of the data, he/she needs to distribute the data to the law enforcement squads for verification.
  4. Now, the law enforcement squads have to verify the details of every taxpayer thoroughly and have to pay special attention to the taxpayer dealing in the goods or services that are prone to evasion. See the list of the goods and services that are prone to evasion mentioned above.
  5. Moreover, the details of the background of the applicant will also be verified to know whether the identity of the applicant is genuine or Bogus.
  6. Post verification process a report needs to be furnished by the squad within 7 days from the date of receipt of details. This report needs to be sent to the registering authority and a copy of the same report shall also be sent to the Deputy Commissioner (Intelligence) and the concerned deputy joint commissioner.

Central GST Jurisdiction Guidelines

Moreover, the circular also states about the physical verification of the new GST registration that falls under Central GST jurisdictions. Here are the instruction outlined in the circular for Central GST jurisdiction:

  1. The district-wise new GST registration details will be given to the Joint Commissioners (Intelligence) by the GST info team.
  2. Once the details are received by the Joint Commissioner (Intelligence), the same process needs to be followed as mentioned above under State GST jurisdiction.
  3. However, at last, the Deputy Commissioners (Intelligence) of State GST jurisdiction needs to forward the report with the recommendations to the concerned Deputy Commissioners of the Central GST Department.