TaxTMI 
TaxTMI 
Registration related Field Verification etc. of Coal-traders
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....ep the e-way bill portal open and active. Afterward, these taxpayers abandoned the business activities and disappeared from the scene after doing business in huge volume. Such activities have caused massive loss of IGST and compensation cess amount to the nation. This matter has been recently discussed with great concern at the highest level and it is resolved to curb such tax evasion henceforth. Therefore, it appears to be necessary to immediately conduct a thorough and comprehensive physical field verification of all the coal-traders at the declared or discovered business premises/additional place of business/godown etc. of the coal-traders having active GST registration under respective jurisdiction of Proper Officers to ascertain their genuineness and financial standing in proportionate to the business volume. In this context, Proper Officer are hereby directed to conduct a physical verification of all the taxpayers dealing in coal directly or indirectly as per the following Standard Operating Procedures (SOP): (A) Pre-visit verification exercise/ Desk Scrutiny: 1. To find out the names of the taxpayers dealing in coal from Back office (BO) GST portal. ....
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.... 21(A) by issuing REG-31 to avert any further leakage of revenue and initiate field verification. If field verification confirms that the registration is fake or there is indulgence in issuance of fake tax invoices or claim of fake ITC or concealment of turnover and tax liabilities or any other contravention of GST law, the registration shall be cancelled as per procedure. Please note that Proper Officer are not required to issue any show cause notice before suspension as per amended provision of sub-rule (2) of Rule 21a of The Assam GST Rules-2017 For suspension of GST registration, Proper Officer shall follow the SOP circulated vide Circular No 98/2021-GST (No. CT/GST-15/2017/420) dated 01/03/2021. (C) Field verification exercise: Field level verification shall be conducted at the business premises/ additional business premises/ warehouses/ depot etc. of all the coal traders including the already cancelled and already suspended as per the following guidelines: The Jurisdictional Proper Officer will assign the case for field verification to the Jurisdictional Field Officer through BO portal. The Jurisdictional Field Officer wil....
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....Field officer, in the interest of revenue, would carry out the preliminary financial verification of the coal-traders to check the net-worth by seeking the following documents and carrying out its scrutiny: a. ITRs for last three financial years or since the date of commencement of business (if any). ITRs of proprietor, partners, Karta, etc. may be taken as the case demands. (if applicable). In case of new firm, the Jurisdictional Proper Officer shall verify the Balance sheet for the relevant periods. 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. To verify quantum of capital employed and to check the capital turnover ratio. d. Own Funds: Bank statement or records of movable or immovable properties. e. Loan Funds: In case of unsecured loan or borrowed from a private person, the details including PAN, Aadhar card and the mode of transfer of the fund 7. It must be ensured that the holder of the PAN card provides his ....
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....l Proper Officer shall report the matter to the Zonal Joint Commissioner of State Tax and may seek INS-01 to cause inspection. It is decided to clean up all the bogus/ fictitious registrations from the system to dissuade the tax offenders. (E) Precaution to be taken while granting new registration: It is observed that most of the evasion is taking place due to fake registration. Through registration, a taxpayer becomes entitled to certain privileges such as collection of GST from the consumers, generation of e-way bills, utilisation of ITC etc. and above all a reputation among the trade community about its creditworthiness. GST ensures ease of doing business and almost zero interference from the authority. However, it appears that the GST system is being used for tax evasion by tax dodgers to which the tax administration cannot be a mute spectator. If due diligence is carried out at the time of registration, it will substantially mitigate tax evasion. Therefore, in addition to the above immediate exercise, please note that precautionary measures have to be taken from the stage of submission of registration application in common portal. In such cases, imme....