Guidelines by TN-SGST to curb fake Registrations

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The Tamil Nadu government has issued guidelines for identifying fake billing traders who apply for new GST registration.( CCT Notification No.06_2022_TNGST)

When a registered person issues a Tax Invoice without actual supply of goods/services or payment of GST then such invoice is presumed to be a 'Fake Invoice'

The person issuing such bill is a fake bill trader.

The registration procedure under the GST Acts has been simplified & streamlined to facilitate doing business by eliminating the need for pre-verification of firm premises. before issue of GSTIN.

However, exploiting this simplified processes, many unscrupulous entities have obtained several fake registrations in order to engage in bill trading operations, resulting in revenue losses to the exchequer.

As a measure to safeguard  the process and ensure genuinety, TN state government has issued instructions in order to prevent potential bill dealers from filing for registration.

Rules 8 and 9 under the TNGST Act have been amended to include the Aadhaar Authentication procedure in new registration situations.

The bill traders enter the system using a different identity and continue their bill trading activity. 

The state government has now instructed that any application for new registration filed has to undergo the process of matching with the database in order to prevent the offence at the entry level itself.

If any of the six parameters pertaining to a cancelled registration are found to have been matched with details provided in the application for new registration, the jurisdictional proper officer will invariably conduct pre-verification of the business premises after which approval for grant of registration is accorded. 

The six parameters include 

1. Place of business, 

2. PAN, 

3. Mobile number, 

4. e-mail ID, 

5. Authorised signatory and 

6. Bank account number.

Nip it in the bud if it is an innocuous request is the idea it seems....! 

Srivatsan.R.

MEPZ- SEZ,

Chennai

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