GST Registration Norms Stricter Now!

| |

The Central Board of Indirect Taxes and Customs (CBIC) has recently issued comprehensive guidelines for the GST Registration Process. As a result of these guidelines, the GST Registration norms have become more rigorous especially for applicants categorized as ‘High Risk’.

Government Takes Steps to Crack Down on Fake GST Registrations

Instances have emerged of dishonest individuals acquiring fraudulent registrations under GST to defraud the government.

These fake GST registrations are used to unlawfully transfer input tax credits to unscrupulous recipients through the issuance of invoices without any actual supply of goods or services.

This widespread problem of fake GST registrations and bogus invoices, aimed at facilitating fake tax credits, has become a significant issue resulting in substantial revenue losses for the government.

Thus, the government has taken various steps to track Fake GST Registration.

One of the major steps is a special drive to track GST Registration from May 16, 2023, to  July 15, 2023.

It has resulted in  10,000 Fraudulent GST Registrations Uncovered

Thus, the need to tackle Fake GST Registrations arised.

GST Registration Application Scrutiny and Verification by Officer

Upon receiving an application for registration in the Task List of the officer on the ACES-GST application, the officer will promptly initiate the process of scrutinizing and verifying the details provided by the applicant in FORM GST REG-01, along with the accompanying documents.

FORM GST REG-01 specifies the documents that the applicant must upload.

The officer will carefully examine these documents to ensure they are legible, complete, and relevant. 

Additionally, the officer will thoroughly review the information provided by the applicant to ensure its completeness, cross-verify it with the uploaded documents, and authenticate the applicant. 

The officer will closely scrutinize the address details and corresponding documents provided as proof of address, verifying the completeness and accuracy of the business locations. 

If possible, the officer may cross-verify the authenticity of the address documents through publicly available sources like:

  • Land registries,
  • Electricity distribution companies,
  • Municipalities, and Local bodies.

GST Registration Verification: A Guide for Proper Officers

The proper officer will check if the registration has been obtained before on the same PAN, either in the same state or other states.

They will also verify the status of the PAN and the compliance record of the GSTINs from the portal.

The proper officer will pay special attention to cases involving the following circumstances:

  • Previous cancellation of GST Registration obtained on the applicant’s PAN.
  • Suspension of any registration obtained on the applicant’s PAN during the verification of a new registration application. Also learn: How to appeal against cancellation of GST registration in India
  • Previous rejection of any registration application on the applicant’s PAN.
  • Potential risk associated with the applicant’s business location based on local risk parameters.
  • Suspicion or doubt regarding the proof of address for the applicant’s business locations based on scrutiny of the application and documents.

DGARM Risk Rating Assessment for GST Registration Applications

It is a common GST Registration Norm to streamline the verification and processing of registration applications, the Directorate General of Analytics and Risk Management (DGARM) collaborates with GSTN to conduct risk rating assessments.

Based on data analytics and risk parameters, each application receives a High, Medium, or Low risk rating, which is shared with CGST field formations through Report Series 400 on the DDM portal regularly.

The proper officer will consider the risk rating assigned by DGARM when reviewing and processing the application. Particular attention should be given to cases with a “High” risk rating assigned to an application (ARN).

There are more such strict guidelines that you can read at:

Guidelines for processing of applications for registration 

Or you can talk to our GST Registration Experts:

Take a call from Expert

Also Read:

Govt detected Importers evading GST of ₹11,000 Crores

Moreover, If you want any other guidance relating to GST Registration or GST Return Filing, please feel free to talk to our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the latest updates narrating to your business.



Trademarks Metaverse Strategies and Challenges Faced

Trademark – Personal and Social Services


Leave a Comment