Delhi Govt issued SOP for verification of taxpayers granted deemed registration  

GOVERNMENT OF NATIONAL CAPITAL TERRITORY OF DELHI
DEPARTMENT OF TRADE & TAXES
(POLICY BRANCH)
VYAPAR BHAWAN, I.P ESTATE, NEW DELHI -110002

No. F.3 (358)/Policy-GST/2020297-302

  Dated:11./.12./2020

Instruction No. 1/2020-GST
(Ref. Instruction No. 4/3/2020-GST)

Sub: Standard Operating Procedure (SOP) for verification of taxpayers granted
deemed registration- regarding

With effect from 21.08.2020, Rule 9 of the Delhi Goods and Services Tax Rules, 2017 (hereinafier referred to as the DGST Rules) provide that in cases where Aadhaar authentication has either not been opted for by the applicant or where such authentication has failed, the proper officer has to mandatorily initiate physical verification of the premises, or in cases where the physical verification is diff+cult, certain additional documents may be called for by the proper officer (upon approval of an officer not below the rank of Joint Commissioner) for verification before deciding upon grant of registration. Further, the present provisions allow for deemed registration upon completion of 21 days of application in such cases if the proper officer has not issued any notice within the said 21 days.

2. Data suggests that during the period from 21 August, 2020 to 16th November, 2020 deemed registration has been granted in many cases where Aadhaar authentication has not been opted for or has failed. These registrations granted on deemed basis require verifications to ascertain that they have genuine business or intends to carry out so. In order lo complete the verification of such registrants, following instructions are issued for immediate compliance:

The list of registrations granted on deemed approval basis, Zone/Ward wise, during the period from 21s August, 2020 to 16" November, 2020 is available at 3.1 boweb.internal.gst.gov.in in following manner:

3.2 Rule 25 of the DGST Rules provide for physical verification of business premises in certain cases and include such verification after grant of registration. All such deemed registrations would be subjected to compulsory post registration verification. On completion of verification, if the proper officer has reasons to believe that the registration is liable for cancellation, he shall initiate the proceedings under Rule 22 of the DGST Rules, 2017.

3.3 Pending physical verification, notice in FORM REG-17 may be issued in specific cases based on following risk parameters seeking explanation from the registered person regarding the differences and anomalies noticed:

On receipt of the reply to the notice, the proper officer would complete the proceedings under Rule 22 of the DGST Rules.

3.4 All the verifications must be completed in a time bound manner, within 3 weeks of hese instructions. A weekly status report to be submitted to the Commissioner, State Tax, in the format enclosed to this instruction.

4.1   The Standard Operating Procedure (SOP) to be followed by the proper officer for carrying out the physical verification of the persons who have been granted a deemed GSTregistration is outlined below.

4.2   The proper officer shall conduct physical verification of the principal place of business and wherever possible, additional place of business, indicated in GST registration FORM REG-01 of the concerned registrant. During the physical verification, the officer,among other things, would also verify the following details:

 4.3 In addition to the physical verification conducted, the proper officer, in the interest of revenue,. would carry out the preliminary financial verification of the registrants by seeking the following documents and carrying Out its scrutiny: 

 5. It is advised that in cases where the applicant has not opted for Aadhaar authentication or where such authentication has failed, there should not be any case where registration is granted on deemed approval basis. Suitable instructions may kindly be issued to the Proper Officers under your charge.  

6. . Difficulties, if any, in implementation of these instructions may be informed to the Additional Commissioner, Policy.    

7.  This is issued with the approval of the Commissioner, State Tax.