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Writer's pictureMukul gupta

GST: Tamil Nadu issues Circular regarding Allowing New Registrations to Avoid Bill Traders


The Goods and Services Tax (GST), Tamil Nadu State Department has issued a circular regarding allowing of new registrations to track and avoid bill traders.


In the important matter of avoiding bill traders while allowing new registrations under GST, the Tamil Nadu Government as part of taking appropriate remedial measures, empowering the Jurisdictional Proper Officers viz., AC, STOs, and DSTOs to undertake pre-verification of new applications with matching parameters of 1) Place of business 2)PAN 3) Mobile No. 4) Email ID 5) Authorized signatory and 6) Bank account details.


This is in the light of official reports where 771 bill traders involving revenue of ₹1,648 crores have been detected by the Department and the respective registrations were canceled and action is being pursued against the beneficiaries (purchasers claiming improper ITC).


These steps are quite useful in avoiding the bill traders from again entering the GST fields.


A circular issued on Wednesday stated that “Our experience shows that the bill traders after getting registrations, issue invoices without the supply of goods or services for huge amounts within a short span of time. The Department comes to know about the bill trading activities only when he files a return on the 20th day of the subsequent month, by which time he disappears from the declared place or is non-existent even from the date of registration, leaving no trail to find them out by the Department. Again the bill traders come into the system with a different name and continue the same bill trading activity. Hence, it is imperative that the Department has to strengthen the scrutiny of the new registration applications in a robust manner to identify the bill traders at the entry-level itself.”


“Hence it is instructed that any application for new registration filed has to undergo the process of matching with the database as to whether any of the following six parameters pertaining to canceled registration found to have been matched with details provided in the application for new registration, to invariably undertake pre-verification of the business premises, by the jurisdictional proper officer as per the notification in the reference cited, so as to deter the bill traders from applying for new registration,” the circular said.


The IT wing shall make available the above list to the proper officer of the base circle on a daily basis, it added.



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