GST – Registrations – Deemed approvals and other issues – Certain instructions – Issued - GST - States - A(1)/49/2023

Office of the Commissioner of Commercial Taxes, Telangana State :: Hyderabad. CIRCULAR CCT s Ref No. A(1)/49/2023, Date: 23.06.2023. Sub: GST Registrations Deemed approvals and other issues Certain instructions Issued Reg. Ref: 1.CBIC Instruction No. 03/2023-GST dated 14-06-2023. 2.G.O Ms No.145 Revenue(CT-I)Department, dated:02.08.2018. Attention is invited to the subject and reference cited. Multiple instances are being brought to the notice of the undersigned that registrations are being issued to persons, who are involved in issuance of invoices without actual supply of goods or services. In nationwide special drive on fake registrations, it is observed that these TPs involved in receiving and passing on fake ITC and caused loss of revenue to the state. Negligence on the part of proper officer for registration and lack of supervision over them is breeding such fake registrations. On examination of registration details of such tax payers the following issues are identified: 1. In case of some Tax Payers, the registration applications are being transferred to other jurisdictions on last dayof prescribed time to get deemed approval, after office hours. The recipient officers are getting these application after the office hours on last day, therefore they are unable to examine the registration application and the registration is getting deemed approved, the officers are not having any knowledge of deemed approval. 2. The registration applications are transferred to non-existing jurisdictions i.e.(49) circles and LTUs disbanded in 2018 vide reference 2nd cited, as there are no officers assigned to these jurisdictions the applications are getting deemed approved. 3. The GSTN is showing AADHAR authentication successful in registration application. On verification in few cases, except name, none of the other details i.e. Date of birth, Father Name, Mobile number, Email ID, Photograph are matching. 4. The documents submitted as proof of permanent place of business such as Power bill, Rental Agreement are bogus. In case of some TPs, the power bill is related to Hyderabad of Pakistan. The basic verification is also not being done by the proper officer for registration. 5. There is no review of work of proper officer for registration such as registrations applications received, transferred and deemed approved and no watch on new registrants. In view of the above, the following instructions are issued: 1. The registration application, if required to be transferred to other jurisdiction, on reason of address not within Jurisdiction limits, shall be transferred on or before 2nd day of receipt of application. 2. On transfer of registration application, the same shall be intimated to: a. Proper officer of Registration to whom application is sent (Through Mail and also through phone) b. Jurisdictional head of the transferee i.e AC(ST) (Through Mail) c. Jurisdictional Head i.e. AC(ST) of the transferor (by circulating file) d. Division heads i.e. Joint Commissioner(ST) of the transferor and Transferee (Through Mail) 3. None of the applications should be forwarded to non-existing Jurisdictions i.e. erstwhile disbanded circles/LTUs. And also to existing STUs (Strategic Tax Payer Units). 4. The Sub State admin shall regularly verify whether any registrations are in the disbanded circles /LTUs and the same shall be transferred to other jurisdictions duly informing the jurisdiction officers through mail.The circle heads shall verify the details of all these cases received and ensure that no fake TP is in the list. 5. No new registrations are needed to be granted in STUs. If any registration applications are received in STUs, the same shall be transferred to corresponding jurisdictions, following the instructions issued above (SL.No 1 Sl.No 2). 6. The DC (ST) STUs may send the list of TPs in STUs, other than the allotted cases, on account of approval of registration application in STU, to Sub state admin, who shall transfer these cases to corresponding Jurisdictions, duly intimating the TP details to Jurisdictional officer . The circle heads shall verify the details of all these cases received and ensure that no fake TP is in the list. 7. In cases where system is showing AADHAR Authentication Successful but AADHAR details are not matching, Registration applications are to be verified following the procedure prescribed. 8. The GST portal is displaying details of other registrations (Active and cancelled) on same PAN while processing Registration application. In case where any of the registrations are cancelled on reason of fraud, detailed verification to be conducted before issuance of registration as per the procedure prescribed. 9. The proper officer for registration shall submit details of Registration Applications received, Applications transferred, Normal Deemed approved registrations and revocation of cancellation of registration details in the prescribed Proformas attached and submit every month to AC(ST) of the circle. 10. The AC (ST) and proper officer for registration shall keep a watch on newly registered TPs by examining discrepancies in various aspects such as e-waybill generation, GSTR 2B Vs 3B, GSTR 1 Vs 3B and EWB Vs 3B, Turnovers and ITC claimed and passed on etc for at least (6) months from grant of registration and in case any TP is found be involved in fake transactions, shall take immediate action following due procedure. 11. If in any circumstances any registration got deemed approved, the proper officer should intimate the same to the circle AC(ST) along with reasons and do field visit after getting necessary permissions following the procedures prescribed in the Act and rules and submit a verification report to AC(ST) of circle. 12. If any application for change in address of principal place of business is received by proper officer for approving amendments to registration, the officer shall intimate the same to Jurisdictional Assistant Commissioner(ST) before approving the amendment. 13. The AC (ST) shall review the progress of registration every month and submit the details to JC (ST) of the division. Division heads shall monitor the registration work regularly. The supervising officers shall initiate immediate disciplinary action in case of malpractices in transferring registration applications and deemed approvals. 14. Further CBIC has issued certain instructions for verification of application for registration so as not to issue registrations to bogus firms vide reference 1st cited. The same shall be followed. Any deviations in following these instructions will be viewed seriously and necessary disciplinary action will be initiated. Difficulties, if any, in implementation of these instructions may be informed. Encl: Proformas. Sd/-Neetu Prasad Commissioner (ST) Proforma-I Details of Registrations Applications Transferred to other Jurisdictions S.No Name of The TP ARN Date of receipt of application Due date of Approval Date on which Application Transferred Jurisdiction to which Application Transferred Reason for transfer Proforma-II Details of Registrations Applications received from other Jurisdictions S.No Name of The TP ARN Date of receipt of application Due date of Approval Jurisdiction from which application received Whether Approved / Rejected Date of Approval / Rejection Proforma-III Details of Registrations Deemed Approved S.No Name of The TP ARN Date of receipt of application Due date of Approval Date on which deemed Approved Reason for Deemed approval Details of verifications after deemed Approval Proforma IV Details of Registrations Granted/ Rejected S.No Name of The TP ARN Date of receipt of application Whether Approved / Rejected Date of Approval / Rejection If Rejected (Reason for Rejection) Proforma V Details of Revocation of cancellations S.No Name of The TP ARN Date of receipt of application for revocation of cancellation Reason for cancellation Whether approved /Rejected Reasons for approval/Rejection