SOP issued to check rise of bogus firms in GST registration

In a bid to prevent the use of bogus documents for GST registration, Chief Commissioner of Central GST (CGST) Bhopal zone Navneet Goyal on Thursday issued the Standard Operating Procedure (SOP) in a trade notice.

As per the notice, aspirants will have to upload crucial documents of their business establishment like rent or lease agreement and registered/notarized NOC for GST registration. Besides, the address on the property document, property tax receipt, municipal khata copy, and electricity bill should be the same as mentioned in the application.

The objective is to prevent the use of forged documents and reduce queries and other GST registration hurdles.

Rejection of registrations or queries often causes unnecessary delays. It was found that queries or rejections arose due to the submission of illegible documents by applicants or a mismatch in an address in uploaded documents and applications for registration.

In some cases, the businessman and the property owner were different or the rent agreement, and NOC for business at rented premises was submitted on plain paper.

As per the trade notice, in light of mushrooming of bogus firms, registration is needed for applications to be checked properly and due diligence exercised by officers. At the same time, it was also important that a genuine taxpayer was not inundated with frivolous queries.

Given the above, the SOP was prepared, wherein it was mentioned that all documents uploaded with the application for registration must be legible.

The rent, lease agreement, NOC, and consent letter should be registered or notarized. In case, the trade name is different from the legal name, a valid document like Gumasta, etc. would have to be submitted. The photograph uploaded in the REG-01 should be a recent one. 

Source from - https://www.freepressjournal.in/indore/indore-sop-issued-to-check-rise-of-bogus-firms-in-gst-registration