Grant of GST Registration only after Physical Verification of Business place if Aadhaar Authentication isn’t done: Delhi Govt. [Read Notification]

The Delhi Government notified the Delhi Goods and Services Tax (Third Amendment) Rules, 2020 to further amend the Delhi Goods and Services Tax Rules, 2017.

The notification stated that while submitting an application, the applicant shall with effect from, undergo authentication of Aadhaar number for grant of registration from April 1, 2020.

The notification inserted a proviso wherein it is stated that where a person, other than those notified of section 25(6D), fails to undergo authentication of Aadhaar number as specified in rule 8(4A), then the registration shall be granted only after physical verification of the principal place of business in the presence of the said person, not later than 60 days from the date of application, in the manner provided under rule 25 and the provisions of sub-rule (5) shall not be applicable in such cases.

The objective of the government to insert this proviso is to reduce the fraudulent availment of ITC and reduce the frauds related to GST.

While clarifying the procedure for Physical verification of business premises in certain cases, the notification stated that where the proper officer is satisfied that the physical verification of the place of business of a person is required due to failure of Aadhaar authentication before the grant of registration, or due to any other reason after the grant of registration, he may get such verification of the place of business, in the presence of the said person, done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification.

“Where, upon examination of the application of refund of any amount paid as tax other than the refund of tax paid on zero-rated supplies or deemed export, the proper officer is satisfied that a refund under sub-section (5) of section 54 of the Act is due and payable to the applicant, he shall make an order in FORM RFD-06 sanctioning the amount of refund to be paid, in cash, proportionate to the amount debited in cash against the total amount paid for discharging tax liability for the relevant period, mentioning therein the amount adjusted against any outstanding demand under the Act or under any existing law and the balance amount refundable and for the remaining amount which has been debited from the electronic credit ledger for making payment of such tax, the proper officer shall issue FORM GST PMT-03 re-crediting the said amount as Input Tax Credit in electronic credit ledger,” the notification amended.

In the Delhi Goods and Services Tax Rules, 2017, rule 96B is inserted which is in respect of the recovery of refund of unutilized input tax credit of integrated tax paid on export of goods where export proceeds are not realized.

In the rules, in FORM GST RFD-01, after the declaration under rule 89(2)(g), the undertaking is also inserted by the notification wherein it is written that an applicant undertakes to deposit to the Government the amount of refund sanctioned along with interest in case of non-receipt of foreign exchange remittances as per the proviso to section 16 of the IGST Act, 2017 read with rule 96B of the CGST Rules 2017.

The amendment shall come into force retrospectively from 23 March, 2020.