GoM Recommends Compulsory Physical Inspection of Premises for Registration in GST

The Group of Ministers (GoM) on GST System Reforms, led by Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar, resolved to offer seven suggestions to the GST Council at its second meeting.

This includes the deployment of a biometric system to combat GST theft, physical inspections of firms’ office space, making an electricity connection number required when registering for GSTN, and National Payments Corporation of India verification of taxpayers’ bank accounts (NPCI).

The GST Council was advised to establish a feedback mechanism to investigate the wrongdoing of questionable enterprises. It has also suggested that firms be physically verified at the time of registration.

The meeting, which was also attended by Haryana Deputy Chief Minister Dushyant Chautala, Tamil Nadu Finance Minister Dr. Palanivel Thiagarajan, and Assam Finance Minister Ajanta Neog, reviewed ways to make the GST system easier for officials and taxpayers.

“Since its inception, the GST system’s mechanism has been regularly improved to ensure greater service. While information and technology should be used to combat tax evasion, it should also be used to provide clients with straightforward and non-glitchy services”, according to Mr. Pawar. He went on to say that the GoM explored several strategies to achieve this goal.

Mr. Pawar remarked that the implementation of checks and balance system for income tax system will lead to limitations on GST fraud.

Source: The Hindu