GST Registration of 1.10 Lakh Traders can be Canceled: Notification Issued

The GSTN registration of 1.10 lakh MP traders who pay less tax by notifying more customers than the new GST Department guidelines can be revoked at any time. There are 20 thousand Bhopal traders among them. In fact, many businesspeople and entrepreneurs tell their customers more about their company, but pay less than their tax liability. Take the remaining liability’s tax credit.

The government stated in a statement released on Thursday that the discrepancy between the trader’s monthly business return (GSTR-1) and the tax paid (GSTR-3B) should not exceed 10%. That example, if the dealer is assessed a tax of one lakh rupees based on sales and supply data, he must deposit at least 90 thousand rupees in the same month. The remaining 10% of the sum can be claimed as a tax credit.

The departments can terminate their GST registration at any time if the difference is more than this. The government has now requested all dealers to modify the records they filed in 2020-21, according to a departmental notification. That is, until March 31, traders whose returns deviate by more than 10% are eligible.

They can complete out a DRC-3 to deposit more tax. The MP GST department has identified 1.10 lakh merchants who do not pay more than 10% tax. All of this information is available on the GSTN website. The trader can compute and pay his own tax difference.

Now that this shift has occurred, the GST Department has stated in a notification released on Thursday that it is mandatory to deposit at least 90% of the tax burden on the basis of the monthly business return GSTR-1 in GSTR-3B. If the disparity is greater than this, the traders’ GSTN registration will be cancelled.