The 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, under the chairpersonship of the Union Finance & Corporate Affairs Minister Smt. Nirmala Sitharaman.
The GST Council has recommended several amendments to the CGST Rules, 2017, aimed at enhancing the registration process and effectively addressing the issue of fake and fraudulent registrations. The proposed amendments are as follows:
- Amendment to Rule 10A: Within 30 days of registration approval or before filing the statement of outward supply in FORM GSTR-1/IFF under section 37 of the CGST Act, the registered person will be required to furnish bank account details, including the name and PAN. Whichever event occurs earlier will be the deadline for submitting this information.
- Amendment to Rule 21A(2A): The registration of registered persons who fail to provide valid bank account details as per Rule 10A within the prescribed timeframe will be subject to system-based suspension.
- Insertion of 3rd proviso in Rule 21A(4): Automatic revocation of the system-based suspension will occur upon compliance with the provisions of Rule 10A.
- Amendment to Rule 59(6): Registered persons who have not furnished valid bank account details under Rule 10A may not be permitted to furnish details of outward supplies in FORM GSTR-1 or through the Invoice Furnishing Facility (IFF).
- Amendments to Rule 9 and Rule 25: The requirement for physical verification of business premises in the presence of the applicant will be eliminated. Additionally, in high-risk cases, physical verification may still be conducted even if Aadhaar authentication has been completed.
The Press Release can be accessed at: https://www.pib.gov.in/PressReleasePage.aspx?PRID=1938812