Background:
Earlier, the 50th Meeting of the GST Council was held on July 11, 2023 in New Delhi, wherein it was recommended to amend Rule 9 and Rule 25 of the Central Goods and Services Tax, Rules, 2017 (“the CGST Rules”) to do away with the requirement that the physical verification of business premises is to be conducted in the presence of the applicant. Also to provide that physical verification will be done in high-risk cases even where Aadhaar has been authenticated.
The above-mentioned recommendation has been notified vide the following notification:
Notification:
The CBIC vide Notification No. 38/2023 – (Central Tax) dated August 04, 2023 has issued ‘the Central Goods and Services Tax (Second Amendment) Rules, 2023’ to further amend the CGST Rules in to order to align with recommendations of the 50th GST Council Meeting held on July 11, 2023.
In the said rules, for rule 25, the following rule shall be substituted, namely: –
“25. Physical verification of business premises in certain cases. –
(1) Where the proper officer is satisfied that the physical verification of the place of business of a person is required after the grant of registration, he may get such verification of the place of business 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.
(2) Where the physical verification of the place of business of a person is required before the grant of registration in the circumstances specified in the proviso to sub-rule (1) of rule 9, the proper officer shall get such verification of the place of business done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal at least five working days prior to the completion of the time period specified in the said proviso.”
Impact of the Notification:
The previous Rule 25 of the CGST Rules mandated the applicant’s presence during the physical verification of premises. However, recognizing the practical challenges faced by taxpayers and field formations, the rule is now amended to ease the process by conducting such verification in the absence of the registered person.
The Notification can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009820/ENG/Notifications
(Author can be reached at info@a2ztaxcorp.com)
DISCLAIMER: The views expressed are strictly of the author and A2Z Taxcorp LLP. The contents of this article are solely for informational purpose and for the reader’s personal non-commercial use. It does not constitute professional advice or recommendation of firm. Neither the author nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this article nor for any actions taken in reliance thereon. Further, no portion of our article or newsletter should be used for any purpose(s) unless authorized in writing and we reserve a legal right for any infringement on usage of our article or newsletter without prior permission.