The government has made Aadhaar authentication mandatory for taxpayers to claim the GST rebate.
The Central Council of Indirect Taxes and Customs (CBIC) changed the GST rules by introducing various anti-avoidance measures, including paying GST refunds only to the bank account, which is linked to the same PAN on which Goods and Services Tax (GST) registration has been obtained.
The notification also states that from January 1, 2022, businesses that failed to file a summary return and pay GST monthly will not be able to file the following month’s GSTR-1 sales return. The notification follows decisions made at the GST Council meeting in Lucknow on September 17th.
AMRG & Associates senior partner Rajat Mohan said: “To stop tax evasion, the government has made Aadhaar authentication mandatory for owner, partner, karta, general manager, manager full-time and authorized signing officer before filing an application for revocation of cancellation and refund registration.
EY’s tax partner Abhishek Jain said in an effort to prevent revenue leakage, the government made Aadhaar authentication mandatory for a taxpayer to claim refunds.
“This move will help reduce instances of fraudulent refunds, as only verified taxpayers will now get refunds,” Jain added. As for taxpayers who are unable to deposit their GSTR-1 if they haven’t deposited their GSTR-3B from the previous month, Jain said this is a thoughtful restriction and a control necessary to eliminate cases where taxpayers declare their supply invoices in GSTR-1 (due to constant follow-ups on the recipient’s side), but they do not submit their corresponding GSTR-3B declaration by which the tax is actually paid to the government.
“Compliant taxpayers would appreciate this decision because until now their input tax credit was also at risk in the event that suppliers did not produce their GSTR-3B even if such an invoice appeared in GSTR-2A,” Jain added. .
Currently, the law restricts the filing of declaration for outgoing supplies or GSTR-1 in the event that a company does not produce the GSTR-3B from the previous two months. While companies file the GSTR-1 of a given month before the 11th day of the following month, the GSTR-3B, by which companies pay taxes, is deposited in installments between the 20th and 24th day of the following month. .