Government Makes Aadhaar Authentication Of Taxpayers Mandatory To Claim GST Refunds

The authorities has made Aadhaar authentication of taxpayers necessary for claiming GST refund.
The Central Board of Indirect Taxes and Customs (CBIC) has amended GST guidelines bringing in numerous anti-evasion measures, together with disbursal of GST refunds solely within the checking account, which is linked with identical PAN on which Goods and Services Tax (GST) registration has been obtained.

The notification additionally states that from January 1, 2023, companies who've defaulted in submitting abstract return and paying month-to-month GST won't be able to file GSTR-1 gross sales return of the succeeding month. The notification follows the selections taken on the assembly of the GST Council in Lucknow on September 17.

AMRG & Associates Senior Partner Rajat Mohan stated, "To arrest tax evasion, the government has made Aadhaar authentication for proprietor, partner, karta, Managing Director, whole time Director, and authorised signatory compulsory before filing an application for revocation of cancellation registration and refund application."

EY Tax Partner Abhishek Jain stated with the target of stopping income leakage, the federal government has made Aadhaar authentication necessary for a taxpayer to have the ability to declare refunds.

"The move will help in reducing cases of fraudulent refunds as only the verified taxpayers will obtain the refunds now," Jain added. With regard to taxpayers not deliver in a position to file their GSTR- 1 in the event that they haven't filed their GSTR-3B of the earlier month,Jain stated this can be a properly thought restriction and a needed management examine to remove the circumstances the place taxpayers though report their provide invoices in GSTR-1 (as a consequence of fixed comply with ups from recipients'' facet) however they don't submit their corresponding GSTR-3B return by way of which tax is definitely paid to the federal government.

"Compliant taxpayers would appreciate this move as till now their input tax credit was also at risk in case vendors do not file their GSTR-3B even though such invoice is appearing in GSTR-2A," Jain added.

Currently, the legislation restricts submitting of return for outward provides or GSTR-1 in case a enterprise fails to file GSTR-3B of previous two months. While companies file GSTR-1 of a specific month by the eleventh day of the next month, GSTR-3B, by way of which companies pay taxes, is filed in a staggered method between Twentieth-Twenty fourth day of the succeeding month.