GST Council recommends amendments to strengthen GST registration process and tackle fake registrations

One of the key amendments suggested is in rule 10A, which would mandate the provision of bank account details, including the name and PAN of the registered person, within 30 days of receiving registration or before filing the statement of outward supply (in FORM GSTR-1/IFF) under section 37 of the CGST Act, whichever comes earlier.

To enforce compliance with this requirement, an amendment in rule 21A(2A) has been proposed.

This amendment would enable the system-based suspension of registration for individuals who fail to furnish valid bank account details within the prescribed time frame mentioned in rule 10A.

To facilitate the revocation of such system-based suspensions, the council has recommended the inclusion of a third proviso in rule 21A(4).

This provision would allow for the automatic lifting of the suspension once the registered person complies with the provisions of rule 10A.

Additionally, an amendment to rule 59(6) has been proposed, which would prohibit registered persons who have not provided valid bank account details under rule 10A from furnishing the details of outward supplies in FORM GSTR-1 or using the Invoice Furnishing Facility (IFF).

Furthermore, the council suggests amendments to Rule 9 and Rule 25, intending to eliminate the requirement for physical verification of business premises in the presence of the applicant.

In cases deemed to be of high risk, physical verification would still be conducted, even if Aadhaar authentication has been completed.