The Central Board of Direct Taxes and Customs (CBIC) has issued a Standard Operating System (SOP) to prevent tax evasion and save revenue. Under this, the Goods and Services Tax (GST) Authority is now empowered to immediately suspend GST registration of taxpayers whose sales returns, i.e. GSTR-1 forms and returns filed by their suppliers will be larger.
The Central Board of Direct Taxes and Customs (CBIC) has issued Standard Operating Procedure (SOP) in this regard. According to the SOP, officials can immediately cancel a taxpayer’s registration if errors indicating a violation of the GST law are found. Taxpayers can be notified about this in their registered email ID.
The SOP said that there is a big discrepancy between the return filed by the registered person and the information provided in GSTR-1 or the return filed by their suppliers, in which case the registration may be canceled.
According to the SOP, “Taxpayers will be able to report this on the GST Registration Form-1 in the portal until the Form Registration-13 is completed within the stipulated time. You will be able to view the notice after logging in. .
Notably, GST officers have already intensified their efforts to curb tax evasion. In the last four months, GST collection has consistently been above Rs one lakh crore. GST collection in January was a record high of around Rs 1.20 lakh crore.