Approximately 4000 businesses from Ludhiana have been labelled as suspects by the online system which is a significant development in the GST department’s campaign to combat fictitious and suspicious registrations.
This figure is expected to increase. On May 16, the campaign officially began and it will take some time to thoroughly study each case and establish the scope of questionable registrations because there are so many assessees in the Ludhiana district, as per the sources.
As per the sources, data from the Ludhiana division of the State GST (SGST) department shows that more than 88,000 dealers are registered in Ludhiana at present under the GST.
Five separate ranges are covered by these dealers, with ranges 1 and 2 accounting for the majority of the total GST registrations. According to other sources, SGST officers have been given the authority to intervene in situations of bogus and questionable registrations as part of the continuing operation.
SGST’s ranges have also begun getting ready their teams to physically verify the dealers who have been detected as suspicious.
At the same time, tax expert NK Thamman has advised the businessmen whose registrations are on the list of suspicious registrations that the state or central tax authorities will physically check the locations of these suspicious entities to see if they are real before making a determination about their existence.
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The property documentation for the premises, such as the rent deed, ownership proof, etc., may be requested by the authorities during the verification process. To verify that the transactions of such businesses are legitimate, the authorities may also request records from suppliers and purchasers, such as purchase and sale paperwork and payment information.
The United Cycle and Parts Manufacturers Association stated in a statement that the department performs every type of verification during registration under the GST regime, in opposition to the campaign of the GST authorities.
A physical inspection of the location could also be part of it. Why torment the sector by going door-to-door checking when a company has been inspected, obtained registration, and timely filed reports and taxes? The situation has put the industrialists in a panic so the department should avoid harassing the industry leaders and promote ease of doing business.
