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Government introduces mandatory physical verification of business premises for GST registration

  • IASbaba
  • December 28, 2020
  • 0
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Government introduces mandatory physical verification of business premises for GST registration

Part of: GS Prelims and GS-III – GST; Taxation

In news 

  • The government has introduced mandatory physical verification of business premises for the purposes of obtaining GST registration.

Key takeaways 

  • The move is aimed at controlling the menace of GST fake invoice frauds. 
  • Recommended by: GST Council’s law committee.
  • Separately, a new rule has been introduced by the Central Board of Indirect Taxes and Customs that mandates businesses with monthly turnover of over ₹50 lakh to pay at least 1% of their GST liability in cash instead of using input tax credits to discharge their entire liability.
  • The validity of e-way bills has also been changed, doubling the distance to be covered for each day of validity, effective January 1. 
  • Till now, an e-way bill for transporting goods under GST allowed transporters to cover 100 km in one day. 
  • Now, that distance for each day of validity has been increased to 200 km.

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