Government introduces mandatory physical verification of business premises for GST registration
Part of: GS Prelims and GS-III – GST; Taxation
- The government has introduced mandatory physical verification of business premises for the purposes of obtaining GST registration.
- 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.