FUNCTIONS OF CENTRAL PROCESSING CELL OFFICERS - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

13. FUNCTIONS OF CENTRAL PROCESSING CELL OFFICERS 13.1 The registration applications filed at the GST common portal (GSTN) are forwarded to the Central and State tax authorities as per GST Law and defined algorithms. The applications will be routed to the concerned CPC zone based on the address of the principal place of business. 13.2 The CPC officer views the application falling under category either With PV or without PV . If the Aadhar has not been authenticated while filing for registration then the application will land on the dashboard under category with PV . Even, if the Aadhar has been authenticated, based on data analysis and risk parameters, certain applications will land on the CPC dashboard under category with PV . 13.3 CPC views the attached documents and can either approve or raise query within 7 working days (if application falling under without PV category). If no response to query is received within next 7 working days or the response to query is not satisfactory, the officer can reject the application. In other cases, CPC verifies the attached documents and can either approve or raise query within 30 days (if application falling under with PV category). If no response to query is received within next 7 working days or the response to query is not satisfactory, the officer can reject the application. 13.4 Registration application sent to Divisional AC/DC for physical verification. If the physical verification report is not sent to CPC within thirty days from the date of submission of the application so as the notice in FORM GST REG-03 may be issued not later than thirty days from the date of submission of the application, it will get deemed approved. A detailed Standard Operating Procedure dated 27.11.2020 has been issued by GST Policy Wing for verification of taxpayers granted deemed registration. 13.5 In terms of Rule 25 of CGST Rules, 2017, when the proper officer is satisfied that the physical verification of the place of business of a person is required due to failure of Aadhaar authentication or due to not opting for Aadhaar authentication before the grant of registration, or due to any other reason after the grant of registration, he may get such verification of the place of business, in the presence of the said person, done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification. 13.6 Physical verification of business premises in certain cases (i) The Physical Verification is carried out by the Inspector/ Superintendent at Division Level. The CBIC notified the Standard Operating Procedure (SOP) for verification of taxpayers granted deemed registration vide Instruction No. 4/3/2020-GST dated 27.11.2020. After the completion of Physical Verification, the officer has to submit the Visit Report and on the basis of the same the Superintendent shall submit the Physical Verification report in FORM GST REG-30 along with recommendation to CPC for further processing of registration. (ii) The said Inspector/ Superintendent conduct physical verification of the principal place of business and wherever possible, additional place of business, indicated in GST registration FORM REG-01 of the concerned registrant. During the physical verification, the officer, among other things, would also verify the following details: a. In case the applicant intends to carry out manufacturing activity, whether capital goods, if required for the said manufacturing activity, have been installed. b. Electricity connection, bills paid in the relevant period. c. Size of the premises whether it is commensurate with the activity to be carried out by the applicant. d. Whether premises is self-owned or is rented and documents relating to ownership/ registered lease of the said property. In case of doubt, enquiry may also be made from the landlord/ owner of the property in case of rented / leased premises. e. No. of employees already employed and record of their employment. f. Aadhaar and PAN of the applicant and its Proprietor, Partners, Karta, Directors as the case may be and the authorised signatories. g. Bank s letter for up-to-date KYC. (iii) In addition to the physical verification conducted, the said Inspector/ Superintendent, in the interest of revenue, would carry out the preliminary financial verification of the registrants by seeking the following documents and carrying out its scrutiny: a. ITRs of the company / LLP from the date of incorporation or for last three financial years, whichever is less. ITRs of proprietor, partners, Karta, etc. may be taken in other cases. b. The status of activity from the date of registration of all the bank account(s) linked to registration; the same may be taken through a letter / undertaking from the applicant. Phone number declared / linked to each of the bank accounts may also be obtained. c. Quantum of capital employed/proposed to be employed. d. Out of the amount mentioned at (c) above: (i) Own Funds: (ii) Loan Funds: (indicate the names, complete address, PAN and amount borrowed from each such lender separately) e. In case of own funds, also check the audited balance sheet for previous financial year, where available, in addition to the Income Tax Returns mentioned in (a) above. f. In case of loan funds check the proposal submitted to the Bank/FI for approval of the loan and the maximum permissible bank finance as per such proposal, where the amount is proposed.