The Tamil Nadu Commercial Taxes Department, under the leadership of Dr. D. Jagannathan, I.A.S., Commissioner of State Tax, issued Circular No. 4/2024 on May 16, 2024. This circular introduces a Standard Operating Procedure (SOP) aimed at enhancing the onboarding process for newly registered taxpayers under the Goods and Services Tax (GST) regime. The initiative underscores the importance of fostering a meaningful relationship with taxpayers while ensuring compliance and preventing the misuse of the GST system.
SOP Overview
- Transition from RPAD to Welcome Letter: Historically, registration certificates were dispatched through Registered Post with Acknowledgement Due (RPAD). This method provided a tangible connection between the department and the taxpayer, serving as proof of business existence. However, with the advent of online registration under the Total Solution Project (TSP) and the TNGST Act, 2017, physical copies are no longer in practice. The new SOP reintroduces the RPAD concept in the form of a ‘Welcome letter’ sent by Territorial Joint Commissioners to new registrants.
- Purpose and Procedure: The ‘Welcome letter’ serves as a gesture of goodwill towards new taxpayers and helps verify the existence of businesses. The SOP outlines the roles and responsibilities of Joint Commissioners and Registering Authorities to ensure smooth implementation.
Key Actions
- Joint Commissioners’ Responsibilities:
- Drafting and Sending Welcome Letters: Joint Commissioners are responsible for drafting and sending bilingual ‘Welcome letters’ via RPAD.
- Updating Delivery Status: The delivery status of these letters must be updated in the TSP Portal.
- Follow-Up Actions: In cases where letters are undelivered, Joint Commissioners must initiate follow-up actions.
- Registering Authorities’ Actions:
- Issuing Show Cause Notices (SCN): For undelivered letters, Registering Authorities must issue SCNs to the taxpayers.
- Conducting Physical Verifications: Authorities are required to perform physical verifications of the business premises and take appropriate registration actions based on the responses received.
Implementation and Monitoring
- Infrastructure and MIS Reports: The Additional Commissioner (System) is tasked with providing the necessary infrastructure for implementing the SOP and generating Management Information System (MIS) reports.
- Ensuring Compliance: Joint Commissioners must effectively implement the procedure and closely monitor the follow-up actions by Registering Authorities to prevent non-existent registered taxpayers from exploiting the GST system.
The issuance of Circular No. 4/2024 marks a significant step by the Tamil Nadu Commercial Taxes Department towards improving taxpayer engagement and compliance under the GST framework. By replacing traditional communication methods with personalized ‘Welcome letters’ and implementing robust verification processes, the department aims to foster transparency and accountability among new GST registrants.
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Official Circular No. 4/2024 Excerpt
GOVERNMENT OF TAMIL NADU COMMERCIAL TAXES DEPARTMENT
OFFICE OF THE COMMISSIONER OF COMMERCIAL TAXES EZHILAGAM, CHENNAI-600 005
PRESENT: Dr. D.JAGANNATHAN, I.A.S., COMMISSIONER OF STATE TAX
Circular No. 4/2024 Dated: 16.05.2024 (PP2/GST-15/29/2024)
Sub: GST – Newly registered taxpayers – Standard Operating Procedure (SOP) to be followed – ‘Welcome letter’ to be sent by Territorial Joint Commissioners – guidelines issued – regarding.
Key Directives:
- Action to be Initiated by Joint Commissioners:
- Upon approval of registration, Joint Commissioners will draft and send a bilingual ‘Welcome letter’ to new taxpayers via RPAD.
- They must update the Reference number (RFN) and date of dispatch in the TSP Portal.
- Delivery status must be recorded in the portal, and undelivered letters should trigger immediate action by Registering Authorities.
- Follow-Up Actions by Registering Authorities:
- Tasks are created for undelivered letters, prompting SCNs and physical verification of business premises.
- Based on responses and verification reports, the registration may be upheld or cancelled.
Implementation and Monitoring:
- Additional Commissioner (System): Responsible for infrastructure and MIS reporting.
- Joint Commissioners: Ensure seamless SOP implementation and monitor Registering Authorities’ actions.
Conclusion: This SOP aims to enhance taxpayer engagement, ensure compliance, and prevent misuse of the GST system.
Sd/- D. Jagannathan Commissioner of State Tax
Sample Welcome Letter Format
Office of the Joint Commissioner, … Division
Address
Landline
Mobile
Email
RFN
Date
To, Tvl … (Legal Name)
Tvl … (Trade Name)
GSTIN
Full address with pin code
Dear Taxpayer,
Hearty welcome to the Tamil Nadu Commercial Taxes Department!
I am happy to inform you that you are now part of the State GST family, consisting of about 7 lakh registered taxpayers. We value your contribution to the State’s growth through tax payments and are committed to resolving any difficulties you might face in complying with the GST Act and Rules, 2017.
As a newly registered taxpayer, understanding the GST law requirements can be challenging. We provide brief guidance in the Annexure attached. For detailed information, refer to the GST law, rules, notifications, circulars, and advisories available at Commercial Taxes Department Website and GST Portal.
For any GST Portal Application issues, please email helodesk.ctd@tn.gov.in or call the Help Line number 1800-103-6751.
For GST Grievance Redressal, contact the Grievance Redressal Cell at Nandanam, Chennai, over phone at 9444099001, 9444099002, or email dealergrievances.ctd@tn.gov.in.
For complaints, contact the Complaint cell at 044-28514250 or email ctdpetition.ctd@tn.gov.in.
We welcome your feedback and suggestions at Feedback Form to improve our services.
Wishing you all the best in your business venture.
Yours sincerely,
(Name)
Annexure: Important GST Compliance Dates
- Effective date of registration: …
- First return to be filed on: …
- Registration Type: Regular/Composition/Casual Taxable Person/Non-Resident Taxable Person/Input Service Distributor/Tax Deductor at Source/Tax Collector at Source
- Return Type: GSTR-3B / GSTR-4 / GSTR-5 / GSTR-6 / GSTR-7 / GSTR-8
Monthly Return Filing Dates:
- GSTR-1: On or before the 11th of the succeeding tax period (monthly/quarterly).
- GSTR-3B: On or before the 20th (monthly) or 22nd (quarterly) of the succeeding month.
- GSTR-5: By the 20th of the succeeding month.
- GSTR-6: By the 13th of the succeeding month.
- GSTR-7 and GSTR-8: By the 10th of the succeeding month.
Annual Return Filing Dates:
- GSTR-4: By the 30th of the month following the financial year.
- GSTR-9 and GSTR-9B: By the 31st of December following the financial year.
- GSTR-9C: By the 31st of December, along with audited accounts and reconciliation statement, if turnover exceeds Rs. 5 Crores.
This detailed analysis of Circular No. 4/2024 highlights the Tamil Nadu Commercial Taxes Department’s efforts to modernize taxpayer engagement and compliance processes, ensuring a robust GST framework.
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