Information to be Included in Exclusion Certificates of Tier-I Retailers

Information to be Included in Exclusion Certificates of Tier-I Retailers

Information to be Included in Exclusion Certificates of Tier-I Retailers: Exclusion certificates in the light of STGOs issued each month by the Board.

However, these certificates sometimes omit some crucial information or use an identifier (NTN, STRN etc.) different from that used in the STGOs. Accordingly, I am directed to request that each exclusion certificate must be issued such that:

  • Each taxpayer/ RP be issued a certificate individually instead of putting a list in a single certificate
  • Each exclusion certificate must include all of the following pieces of information:
  • Taxpayer’s Business Name, STRN and NTN
  • Reason for exclusion from the STGO (Whether the taxpayer doesn’t qualify as a tier-I retailer in terms of section 2(43A) of the Sales Tax Act 1990 OR the taxpayer has integrated from a specific date OR any other cogent reason/ justification established by the CIR)

STGO from which the exclusion is being granted along with the Serial Number within the STGO, the taxpayer appears at.

Whether a retailer is liable for integration or not, depends on its qualification as a Tier-1 Retailer u/s 2(43A) of the Sales tax Act, 1990 read with Chapter XIV-AA of the Sales Tax Rules, 2006. Declaring a retailer/ registered person as non-eligible for integration through an exclusion certificate, has to be done within this legal framework.

I am, therefore, directed to highlight that reasons like nil/ null return filing, move of business premises, suspension etc., are not provided for in this legal framework.

Accordingly, I am further directed to request that all exclusion certificates issued for reasons other than taxpayer’s complete integration of all its POS terminals at all its outlets or non-applicability of each and every clause of section 2(43A) of STA 1990, be revisited by the concerned CIRs and re-issued on valid legal/ factual bases.

Moreover, in unusual cases like closure of business or any other such circumstances, the registered person/ retailer be de-registered first as per law and only then issued an exclusion certificate.

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