The idea of linking GST registration to biometric, government strict to prevent fraud

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For those who do not have an Aadhaar identification number, the new Goods and Services Tax (GST) registration will not be possible immediately, as a strong panel is talking about linking GST registration through biometric. There will be a system of GST registration through live photos based on biometric information like Aadhaar at the time of registration. Two officials gave information about this.

On condition of anonymity, the official said that the GST Council Law Committee has suggested that new GST applicants will follow the Aadhaar-like process, under which new registrations can be done online with live photos, biometric usage and verification of documents. Will be able to

Such facilities (registration with biometric details) can be provided at GST service centers (GSK), like banks, post offices and Passport Seva Kendras (PSKs) or Aadhaar Seva Kendras (ASKs), an official said. GSK will work on the pattern of Passport Seva Kendras to provide new registration facilities with necessary checks on fake registrations.

The second official said that this process is under consideration to investigate fraud related to GST. He said, annually, 18–19 lakh new GST registrations occur, but only 30 per cent of them remain at the end of the year. Around 13–14 lakh GST-registered units went missing. Most of them are fly-by-night operators. They make fake firms. In fact they claim input tax credit (ITC) without the supply of goods and services.

The committee held a two-day meeting at a time when the government has initiated nationwide action against GST fraud. So far 48 people have been arrested for the GST fraud, including a woman and three chartered accountants (CAs). It has registered 648 cases in addition to identifying 2,385 fake entities in just 10 days.