In a bid to curb fraudulent GST registrations, Madhya Pradesh is set to implement biometric-based Aadhaar authentication at 46 GST service centres across the state. This initiative aims to filter out deceitful taxpayers at the initial stage of registration, thereby preventing tax evasion and safeguarding the exchequer's revenue.
These service centres, jointly managed by the state (SGST) and central (CGST) GST departments, are expected to become operational by the last week of November 2024. At these centres, applicants’ photographs will be captured, and original documents will be physically verified to prevent misuse of the online system.
Enhanced Scrutiny Through Biometric Verification
According to SGST Additional Commissioner Rajani Singh, fraudulent taxpayers often use forged bills and counterfeit documents to secure GST registrations. "The introduction of biometric authentication at these sewa kendras will ensure such cases are identified early and eliminated from the system," Singh said.
In Indore alone, an average of 15 new GST registration applications are submitted daily. A data-driven system will flag applications linked to suspicious transactions or fraudulent PAN details, redirecting them to the sewa kendras for stringent verification. This includes checking documents such as rent agreements and utility bills in the presence of the applicant.
Service Centre Distribution
Of the total centres, five will be operated by CGST in Indore, Ujjain, Bhopal, Jabalpur, and Gwalior, while the remaining will fall under SGST. Appointments will be allocated to applicants at these centres for completing the biometric authentication process.
Expert Insights on the Initiative
Tax experts have hailed the move as a necessary step to curb the exploitation of the online GST registration system. By introducing biometric Aadhaar authentication, the authorities aim to ensure a robust mechanism for verifying the legitimacy of taxpayers.
This initiative is expected to streamline the registration process, reduce fraudulent practices, and ultimately contribute to a more transparent GST ecosystem in Madhya Pradesh.
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