The GST Council is exploring a nationwide rollout of biometric Aadhaar authentication for individuals seeking GST registration, particularly those flagged as suspicious. This move aims to tackle fraudulent practices and protect tax revenue, building on successful pilot programmes in Gujarat, Andhra Pradesh, and Puducherry. The proposed system would require applicants to visit an Aadhaar centre for biometric verification, a step up from current OTP-based methods, to prevent identity misuse and the creation of fake Input Tax Credit firms.
In a significant move to combat fraudulent practices in Goods and Services Tax (GST) registration, the GST Council is considering a proposal to make biometric-based Aadhaar authentication mandatory pan-India for individuals deemed suspicious, seeking GST registration, according to Sanjay Kumar Agarw
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FAQ :
The GST Council is contemplating a pan-India rollout of biometric-based Aadhaar authentication for individuals seeking GST registration, especially those deemed suspicious.
Gujarat, Andhra Pradesh, and the Union Territory of Puducherry are currently implementing Aadhaar authentication on a pilot basis.
The pilot programmes have shown encouraging results, including a decrease in registration applications in Gujarat, which suggests a reduction in individuals using fake identities for bogus Input Tax Credit firms.
Currently, GST authorities use OTP-based Aadhaar authentication. The proposed biometric method would require suspicious applicants to visit an Aadhaar centre for physical biometric verification.
As of now, no formal proposal has been presented to the GST Council, but the possibility of such a proposal in the future has been acknowledged.
GST authorities are focusing on risk assessment, conducting physical verification of applicants before registration, and have recently cracked down on syndicates creating fake Input Tax Credit.