GST registration with Aadhaar likely to check bogus billing

Ludhiana, July 25

The Central Government has implemented a significant policy shift requiring applicants to undertake biometrics-based Aadhaar Identification before granting new GST registrations. The Ministry of Finance has issued an order in this regard.

NK Thamman, an advocate, said biometrics-based Aadhaar authentication was required for the taxpayers applying for new registrations who had chosen to have their Aadhaar numbers authenticated when filing their applications and who were recognised by common portal based on data analysis and risk parameters.

“A taxpayer must visit one of the centres for facilitation that the Commissioner has designated. The applicant’s biometrics and photos will be collected at the centre. Additionally, the centre will carry out the original document verification. Earlier, this was started on a pilot basis in a few states,” said Thamman.

In accordance with the 53rd GST council meeting’s recommendations, it has now been implemented all over. The experts see it as a move to avoid misuse of credentials of innocent people and to stop fake registration.

As per new rules, in case someone applies through the Aadhaar card for getting GST registration, the file will be sent to the department, where the applicant will be called and his/her photo clicked and biometrics will be done. Then the department will do the physical verification. The documents and ID proofs of the firm will be put up in the computer system and in case any discrepancy will be found, the artificial intelligence will catch it and then the higher-ups will do the verification. The GST will be provided if the department is satisfied.

Commenting on this new policy, FOPSIA president Badish Jindal said he hoped that there would be some check on the bogus billings now as many industrialists were claiming GST on bogus bills by adopting unethical means.