With biometric verification, GST evasion will be stopped.
With biometric verification, GST evasion will be stopped.
The government will initiate the process of biometric Aadhaar authentication for verification in order to put an end to tax evasion related to the Goods and Services Tax (GST). By using this method, fraudulent claimants will be exposed. It is going to begin in Gujarat and then move on to Puducherry. Sanjay Malhotra, the Secretary of the Department of Revenue, has stated that the existing special joint campaign against false registration in GST may continue beyond July 15.
In point of fact, the GST campaign is turning up a significant number of applications that appear to be fraudulent. In such a scenario, the government will deploy authentication methods based on biometric information from the Aadhaar card to crack down on this fraud.
Let us tell you that in order to verify the applicants’ identities, officials in charge of the GST have been using one-time passwords (OTPs) for quite some time now. The Central Board of Indirect Taxes and Customs (CBIC) has announced that in the future, tax officers will aim to avoid fraud in the GST by using biometric Aadhaar authentication. In point of fact, in instances where this seems questionable, the individual in question will be referred to the Aadhaar centre in order to have his biometrics verified and his identity confirmed.
This is how fraud is being committed in the GST system.
The Central and State Tax Administrations have moved on with this measure in order to gather more information regarding false registrations in the GST. Officials from the state of Gujarat’s Department of Taxation were recently alerted that certain con artists had made false GST registrations without the knowledge of persons from economically vulnerable sections by exploiting their PAN and Aadhaar information. In addition to this,
the telephone numbers that were stored on these Aadhaar cards were also fraudulently altered. These individuals were enticed by the promise of financial gain and the advantages of government programmes. After this, these individuals were transported to the Aadhaar service centre that was located closest to them so that their thumb impressions could be taken. In addition, a fraudulent GST registration was completed in this manner by combining the individual’s Aadhaar card with a fake mobile phone number.
Authentication of Aadhaar Using Biometric Information
After incidents of this nature came to light in Gujarat and Puducherry, the decision was made to implement Aadhaar authentication using biometric data in those two states. The Council has also suggested that the particulars of the registered person’s bank account, as well as their name and PAN number, should be provided within a period of thirty days of the registration being granted. If this is not completed, he will not be permitted to submit his GSTR return.
17,000 crores worth of tax revenue lost to the government due to evasion
It is important that you are aware that around 70,000 registrations were found to be suspicious based on data analytics during a special joint push that began on May 16th. This information should be brought to your attention. During this, it was determined that over 62,000 registrations were authentic, while around 18,000 were found to be fraudulent. According to the information that has been gathered, these fake companies are to blame for the loss of approximately 17,000 crore Indian rupees to the government’s exchequer due to the fraudulent use of ITC.
