GST evasion will be stopped by biometric verification

To curb evasion of Goods and Services Tax (GST), the department will start the process of biometric Aadhaar authentication for verification. Through this fake claimants will be caught. It will be started from Gujarat and Puducherry. Revenue Secretary Sanjay Malhotra says that the ongoing special joint campaign against fake registration in GST can be extended beyond July 15. Actually, a large number of suspicious applications are being found under the GST campaign. In such a situation, the government will use biometric-based Aadhaar authentication to crack down on this fraud.

Let us tell you that for a long time GST officials have been doing OTP-based authentication for the identity of the applicants. According to the Central Board of Indirect Taxes and Customs (CBIC), tax officials will now try to prevent fraud in GST through biometric Aadhaar authentication. Actually, under this, in suspicious cases, the person will be sent to the Aadhaar center for biometrics verification to ensure his identity.

This is how fraud is happening in GST

This step has been taken by the Central and State Tax Administration to get information about fake registration in GST. Gujarat state tax officials recently informed that some fraudsters had made fake GST registrations without the knowledge of economically weaker section people by misusing their PAN and Aadhaar numbers. Not only this, the phone numbers of these Aadhaar cards were also modified fraudulently. These people were given the lure of money and benefits of government schemes. After this, these people were taken to the nearest Aadhaar service center and their thumb impressions were taken. And in this way, by linking his Aadhaar card with a dummy mobile number, GST registration was done in a fraudulent manner.

Biometric-Based Aadhaar Authentication

The decision to introduce biometric-based Aadhaar authentication was taken in Gujarat and Puducherry after such cases came to the fore. The Council has also recommended that the details of bank account, name and PAN of the registered person should be furnished within 30 days of the grant of registration. If this is not done then he will not be allowed to file GSTR.

17,000 crore tax evasion to the government

It may be noted that during a special joint drive launched on May 16, around 70,000 registrations were found suspicious based on data analytics. In this, about 62,000 registrations were verified while about 18,000 were found to be fake. It is being told that these fake companies caused a loss of about Rs 17,000 crore to the exchequer through fraudulent use of ITC.
Category: Tax