Government is rolling out plan to prevent GST fraud

Govt to roll out pan-India biometric authentication to prevent GST fraud. The Goods and Services Tax (GST) Council, during its 53rd meeting held on Saturday, announced a significant measure aimed at curbing fraudulent activities in the GST regime.

The council decided to implement pan-India Aadhaar-based biometric authentication to address the issue of fake invoicing, which is often used to fraudulently claim input tax credit (ITC). It is a proactive step by the GST Council to strengthen the GST regime and curb fraudulent activities.

The primary objective is to check the practice of fake invoicing used by unscrupulous elements to fraudulently claim ITC. This measure aims to enhance the compliance framework within the GST system and ensure the integrity of tax claims.

The authentication process will leverage Aadhaar-based biometric verification to validate the identity of GST registrants. The initiative will be implemented across the entire country, ensuring uniformity and consistency in the authentication process.

Using biometrics for authentication significantly reduces the risk of identity fraud, as biometric data (such as fingerprints or iris scans) are unique to each individual. Ensures that only genuine taxpayers can register and claim ITC, thus reducing the scope of fraudulent activities.

The requirement of biometric authentication acts as a deterrent against the generation of fake invoices, as it is much harder to manipulate biometric data. Biometric authentication allows for real-time verification, making it difficult for fraudsters to game the system.

For genuine taxpayers, this measure simplifies the compliance process by providing a robust and secure method of authentication. It helps in reducing the administrative burden on tax authorities by automating the verification process and minimizing manual checks.