Biometric Authentication: A Key Step to Prevent GST Fraud
In a major move to combat fraudulent GST registrations, 46 GST service centres in Madhya Pradesh are set to implement biometric-based Aadhaar authentication. This initiative aims to stop fraudulent taxpayers at the registration stage itself, preventing revenue loss for the government.
A New Approach to Prevent Fraudulent GST Registrations
According to the GST department, the biometric authentication process will involve capturing the applicant’s photograph and physically verifying all original documents.
- Fraudulent GST registrations are often created using forged bills and fake documents.
- The new system will help identify and eliminate suspicious registrations early in the process.
Rajani Singh, Additional Commissioner of SGST, emphasized that this initiative will not only streamline the registration process but also reduce revenue losses caused by fraudulent taxpayers.
Structure of GST Service Centres
The 46 service centres will be jointly managed by the Central GST (CGST) and State GST (SGST) departments.
- 5 Centres: Operated by CGST.
- 41 Centres: Managed by SGST.
Locations of CGST Centres
| CGST Service Centres | SGST Service Centres |
|---|---|
| Indore, Ujjain, Bhopal, Jabalpur, Gwalior | Other major districts across the state |
How Does Biometric Authentication Work?
- Application Screening:
- Applications will be analyzed using historical data to detect any prior fraudulent registrations or transactions linked to the same PAN.
- Suspicious cases will be flagged and routed to service centres for biometric Aadhaar authentication.
- Document Verification:
- Applicants will be assigned an appointment at the service centre.
- Biometric authentication will be conducted alongside physical verification of documents such as rental agreements and electricity bills.
- Preventing Fraudulent Registrations:
- The system is designed to filter out fraudulent entities attempting to register under GST.
Impact on the GST Registration Process
In cities like Indore, where an average of 15 new GST registration applications are filed daily, the new system will help streamline the process by identifying and addressing suspicious cases.
Benefits of Biometric Authentication
| Benefits | Details |
|---|---|
| Reduced Fraud | Stops the use of fake documents. |
| Enhanced Transparency | Simplifies the process for genuine applicants. |
| Increased Revenue | Eliminates fraudulent taxpayers. |
Conclusion
The implementation of biometric-based Aadhaar authentication at 46 GST service centres in Madhya Pradesh is a significant step toward combating GST registration fraud. By combining technology with physical verification, the GST department is ensuring a more secure and transparent system, protecting the government’s revenue while making the process easier for genuine applicants.
This initiative marks a new chapter in GST compliance, setting a benchmark for other states to follow.
