Modified GST Registration process to curb fake registrations
The government is changing the way businesses register for Goods and Services Tax (GST) to stop people from creating fake registrations. The modified process has been made effective from 6th September 2024 in the States of Bihar, Delhi, Karnataka and Punjab.
The Goods and Services Tax (GST) has been in effect for over seven years, and the government has taken various measures to prevent tax evasion and increase tax collection. One major challenge under GST has been the issue of fake registrations, which has led to businesses claiming false input tax credits and resulting in financial losses for the government. To address this problem, the Goods and Services Tax Network (GSTN) has issued an advisory on September 6th, 2024 regarding changes to the GST registration process.
The advisory targets the states of Bihar, Delhi, Karnataka, and Punjab, and came into effect on September 6th, 2024. The basic process remains the same, but there is a new step involved. After applying for registration, the applicant will receive either of the following links in the e-mail:
- Link for OTP-based Aadhaar Authentication OR
- A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail)
If the applicant receives the link for Aadhaar based OTP verification then the application will be submitted otherwise, the applicant have to visit a dedicated GST department office for biometric identification.
These changes to the registration process are a direct result of amendments made to the CGST rules in 2017. The new process aims to prevent fraudulent registrations, ultimately reducing the instances of fake input tax credit (ITC) claims and minimizing financial losses for the government.
Here are the key points:
- The GST registration process has been modified to prevent fake registrations
- The changes apply to the states of Bihar, Delhi, Karnataka, and Punjab
- Applicants can choose to authenticate their application using Aadhaar or alternative means
- Biometric authentication and document verification will be conducted at designated GST Kendras.
- Applicants must bring original documents and arrive within the specified timeframe for biometric verification
- The changes aim to prevent fraudulent registrations and reduce financial losses for the government
Stay Updated
Subscribe to our newsletter and never miss an update.
