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Madhya Pradesh Introduces Biometric Aadhaar Authentication at 46 GST Centres to Tackle Fraud

Nov 23, 2024 | 04:07 PM

GST

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To combat fraudulent GST registrations, Madhya Pradesh is set to roll out biometric-based Aadhaar authentication across 46 GST service centres statewide. This initiative, a joint effort by the state (SGST) and central (CGST) GST departments, aims to prevent tax evasion and secure the exchequer by identifying and eliminating deceitful taxpayers during the registration process.

Key Features of the Initiative

Biometric Verification: Applicants at these centres will undergo biometric Aadhaar authentication, including photograph capture and original document verification. This will help curb the misuse of online GST registration systems.

Enhanced Scrutiny: Fraudulent taxpayers, often using forged bills or counterfeit documents, will be flagged through a data-driven system. Suspicious applications will be directed to the sewa kendras for thorough checks, including physical verification of documents like rent agreements and utility bills.

Distribution of Centres:
- Five centres managed by CGST will be located in Indore, Ujjain, Bhopal, Jabalpur, and Gwalior.
- The remaining centres will be operated by SGST across other regions in the state.
- Applicants will receive appointments to complete their verification process efficiently.

Expert Insights

SGST Additional Commissioner Rajani Singh highlighted the need for this initiative, citing the prevalence of fraudulent activities in GST registrations. "Biometric authentication will help us identify and eliminate such cases early, ensuring only legitimate taxpayers are registered," Singh said.

Tax experts have praised the move as a significant step toward creating a more secure and transparent GST registration system. By preventing exploitation of the online system, the initiative is expected to enhance compliance and safeguard revenues.

Indore as a Hub for Registrations

Indore, a major commercial hub, processes around 15 GST registration applications daily. The implementation of biometric verification will ensure a more rigorous screening process in such high-activity areas, boosting the reliability of registrations in the region.

Impact on GST Ecosystem

This initiative is anticipated to streamline the registration process, reduce fraudulent practices, and contribute to a more transparent GST framework in Madhya Pradesh. With the centres set to become operational by late November 2024, this move underscores the state's commitment to leveraging technology for efficient governance and better tax compliance.