The State GST Department has launched biometric-based Aadhaar authentication for Goods and Services Tax (GST) registrations to combat tax fraud, effective October 8, 2024. This measure addresses increasing instances of fake GST registrations created using stolen identification information.
Strengthening Identity Verification in GST Registrations
The misuse of Aadhaar and PAN cards for unauthorized GST registrations has prompted the GST Department to enforce biometric verification. Fraudulent use of these IDs for fake registrations has been detected nationwide, particularly through Kerala’s GST Intelligence wing, where cases surfaced of identities being stolen to exploit the GST system.
Decline in Fraudulent Activities Post-Implementation
Following the biometric rollout, states such as Puducherry, Andhra Pradesh, and Gujarat have reported declines in fake GST registrations. These regions now require high-risk applicants to complete biometric-based Aadhaar authentication to verify their identity, providing an added layer of security that has deterred fraudulent registrations.
Targeted Biometric Verification for High-Risk Cases
The selection process for biometric authentication relies on data analysis and risk assessment. Candidates identified as high-risk must complete biometric Aadhaar verification, while others undergo an OTP-based Aadhaar verification process. This targeted approach balances security with convenience, focusing resources where they are most needed.
