Aadhar card mandatory for GST registration
Taking a serious decision, the govt has made Aadhaar card mandatory for registration within the GST. Now GST application won’t be accepted without giving Aadhaar number. With this decision of the govt, large scale fake fraud is often stopped in GST. The Central Board of Indirect Taxes and Customs (CBIC) has issued its notification on 21 August 2020. Within the absence of an Aadhaar card, it might be mandatory to urge physical verification of the trading site immediately as an option. Earlier it had been also announced in March 2020 and was to be implemented from April 1, 2020. But this rule couldn’t inherit effect thanks to technical reasons. The GST application format has been changed from 21 August. Within the application, traders need to choose an option from Aadhaar number or on-site verification, only then their application is going to be approved.
GST features a simple online procedure for registration. One of the 2 sorts of options has got to be selected as soon because the form is opened. On selecting the Aadhaar option, an authentication link is shipped to the registered mobile and email of the businessman. The method of validation starts as soon as you enter the Aadhaar number by clicking thereon. The appliance is validated and an OTP number is shipped as soon because the information given for the registration matches the Unique Identification Authority of India (UIDAI). The appliance is approved as soon because the OTP number is entered. Just in case the appliance hasn’t approved, the Commercial Tax Officer has visited the location and performs the physical verification.
21 fake GST terms are cancelled
In the investigation conducted by the Commercial Tax Department till March 2020, the registers of 21 businessmen registered in GST were found to be fake. Of these terms were cancelled by the department taking immediate action against them. The cancelled registered businessmen included brick-kiln operators, coal traders and contractors etc. These traders had given the name and address of their institute wrong in GST terms. During the investigation, no institution was found thereon name and address, nor could a person of that name be traced there. By March, around 150 institutions within the district might be examined within the first phase. Investigations are currently interrupted thanks to the Corona global epidemic.
Fraud of crores exposed in 2019
In September 2019, fraudulent registration of crores was exposed in GST in Nawada. In two months, Gaya’s businessman was sold five crores of coal by a so-called Nawada businessman, which he sold outside the state. Investigation revealed that no Nawada businessman sold coal to Gaya’s businessman. Two institutions were registered in GST in Akbarpur and Hasapur in Nawada under the name of the businessman. But both institutions didn’t meet at the location. The one that had registration in his name also clothed to be fake. The investigation found the address of the Aadhaar cardholder of an individual from Aurangabad, who denied registration in GST.
Due to the need for Aadhar card numbers, fraud is often stopped. Verification of name, address etc. Is completed as soon because the application is linked to the bottom. If there’s no Aadhar card, physical verification of institutions will need to be done as an alternate. Physical verification of all GST registered holders is to be done. This process is going to be started soon. – Vinay Kumar, Joint Commissioner, State-Tax, Nawada.