Preparation to link it with the biometric system to stop fraud under GST

Central and state tax authorities have suggested online registration using instant photographs and biometrics to stop claims of input credit tax by bogus companies.

Sources said that the Law Committee of the GST Council, comprising tax officials of the Central and State Governments, has also suggested that physical verification must be done essentially if an Aadhaar registration has opted for brand spanking new registration. Sources within the Finance Ministry said that the committee has suggested that the Aadhaar-like process is often adopted for brand spanking new registration in Goods and Services Tax (GST), under which new registrations are often done by verification of documents along with side instant photo and biometric. Such facilities are often provided at banks, post offices, and GST service centers (GSK). A source said that GSK can facilitate new registration on the lines of Passport Seva Kendras. aside from this, registrars who don’t opt for Aadhaar authentication at the time of registration, they’ll need to provide letters of advice from two trusted taxpayers. Sources said that on the idea of the documents given for registration if the registrar falls within the trustworthy category, it is often registered in seven working days. If the registrar doesn’t fall within the trustworthy category, then his conditional registration is going to be wiped out in 60 working days.

●  Aadhar-like process are often adopted for brand spanking new registration
●  The government can soon take strict steps to stop fraud in GST registration

Central and state tax authorities have suggested online registration using photo and biometric immediately to curb the claims of input credit tax of faux companies. The central government may soon take strict steps to stop fraud in GST registration.

stop fraud under GST

Verification will need to be avoided Aadhaar registration
The Law Committee of the GST Council has also suggested that for any new registration, mandatory physical verification should be done on choosing the choice of Aadhaar registration. Aadhaar-like processes are often adopted for brand spanking new registrations, under which new registrations are often through with instant photo and biometric also as verification of documents.

Registration facilities are often found at GST service centers.
Such facilities are often provided at GST service centers (GSK), a bit like banks, post offices, and Passport Seva Kendras (PSKs) or Aadhaar Seva Kendras. GSK will function like Passport Seva Kendras. GSK can facilitate new registration on the lines of Passport Seva Kendras.

The registration can take up to 60 days
Consistent with the suggestion of the time commitment, those that don’t choose the choice of Aadhaar authentication at the time of registration may need to give letters of advice from two trusted taxpayers. On the idea of the documents provided for registration, if the registration falls within the trustworthy category, then it is often registered in 7 days. If the person applying for registration doesn’t fall within the trusted category, then his registration is going to be wiped out 60 days with some conditions.

48 people arrested
So far To curb the continuing fraud in GST, 48 people are arrested thus far, including a lady and three chartered accountants (CAs). within the last 10 days, additionally, to identifying 2,385 fake entities, 648 cases are registered.

In 2018-19 and 2019-20, there have been around 35,000 dealers who had a GST liability of over Rs 50 lakh (annually), but over 99% of the tax was paid through input decrease (ITC). Aside from this, no tax return has been filed in any of those forms within the last 3 years. The govt is now getting to curb such fraud.

What is the input credit tax?
Input credit means the tax paid at the time of purchase of products and at the time of paying tax on the output, you’ll adjust your input tax which you’ve got already paid at the time of buying the products. The tax is payable on the products that are purchased from the surety bill, on which you get the input decrease by filling the GST return.

Understand by example: Suppose you purchased a staple of 100 rupees to form goods. It’ll be taxed at 18%, ie Rs 18, so this amount has increased to 118. You took a surety bill of 118 rupees from the vendor. Meaning you deposited GST of 18 rupees. Now if you sell goods worth 100 rupees for 150 rupees, then there’ll be a tax of 27 rupees on your goods consistent with 18%. In order, that customer will take a receipt of Rs 177, out of which a GST of Rs 27 are going to be imposed. In such a situation, during the return filing, you’ll have a liabilities of 9 rupees, during this case you’ll get input credit of 18 rupees because you’ve got paid it while purchasing the products.