The Goods and Services Tax (GST) department is introducing a registration system on November 7th, starting from Vapi, Gujarat and a formal event will also take place. This system will be the country’s first implementation of biometric data-based registration for GST numbers.
During the registration process for a new GST number, the department will now collect the biometric data of applicants. This includes the collection of thumb impressions, along with other identification documents, to ensure the applicant’s authenticity. In case of any discrepancies or fraudulent activities, the GST department will be able to trace individuals through their biometric data.
The launch event in Vapi will likely be attended by Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman, who will virtually inaugurate the project across ten centres in Gujarat. After the pilot project in Gujarat, the registration system with biometric data will be extended to other states as well, according to Kanu Desai, the Cabinet Minister for Finance.
Gujarat has a track record of implementing successful initiatives in the taxation domain, having previously launched the “Mera Bill Mera Adhikar” campaign. Now, the state is ready to implement this new project, with Vapi being selected as the launch location due to its status as a prominent chemical hub.
The introduction of biometric data-based registration aims to address concerns raised by individuals who have experienced unauthorized GST registrations in their name. Some individuals reported that their bank and identity documents were misused. With the new system, applicants will have their thumb impressions recorded, making it difficult for such fraud to occur. Additionally, if necessary, applicants can be called for verification in the future.
By implementing this biometric registration system, the GST department aims to enhance the integrity of the GST registration process and minimize fraudulent activities, especially related to false input tax credit claims. With thumb impressions collected, individuals cannot deny their involvement in the GST registration process, providing an added layer of security, explained an officer.
