Karnataka, the second-highest state in India for Goods and Services Tax (GST) collection, launched a new initiative aimed at improving GST collection by removing fraudulent taxpayers.
According to Commercial Taxes Commissioner C. Shikha, a pilot study revealed that the new system successfully removed approximately 30 per cent of fraudulent taxpayers.
Once the taxpayers were identified and removed from the system, they attempted to deceive the department by re-registering with different information. However, now the updated system will remove these instances.
As per Shikha, we have launched 120 GST Seva Kendra biometric centres and the same would prevent bogus registrations. It is now important for the new registrants to provide Aadhaar authentication.
Also, there is availability of a GST registration system where one can register in 3 days. GST Seva Kendra will permit biometrics and those who enrol here are regarded as genuine since they shall have complied with a complete host of essential compliances.
So far, 10.40 lakh individuals have registered using the traditional method, and the new system will provide advantages for all new registrants. They would be eligible for input tax credits and various benefits, and there would be fewer inquiries into their cases.
Shikha mentioned that the central and state team members have incorporated GST SEVA Kendra. In about 2-3 minutes in real-time, we will launch them. It is effective for those who have high-risk parameters.
While launching the GST Seva Kendras, Union Finance Minister Nirmala Sitharaman stated that these centres have been established to facilitate easier business operations.
Read Also: Special All-India GST Drive Against Fake Registrations
The registration of high-risk fraudulent entities is expected to decrease soon. The tax department continues to conduct physical verifications. The department investigates any uncertainties and takes action against offenders.
The new system will block it from occurring right at the source. By 30% the new registrations in Gujarat decreased. Will Karnataka also witness an identical trend?
