Biometric-Based Aadhaar Authentication Introduced for GST Registrations to Curb Tax Fraud

The State GST Department has introduced biometric-based Aadhaar authentication for GST registrations to combat tax fraud, effective October 8. This measure aims to curb the misuse of government-issued identification documents like Aadhaar and PAN cards, which have been used to create fake GST registrations without the original document holders’ knowledge. The initiative involves biometric authentication for high-risk cases, determined through data analysis and risk assessment, while others will use OTP-based Aadhaar verification. States like Puducherry, Andhra Pradesh, and Gujarat have reported a decline in fraudulent activities following this implementation. The GST Council recommended this phased rollout in June, and it must be completed within 15 days of submitting a GST REG-01 application. This step is expected to enhance the security and authenticity of the GST registration process, ensuring that only genuine businesses can register and operate under GST.