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GST fraud: Govt rolling out pan-India biometric authentication to combat fraudulent input tax credit claims

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The GST Council, led by Finance Minister Nirmala Sitharaman, decided to implement Aadhaar-based biometric authentication nationwide to prevent input tax credit fraud via fake invoicing. This measure will be mandatory for new GST registrations. Additionally, a Group of Ministers will review GST rates, with findings reported at the next council meeting post-Budget Session.

FM Nirmala Sitharaman

  The Goods and Services Tax (GST) Council at its 53rd meeting on Saturday decided to roll out pan-India Aadhaar-based biometric authentication to check fake invoicing used to fraudulently claim input tax credit (ITC) by unscrupulous elements, Finance Minister Nirmala Sitharaman said.  

Two pilot projects for biometric authentication have already been carried out successfully and now the facility will be rolled out nationwide in a phased manner, the Finance Minister said at a press conference.

To facilitate GST registration, Aadhaar biometric authentication will become mandatory for new registrations across the country, she added.

"This will help us to combat fraudulent input tax credit claims made through fake invoices," FM Sitharaman said.

FM Sitharaman also said that a Group of Ministers (GoM) for reationalising GST rates has been set up, which will submit a status report in the next meeting.

Bihar Deputy CM Samrat Choudhary will chair the GoM.

FM Sitharaman said that while a lot of decisions were taken at Saturday's meeting, not all GST issues could be included in the agenda.

The GST Council will meet again after the Budget Session of Parliament is over to take up these issues.

The meeting is likely to be held in mid-August, she added.
 

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