Biometric Verification At Guj GST Centers Keeps Bogus Applicants Away

Average Monthly Registrations Decline by 25%

FinTech BizNews Service

Mumbai, June 14, 2024: To promote transparency in the GST registration process and prevent bogus registrations, 12 GST Service Centers were launched across Gujarat on November 7, 2023, by Union Finance Minister Nirmala Sitharaman. The centers have streamlined the entire GST registration process and enabled the applicants to efficiently complete all formalities at one location. As a result of this initiative, bogus applicants have been deterred from filing an application with fake credentials. With a large number of bogus applicants keeping away, the number of GST Registration Applications has witnessed an average monthly decline of about 25% between November 2023 and May 2024. The introduction of mandatory biometric authentication showed remarkable results from the very first month as the GST Registration Applications declined by over 55% in November 2023-24 as compared to the data in November 2022-23. The illustrated data shows the number of applications received and the corresponding decrease in percentage for the fiscal years 2022-23 and 2023-24:

*Month*          *2022-23* *2023-24* *Decrease in %*

November        26640    11914          55.28

December         23636    19629         16.94

January            31501    21664         31.23

February           25484    21202         16.80

March                25107   19825          21.04

April                   23881    20032         16.12

May                    23989    19777         17.52

As per the Gujarat State Tax Department, there were instances of people taking advantage of the old system by registering for GST using the credentials of poor people and using their fake documents to evade taxes. 

However, with the introduction of mandatory biometric registration at the newly inaugurated GST Service Centers, the applicants are called for their biometric verification. They are scrutinized based on over 40 parameters at the center in one go and their GST Registration Numbers are issued. With all biometric authentication for the State and Central GST registration managed by the 12 GST Seva Kendras, the process has become much easier, transparent, and smooth.

12 GST Service Centres in Gujarat

On November 7, 2023, Union Finance Minister Smt. Nirmala Sitharaman inaugurated the 12 GST Service Centers in Gujarat. Presently, these centers are operational in various cities across the state, including Vapi, Gandhinagar, Ahmedabad, Surat, Vadodara, Godhra, Mehsana, Palanpur, Rajkot, Bhavnagar, Junagadh, and Gandhidham.

1st to Launch GST Service Centres, Gujarat’s Success Becomes Role Model for Other States*

Gujarat became the first state to launch the GST service centres. With the successful implementation of these centres in Gujarat, the government has decided to extend the system nationwide. The notable 25 percent decrease in applications following the launch of GST Service Centres emphasizes the efficiency of these centres in keeping the bogus applicants away. The officials from various states, including Maharashtra, Rajasthan, and Madhya Pradesh, alongside members of the GST Council have visited the Gujarat centers to witness their operations firsthand and take-away the learnings. 

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