Aadhaar Authentication Initiative Reduces Fake GST Registrations in Gujarat by 24.3%

A strategic Aadhaar-based biometric authentication initiative in Gujarat has led to a significant reduction in fraudulent GST registrations, decreasing by 24.3%.

Approximately 6,600 suspected applicants have refrained from visiting the GST Seva Kendras, fearing detection. This initiative focuses on identifying suspicious applications and requiring applicants to undergo in-person verification.

Following the launch of a pilot project for Aadhaar-based biometric authentication for new GST registrations in Gujarat, the state government announced on Monday that it has successfully curtailed fake GST registrations within the state.

Officials from the State Goods and Services Tax (SGST) department reported a 24.3% decline in GSTIN applications since the commencement of the pilot project in November 2023. The number of applications dropped from 202,000 between November 2022 and June 2023 to 152,000 during the same period in the following year.

An SGST official noted that the fear of detection has deterred over 6,600 suspected applicants from visiting the GST Seva Kendras, effectively reducing the number of fraudulent applications. Suspicious applications are flagged, and the applicants are required to present themselves at the GST Seva Kendras for verification.

On November 7, 2023, Union Finance Minister Nirmala Sitharaman inaugurated 12 GST Seva Kendras in Vapi, Gujarat, which conduct Aadhaar-based biometric authentication. These centers are staffed by both Central and State GST officials.

During a visit to a GST Seva Kendra in Ahmedabad on Monday, State Finance Minister Kanu Mehta reviewed the operations and emphasized the decision made at the 53rd GST Council meeting to implement GST Seva Kendras nationwide.

Table: Comparative GSTIN Applications in Gujarat

This initiative marks a significant step towards enhancing the integrity of the GST registration process, ensuring that only legitimate businesses are registered, and deterring fraudulent activities through robust verification mechanisms.

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