To combat tax evasion and fraudulent firms, the Rajasthan Commercial Tax Department has made biometric authentication mandatory for GST registration. This new system, which involves fingerprint and iris scans similar to Aadhaar, aims to ensure authenticity and prevent bogus registrations.
A total of 73 centres have been set up statewide to facilitate the biometric process. The new system will come into effect from January 10, 2025, as per a notification issued on the GST portal.
Process Of Biometric Verification
Under this system, applicants will undergo biometric verification at designated centres, where their iris scans and fingerprints will be matched, followed by physical verification of their address and documents by officials. Only after thorough scrutiny will GST registration be granted.
This initiative mirrors a similar implementation in states like Gujarat, Puducherry, Andhra Pradesh, and Uttarakhand, where biometric authentication has already shown success in controlling tax fraud.
Addressing Issues Of Fraudulent Registrations
Previously, GST registration relied solely on document-based online verification, which left room for misuse, such as obtaining registrations under fake names or unrelated individuals like vendors or rickshaw drivers. The absence of physical verification often resulted in bogus firms evading detection.
