CBIC's new weapon against fraud: Biometric authentication to verify identities linked with suspicious businesses. Over 12k fake entities in GST; CBIC plans biometric authentication, tighter return filing What's your take on biometric authentication as a solution to GST fraud?

The Central Board of Indirect Taxes and Customs (CBIC) in India is planning to introduce biometric authentication and geo-tagging in an effort to crack down on GST fraud.

The biometric authentication will be used to verify the identities of individuals connected to businesses that are suspected of fraudulent activity.

The biometric authentication of authorised representatives or directors or partners will be made for new registration applications and existing businesses registered under GST if tax officers have a suspicion that the entities are being set up only to fraudulently claim ITC.

The CBIC chief, Vivek Johri, said that there are around 12,500 bogus entities that have been identified as claiming fake Input Tax Credit (ITC).

Also, geo-tagging of all entities is being planned by the officers of the Central Board of Indirect Taxes and Customs (CBIC) to authenticate that the address provided during GST registration is the place from where the entity operates, Johri told reporters.

Johri said there are certain locations where fake entities are rampant, like Delhi, Haryana, and Rajasthan.

Certain parts of Gujarat, Noida, Kolkata, Assam, Telangana, Tamil Nadu and Maharashtra also have fake businesses with GST registration. Sectors, in which fake entities are, include metal or plastic scrap and waste paper.