Initiatives Towards Controlling GST Frauds

  • Various measures have been taken by the GST Council Secretariat towards the rising menace of GST fake invoice frauds.
  • oMandatory Physical Verification:The government has introduced mandatory in-person physical verification of business premises for the purposes of obtaining GST registration.
  • oBiometric-Based Aadhaar Authentication: In case an applicant opts for Aadhaar authentication, he will undergo biometric-based Aadhaar authentication at one of the facilitation Centres notified by the Commissioner.
  • o‘Pay 1% in Cash’: Separately, a new rule has been introduced by the Central Board of Indirect Taxes and Customs that mandates businesses with monthly turnover of over Rs. 50 lakh to pay at least 1% of their GST liability in cash instead of using input tax credits to discharge their entire liability.
  • oChanges in Validity of e-Way Bills: The validity of e-way bills has also been tweaked, doubling the distance to be covered for each day of validity, effective January 1. Till now, an e-way bill for transporting goods under GST allowed transporters to cover 100 km in one day. Now, that distance for each day of validity has been increased to 200 km. While four days were granted in terms of e-way bill validity to cover 400 km, going forward, only two days will be granted for the same distance.