GSTIN Applications drop lower 42%:

GSTIN Applications drop lower 42% In a significant change, the state goods and services tax agency has seen an average 43% decrease in GSTIN applications submitted monthly since November 2023, when a new layer of authentication was added to the online registration procedure. From November last year to February this year, the average number of GSTIN (Goods and Services Tax Identification Number) applications received per month fell from 26,800 to 15,350. The drop is not the result of a recession or fewer companies opening but of a state government initiative to combat fake billing at the source. The trial scheme requires biometric verification for GSTIN applicants, preventing fake applications. State officials claim that this mechanism has resulted in a significant decrease in the number of applications. This project, which will be launched in November 2023, aims to improve the security and efficiency of the registration procedure. A similar pilot project is being carried out in Andhra Pradesh and Puducherry. "The typical method in a fake billing fraud is to obtain a fake GST registration by duping innocent persons. The GSTINs of such fraudulent entities, which exist only on paper, are then utilized to create fake bills and receive input tax credit despite no actual movement of products," stated a senior SGST official. "Individuals reported unauthorized use of their bank and identity documents for such registrations," he went on to say. Gujarat has been battling with the growing issue of fake billing. Since the implementation of GST, the Gujarat government has lost Rs 11,443 crore due to fake billing scams involving tax evasion. Since the implementation of the new regime, the total turnover from fake billing has been approximately Rs 1 lakh crore. "The new system requires applicants to give a thumb impression and many identification proofs throughout the registration procedure. This step is aimed at checking the applicant's validity. Additionally, GST applicants may be summoned for further verification if necessary in the future," stated a GST official. The implementation of biometric verification is expected to help minimize fraudulent activity by ensuring that GST registrations are only provided to eligible applicants.