GST council panel strategy to curb fake invoices

Nov 22 2020 09:49 PM
GST council panel strategy to curb fake invoices

 The Law Committee of the GST Council has suggested a two-pronged strategy to tackle the issue of fake invoices, sources said. Recommendation to adopt an Aadhaar-like registration process under which new registration can be done online with live photo and use of biometrics with due verification of documents. Banks, post offices, and GST Seva Kendras (GSK), just like the Passport Seva Kendras or the Aadhaar Seva Kendras can be permitted to provide this facility.  

The GSKs can work on the pattern of the Passport Seva Kendras to provide new registration facilities with required checks on fake registration. According to sources, the Law Committee has suggested that a fresh registrant must go for compulsory physical verification and personal identification in case he or she opts for non-Aadhaar authentication-based registration process and does not have income tax return supported adequate financial capability. After submitting a recommendation letter by two taxpayers of adequate reliability and on the basis of document supported credentials, if the  registrant or dealer falls in "trustworthy" category, then he or she can be given registration within seven working days.  

If he/she is not trustworthy then conditional registration shall be given within 60 working days only after physical verification of the place of business. The Revenue department sources said  the panel proposed full application of the Business Intelligence and Fraud Analytics (BIFA) tool for precise identification of riskier dealers based on the riskier input supply chain and outward supply chain, abnormal taxpayer behaviour in terms of ITC availment, tax payment for catching fake dealer and taking appropriate action, including enforcement. 

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