GST registration to get tougher with live photo, biometrics

GST registration could become tedious if the GST Council accepts its Law Committee's recent recommendations to plug GST leakages via input tax credit (ITC) using fake invoices. According to sources, the Law Committee of GST Council has suggested tightening of fresh registration of taxpayers under the GST regime by adopting 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.  Such facilities can be provided at banks, post offices, and GST Seva Kendras (GSKs), just like Passport Seva Kendras or Aadhaar Seva Kendras. The GSKs can work on the pattern of Passport Seva Kendras to provide new registration facilities with required checks on fake registration. The process becomes even more difficult for those who opt for non-Aadhaar-based authentication for registration and do not have income-tax returns reflecting adequate financial capability. Such registrants will have to compulsorily go for physical verification and personal identification. In such a case, the new registrants may have to submit a recommendation letter by two taxpayers of adequate reliability, say the sources. According to the recommendations, the new registrants would be categorised as trustworthy and non-trustworthy, depending on the documents they submit. Applicants falling in the trustworthy category can get registered within 7 working days. 

Those not in the trustworthy category will be granted conditional registration within 60 working days only after physical verification of the place of business. For those falling in the non-trustworthy category, the input tax credit to their buyers will be allowed only after filing of their return and the dealers would be required to pay a certain portion of their liability in cash instead of paying 100 per cent tax through ITC.