Introduction –
The 53rd GST council meeting and the very first after the election held on 22nd June (Saturday) introduced many things for easing compliance burdens and reducing litigation. We will talk about one such topic that stands out from the 53rd council meeting.
FM Sitharaman has said that there will be a biometric authentication process pan-India, rolled out to curb fake invoicing as well as to combat fraudulent input tax credit claims.
“There is going to be a rolling out of biometric-based Aadhaar Authentication on an all-India basis. This will help us to combat fraudulent input tax credit claims made through fake invoices in the cases, ”Said FM Sitharaman at the press conference.
What does this mean for the business owners?
Authentication Process –
Business owners will now have to undergo the Aadhaar authentication process during any GST registration or any other related changes.
Enhanced Security for the business owners –
Biometric authentication adds another layer of security. Meaning, Now, it has become harder for fraudsters to create fake invoices or claim ITC illegitimately. This authentication process will also strengthen the GST registration process which ensures that only genuine businesses get registered.
Phased Implementation –
There is no need to worry if you are a business owner. The rollout will happen in phases. This allows businesses the time to adopt and comply.
Lastly, Let us take a look at the other highlights from the GST council meeting.
Other Highlights from the Council Meeting –
- 12% GST will be levied on all steel, iron, and aluminum milk cans.
- 5% of IGST will be applied on the imports of components, parts, equipments and tool-kits of aircrafts.
- 12% GST will be levied on all types of water sprinklers.
- No GST will be levied on some specified defence items till 30th June 2029.
Conclusion –
The 53rd GST council meeting has introduced some critical changes for businesses. The Aadhar-based authentication aims to significantly reduce the fraudulent activities done by fraudsters and strengthen the GST system.
Other announced measures promising a more streamlined and secure tax structure for legitimate businesses. The long-term benefits for businesses and the economy as for now are looking promising.