On 14th September, the GST network concluded to make Aadhaar or physical verification compulsory for every new dealer effective January 2020. The initiative aims to check on malpractices under the GST regime. Previously, authentication of Aadhaar was optional.
Sushil Kumar Modi, Bihar Deputy Chief Minister who is heading the group of ministers of the GST Network told the reporters that it had been noticed that in the two years of GST, a considerable number of dishonest operators had registered themselves as GST dealers. He also added that these unauthorised GST dealers had made fake invoices too.
The GSTN has now decided that effective 1 January 2020, every new dealer needs to complete the Aadhaar authentication in order to complete the enrolment process. Narendra Modi, the Prime Minister (PM) mentioned that new dealers who do not want to opt for Aadhaar authentication would need to undergo physical verification.
PM also added that a GST number would be given in both the cases in less than three operational days of completing either Aadhaar authentication or physical verification.
Initially, Aadhaar verification will be compulsory for new dealers. Later on, every dealer who has enrolled himself/herself on GSTN will be asked to give their Aadhaar numbers.
PM also added that since refunding is a big concern, GSTN has decided to opt for a complete online refunding process starting from September 24 this financial year via a single source, either by the State GST or Central GST.
PM confirmed that the next GST Council meeting is scheduled in Goa on September 20. When PM was asked if a GST rate cut for the automobile sector is likely to happen, he mentioned that the agenda is yet to be circulated. PM also is of the opinion that no State government is in favour of GST reduction concerning the auto industry fearing revenue loss.
Bhavana is a Senior Content Writer handling the GST vertical. She is committed, professional, and has a flair for writing. When away from work, she enjoys watching movies and playing with her son. One thing she can’t resist is SHOPPING! Her favourite quote is: “Luck is what happens when preparation meets opportunity”.