UIDAI delays India’s biometrics program for fighting GST fraud by blocking database

Posted under: MSME
Date: 2023-09-25
UIDAI delays India’s biometrics program for fighting GST fraud by blocking database

Biometric authentication measures meant to combat tax fraud committed through India’s Goods and Services Tax (GST) registration process are on hold, with government officials pointing to restrictions on access to the national database of Aadhaar biometrics as the reason. The biometric authentication pilot program rolling out in Odisha and Puducherry was intended to curb what India’s Central Board of Indirect Taxes and Customs (CBIC) calls “rampant” GST fraud. Trials of biometrics and geotagging were set up to prevent these fake companies from registering for ITC. Registrants deemed suspicious must show up in person at an Aadhaar center to participate in biometric identity verification. Indian officials said the delay was caused by problems accessing the UIDAI database. The UIDAI is willing to grant access to the database to the GSTN. However, the government said it was confident both Aadhaar-based biometric authentication and geotagging would roll out in fiscal year 2025.

Read more at: www.biometricupdate.com