Aadhaar authentication for new GST registration activated
Aadhaar authentication has been activated by the Government for the registration of new goods and services tax, which will provide an impetus for the enhancement of ease of doing business. Physical verification is not needed for new registration but the GST registration without Aadhaar authentication needs physical verification that may take a longer time period.
What are the benefits of the new system?
- It will enhance the ease of doing business for authentic businesses.
- It will benefit genuine and honest taxpayers.
- Fraud institutions will be marked and kept away from GST.
What is Aadhaar Authentication?
It is a process where the Aadhaar number and biometric information associated with an Aadhaar number is submitted to the Central Identities Data Repository for verification and it verifies the correctness based on the available information.
GST
Goods and Services Tax is a type of indirect tax, that is used on the supply of goods and services. It is a multistage, destination-based tax. It is collected from the point of consumption and not from the point of origin like the previous taxes. GST ensures a seamless flow of tax credit, that eliminates the cascading effect of all indirect taxes in the supply chain starting from manufacturers to retailers, and also across the state borders.
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Month: Current Affairs - August, 2020