The Central Board of Indirect Taxes and Customs (CBIC) has mandated the use of biometric-based verification for new GST registrations in high-risk areas and categories. This move is aimed at curbing the rising incidence of fake firms and fraudulent input tax credit claims. The biometric process will include facial recognition, fingerprint scanning, and authentication of Aadhaar-linked details, to ensure that only genuine applicants are granted GST registration.

The new verification requirement will initially apply to states and districts identified through risk profiling and data analytics, where cases of fake invoicing and identity fraud have been disproportionately high. Applicants in these zones will be required to physically appear at designated facilitation centers to complete the biometric process. This enhanced screening is expected to strengthen the integrity of the GST registration system and act as a strong deterrent against the creation of shell entities.

CBIC has clarified that the system is being rolled out in a phased manner and that legitimate businesses will be provided with adequate guidance and support during the verification process. The new mechanism will be integrated with the GSTN portal for seamless coordination between registration data and biometric records. By introducing biometric authentication, the government aims to enhance taxpayer accountability, eliminate identity-based fraud, and foster greater trust in the GST framework.