Strengthening GST Integrity: New Measures Proposed by the GST Council

The GST Council, in its endeavor to combat fake registrations and bolster the integrity of the Goods and Services Tax (GST) system, is considering implementing new measures. These measures aim to enhance the verification process and ensure that only legitimate businesses are granted GST registration. Let’s explore the key points of these proposed measures and their significance.

Reduction in Time Period for Submission of PAN-linked Bank Account Details:

To expedite the verification process and minimize fraudulent activities, the GST Council plans to reduce the time period for submitting PAN-linked bank account details from 45 days to 30 days. This change will enable quicker identification of discrepancies and help curb fake registrations, promoting a more robust and trustworthy GST system.

Mandatory Physical Verification for “High-Risk” Applicants:

To strengthen the authenticity of registrations, the GST Council intends to introduce mandatory physical verification for applicants categorized as “high risk” before granting GST registration. This measure will ensure that applicants undergo thorough scrutiny, reducing the chances of fraudulent registrations and enhancing the overall credibility of the GST system.

Absence of Applicants during Physical Verification:

The Law Committee, composed of officers from the Centre and states, suggests that applicants should not be present during the physical verification of their business premises. This decision eliminates the risk of manipulation by unscrupulous applicants and prevents delays caused by intentional absence, thereby ensuring a fair and efficient verification process.

Revised Time Period for Granting Registration:

The Law Committee recommends granting registration to “high risk” applicants within 30 days of application, following the physical verification of their place of business. This revised timeframe strikes a balance between expediting the registration process and maintaining the necessary scrutiny for potentially risky registrations, ensuring a more efficient and reliable system.

Linking PAN and Aadhaar for Proprietorship Concerns:

In a move to strengthen the identification process for individual business owners, the GST Council proposes linking the Permanent Account Number (PAN) of the proprietor with their Aadhaar number for proprietorship concerns. This linkage will aid in verifying the authenticity of individual business owners, further fortifying the integrity of GST registrations.

Understanding the GST Council:

The GST Council is a constitutional body in India responsible for making decisions and recommendations related to the Goods and Services Tax (GST) system. It was formed with the objective of streamlining indirect taxation by introducing a unified tax regime across the country. The Council consists of the Union Finance Minister as the Chairperson, along with representatives from all states and union territories. The Council holds meetings periodically to discuss and decide on various aspects of GST implementation and reforms, including tax rates, exemptions, compliance requirements, and procedural changes. The decisions of the Council are made through a voting mechanism, with a three-fourth majority required for approval.


The proposed measures by the GST Council demonstrate its commitment to improving the integrity of the GST system. By reducing the time period for submission of PAN-linked bank account details, introducing mandatory physical verification for “high risk” applicants, and implementing other amendments, the Council aims to curb fake registrations and create a more reliable and trustworthy GST ecosystem. These measures, when implemented, will contribute to a stronger and more efficient GST system in India.

Strengthening GST Integrity – FAQs

Q1: What are the different tax rates determined by the GST Council?

Ans: The GST Council decides what percentage of each tax bracket, such as 5%, 12%, 18%, and 28%, should be applied to goods and services. Additionally, it determines the exact prices for luxury items, mass-produced commodities, and necessities.

Q2: What other aspects does the GST Council oversee?

Ans: : The GST Council discusses and decides on various aspects of GST implementation and reforms, including tax rates, exemptions, thresholds, compliance requirements, and procedural changes. It provides a platform for consensus-building among the central and state governments.

Q3: Why is linking PAN and Aadhaar important for proprietorship concerns?

Ans: The legitimacy of GST registrations is strengthened by linking PAN and Aadhaar for proprietorship concerns since it improves the identification of specific business owners and helps to confirm their veracity.


  • Pritipalit

    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top