Current Affairs: Passage of the Day - 14 May 2024 | Current Affairs: Daily, Weekly & Monthly - CLAT PDF Download

Directions: Read the passage carefully and answer the questions that follow.

Five states, including Karnataka, Tamil Nadu and Telangana, have shown interest in rolling out Aadhaar-based authentication for GST registration, an official said on Monday. The biometric-based authentication was discussed at the third National Co-ordination Meeting of senior Central and State GST officers earlier this month.
Currently, two states, Gujarat and Andhra Pradesh, and the Union Territory of Puducherry have launched the Aadhaar authentication of taxpayers on a pilot basis.
"Around five states, including Karnataka, Tamil Nadu and Telangana, have shown interest in implementing Aadhaar-based authentication for GST registration," an official told PTI.
The official further said that these states wanted to assess the cost involved, the infrastructure and manpower requirement for implementing the requirement of biometric authentication for registration.
The data has been provided to them and based on the assessment, these states will have to put the proposal up before the state Cabinets for approval.
Goods and Services Tax (GST) authorities have so far been using OTP-based Aadhaar authentication to establish the identity of the applicants, seeking registration.
However, with instances coming to light wherein other people's identity was misused to create bogus firms for claiming input tax credit (ITC), the Central Board of Indirect Taxes and Customs (CBIC) had decided to move towards biometric authentication under which in certain suspicious cases, the person seeking registration will be asked to go to an Aadhaar centre to have his biometrics verified.
As per the analysis of April GST revenues, Karnataka is the second biggest contributor, followed by Uttar Pradesh and Tamil Nadu. Maharashtra garnered the largest chunk of revenue during the month.
The GST collections, which include central and state mop-up, breached the Rs 2 lakh crore milestone in a month in April since the rollout of the unified tax system.
Goods and Services Tax collections grew 12.4 per cent to a record high of Rs 2.10 lakh crore in April. The revenue growth was aided by strong economic momentum and increased domestic transactions and imports.
[Excerpt from Economic Times “Five States Show Interest in Aadhaar-Based Authentication for GST Registration” Dated 14/05/24]

Q1: What is the primary purpose of implementing Aadhaar-based authentication for GST registration in Indian states?
(a) To increase tax rates
(b) To streamline tax collection and prevent fraud
(c) To reduce the number of registered businesses
(d) To impose stricter regulations on small businesses

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Q2: Which of the following Indian states has already started testing Aadhaar identification for GST registration?
(a) Kerala
(b) Gujarat
(c) Punjab
(d) Rajasthan

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Q3: Which authentication method is currently used by GST officials for verifying the identities of individuals registering for GST?
(a) Biometric-based authentication
(b) OTP-based Aadhaar authentication
(c) Email-based verification
(d) Manual verification through documents

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Q4: What is the main purpose of GST registration for businesses in India?
(a) To receive government subsidies
(b) To avoid paying taxes
(c) To legally operate and pay taxes on their sales
(d) To access healthcare benefits

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Q5: Which type of tax is charged on transactions within states under the GST system?
(a) Integrated Goods and Services Tax (IGST)
(b) Central Goods and Services Tax (CGST)
(c) State Goods and Services Tax (SGST)
(d) None of the above

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