The upcoming budget may introduce legal framework to make Permanent Account Number (PAN) the sole business identification for all processes. The Business Standard reported that Budget 2023 may have the provision for linking PAN card of a person or entity with their multiple existing identifications in order to streamline processes.
This is likely to benefit investors who won’t have to fill out multiple identification details for the National Single Window System for project-related clearance and approvals.
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At least 20 different identifiers currently exist at both the state and central levels. These are Goods and Services Tax Identification Number (GSTIN), Taxpayer Identification Number, Tax Deduction Account Number, Employees’ Provident Fund Organisation, Corporate Identification Number and so on.
The Business Standard cited a senior finance ministry official saying that an enabling provision or clause may be introduced in the Finance Act, 2023 that will give “legal backing” for PAN to be sued as the primary identifier of an entity.
This move will be in keeping with recommendations to improve the ease of doing business. A working group headed by an additional secretary (revenue) under the Ministry of Finance had submitted its report end-December suggesting that this move should be implemented in a phased manner.
As per the report, departments will be given upto a year to implement the changes – that is they have a year to adopt PAN as the primary identifier for all kinds of clearances, registration, licenses etc.
PAN was picked as the primary identifier considering its comprehensive coverage, wide acceptability, and relevance to all business entities, the report said. PAN is a ten-digit unique alpha-numeric code issued by the Income Tax department.
