Budget 2023:
In the upcoming Budget 2023, there is a possibility of creating a legal and operational framework for adopting a Permanent Account Number (PAN) as a single business ID.
A senior finance ministry official told Business Standard that this would apply to all businesses that get approval.
The report states that Budget 2023 will make a provision to link the PAN card of an individual or entity with their multiple existing identities to streamline the process.
The move will benefit investors who will not have to fill in multiple identification details for the National Single Window System for project-related clearances and approvals.
Presently, there are around 20 different identifiers at the State and Central levels, which are Goods and Services Tax Identification Number (GSTIN),
Tax Payer Identification Number, Tax Deduction Account Number, Employees Provident Fund Organisation, Corporate Identification Number, etc.
A senior finance ministry official said an enabling provision or clause might 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 step will make it easier to do business.
Earlier, a task force headed by an additional secretary (revenue) under the finance ministry had submitted its report in late December,
which suggested that the move should be implemented in a phased manner.
The BS report states that departments will be given one year to implement the changes. I.e., they have one year to adopt PAN as the primary identifier for all approvals, registrations, licenses, etc.
Significantly, the Union Budget will be presented on February 1, 2023, in which a PAN card is expected to get legal support as a single business ID.
