Provision for Aadhar Authentication in GST Registration

Aadhaar Authentication in GST

Provision for Aadhar Authentication in GST Registration

Big Changes under GST Registration such as Online Authentication of Aadhaar number issued in Notification No 62/2020-CT dt 20.08.2020. This Applies with effect from 21st August, 2020 at the time making an application for GST Registration 

Aadhar authentication is compulsory for all new registration under GST. 

Who are all Eligible for Aadhar Authentication: 

  1. Individual
  2. Karta(HUF) 
  3. Managing Director
  4. Whole-time director
  5. Partners
  6. Member of the managing committee of the association
  7. Board of trustees
  8. Authorised representative

Who are not eligible for Aadhar Authentication:

  1. Persons already registered on GST portal are not required to undergo Aadhar authentication at this stage
  2. Persons who are not resident /citizens of India are exempted from the Aadhaar authentication process.

Process Involved:

  1. Aadhaar Authentication process has been introduced, for the persons applying for GST registration as Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01 
  2. Under this, Individuals, Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of a Hindu undivided family, applying for new registration, can opt to undergo e-KYC authentication of their Aadhaar number.
  3. Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, Tax authorities based on the documents produced can grant registration.

Timelines for grant of registration are:

  • In case of successful authentication of Aadhaar, registration will be deemed approved within 03 working days
  • If Aadhar authentication is not opted for or if authentication fails in validation and no SCN is issued within 21 days by a tax official, registration will be deemed approved
  • Tax Officers can issue SCN within the period specified for grant of registration, like in cases of successful Aadhar authentication i.e. 03 working days, or in cases when taxpayers do not opt to provide Aadhaar or when Aadhar authentication fails i.e. 21 working days. Applicants can submit their reply within 07 working days from issue of SCN

Important points while opting for Aadhaar authentication is as follows:

  • Once registration application is submitted, an authentication link will be shared on GST registered mobile numbers and email ids mentioned in the GST application
  • On clicking the verification link, a window for Aadhaar Authentication will open where they have entered Aadhaar Number and the OTP received by them on the mobile number linked with Aadhaar
  • Taxpayer need to complete Aadhaar authentication of all Promoters/ Partners/ Authorized Signatories/ Karta etc. as mentioned in the application to avail this option

Applicant can access the link again for authentication by navigating to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK

Clarification / Verification Procedures:

Verification shall be done in the presence of a person seeking such registration

In lieu of physical verification, the officer may carry out verification of such documents as he may think fit. Reasons for doing so to be recorded in writing and with prior approval from a specified officer

The extended time period for issuance of notice in Form GST REG-03, seeking clarifications in the registration application, has also been provided to the officer in case of failure to undergo Aadhaar authentication

Discretionary powers are given to an officer to reject the application, where the response to the notice seeking clarifications is not received within the time allowed or where the officer is not satisfied with the response received

If you need assistance for GST registration in Chennai and GST Return Filing in Chennai.

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