Last week, the Central Board of Indirect Taxes and Customs (CBIC) notified that Aadhar authentication for GST registration has been enabled with effect from 21 August 2020. This will enable businesses to complete new registration within three working days. The government hopes that Aadhaar authentication will enhance ease of doing business and facilitate genuine, honest taxpayers.
In the absence of an Aadhaar number, businesses can apply for GST registration through physical verification by authorities.
Further, linking Aadhaar, GST and PAN will allow the tax authorities to facilitate data analytics and keep a check on tax evasion.
For those opting for Aadhaar authentication for new GST registration, here are the steps:
- Log on to www.gst.gov.in.
- Click on "Services" from the options in the top panel for the dropdown. Choose Registration > New Registration option. You can also click on the "Register Now" option under the "Taxpayers (Normal/TDS/TCS)" section for a direct link.
- In the application, fill all the necessary details and choose the option to authenticate Aadhaar in the next page.
- On choosing "YES" and submission of the registration application, an authentication link will be shared on GST registered mobile number and e-mail IDs mentioned in the application.
- On clicking the verification link, a window for Aadhaar Authentication will open where you have enter Aadhaar number and the OTP received on the mobile number linked with Aadhaar. Click on "Validate".
- Taxpayers need to complete Aadhaar authentication of all Promoters/ Partners/ Authorized Signatories/ Karta etc. as mentioned in the application to avail this option.
- An applicant can access the link again for authentication by navigating to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK.
- On successful matching of the details in the registration form with the UIDAI, an OTP will be sent on the email and mobile registered with the Aadhaar.
- A message of successful e-KYC authentication will be shown on completion.
- 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.
- 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.
- In case of successful authentication of Aadhaar, registration will be deemed approved within 3 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 Officer can issue SCN within the period specified for grant of registration, like in cases of successful Aadhar authentication: 3 working days, or in cases when taxpayers do not opt to provide Aadhaar or when Aadhar authentication fails: 21 working days. Applicants can submit their reply within 7 working days from the issue of SCN.
- Persons already registered on GST portal are not required to undergo Aadhar authentication at this stage.
- Persons who are not resident /citizen of India are exempted from the Aadhaar authentication process.
- 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 authority based on the documents produced can grant registration.