Aadhaar Not Mandatory For GST Registration

Businesses registering under GST (Goods and Service Tax) system can choose to opt for Aadhaar authentication. In the absence of Aadhaar, registration would be granted only after physical verification of the place of business.

In a notification, the Central Board of Indirect Taxes and Customs (CBIC) said when an applicant for GST registration opts for authentication of Aadhaar number, he shall, with effect from 21 August, undertake the said authentication while submitting an application.

"Where a person... fails to undergo authentication of Aadhaar number or does not opt for authentication of Aadhaar number, the registration shall be granted only after physical verification of the place of business in the presence of the said person," the notification added.

With Aadhaar Authentication, the registration is deemed to be granted within 3 days without a physical inspection of the premises. Without it, the registration could take up to 21 days as authorities inspect the premises and make a detailed review of documents.

"With linkage of Aadhaar with GST and PAN (permanent account number), there would be a centralised data base available with the government which will facilitate data analytics and help in checking tax evasion," PwC India Partner National Leader (Indirect Tax) Pratik Jain told PTI.