On the 23rd of March 2020, a notification was issued by the CBIC (Central Board of Indirect Tax and Customs) making Aadhaar authentication mandatory for registration of GST (Goods and Service Tax). This came into effect from the 1st of April 2020.
This ruling was amended through another notification (62/2020) that was published on the 20th of August 2020. The process of Aadhaar authentication was made optional for GST registration. The notification also stated that Aadhaar authentication was not needed for NRIs, citizens of other nations, and those who've already got themselves registered for GST.
GSTN (Goods And Services Tax Network) Enables Aadhaar Authentication On GST Portal
The facility for authentication using your Aadhaar is now available on the GST portal. This will allow the taxpayers to authenticate the Aadhaar of partners, authorized signatories, and promoters of their business quite easily.
What Does The GST Law State According To The Amended Notification?
All the applicants needed to do Aadhaar authentication for GST registration from the 1st of April 2020 and the 20th of August 2020.
The amended notification states that all applicants for registration of GST have the option to do Aadhaar authentication. This is not applicable for individuals who have to mandatorily do Aadhaar authentication as per section 25(6C) stated in the CGST Act and those who have exemptions from the Central government under the same Act. The amended rules came into effect from the 21st of August 2020.
Aadhaar Authentication For Registration Of GST: How Does It Work?
The individuals who opt for authentication based on Aadhaar must submit their Aadhaar card along with the application for GST registration. They have to do e-verification on the GST portal.
The individual will receive an OTP
The OTP will be sent to their mobile number and email address linked to their Aadhaar
Enter the OTP in the space required and submit it
The individual’s Aadhaar gets e-verified upon submission of the OTP
Following this process, the individual will receive an OTP on the registered email/mobile number whenever she/he files for tax returns or opt for any of the services on the GST portal. You can opt for these services only after entering the OTP.
Aadhaar eKYC is now one of the major steps for carrying out all major financial transactions and customer onboarding within India. Aadhaar online KYC done through Aadhaar authentication has helped in eliminating digital fraud to a great extent.
What If You Do Not Opt For Aadhaar Authentication?
There are situations when an applicant has not opted for this process or failed to do it despite opting for Aadhaar based authentication. In such cases, the registration of GST will be granted following a physical verification at the principal site of the business or organization.
The authorities may also verify the submitted documents upon receiving written permission from the Joint Commissioner or someone above that ranking.
Steps For Authentication
For the authentication of Aadhaar for GST registration, you need to follow the steps given below. This applies to all the authorized signatories mentioned in the GST registration application.
Submit the application form
You’ll receive a link for authentication on your registered mobile number and email address
Click on that link and a new window opens
Enter your Aadhaar number along with the OTP sent to your mobile and email ID
Once the authentication has been done successfully you’ll receive a confirmation message
The process of authentication using Aadhaar allows validating the identity of the Aadhaar holders anywhere and anytime. This has helped in curbing fraudulence related to GST in India.