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All about Aadhaar Authentication in GST Registration (with updated Rules and illustrations)

Frah Saeed
GST

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 (refer Notification No 62/2020-CT dt 20.08.2020 ).

Under this, Individuals, Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of an Hindu undivided family, applying for new registration, can opt to undergo e-KYC authentication of their Aadhaar number.

Site verification in absence of Aadhaar verification:

Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhaar authentication fails in validation, would be subjected to site verification (physical verification of the place of business as per Rule 25 of the CGST Rules,2017) by the tax department.

However, proper officer for reasons to be recorded in writing and with the approval of an officer not below the rank of Joint Commissioner, can grant registration based on the verification documents produced without physical verification of the place of business. (Rule 9(1) of the CGST Rules, 2017).

Timelines for grant of registration are:

  • The date of submission of application of registration is 15 days from submitting Part B of REG-01 or date of aadhaar authentication, whichever is earlier. (Rule 8(4A) of the CGST Rules,2017).
  • In case of successful authentication of Aadhaar, the proper officer will grant registration to the applicant within a period of 03 working days from the date of submission of the application (Rule 9(1) of the CGST Rules, 2017) . Else registration registration will be deemed approved within 03 working days. (Rule 9(5) of the CGST Rules,2017).
  • If Aadhar authentication is not opted for or if authentication fails in validation and no SCN is issued within 21 days of date of application by proper officer, registration will be deemed approved. (Rule 9(5) of the CGST Rules,2017).
  • Proper Officer 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 taxpayer do not opt to provide Aadhaar or when Aadhar authentication fails i.e. 21 days. Applicants can submit their reply within 07 working days from issue of SCN. (Rule 9(2) of the CGST Rules, 2017). If satisfied from the clarification, GST registration need to be issued or if not satisfied, the application need to be rejected within 7 working days of clarification given by applicant, else registration will be deemed to be issued on 04.10.2020 as per Rule 9(5).

Lets understand the above time limits with some illustrations:

Illustration 1:

Mr X files part B of REG-01 on 01.09.2020. Suppose, Aadhaar authentication is completed on 15.09.2020, the date of application will be regarded as 15.09.2020 as per Rule 8(4A). Here GST registration need to issued by proper officer by 18.09.2020 (within 3 working days) as per Rule 9(1) else registration will be deemed to be issued on 18.09.2020 in light of Rule 9(5).

Illustration 2:

Mr X files part B of REG-01 on 01.09.2020. Suppose, Aadhaar authentication is completed on 18.09.2020, the date of application will be regarded as 16.09.2020 as per Rule 8(4A)( 15 days from filing part B of REG-01). Accordingly GST registration need to granted by proper officer by 21.09.2020 (within 3 working days – 19th being Saturday-non working day) as per Rule 9(1), else registration will be deemed to be issued in light of Rule 9(5).

Illustration 3:

Mr X files part B of REG-01 on 01.09.2020 and didn’t opt for / fails to undergo Aadhaar verification. In this case as per proviso to Rule 9(1), registration can be granted only after physical verification of premises or verification of documents. However action in this regard need to be taken / issue of notice under GST REG-03 can be made by proper officer within 21 days i.e. by 24.09.2020 (22.09.2020 being Saturday), as per proviso to Rule 9(2). Else registration will be deemed to be issued on 24.09.2020 as per Rule 9(5).

Illustration 4:

Mr X files part B of REG-01 on 01.09.2020 and didn’t opt for / fails to undergo Aadhaar verification. Suppose notice under GST REG-03 is issued on 21.09.2020 (20th being Sunday) -within 21 days). In such a case the applicant need to respond to the notice within 7 working days viz 30.09.2020 and if satisfied GST registration need to be issued or if not satisfied the application need to be rejected by 07.10.2020 (within 7 working days of clarification given by applicant) else registration will be deemed to be issued on 07.10.2020 as per Rule 9(5).

Important points while opting for Aadhar 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 enter 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
  • Persons already registered on GST portal are not required to undergo Aadhaar authentication at this stage.

Updated CGST Rules, 2017 in regard to Aadhaar authentication for GST registration:

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