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.
Mandatory Cases of Aadhaar Authentication
As per Section 25(6C) of the CGST Act, the Aadhaar authentication is mandatory for the following class of individuals as per Rule 8 of the CGST Act in order to become eligible for the GST registration:
- Authorised signatory of all types
- Managing/authorised partners of a partnership firm
- Karta of a Hindu Undivided Family
The Aadhaar Authentication has been made optional by notification 62/2020 dated 20.08.2020.
Exceptions
The only exception is if an individual is not a citizen of India or he is a person other than the one mentioned below:
- Individual
- Authorised signatory of all types
- Managing/authorised partners of a partnership firm
- Karta of a Hindu Undivided Family
We have compiled a set of relevant FAQs in regard to Aadhaar Authentication while registering on GST Portal.
FAQs on Aadhaar Authentication while obtaining GST registration
Aadhaar Authentication – When selected as Yes.
You can opt for Aadhaar authentication as shown in the screenshot below:
Q.1 I have opted ‘Yes’ for Aadhaar authentication while registering on the GST Portal. What to do now?
Ans: Once you have opted ‘Yes’ for Aadhaar authentication while registering on the GST Portal and registration application is submitted, an authentication link will be shared on mobile numbers and e-mail IDs of the Authorized Signatories mentioned in the registration application. Authentication link will also be shared to Individuals, Promoters and Partners, as mentioned in the registration application, in case of selection of Constitution of Business as Proprietor, Partnership and HUF.
It may be noted here that you will receive common OTP on mobile number and E-mail ID linked with your Aadhaar for its authentication. It is essential that at least one of these i.e. mobile number or E-mail ID, is linked with your Aadhar for you to successfully receive OTP.
Q.2 Are there any benefits I will get by opting ” Yes” for Aadhaar authentication while registering on the GST Portal?
Ans: If you have opted “Yes” for Aadhaar authentication, while registering on the GST Portal and your Aadhaar authentication has been successfully validated, your application will be deemed approved within 3 Working days. The registration application submitted by you will not be marked for mandatory site visit.
If Tax Official raises SCN within 3 working days, then you will have 7 working days to reply to it. Tax Official can take further action on that reply within 7 working days. If Tax Official doesn’t take any action in 7 working days, then application will get deemed approved after 7 working days.
Q.3 What will happen, in case, I have opted “Yes” for Aadhaar authentication while registering on the GST Portal and my Aadhaar details have not been successfully verified?
Ans: In case, you have opted “Yes” for Aadhaar authentication, while registering on the GST Portal and your Aadhaar details have not been successfully verified, your Registration application will not be deemed approved, within 3 Working days. Your Registration application will be marked for mandatory site visit and approval thereafter by the Tax Official.
Registration application will get deemed approved after 21 calendar days, if Tax Official doesn’t take any action.
If Tax Official raises SCN within 21 calendar days, then you will have 7 working days to reply to it. Tax Official can take further action on that reply within 7 working days. If Tax Official doesn’t take any action in 7 working days, then application will get deemed approved after 7 working days.
Q.4 Within how much time I need to verify my Aadhaar details after submission of registration application?
Ans: You need to verify your Aadhaar details within 15 days of the generation of the TRN.
Q.5 What will happen in case Aadhaar details are not verified within 15 days of the generation of the TRN?
Ans: In case, your Aadhaar details are not verified within 15 days of the generation of the TRN, an ARN for Registration Application will be generated and your Registration application will be marked for mandatory site visit and approval thereafter by the Tax Official.
Q.6 Do I need to complete Aadhaar authentication of all Promoters/Partners and Authorized Signatories?
Ans: Yes, you need to complete Aadhaar authentication of all Promoters/Partners and Authorized Signatories for getting your registration application approved within 3 working days, without any site visit.
Aadhaar Authentication – When Selected as No
Q.7 What will happen, in case, I have opted “No” for Aadhaar authentication while registering on the GST Portal?
Ans: In case, you have opted “No” for Aadhaar authentication, while registering on the GST Portal, Registration application will not be deemed approved within 3 Working days. Registration will be marked for mandatory site visit and approval thereafter by the Tax Official. Registration application will get deemed approved after 21 calendar days, if Tax Official doesn’t take any action.
If Tax Official raises SCN within 21 calendar days, then you will have 7 working days to reply to it. Tax Official can take further action on that reply within 7 working days. If Tax Official doesn’t take any action within 7 working days, then application will get deemed approved after 7 working days.
Q.8 Can I complete Aadhaar authentication of all Promoters/ Partners and Authorized Signatories, if I am already registered on the GST Portal?
Ans: This functionality is not available at present but you will be able to complete Aadhaar authentication of all Promoters/ Partners and Authorized Signatories, once this functionality is rolled out.
Aadhaar Authentication Link
Q.9 While using authentication link for Aadhaar authentication, where will I receive the OTP?
Ans: You will receive common OTP on mobile number and E-mail ID linked with your Aadhaar on UIDAI Portal for its authentication.
Note: You will receive authentication link for Aadhaar on mobile number and e-mails IDs of the Promoters/Partners or Authorized Signatories, as mentioned in the registration application.
Q.10 I have completed my Aadhaar authentication and Aadhaar authentication is unsuccessful for e-KYC. Can I access the same authentication link for completing Aadhaar authentication?
Ans: Once Aadhaar authentication (success or failure) process is complete, you cannot access the same authentication link again.
In case you do not receive OTP or are unable to complete the Aadhaar authentication for any reason, the link will not expire and you can access it by navigating to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK, to resend the authentication link to registered mobile number and e-mails IDs of the Promoters/ Partners or Authorized Signatories.
Q.11 I have opted “Yes” for Aadhaar authentication while registering on the GST Portal and Aadhaar authentication is unsuccessful for e-KYC. From where can I resend the authentication link?
Ans: Navigate to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK, to resend the authentication link to mobile number and e-mails IDs of the Promoters/ Partners or Authorized Signatories as mentioned in the registration application. You need to verify your Aadhaar details within 15 days of the generation of the TRN.
In case, you have opted “Yes” for Aadhaar authentication, while registering on the GST Portal and your Aadhaar details have not been successfully verified, your Registration application will not be deemed approved, within 3 Working days. Your Registration application will be marked for mandatory site visit and approval thereafter by the Tax Official.
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Frah Saeed is a law graduate specializing in the core field of indirect taxes and is the Co-founder of taxwallah.com. She has authored many publications on GST and is into full-time consultancy on GST to big corporates. She as a part of taxwallah.com heads a team comprising of Chartered Accountants and Advocates and plays a key role in our mission to disseminate GST knowledge to all.
