Digital Signature is being recognized widely in the Indian markets now. They are the best alternatives to replace the traditional pen & paper signing of the documents.
The businesses going paperless and the workplaces turning into remote locations are the primary reasons for the increasing popularity of Digital Signatures.
In this short article, we will look at some details of DSC and share some insights into how you can use this to benefit your business.
Digital Signatures in detail
A Digital Signature is a digital equivalent of the physical or paper form signatures on a document.
A digital signature certificate carries a digital signature certificate that contains essential details like Name, Address, PIN code, e-mail address, date of issuance of the certificate, etc., of the user.
It’s a secured digital key issued to a certified authority to authenticate and validate the identity of the person who holds this digital signature certificate.
It has become mandatory for the GST taxpayers to validate the signature in PDF using the Digital Signing software for GST transactions like e-Invoicing under GST.
Significant benefits of Digital Signing to your business
It is highly convenient to digitally sign PDF documents without worrying about the geographical locations of the two parties signing them.
Following are some direct positive impacts that the digital signing will have on your businesses:
- The authenticity of the document:
When a receiver sees a digital signature on the document he has received, he can be sure about its authenticity and the authenticity of the party who has signed it.
As a Certified Authority issues the digital certificate, you can trust the digital signature and the authenticity of the source.
However, a word of caution here is that the authority issuing these DSCs should be government recognized Certifying Authority (CAs).
- Reduction in cost & time:
When an individual signs a document on paper, he has to scan it and send it via e-mail.
This can be a challenge as it consumes a reasonable amount of time.
Compared to this physical form of documents, you can digitally sign PDF using a digital signature, which will help businesses process the papers soon.
- Legally Valid
Digital Signature Certificates have a legal status and are admissible in the court of law as per the IT Act, 2000.
Hence, there is no reason to doubt the authenticity of the digital signature when you transact with your suppliers.
- The integrity of the document:
Digitally signed documents are complicated to tamper with. They cannot be easily edited or altered, thus protecting the integrity of the data.
Even for every GST return filing, the documents uploaded on the government portal should be digitally signed with a valid ‘Digital Signature Certificate’.
Even for the GST registration, the documents uploaded on the GST portal should be digitally signed PDF documents with a Class 2 Digital Signature Certificate.
There are different classes of the DSC, and we will see that in the latter part of the article.
Who can issue Digital Signature Certificate?
A licensed Certifying Authority (CA) issues the digital signature. Certifying Authority (CA) means a person who has been granted a license to issue a digital signature certificate under Section 24 of the Indian IT-Act 2000.
Hence, businesses should take utmost care while choosing the Digital Signature provider. The provider should be legally registered with the government & should have been granted a valid license to issue DSC.
Businesses can use Digital Signing Solutions like GSTHero to validate signature in PDF that complies with all the laws and quickly sign the documents digitally, saving you a lot of business time & effort.
Classification of DSC
DSCs are classified as per the purpose of the applicant to use them. Certifying Authorities can issue a DSC of three types as discussed below:
| DSC Type | Particulars |
| Class 1 | These certificates are issued to the private individuals to verify & authenticate their NAME & E-MAIL address from the database of the Certifying Authority issuing the certificate. |
| Class 2 | Class 2 type digital signatures are used for GST registration, GST returns filings, the registration process for a company, Income Tax return e-filing & filing other forms with the IT department. |
| Class 3 | Individuals who wish to participate in the e-auction or e-tendering must obtain the Class 3 digital signature. |
Requirement of Digital Signature in GST
GST return filing has been made entirely online, and it is clear that digital signatures are required in GST return filing processes. In addition, class 2 digital signatures are required for the GST registration process.
Also, class 2 digital signatures are required for GST return filing online. Therefore, whenever a taxpayer applies for a GST registration, the documents uploaded on the GST portal should be digitally signed with a valid Class 2 digital signature.
Businesses should have a robust & user-friendly digital signing solution with them.
GSTHero’s Digital Signing solution is one of its kind and is 100% compliant with the GST laws.
Conclusion
Digital Signature reduces your time which goes into traditional signing and moving across the papers. In addition, digital signing is fast and secured and 100% valid & authorized by the government.
However, businesses are always advised to get a digital signing solution and not worry about any compliance issues, and their sensitive data is always protected when online.
Stay updated; stay ahead!
Until the next time….
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