Aadhaar Authentication in GST Registration: Process and Requirements

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In the initial days of the rollout of GST, the GST Registration process was simple, and the taxpayers were getting their GST Registrations without any validations or verifications from the department side. During the last few years, the Government has observed that there is rampant misusage of the GST Registration process leading to huge tax revenue. To curtail this, the Government has started various steps like Aadhar Authentication, Geo-tagging of premises etc.,

What is Aadhar Authentication for GST?

Aadhaar authentication involves submitting an individual’s Aadhaar number and biometric details to the Central Identities Data Repository (CIDR) to verify their identity for a desired action. This process is now mandatory for individuals applying for GST registration as regular taxpayers, composition, casual taxable persons, input service distributors, SEZ developers, SEZ units, etc., using Form GST REG 01.

In addition, existing GST registrants must also undergo Aadhaar authentication, which is a requirement for filing a refund application under GST.
Also Read: GST Registration for Non-Resident Taxable Person

Is Aadhar Authentication Mandatory?

Aadhar Authentication is mandatory for the following persons while obtaining GST Registration

  • Authorised Representative
  • Authorised Signatory
  • Karta
  • Managing Director
  • Whole-time Director,
  • Authorised partners of a Partnership firm
  • Members of the Managing Committee of the Association,
  • Board of Trustees,
  • and such other class of persons as notified

In case the Aadhar Number is not available at the time of registration, proof of obtaining Aadhar has to be submitted.

Aadhar Authentication is not required in the following cases

  • An individual who is not a citizen of India
  • A person with Unique Identification Number
  • Local Body
  • A Public Sector Undertaking
  • A Department established by the Central or State Government

Aadhar Authentication is mandatory for existing taxpayers as well as for new taxpayers, and the process of authentication is different.

Aadhar Authentication for New GST Registrations

Aadhar authentication is mandatory for new GST Registration from 1st Jan 2020.

  • During the registration application process, the applicant is given the option to choose whether or not they want to use Aadhar authentication. If the applicant decides to use Aadhar authentication, the GST system will send an “authentication link” to the mobile numbers and email addresses of the selected promotor/partner and primary authorized signatory.
  • When the verification link is clicked, a window for Aadhaar authentication will appear, prompting the user to enter their Aadhaar number and the one-time password (OTP) received on their mobile number and email address linked to Aadhaar
  • If the Aadhaar authentication process is successful, the registration application will be considered approved within 7 working days, and a mandatory site visit will not be required unless a show cause notice is issued by the tax official within the specified timeframe.
  • If the new registrant chooses not to opt for Aadhaar authentication during the registration process or if their Aadhaar authentication fails validation, their registration application will not be considered approved within 7 working days. Instead, it will be marked for a mandatory site visit and approved thereafter by the tax official.

Aadhar Authentication for Existing GST Registrations

For both regular taxpayers and composition taxpayers, Aadhaar authentication is mandatory for their existing GST registration. To complete this process, an existing taxpayer can either obtain an Aadhaar authentication link or upload their e-KYC documents.

  • To begin, access the GST portal and proceed to the “MY PROFILE” page. From there, locate the “Aadhaar Authentication Status” section, where you will be presented with two choices.
  • Once you are in the section for Aadhaar authentication status on the GST portal’s “MY PROFILE” page, you can select one of the two available options: either send an Aadhaar authentication link or upload your e-KYC documents. If you choose to send an Aadhaar authentication link, you will receive the authentication link on the mobile and email id mentioned in the application form being filed online to the signatory and the specific promoter or partner. You will then need to complete the OTP verification process.
  • Alternatively, if you choose to upload your e-KYC documents, a tax officer will review and either approve or reject them. In this case, the taxpayer will be deemed e-KYC Authenticated instead of Aadhaar Authenticated.
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CA K. S. B. Subramanyam Partner
CA K.S.B. Subramanyam is a Fellow Chartered Accountant and currently serves as the Chief Financial Partner at M/s Manohar Chowdhry & Associates, Chartered Accountants. He has been associated with the firm for nearly two decades and has played a pivotal role in its growth and success.

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