ADHAAR AUTHENTICATION UNDER GST ACT
The Central Board of Indirect Tax and Customs (CBIC) had issued a notification on 23rd March 2020, about Aadhaar authentication for GST registration from 1st April 2020.
The same has been amended vide notification 62/2020 dated 20th August 2020 to be made optional. The aadhaar authentication for GST registration is not required for non-residents, persons other than citizens of India and persons who have already been registered under GST.
What is Aadhaar Authentication?
Aadhaar authentication is a process by which the Aadhaar number along with other biometric details of the Aadhaar holder are submitted to the Central Identities Data Repository (CIDR) for verifying its correctness. The CIDR verifies the correctness of data on the basis of information available with it.
The main purpose behind the Aadhaar authentication is to create an online platform wherein the identity of Aadhaar holders can be validated anytime anywhere. This will keep a check on the malpractices happening under the Goods and Services Tax.
GST law on Aadhaar Authentication for GST registration
Steps for Aadhaar Authentication
The following steps must be followed to authenticate aadhaar number for GST registration for all the authorized signatories mentioned on the application.
Step 1: On the submission of the application for registration, the authentication link shall be sent to the registered mobile number and email ID mentioned in the application.
Step 2: Click on the link. A window opens up where the user must enter the aadhaar number and the OTP received on the mobile number and the email.
A confirmation message will be displayed for successful authentication.
The user can get the authentication link once again anytime later by visiting the GST portal. Go to My Saved Applications> Aadhaar Authentication Status> RESEND VERIFICATION LINK to obtain the new link.
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:
The only exception is if an individual is not a citizen of India or he is a person other than the one mentioned below:
Cases of Deemed approval of GST registration application
The application is deemed to be approved by the officer if he fails to take action within the timelines given against the following cases:
The person who has successfully completed Aadhaar authentication
The person is exempted from the Aadhaar authentication requirement
|3 working days from the date of submitting an application|
|The person who has opted but failed to complete Aadhaar authentication and notice is issued in form GST REG-3||Does not reply to the notice within 7 working days in form GST REG-4 from the date of receipt of notice|
|The person has not opted for Aadhar authentication||20 working days from date of submitting an application|
|The person who has opted but failed to complete Aadhaar authentication, notice is issued in form GST REG-3 and the person has replied||7 working days from the date of receipt of the response, information or the required documents|
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