- Complete guide on
Aadhar Authentication mandatory for GST registration for a specified purpose
- Introduction
- On March 14, 2020, at the 39th GST Council Meeting, the council decided to make it Aadhaar Authentication mandatory for GST registration for new taxpayers effective. However, according to officials in the Finance Ministry, the procedure for implementation was delayed due to the lockdown brought on by the coronavirus outbreak. The construction of the same facility has finally begun as of August 21, 2020, after a pause. Aadhar Authentication for new registration has been made online to increase how easily genuine companies can conduct business. If a new taxpayer opts for Aadhar Authentication for GST Registration via online mode , the process will be completed in 3 working days.
- In the current blog, we will discuss the meaning of Aadhar Authentication, people who are mandatory or exempted from Aadhar authentication while registering for GST, the process for Aadhar Authentication of new and existing taxpayers, the timeline for an officer to act after submission of GST Aadhar Authentication.
- What is Aadhar Authentication?
- Aadhar authentication is the process through which the Central Identities Data Repository (CIDR) receives the Aadhar number and other biometric information from the Aadhar holder in order to validate the user for his intended activity. Based on the data it has access to, the CIDR confirms the accuracy of the data.
- Who is a mandatory and exempted person for GST Registration?
- The following people must authenticate their Aadhar numbers in Goods and services tax, under Section 25(6C) of the CGST Act. The following people must validate their Aadhar number in accordance with Rule Number 8 of the CGST Act in order to be qualified for GST registration:
- ·
Authorized signatory of the company/
partnership company
- ·
HUF’s Karta (Hindu Undivided Family)
- ·
Full-time or managing director of a
company
- There are few people who are exempted from opting for the GST Aadhar
- Authentication, they are as follows:
- · A person not a citizen of India
- · Any person who works for the government, both Central and State
- · Local authority or statutory body or people sector undertaking
- · Any other person who does not fit in under section 25(6C) of the CGST Act.
- What is the process for Aadhar Authentication for new taxpayers?
- As of now, it is mandatory for new taxpayers to verify the Aadhar number while registering for Goods and services tax registration. The process for Aadhar Authentication for new taxpayers is as follows:
- Step 1: The
applicant is given the opportunity to decide whether he wants to authenticate
his Aadhar at the time of applying for GST registration or physical
verification. Once decided the applicant must go to the website www.gst.gov.in
and select the Services > Registration > New Registration option. For
Aadhar Authentication, the applicant must choose between the option “YES”.
- Step 2: Once
you select ‘Yes’, an Authentication link will be shared on your (can be of a
promoter, or an authorized signatory) registered mobile number and Email IDs.
Then click on the Authentication link which was sent to you on your registered
mobile number
- Step 3: After
clicking the Authentication link sent to you on your Email ID or phone number a
declaration will be displayed on your screen, where you need to enter your
Aadhar number. Once you enter the Aadhar number, you will have to validate the
same.
- Step 4: An
OTP will be delivered to their registered email and cell phone number when the
registration form and UIDAI information have been verified. The OTP must be
entered in the box that may be seen on the validation screen. A confirmation
notice of e-KYC will then show up. In case you fail to verify via Aadhar OTP,
the Tax Officer might come for physical verification of your place of business.
- Step 5: The
jurisdictional tax authority will receive your GST registration application.
But before authorizing, they will carry out the further stages, which include
documentation and/or physical site verification. If there is no action is
initiated by the Tax Authority within 21 days, the registration application
shall be deemed approved.
- What is the process to Authenticate Aadhar numbers for existing taxpayers?
- The following is the process to Authenticate Aadhar numbers for existing taxpayers:
- Step 1: Log
in to the official GST website. Find the “My Profile” option and click on it.
Then select the “Aadhar Authentication status” option. Two alternatives will be
shown on your window: “Upload E-KYC Documents” or “Send Aadhar Authentication
Link”.
- Step 2: Choose
one of the two options. Click on the link sent to you on your registered phone
number or email address and enter the Aadhar number, if you choose to “Send
Aadhar Authentication Link.” In case you choose the option to “Upload E-KYC
Documents” be ready with all the papers and upload them.
- Step 3: Once
you enter the Aadhar number, an OTP will be generated and you have to verify
the same. Once you upload the documents, a successful message will be sent to
your registered email id or phone number.
- What is the timeline for approval?
- If a Tax Officer fails to act against any of the following circumstances within the time limit for the officer to complete the stated, the application is presumed to have been authorized by the officer:
- ·
The officer has to act within 3 working
days after the submission of the application if an individual has completed the
authentication of the Aadhar number under Good and services tax successfully.
- ·
The officer has to act within 21
working days from the date of submission of the application to send the notice
in form REG-3 if an individual has opted for GST Aadhar Authentication but was
unable to complete the procedure.
- ·
The officer has to act within 7 working
days from the date of receipt, required documents, or information response if
an individual has replied through REG-4 to the notice sent by the office that
is REG-3.
- ·
The officer has to send a notice within
21 working days from the date of submission of the application if an individual
did not opt for the Good and services tax Aadhar Authentication.
- Conclusion
- The main goal of Aadhar authentication is to provide an online platform where Aadhar holders’ identities can be verified at any time, anywhere, for any reason. This stage will establish ease of company registration and keep an eye out for violations of the Goods and Services Tax legislation, such as cases of fraudulent invoices, dummy address registrations, and numerous registrations in the same locations. So it is made Aadhar Authentication mandatory for new and existing taxpayers.
