Aadhaar Authentication for GST

If you’re a new GST taxpayer or looking to get registered, you have probably come across the term “Aadhaar authentication.” It might sound a bit technical but don’t worry. Let us break it down step-by-step so it’s easy to understand and follow.

What is GST Aadhaar Authentication?

GST Aadhaar authentication is a process that links your Goods and Services Tax (GST) registration with your Aadhaar, India’s unique identity number. Think of it as a way for the government to verify your identity and ensure that the GST system is being used fairly and correctly. It’s like showing your ID when making a big purchase, just on a larger scale.

GST Law on Aadhaar Authentication for GST Registration

When you register for GST, you have the option to use Aadhaar authentication. However, there are exceptions for certain individuals exempted by the Central Government under the CGST Act or those required by section 25(6C) of the CGST Act, which we’ll cover next.

From August 21, 2020, you can choose whether or not to use Aadhaar authentication for your GST application. For applications submitted between April 1, 2020, and August 20, 2020, Aadhaar authentication was mandatory.

If you choose to use Aadhaar authentication, you’ll need to provide your Aadhaar number with your GST registration application. After submitting, you’ll receive an OTP on your mobile and email linked to your Aadhaar. Enter this OTP on the GST portal login to complete the verification. It’s important to authenticate the Aadhaar of the primary authorized signatory and at least one promoter or partner.

Who is Eligible for Aadhaar Authentication under GST?

The Central Board of Indirect Taxes and Customs (CBIC) has mandated Aadhaar authentication for certain categories of taxpayers under GST. Here’s a breakdown of who is required to undergo this process:

• Individual Applicants::

• Any individual applying for a new GST registration.
• Proprietors of a sole proprietorship business.

• Authorized Signatories and Managing Persons:

• Partners in a partnership firm.
• Karta of a Hindu Undivided Family (HUF).
• Managing director, whole-time director, CEO, or any person authorized to sign the GST registration application on behalf of a company or LLP.

• Other Entities:

• Trustees of a trust.
• Members of a cooperative society or a society registered under the Societies Registration Act.
• Office bearers of a club, association, or body of individuals.

Who is Exempt from getting GST Aadhaar Authentication?

Some groups, like Non-Resident Indian (NRI) taxpayers and foreign nationals, can’t use Aadhaar authentication for GST. That’s because the Aadhaar system is mainly set up for Indian residents.

If you are an individual taxpayer or running a business in India, Aadhaar authentication can simplify your GST registration. But if you’re an NRI or a foreign national, you don’t need to worry about an Aadhaar for your GST registration.

Aadhaar Authentication via Biometrics

The government updated Rule 8 (4A) of the CGST Rules with Notification No. 27/2022, issued on December 27, 2022. This new rule introduces biometric Aadhaar authentication for GST registrations, starting with a pilot program in Gujarat. Alongside this, there will be a risk-based physical verification for individuals flagged on the GST portal based on data analysis and risk factors.

Steps for Aadhaar Authentication for Existing GST Taxpayers

Here are some simple steps to complete the aadhar authentication in GST registration process for your existing GST registration:

1. Log in to the GST Portal

First, you’ll need to access the GST portal. Go to the official GST website and log in using your credentials.

2. Navigate to the Aadhaar Authentication Section

Once logged in, look for the section dedicated to Aadhaar authentication. This can usually be found under the ‘Profile’ or ‘Account Settings’ tab. If you’re unsure where to find it, use the search feature on the portal.

3. Enter Your Aadhaar Details

You will now be prompted to enter your Aadhaar number. Ensure your Aadhaar number is linked to your current mobile number, as you’ll receive an OTP for verification.

4. Verify OTP

Enter the OTP received on your registered mobile number into the GST portal. This step confirms that you’re the rightful owner of the Aadhaar number and authorizes the linking of your Aadhaar to your GST account.

5. Submit Your Request

After entering the OTP, submit your Aadhaar authentication request. The GST portal will process this request and link your Aadhaar number to your GST profile.

6. Await Confirmation

Once your request is processed, you’ll receive a confirmation on the GST portal. This might take a few days. Make sure to check your GST account periodically for updates.

7. Check for Any Follow-Up Actions

In some cases, you might be required to upload additional documents or complete further verification steps. If this is the case, the GST portal will notify you of such requirements.

Steps for GST Aadhaar Authentication for New Taxpayers

While detailed, the process of aadhar authentication in GST registration is easy if you follow these steps carefully. It is an important part of the GST registration process that helps ensure security and compliance.

Prepare Your Documents

Before starting the Aadhaar authentication process, make sure you have the following documents:

• Aadhaar Card: Your biometric identity card is issued by the Unique Identification Authority of India (UIDAI).
• PAN Card: Your Permanent Account Number card.
• Business Proof: Documents that prove the existence and address of your business, like a lease agreement or utility bills.
• Bank Account Details: A canceled cheque or bank statement showing your business account details.

2. Apply for GST Registration

Online Application: Visit the official GST portal and start your application for GST registration. You’ll need to fill out Form GST REG-01, providing details about your business, its operations, and your personal information.

3. Initiate Aadhaar Authentication

Aadhaar Verification: As you fill out your GST registration form, you’ll be prompted to enter your Aadhaar number. The system will then send a request to the UIDAI for biometric verification.

Biometric Authentication: You’ll be required to complete biometric authentication. This typically involves visiting a designated Aadhaar-enabled center where your fingerprint or iris scan will be captured.

4. Complete Risk-Based Physical Verification

Physical Verification: Depending on the risk parameters set by the GST portal, you might be selected for physical verification. This step is carried out to ensure the authenticity of the business premises and operations.

Documents Check: During this verification, officials may review your business documents and assess your business’s physical premises.

5. Receive GST Registration

Verification Outcome: Once your Aadhaar authentication and physical verification are completed and everything checks out, you’ll receive your GST registration certificate.

Certificate Issuance: This certificate will be available for download from the GST portal and will contain your GSTIN (GST Identification Number), which you will need for all GST-related transactions.

FAQs on Aadhaar Authentication for GST

1

What is the purpose of GST Aadhaar authentication registration?

Aadhaar authentication in GST registration aims to enhance security by verifying the applicant’s identity, reducing the risk of fraud, and ensuring the legitimacy of the registration process.

2

Is GST Aadhaar authentication mandatory for all types of GST registrations?

Aadhaar authentication is mandatory for all new GST registrations to ensure a secure and verified registration process.

3

What happens if I fail to complete Aadhaar authentication for GST registration?

If you fail to complete Aadhaar authentication, your GST registration application will be held up or rejected. You must complete the authentication to proceed with the registration.

4

Can I update my Aadhaar information if there are any discrepancies during GST registration?

You can update your Aadhaar information through the UIDAI portal before completing the GST registration process. Ensure that all details are correct to avoid issues during verification.

5

How long does it take for Aadhaar authentication to be completed during GST Aadhaar Authentication?

Aadhaar authentication typically takes a few minutes to complete, but additional time may be required if any issues or discrepancies need to be resolved.

6

What should I do if my Aadhaar authentication fails during the GST registration process?

If your Aadhaar authentication fails, check for errors or discrepancies in your Aadhaar details and try the process again. If issues persist, visit an Aadhaar enrollment center or contact the UIDAI for assistance.

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