ABOUT PROCESS
Provisions relating to Aadhaar authentication for the purposes of grant of registrations to new GST registrants was approved in the 39th GST Council meeting held on March 14, 2020. However, the implementation of the same was postponed considering the lockdown situation on account of COVID-19 pandemic.
Vide Notification 62/2020-CT dated August 20, 2020, the facility of Aadhaar authentication has been rolled out effective from August 21, 2020 which is expected to substantially enhance ease of doing businesses for genuine businesses/taxpayers.
Physical Verification not requried
Any person opting for Aadhaar authentication for new GST registration would be granted such registration within 3 working days, provided no notice issued in respect of such application. Also, such applicant shall not be required to wait for physical verification of the business premises.
Physical Verification
Applicants who are not opting for Aadhaar authentication for GST registration would be granted such registration only after physical verification of the place of business or documentary verification, which may take up to 21 working days or more if notice is issued in respect of such registration application. The Officer may, if the circumstances warrant, opt for asking for additional documents in lieu of the physical verification.
HOW THE AUTHETICATION PROCESS SHALL WORK
- At the time of applying for GST registration, the applicant shall be given an option to select if he /she wishes to authenticate Aadhaar.
- The applicant can either select a YES or a NO for Aadhaar Authentication.
- If he/she clicks YES, an authentication link will be shared on GST registered mobile number and e-mail IDs of the Promoters/ Partners and Authorized Signatories.
- Upon clicking the authentication link, a screen will come with a declaration where the applicant needs to enter an Aadhaar number and click on “validate”.
- On successful matching of the details in registration form with the UAIDI, an OTP will be sent on their email and mobile registered with the Aadhaar that has been entered by the applicant. On entering the OTP in the box provided on the screen validation will be complete and a message of successful e-KYC authentication will be shown.
- It is important to ensure that a user’s Aadhaar has an updated registered mobile number and email for expeditiously completing the process.
- OTP for Aadhaar authentication would be sent on the mobile number and e-mail address registered with Aadhaar. Mobile numbers registered with Aadhaar can be verified at https://resident.uidai.gov.in/verify where the last three digits of the registered mobile number are shown.
- Where the applicant for GST registration chooses not to go through the process of Aadhaar authentication, he may choose NO for this step. The GST registration application would then be sent to the jurisdictional tax authority that may carry out necessary documentary and/or physical site verification before approving registration. Where no action is initiated by the Tax Authority within 21 days, the registration application shall be deemed as approved.
WHO CAN OPT FOR AADHAAR AUTHENTICATION
The facility of quick approval of GST registration through Aadhaar authentication can be availed by all Indian citizens. However, it is not required for tax deductors, tax collectors, Online Information Database Access and Retrieval services (OIDARs), taxpayers having Unique Identification Number (UIN) and non-resident taxable person seeking registration under GST.
ACTION BY THE TAX OFFICER
In both cases, the officer concerned needs to act within a specified time;
- 3 days for a person opting for Aadhaar authentication; and
- 21 days for those opting not to undergo Aadhaar authentication.
If the registration application has neither been accepted, nor a notice for rejection has been issued, after the specified period, the application shall be deemed to have been approved.
Disclaimer
The present note is for guidance purposes only and is based on the information publically available. Although care has been taken in compiling and checking the information contained herein, however, we make no representations or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability or completeness of any information. Neither Author nor Yes GST assume no responsibility thereof.
