Share :
Aadhaar authentication under GST

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 the user.

Aadhaar Authentication process has been introduced under GST law with effect from 21.08.2020 for the persons applying for GST registration as Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc.

Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, tax authority based on the documents produced can grant registration.

How Aadhaar authentication is done?

  • Once registration application is submitted, an authentication link will be shared on GST registered mobile numbers and email ids mentioned in the GST application
  • On clicking the verification link, a window for Aadhaar Authentication will open where they have enter Aadhaar Number and the OTP received by them on the mobile number linked with Aadhaar
  • Taxpayer need to complete Aadhaar authentication of all Promoters/ Partners/ Authorized Signatories/ Karta etc. as mentioned in the application to avail this option
  • On successful authentication, the demographic data of the persons is taken from the Aadhaar to the GST system.

Applicant can access the link again for authentication by navigating to My Saved Applications > Aadhaar Authentication Status > Resend Verification Link. Persons who are not resident /citizen of India are exempted from the Aadhaar authentication process

Who is required to undergo Aadhaar authentication while registering under GST?

The Aadhaar authentication is mandatory for the following class of individuals in order to become eligible for the GST registration-

  • Individual who is a citizen of India
  • Authorised signatory of all types
  • Managing/authorised partners of a partnership firm
  • Karta of a Hindu Undivided Family

Exemption from Aadhar authentication

Aadhaar authentication under GST shall not apply to the following persons-

  • A person who is not a citizen of India or
  • A class of persons other than the following class of persons:
    • Individual;
    • Authorised signatory of all types;
    • Managing and Authorised partner; and
    • Karta of an Hindu undivided family.

Physical verification of business premises

Where the tax official is satisfied that the physical verification of the place of business of a person is required due to failure of Aadhaar authentication or due to not opting for Aadhaar authentication before the grant of registration, or due to any other reason after the grant of registration, he may get such done verification of the place of business, in the presence of the said person.

The verification report along with the other documents shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days from the date of physical verification.

Timelines for grant of GST registration

  • In case of successful authentication of Aadhaar - Registration will be deemed approved within 03 working days
  •  If Aadhar authentication is not opted for or if authentication fails in validation and no SCN is issued within 21 days by tax official - Registration will be deemed approved
  • If notice is issued in form GST REG-03 - Registration will be deemed approved within 7 working days from the date of receipt of the response, information or the required documents.

Share :
CA Anand Singh

CA Anand Singh

I am a practising Chartered Accountant with 6 years of experience in Direct and Indirect Taxation, FEMA, Corporate Law and Audit etc.