Procedures for New GST Registration through Aadhar Authentication

New Aadhar Authentication process has been enabled by Central Board of Indirect Taxes and Customs (CBIC) for the persons applying for the new GST Registration as Normal Taxpayer or Composition or Casual Taxable Person or Input Service Distributor (ISD) or SEZ Developer or SEZ Unit in the Form GST REG-01. 

According to this new system Individuals, the Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of a Hindu-Undivided Family (HUF), applying for new registration, can now opt to undergo e-KYC authentication of their Aadhaar number.

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

Timelines for grant of registration are:

• 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 the validation and no Show Cause Notice (SCN) is issued within 21 days by a tax official, registration will be deemed approved.
• Tax Officer can issue SCN within the period specified for grant of registration, like in cases of successful Aadhar authentication which is 03 working days, or in cases when the taxpayer does not opt to provide Aadhaar or when Aadhar authentication fails which is 21 working days. Applicants can submit their reply within 07 working days from issue of SCN.

Some important points while opting for Adhaar authentication is mentioned below:

• 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 to enter the Aadhaar Number and the OTP received by them on the mobile number linked with Aadhaar.
• The taxpayer needs to complete Aadhaar authentication of all the Promoters/ Partners/ Authorized Signatories/ Karta etc. as mentioned in the application to avail this option.
• The applicant can access the link again for authentication by navigating to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK.
• Persons already registered on GST portal are not required to undergo Aadhar authentication at this stage.
• Persons who are not resident /citizen of India are exempted from the Aadhaar authentication process.

With Warm Regards,

CL Bureau.