Aadhaar number authentication for GST Registration made optional. Registration in such cases to be granted after physical verification of place of business
Aadhaar Authentication process has been introduced, for the persons applying for GST registration as Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01.
Hitherto, under Rule 4A, the applicant with effect from 01.04.2020 while submitting an application for Registration was required to undergo authentication of Aadhaar number.
Aadhaar number authentication for GST Registration made optional
Under the notification issued today, Individuals, Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of an Hindu undivided family, applying for new registration, can opt to undergo e-KYC authentication of their Aadhaar number.
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.
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 validation and no SCN is issued within 21 days by 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 i.e. 03 working days, or in cases when taxpayer do not opt to provide Aadhaar or when Aadhar authentication fails i.e. 21 working days. Applicants can submit their reply within 07 working days from issue of SCN
Important points while opting for Adhaar authentication is as follows:
- 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
- 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
The Notification issued is as under:
MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
Notification No.62/2020–Central Tax
New Delhi, the 20th August, 2020
G.S.R. 517(E).—In exercise of the powers conferred by section 164 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby makes the following rules further to amend the Central Goods and Services Tax Rules, 2017, namely:—
1. Short Title and commencement.-(1) These rules may be called the Central Goods and Services Tax (Tenth Amendment) Rules, 2020.
(2) Save as otherwise provided, they shall come into force on the date of their publication in the Official Gazette.
2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 8, for sub-rule (4A), the following sub-rule shall be substituted with effect from 01st April, 2020, namely: –
“(4A) Where an applicant,other than a person notified under sub-section (6D) of section 25, opts for authentication of Aadhaar number, he shall, while submitting the application under sub-rule (4), with effect from 21st August, 2020, undergo authentication of Aadhaar number and the date of submission of the application in such cases shall be the date of authentication of the Aadhaar number, or fifteen days from the submission of the application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier.”.
3. In the said rules, in rule 9, with effect from 21st August, 2020,-
(i) in sub-rule (1), for the proviso, the following provisos shall be substituted, namely:-
“Provided that where a person, other than a person notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does not opt for authentication of Aadhaar number, the registration shall be granted only after physical verification of the place of business in the presence of the said person, in the manner provided under rule 25:
Provided further that the proper officer may, for reasons to be recorded in writing and with the approval of an officer not below the rank of Joint Commissioner, in lieu of the physical verification of the place of business, carry out the verification of such documents as he may deem fit.”;
(ii) in sub-rule (2), before the Explanation, the following proviso shall be inserted, namely: –
“Provided that where a person, other than a person notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8 or does not opt for authentication of Aadhaar number, the notice in FORM GST REG-03 may be issued not later than twenty one days from the date of submission of the application.”;
(iii) in sub-rule (4), for the word, “shall”, the word “may” shall be substituted;
(iv) for sub-rule (5), the following sub-rule shall be substituted, namely: –
“(5) If the proper officer fails to take any action, –
(a)within a period of three working days from the date of submission of the application in cases where a person successfully undergoes authentication of Aadhaar number or is notified under sub-section (6D) of section 25; or
(b)within the time period prescribed under the proviso to sub-rule (2), in cases where a person, other than a person notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8; or
(c) within a period of twenty one days from the date of submission of the application in cases where a person does not opt for authentication of Aadhaar number; or
(d) within a period of seven working days from the date of the receipt of the clarification, information or documents furnished by the applicant under sub-rule (2),
the application for grant of registration shall be deemed to have been approved.”.
4. In the said rules, in rule 25, with effect from 21st August, 2020, after the words “failure of Aadhaar authentication”, the words “or due to not opting for Aadhaar authentication” shall be inserted.
[F. No. CBEC-20/06/16/2018-GST (Pt. II)]
PRAMOD KUMAR, Director
Note:The principal rules were published in the Gazette of India, vide notification No. 3/2017-Central Tax, dated the 19th June, 2017, published vide number G.S.R. 610(E), dated the 19th June, 2017 and was last amended vide notification No. 60/2020-Central Tax, dated the 30th July, 2020, published vide number G.S.R. 480(E), dated the 30th July, 2020.
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