Aadhar Authentication in GST Registration

From the 1^st of April 2020 onwards, the Central Board of Indirect Taxes (CBIC) has issued a notification stating that Aadhar authentication is a requirement for GST Registration. This was later notified to be made optional, making the same not required for those taxpayers who are non-residents, non-Indian citizens, or persons who have taken registration under GST already.

What is the meaning of authentication using Aadhar?

An Aadhar number or card is a place that stores the basic information pertaining to an individual along with the biometric information of such a person, like a fingerprint. The details collected would be submitted to the CIDR or the Central Identities Data Repository. It shall be utilized or retrieved by the entities and institutes when the individual initiates any action, such as taking a new SIM card or doing other activities.

So, we can say that Aadhar allows for an authentication of the individuals on the basis of the information stored in the repository making the same the availability of a common platform enabling and simplifying this. This also allows the identification of Aadhar holders anywhere anytime and this can be done while an individual or entity for that matter is trying to get registration under GST.

GST Registration and Aadhar Authentication

When an assessee wants to get registration under GST, such an applicant can account for authentication using the Aadhar Card details or number. There are also exemptions provided for the same, and they pertain to those persons who the Central Government exempts through the CGST Act.

In the case of assessee’s who are submitting applications for registration under GST after the 21^st of August 2020, there is an opt-in or out option that shall be made available to them. But if such applicant submitted the application for registration between the time period starting from 1^st of April 2020 and 20^th of August 2020, then they shall commit a mandatory authentication using the Aadhar details.

The applicants who are opting for Aadhar authentication should give the Aadhar number along with the application for GST registration. This should then be verified using the verify option on the GST Online Portal, utilizing the link for authentication, which will be sent to the mobile number and the email ID that is registered or linked with the Aadhar Card. An OTP shall be generated automatically and entered into the GST Online Portal to finish the authentication using Aadhar.

In a general sense, the Aadhar authentication using the Aadhar details of the Authorized Signatory and also one promoter (at least) or a partner of the entity shall be done. But if the applicant is a company or LLP or a Foreign company or Trust or Society or AOP (Association of Persons) or club, then the Aadhar Authentication can be done only using the details of the Authorized Signatory.

Thereafter, whenever the assessee or taxpayer would want to file any returns or initiate an action using the GST Online Portal, OTP shall be generated to the email ID and mobile number which is linked with Aadhar. It should be entered for a successful submission or completion of the action generated.

If an applicant opts for authentication using Aadhar details or opts not to use the same, along with proceeding to file without Aadhar authentication, then for granting of the GST registration for such applicant, physical verification of the place of business shall be done by a GST official. The officers can also verify the e-KYC documents pertaining to the Authorized Signatory of the applicant entity along with that of any promoter or partner after obtaining permission from an officer of the GST Authority, but such official shall not be someone below the ranking of Joint Commissioner and it shall be received in writing.

The e-KYC documents shall include:
– Passport
– Voter ID Card
– Voter ID Card
– Any certificate issued by a Competent Authority of the Country
– KYC Form provided

Type of Businesses that are exempted from Aadhar Authentication

The following constitution of business shall be exempted or excluded from the mandatory requirement of Aadhar authentication:

1. Non-Indian Citizen
2. Local Authority
3. A Statutory Body
4. A Public Sector Undertaking
5. The person who has submitted an application pertaining to section 25(9) of the GST Act
6. Department falling under Central or State Government.

Procedure for Aadhar Authentication under GST

The following are the steps to be undertaken by any applicant of GST registration for authenticating using the Aadhar details or number:

1. On submission of application for registration, a link will be sent automatically to the mobile number and email ID mentioned in the registration form.
2. Now click on the link received on the mobile number or email ID and enter the details as required by the link. This shall include the entering of your Aadhar number.
3. Once you submit the same, an OTP shall be automatically generated for your email ID and mobile number. Enter the same in the Online GST Portal.
4. A confirmation message will be generated stating ‘Successful Authentication’ on correct entering of such details.
5. In case the applicant would want to re-generate the link for verification using the Aadhar card number or the details, the same shall be accessed in the following manner:

My applications – Aadhar Authentication Status – Resend Verification Link

Mandatory Cases

There are certain mandatory cases where the authentication using Aadhar details should be done, and this will include the following as per section 25(6C) of the CGST Act such that they become eligible for GST registration:
– Authorized Signatory (Any type)
– Karta of a HUF
– Managing partner or an authorized partner of a partnership firm.

Thus, we can now conclude that authentication using Aadhar details is an easy way to complete the registration application under GST. Aadhar should be seen as an easy and simple authentication process as it is only a matter of giving the number and using the same to retrieve the information or data pertaining to you stored in the repository. It simplifies most of the activities and makes it easy and fast along with being reliable.