Guide on Aadhar authentication in GST Act
Aadhar Authentication is GST is introduced to curb fake GST Registration registered at nonexistent or dummy places. Avoiding multiple registrations in one place and controlling the issue of fake invoices. The major issue was restricting the transfer of fake input tax credits in GST.
How Aadhar authentication is conducted and what is Aadhar authentication?
Aadhar authentication is conducted on the GST portal where a unique link is issued to the person applying for GST. Such persons need to open the link and enter the Aadhar number. Once the Aadhar number is entered, an OTP is received on the Aadhar registered mobile number.
After entering the OTP, the details of the Aadhar holder are deposited into Central Identities Data Repository. The verification of applicants with the Aadhar database is conducted.
Once the Aadhar verification is completed and verified. The need for physical verification is obliterated which we will discuss further.
Aadhar Authentication for existing registered persons
According to Section 25 (6A) of CGST Act,2017, Every Registered person shall undergo authentication of Aadhar or furnish proof of possession of Aadhar. In case of failure, the registration allotted shall be deemed to be invalid and other provisions of this act shall apply as if such person does not have registration.
Who is not required to undergo Aadhar Authentication in GST?
According to Section 25(6D), the provisions relating to Aadhar authentication shall not apply to the following persons.
- A person who is not a citizen of India
- Department or Establishment of State Government or Central Government
- Local Authority
- Statutory Body
- Public Sector Undertaking
- Person Applying for Unique Identity Number
Aadhar Authentication for new GST Registrations
According to Section 25 (6B), Individuals (Proprietors) applying for new GST Registration shall authenticate their Aadhar or furnish proof of possession of the Aadhar number with the registration application in order to be eligible for the grant of registration.
According to Section 25 (6C), Every person other than an individual shall authenticate Aadhar as specified.
In the case of Hindu Undivided Family (HUF), Karta shall undergo Aadhar Authentication, in case of the Company a Managing Director or Whole-time Director, Member of the Managing committee in case of Association of the Person (AOP), Board of a trustee in case of trust.
However, if a person does not opt for Aadhar Authentication, registration shall be granted only after Physical verification of the business in presence of the applicant. Where an Aadhar number is not assigned to the person, such a person can obtain GST registration via Physical verification.
Date of application of GST registration application
Where the applicant ops for authentication of Aadhar other than the persons mentioned in Section 25 (6D), he shall while submitting the application undergo authentication of Aadhar number, and the date of submission of application shall be the
- Date of Authentication of Aadhar Number
- 15 days from the submission of Part B of GST Reg-01 whichever it is earlier.
Here, it’s quite simple to understand that the ARN number would be generated only after Aadhar Authentication and in case fails to undergo Aadhar Authentication, where he specifically opted for Authentication. Then Aadhar Authentication will be unsuccessful, and GST Registration will be granted only after physical verification.
GST registration procedure with or without Aadhar authentication
When Aadhar Authentication Opted
After submission of GST Reg-01, the application gets forwarded to the proper officer who shall examine the application and the documents and if same are found to be in order grant the GST Registration to the applicant within 7 working days from the date of submission of application
When Aadhar Authentication not Opted
Where a person other than the person notified under Section 25 (6D). fails to undergo authentication of Aadhar number as specified under Rule 8 (4A) or does not opt for authentication of Aadhar number. The registration shall be granted only after physical verification of the place of business in presence of the applicant within 30 days.
Further, the proper officer may for reasons recorded in writing and with the approval of the officer not below the rank of Joint Commissioner, in lieu of Physical verification of the place of business, carry out verification of such documents as he may deem fit.
Mistake or a deficiency in the GST registration application
When Aadhar Authentication is conducted, any mistake deficiency or additional documents requirements must be dealt with via Issue of Show Cause Notice (GST Reg-03) within 7 working days from the filing of the GST Registration application.
Where Aadhar Authentication has not opted for, GST Registration Show Cause Notice GST Reg-03 shall be issued no later than 30 days from the date of submission of the application.
Filing clarification for GST registration application
A clarification needs to be filed in Form GST REG-04 for the show cause notice issued in GST Reg-03. The clarification is mandatorily required to be filed.
In case the applicant fails to file clarification, the application will be rejected or where the officer is not satisfied with the clarification, he may for the reasons recorded in writing reject the application and inform the applicant in Form GST Reg-05.
Grant of GST Registration Certificate
Where the proper officer is satisfied with the clarification filed or the documents furnished initially, he may grant GST registration Certificate within 7 working days of filing the application in GST Reg-03 (In case of Aadhar Authentication).
According to Rule 25 Where the proper officer is satisfied that the physical verification of the place of business of a person is required due to the failure of Aadhar Authentication or due to not opting for Aadhar Authentication before the grant of GST Registration or due to any other reasons after the grant of registration
The officer may conduct verification, in presence of a said person, and the verification report along with other documents including photographs shall be uploaded in Form GST REG-30 on the common portal within 15 days of verification.
How to conduct Aadhar Authentication for GST registration?
Step 1: First, we need to go to Gst.gov.in
Step 2: Now moving forward to the filing of the GST Registration Application. Go to Services> Registration> New Registration.
Step 3: File PART A of GST Reg-01, and a TRN number would be generated. Save the TRN number as it will be used further.
Step 4: Go to the Aadhar Authentication tab after filling in the required information in all the tabs.
Step 5: Choose “Yes” in Would you like to opt for Aadhar Authentication of Promotors, Partners, Authorized Signatories? and select the person whom you want to conduct Aadhar Authentication.
Step 6: Now, move to the verification tab and file the GST Registration Application.
Step 7: After submitting the application, validation would be conducted by the GST portal automatically and the details will be verified. In case of discrepancy, mail would come to rectify it.
Step 8: After portal validation, a hyperlink would be issued on the registered mobile number and email to conduct Aadhar Authentication.
Step 9: Open the hyperlink, and enter the Aadhar number or VID, better to choose the Aadhar number. Then Generate OTP.
Step 10: Enter OTP and Aadhar Authentication would be successful.
Step 11: ARN number would be generated within 10-15 minutes of completion of Aadhar Authentication and the application for GST will be considered to be as submitted. The date on which Aadhar authentication was conducted and ARN issued would be considered as the date of filing the application.
GST Aadhar authentication failure, How to resolve?
In Case of failure to conduct Aadhar Authentication after opting for it within 15 days of submitting the application. The application will be deemed to be filed after 15 days and an ARN number would be generated. From that day, the proper officer shall take action and physical verification provisions shall apply.
It’s like hitting your own foot with a hammer. This GST Registration will take a far longer time to be accepted.
In case of unsuccessful Aadhar Authentication, due to differences in name in Aadhar and PAN. Then ARN number would be generated at that time and GST Registration will be granted after physical verification of the property.
GST Aadhar Authentication link expired or how to resend Aadhar Aadhar Authentication?
To resend the link in case you are not able to find the previous link. a TRN number would be required.
Step 1: Open the GST Registration Portal
Step 2: Go to Services> Registration> New Registration
Step 3: Now login via the TRN number and don’t start another application.
Step 4: Once you login either you will find the application. A pencil-like icon would be there to edit the application. Click on the pencil-like button.
Step 5: In case the application does not appear. Go to Services> User Services> User Submitted Applications> GST Reg-01 and then click on the pencil-like button or open it.
Step 6: The GST Application will appear like what you filed earlier. Go to the Aadhar Authentication tab.
Step 7: Click on Resend Link. The link will be resent on the registered mobile and email.
What is VID in GST Aadhar authentication?
VID is a temporary, revocable 16-digit random number mapped with the Aadhaar number. VID can be used in lieu of the Aadhaar number whenever authentication or e-KYC services are performed. Authentication may be performed using VID in a manner similar to using the Aadhaar number. It is not possible to derive an Aadhaar number from VID.
Akash Arora is a Chartered Accountant by profession and the founder of this website. His expertise areas include compliance with Goods and Service tax and Direct taxes in India. He has written more than 70+ blogs on GST and Direct tax.
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