Decoding the Latest CBIC Notification on Aadhaar Authentication
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The Central Board of Indirect Taxes and Customs (CBIC) has notified a few decisions of the 45th Goods and Services Tax (GST) Council through notification no: 35/2021 – Central Tax. Let’s decode that notification in this article.

Amendment of existing CGST Rule 10A

As per CGST Rule 10A, the GST registered has to provide bank account details within 45 days from the date of issuance of the GST registration certificate. Now, the CBIC added the words ‘which is in the name of the registered person and obtained on the Permanent Account Number (PAN) of the registered person‘.

This amendment means that the bank account details should be of the person on whose name and PAN the GST registration was taken. Also, it notified that in the case of a proprietorship, the proprietor should link his PAN and Aadhaar number. The effective date of this amendment will be announced later by the CBIC.

Insertion of new CGST Rule 10B

The CBIC has inserted rule 10B stating the responsible person has to complete the Aadhaar authentication for their entities and listed down the responsible persons as below:

Type of entity Who should undergo 

Aadhaar authentication

Proprietorship firm Proprietor
Partnership firm Any partner
Hindu Undivided Family (HUF) Karta
Company Managing director or any whole-time director
Association of Persons (AOP) or Body

of Individuals (BOI) or a Society

Any of the members of the managing committee
Trust Trustee in the board of trustees

It is important to note that, in case the authorised signatory is other than the above-mentioned responsible person, the authorised signatory should also undergo Aadhaar authentication. The above responsible person should complete Aadhaar authentication to get eligible for the below purposes:

  • Applying for revocation of GST registration cancellation in Form GST REG-21 under rule 23.
  • For filing of refund in Form RFD-01 under rule 89.
  • For claiming refund of the integrated tax paid on goods exported out of India under rule 96.

The CBIC has amended rules 23, 89 and 96 to give the effect of the above amendment. Also, the CBIC stated that if the Aadhaar number has not yet been assigned to the responsible person, they shall furnish their Aadhaar enrolment ID slip along with any one of the following documents:

  1. Bank passbook
  2. Passport
  3. Voter identity card
  4. Driving license

However, once the Aadhaar number is allotted to the above persons, they shall complete the Aadhaar authentication within 30 days of the allotment. It is to be noted that the effective date of this amendment will be announced later by the CBIC.

Amendment to CGST Rule 45 (3)

The CGST Rule 45 (3) related to furnishing ITC-04 has been amended with effect from 1st October 2021 as follows:

  • Taxpayers with more than Rs.5 crore turnover in the Previous Financial Year (PFY) need to file ITC-04 every six months, i.e., for April-September and October-March of a financial year.
  • Taxpayers with turnover up to Rs.5 crore in the PFY need to file ITC-04 annually.

Hence, the applicable taxpayers should file the half-yearly ITC-04 returns by 25th October and 25th April. The yearly ITC-04 return due date stands as 25th April of the subsequent financial year.

Other amendments

  • The CGST Rule 59(6) has been amended with effect from 1st January 2022 to block GSTR-1 filing if a monthly GSTR-3B return filer has not furnished GSTR-3B for the previous month.
  • A new sub-rule 1A under rule 89: The refund of GST can be filed within two years from the date of payment of the tax when initially the transaction was considered an intra-state supply and later it was held as inter-state supply. Also, the GST refund on these types of transactions that happened before implementing this rule can be claimed within two years from the date of the implementation of this sub-rule.

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For any clarifications/feedback on the topic, please contact the writer at dvsr.anjaneyulu@cleartax.in

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