Now Aadhaar Authentication is Mandatory to Obtains GST Registration

The Central Board of Indirect Taxes and Customs (CBIC) recently released a notification regarding authentication of Aadhaar number during the process of Goods and Services Tax (GST) registration. For the taxpayers who do not opt for Aadhaar authentication, the GST registration will be granted after physical verification of principal place of business mentioned in the application.

In a notification, the CBIC said that the authentication of Aadhaar number comes into effect from 21st August 2020. The announcement also stated that the officer might carry out verification of documents if the physical check is not possible after recording the reasons for doing so.

If the applicant fails to undergo or does not opt for authentication of Aadhaar number, the notice may be issued within twenty-one days from the date of submission of the application. The Form GST REG-03 will be used by the department to issue this notice.

Also Read: CBIC Makes Virtual Hearings Also Compulsory for GST Appeal Cases

The application for GST registration shall be deemed to be approved if the proper officer fails to take any action within:

1. Within three working days from the date of submission of the application, where authentication of Aadhaar number completed by the applicant.
2. Within twenty-one days where the applicant fails to undergo authentication of Aadhaar number or does not opt for authentication of Aadhaar number.
3. Within seven working days from the date of the receipt of the clarification from the applicant.

The linkage of Aadhaar with GST and PAN (Permanent Account Number) would create a centralised database with the government, which will facilitate data analytics and help in checking tax evasion. The rigorous pre-registration verification procedures would help arrest the rampant tax evasion by way of limiting the number of new fake entities.

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