The use of GST Aadhaar authentication is on the increase in the several states in India. Currently five states in India namely Karnataka, Tamil Nadu, Telangana and one more is eager to use Aadhaar base authentication for GST registration to curb identify theft and other mal practices.
Currently, Gujarat, Andhra Pradesh, and Puducherry have launched the Aadhaar authentication for GST on a pilot basis. The concerned states are now analyzing costs, infrastructure, and manpower requirements before seeking approval from their respective state cabinets for wider implementation of this gst verification link for gst aadhar authentication.
Understanding Aadhaar Authentication for GST Registration
What is Aadhaar Authentication?
The Aadhaar authentication involves submission of the Aadhaar number and biometric details of the Aadhaar holder to the Central Identities Data Repository (CIDR) maintained by UIDAI. The CIDR checks the correctness of information based on the data provided to it. This web-based application on the GST portal seeks to authenticate Aadhaar holders at anytime, anyplace, to eliminate GST law abuses, whether by a company, partner, trust, society, promoter, proprietorship, HUF, LLP, or AOP.
Benefits of Aadhaar Authentication for GST Registration
- It is compulsory for the people or the companies who are registered under the GST act in India to link their Aadhaar number with the GSTIN. It assists with confirming the identity of taxpayers and curbing instances of fraud.
- The linking of Aadhaar with GSTIN can be done through the GST portal or the Aadhaar Enabled Payment System (AEPS).
- Once the Aadhaar number is linked to their bank accounts, eligible taxpayers can file GST returns, make payments, claim GST refund and avail other facilities under GST.
- This helps the existing and the new GST taxpayers to verify their identity as per the laid down procedures, reducing the need for site visit or to upload documents.
GST Law and Aadhaar Authentication Process
The CBIC through a notification dated 23rd March 2020 has made Aadhaar authentication mandatory for GST registration from 1st April, 2020. However, this was amended through notification 62/2020 issued on August 20, 2020 which made it voluntary, based on the constitution of business.
GST Law on Aadhaar Authentication for Registration
- GST registration does not require Aadhaar authentication if the persons are Non-residents, persons of Indian origin residing outside India, and the entity is already registered under GST.
- At the time of GST registration application, every applicant can opt for Aadhaar authentication, except those exempted by the Central government under the CGST Act or those mandatorily required under Section 25(6C) of the CGST Act.
- The opt-in or opt-out rule for Aadhaar authentication applies to applications made on or after August 21, 2020. Between April 1, 2020, and August 20, 2020, all applicants had to mandatorily undergo Aadhaar authentication.
Mandatory Cases for Aadhaar Authentication
As per Section 25(6C) of the CGST Act and Rule 8 of the CGST Rules, Aadhaar authentication is mandatory for GST registration for:
· Authorized signatories of all types
· Managing/authorized partners of a partnership firm
· Karta of a Hindu Undivided Family
Step-by-Step Process for New Taxpayers
Here are the steps on how to do aadhar authentication in gst:
- You have to select ‘Yes’ while filling Part-B of the application in the tab “Aadhaar authentication.”
- Authentication link will be send to primary authorized signatory registered mobile number and email ID and One promoter/partner.
- Click the link, input the Aadhaar number or Aadhaar enrolment ID and OTP received on the registered mobile number and email ID to the link given.
- You will be shown a success message as confirmation that authentication was successful. You will also receive an aadhaar authentication successful email.
Process for Existing Taxpayers
- Visit the GST portal (www.gst.gov.in) and log in to your Dashboard. Go to My Profile section and click on the Aadhaar Authentication Status.
- Choose anyone of the options: “Send Aadhaar authentication link” or “Upload e kyc documents for gst registration“. If you choose the first option, perform the OTP verification through the link received in the email ID and mobile number. If the gst aadhar authentication failed, you can resend verification link to try again.
- In case of later, the documents can either be approved/rejected by the Tax Officer and the taxpayer will be e-KYC Authenticated. This completes the gst verification process and kyc authentication.
Conclusion
Now different states of India are leaning up Aadhaar-based authentication for registration under GST. As reported earlier, three states namely Karnataka, Telangana, and Tamil Nadu have expressed their excitement over employing this type of biometric gst aadhar verification mechanism. On the other hand, Gujarat, Puducherry, and Andhra Pradesh have already started pilot implementations to evaluate the needs and feasibility of a similar system accessed via the aadhaar authentication portal. This step is mainly aimed at deterring system abuse by fake firms looking to avail input tax credit and thereby add to the integrity of the GST regime.
Authentication of Aadhaar not only makes the registration & compliance easier for the taxpayers, it would also lend greater credibility & transparency to the tax system. As more states embark on this drive, it will not only help optimize the existing GST ecosystem but enable a more responsive tax administration structure in general for the country. But before any such wider rollout, the transport authorities must ensure that all obstacles faced due to infrastructure, cost, and human resource, are overcome. They should provide clear solutions on what to do if gst aadhaar authentication failed how to solve to ensure a smooth gst verification process for all taxpayers.