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GSTN Portal enabled the option to authenticate Aadhaar Card or upload e-KYC documents

GST portal has recently enabled existing taxpayer authentication using the 12-digit Aadhaar number or eKYC to introduce verification of taxpayers registered on the Goods and Services Tax Portal. This step has come after the authorities enabled Aadhaar authentication for newly registered taxpayers at the 39th GST council meeting in August 2020.

If 12 digit Aadhaar number is available, the Primary Authorized signatory and one person who is Proprietor/Partner/Director /Managing Partner/ Karta of the entity registered can go for the Aadhaar Authentication.

If the above-mentioned authorised signatories of a registered business entity does not have a Aadhaar number, they can upload any of the following documents to undergo e-KYC

Aadhaar enrolment number
Passport
Voter ID card
KYC form
Certificate issued by a Competent Authority
Other documents that might be specified by the GSTN

When an existing registered taxpayer would login, a pop-up with Question will be shown “Would you like to authenticate Aadhaar of the Partner/Promotor and Primary Authorized Signatory “ with the two options “Yes, navigate to My Profile” and “Remind me later”

Taxpayers can choose to ignore the pop-up and continue to navigate on the portal or head to the ‘My Profile’ section of the portal and click on the new tab called ‘Aadhaar Authentication Status’. Taxpayers can use the option to SEND AADHAAR AUTHENTICATION LINK, the UPLOAD E-KYC DOCUMENTS option would also be displayed to taxpayer from where they can upload the e-KYC documents on Portal. In this case, the process of e-KYC authentication would be subject to the approval of uploaded e-KYC documents by the Tax Official.

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April, 12
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GST
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RBI states that it did not issue any instructions to link existing bank accounts to Aadhaar

Aadhaar is a 12-digit unique random number that is issued by the UIDAI- Unique Identification Authority of India to the Indian residents after a set of the identification process arranged by the Authority. Aadhaar Authentication is a process by which the Aadhaar number together with the demographic and biometric statistics of an Aadhaar cardholder is deposited into the Central Identities Data Repository or CIDR for its authentication and such storehouse validates the accuracy of the data or whether the same is insufficient basis the available data on it. Aadhaar Authentication aims to provide an online platform of identity to validate the identity of the Aadhaar card holder promptly anytime and at anyplace.

The Reserve Bank of India (RBI), also known as the Apex Bank of India was established as India’s central bank to regulate the issue of banknotes and the keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage and to formulate a modern monetary policy framework to meet the challenge of an increasingly complex economy. The primary objective of the monetary policy is to maintain price stability while keeping in mind the objective of growth.

The RBI has again clarified that it has not issued any instructions for linking the existing bank accounts with Aadhaar. In 2017 also, RBI had denied having issued any instruction for mandatory linking of Aadhaar number with bank accounts.

Why was this clarification issued by RBI?

This clarification by RBI was in response to an application filed by the Software Freedom Law Centre (SFLC) under the Right to Information (RTI) Act to check the veracity of a statement by finance minister Nirmala Sitharaman about linking the existing bank accounts with Aadhaar by March 2021.

Why was the petition signed by SFLC?

In November 2020, while speaking at the virtual annual general meeting (AGM) of the Indian Banks’ Association (IBA), the finance minister had said that banks should ensure all accounts are Aadhaar-seeded and linked with the permanent account number (PAN) by 31^st March 2021

After the speech of Ms Sitharaman, SFLC decided to file an RTI application with RBI to know if the central bank had issued any instructions in this regard.

What was the reply given by RBI?

In its reply, RBI told SFLC that they had not issued any instructions to link the existing bank accounts to Aadhaar. RBI also suggested to refer to extant instructions on know-your-customer (KYC), which were available in their master direction on KYC dated 25^th February 2016 as amended on 20^th April 2020.

While RBI was quick to fall in line with the finance ministry in issuing master directions for Aadhaar, after the Supreme Court order, it had never issued any notification in this regard or asked banks to de-link Aadhaar number of account-holders.

In September 2018, the Supreme Court declared Section 57 of the Aadhaar Act as unconstitutional. This meant bank account-holders, e-wallet or mobile wallet users and mobile subscribers were no longer required to use their Aadhaar number.

Remember, despite the matter reaching the Supreme Court, the government continued with its mission to mandate Aadhaar for everything. In fact, as stated in the apex court, the government had issued as many as 144 notifications to make Aadhaar mandatory for over 200 services or benefits. This includes those services or benefits totally unrelated with Section 7 of the Aadhaar Act for which money needs to be spent from the Consolidated Fund of India.

Section 139AA was inserted in the Income Tax Act by Budget 2017. This section makes it mandatory to link PAN with Aadhaar. This section states that every person who has PAN as on July 1, 2017 is required to link his/her PAN with his/her Aadhaar number. As per the rules if PAN is not linked with Aadhaar by 31^st March, 2021, then the PAN will become invalid. One will not be able to use their Pan to conduct financial transactions where quoting of PAN is mandatory. The PAN and Aadhaar can be used interchangeably, once linked.

In the case of SFLC, since its RTI reply was in contrast with what the finance minister had stated, the banking regulator may soon be ‘asked’ to issue necessary directions on linking Aadhaar with existing bank accounts.

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December, 18
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New Online Step by Step Process for GST Registration with Aadhaar

The GST Council in its 39th meeting held on March 14 approved Aadhaar authentication for new taxpayers. As per finance ministry, the implementation was postponed due to lockdown situation arised due COVID 19 pandemic. However the said feature has been rolled out by the ministry on Friday.

A person who is opting for Aadhaar authentication for new registration will get the GST certificate within three working days in case no query or notice is raised from the department end. Also there is no need to wait for physical verification. This would substantially enhance ease of doing businesses for genuine businesses.

In case the applicant is not opting for Aadhaar authentication for GST registration than the registration certificate would be granted to such taxpayers only after physical verification of the place of business or documentary verification which may take up to 21 working days or more if notice is issued.

This measure is expected to facilitate genuine and honest taxpayers while at the same time keeping the fake and fraudulent entities away from GST. In this article we will learn about Step by Step process to Register GST via AADHAAR

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List of documents required for GST registration:

The following are the details required for GST registration:

1) Scanned copy of passport size photo of the proprietor/ partners/ Directors

2) PAN details of Company/ firm etc

3) Aadhaar and Pan card scanned copy of the proprietor/ partners/ Directors

4) Scanned copy of Proof of business-like Electricity bill. Telephone bill , rent agreement(Self attested with stamp of firm)

5) In case the place of business is in name of other person then NOC of owner is required (Download format of NOC from here)

6) Registered Mobile and Mail id for Communication

7) Details of Business

8) Letter of appointment of Authorized signatory (Download format of Letter of authorized from here)

9) NOC-of-owner

10) Letter-of-Authorization

Procedure to register GST via Aadhaar:

Below are the steps to register for GST through Aadhaar authentication:

Step 1: Go to https://www.gst.gov.in/ and click on “Register now” and enter below details:

a. State and District of registration

b. Name as per PAN and PAN no

c. Mail id and mobile no

After entering the above details click on “Proceed” button. OTP will be send on mail id and mobile no provided by you. Now enter the OTP and click on proceed a TRN (temporary registration number) will be generated save it for future reference. Now, click on “proceed” button.

Step 2: Enter the TRN no generated in step 1 and click on Proceed button. OTP will be send to your mail and mobile no. Enter the OTP and click on Proceed.

You will the below screen, click on the blue pencil icon for navigating to registration form.

Step 3: Filing of GST registration form:

The registration form has 9 tabs which we will filling below:

1. Details of Business:

In this tab the taxpayer has to enter the following details:

a. Trade name of business

b. Constitution of business i.e. whether a individual, HUF, Trust, Company etc.

c. Ward or charge unit

d. Center jurisdiction

e. Select whether Are you applying for registration as a casual taxable person

f. select whether you are opting for composition scheme

g. select reason for registration and date of commencement of business

After entering the above details click on “save and continue” button and proceed to next tab.

2. Details of Proprietor or Promoter or Partner:

In the next tab the applicant has to enter the details of promoter or Proprietor or Partner which are as follows:

1. Personal information like name of person, Name of father, gender etc.

2. Identity information like PAN no, Designation of person etc

3. Residential address of the person

After above details are entered upload the photograph of the person whose details are being entered. Where the person is authorized signatory select the “also authorized signatory” option and click on “save and continue” button and proceed to next tab.

3. Details of Authorized Signatory:

Where the applicant has selected the authorized signatory option in tab 2 than in this tab he has to select the person whom authorized signatory is to be assigned by selecting “Primary Authorized Signatory” option and click on “save and continue” button and proceed to next tab.

4. Details of Authorized Representative

In the next tab the taxpayer has to enter the details of authorized representative after entering the details click on “save and continue” button and proceed to next tab.

5. Details of Principal Place of Business:

In this tab the applicant has to enter the details of Principal Place of Business which include address of the business premises, contact information.

After entering the details select the nature of possession of premises i.e. whether rented or owned or shared and upload the documents like rent agreement and NOC of owner in case of rented property, copy of latest electricity bill in case of owned or shared property. Also select the Nature of Business Activity being carried out at above mentioned premises. After entering the details click on “save and continue” button and proceed to next tab.

6. Details of Additional Places of your Business

Where the applicant is carrying business at more than one place in a state than he has to select the option “Have Additional Place of Business” under Principle place of business tab and has to provide the address of additional place of business where business if being carried on. After entering the details click on “save and continue” button and proceed to next tab.

7. Details of Goods / Commodities supplied by the business

In this tab the applicant has to provide the details of business carried.

After entering the details click on “save and continue” button and proceed to next tab.

8. State specific information

In this tab the applicant has to provide the existing registration under the state act like Professional Tax Employee Code (PTEC) No or Professional Tax Registration Certificate (PTRC) No if any.

After entering the details click on “save and continue” button and proceed to next tab.

9. Aadhaar Authentication:

Aadhaar Authenticatiobn process has been introduced, for the persons applying for GST registration as Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01

Under this, Individuals, Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of an Hindu undivided family, applying for new registration, can opt to undergo e-KYC authentication of their Aadhaar number.

Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, Tax authority based on the documents produced can grant registration.

In this tab the applicant has to authenticate his no a person who is opting for Aadhaar authentication for new registration will get the GST certificate within three working days in case no query or notice is raised from the department end. The process of Aadhaar authentication is as follows:

a. Select “Would you like to opt for Aadhaar authentication of Promoters/ Partners, Authorized Signatories” and click on “save an continue” button. A warning pop up will appear, now click on OK button.

If applicant clicks YES, an authentication link will be sent on registered mobile number and e-mail IDs of the Promoters/ Partners or Authorized Signatories. Upon clicking the authentication link, a screen will come with a declaration where the applicant needs to enter Aadhaar number and click on “validate”.

Upon clicking the authentication link, a screen will come with a declaration where the applicant needs to enter Aadhaar number and click on “validate”. Upon validation OTP will be send to mobile no linked with the Aadhaar no. Now, enter the OTP and click

Once OTP is entered the Aadhaar will be authenticated successfully.

Step 4: Verification and Submission

Now, go to verification tab and select the name of the authorized signatory from the drop down, enter the place and submit with DSC or EVC.

Note:

1. The Aadhaar authentication has to be done after verification process is completed.

2. ARN of your application shall be generated once Aadhaar authentication of Promoters/ Partners, Authorized Signatories are complete

Timelines for grant of registration are:

In case of successful authentication of Aadhaar, registration will be deemed approved within 03 working days

If Aadhar authentication is not opted for or if authentication fails in validation and no SCN is issued within 21 days by tax official, registration will be deemed approved

Tax Officer can issue SCN within the period specified for grant of registration, like in cases of successful Aadhar authentication i.e. 03 working days, or in cases when taxpayer do not opt to provide Aadhaar or when Aadhar authentication fails i.e. 21 working days. Applicants can submit their reply within 07 working days from issue of SCN

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