Know who are exempt from Aadhaar authentication in GST
The Central Board of Indirect Tax and Customs (CBIC) had issued a notification on 23rd March 2020, about Aadhaar authentication for GST registration from 1st April 2020.
The same has been amended vide notification 62/2020 dated 20th August 2020 to be made optional. The implementation process has started from August 21, 2020. Aadhar authentication for new registration of GST has been brought into the light to improve the smoothness of doing business for genuine businesses. Aadhar will be authenticated within 3 working days for the person opting for Aadhar authentication at the time of registration of GST
Also from 1st January 2021, refund would be disbursed to only those bank accounts which are validated with PAN and Aadhar. Further, refund applications can now be signed through Aadhar authentication via OTP
Central Board of Indirect Taxes and Customs has issued a Notification No. 03/2021 – dated February 23, 2021, Seeks to notify persons to whom provisions of sub-section (6B) or sub-section (6C) of section 25 of CGST Act will not apply. CBIC has exempted certain categories of persons including foreign persons and government entities from the compulsory requirement of Aadhaar-based authentication for the purpose of the GST registration. However, Indian citizens will have to follow the Aadhaar authentication or personal verification route for GST registration.
Those exempted through a notification by the Central Board of Indirect Taxes Customs (CBIC) include the following persons:
a) not a citizen of India; or
b) a Department or establishment of the Central Government or State Government, or
c) a local authority; or
d) a statutory body; or
e) a Public Sector Undertaking, or
f) United nations organization, embassy of foreign country.
This will be relief for many MNC who has foreign directors, now they do not have to take Aadhaar Number for GST Registration and later.
Mandatory Cases of Aadhaar Authentication
The Aadhaar authentication is mandatory for the following class of individuals for GST Registration
- Authorised signatory of all types
- Managing/authorised partners of a partnership firm
- Karta of a Hindu Undivided Family
Steps to Authenticate Aadhaar Number with GST
The applicants who opt for it must submit an Aadhaar Card along with the application for registration under GST. After this, they need to e-verify the same on the GST portal. An OTP will be sent on the mobile number and email ID linked to the Aadhaar card. Only upon entering this OTP, the Adhaar will get e-validated
The user can get authentication link once again anytime later by visiting the GST portal. Go to My Saved Applications> Aadhaar Authentication Status> RESEND VERIFICATION LINK to obtain the new link.