Aadhaar made a mandatory requirement if you need GST registration. Know what you can do if you do not have it.

A new system for new GST registration has been introduced and activated from 21st August, 2020 where the Aadhaar card is now mandatory for GST registration. That means, the applicant who are seeking for GST registration now will be given an option to select if he wishes to authenticate Aadhaar or wishes to opt for physical verification. If the applicant opts for Aadhaar authentication for his GST registration then the applicant will get his / her GST registration in just three days.

In this article, we will discuss all about the Aadhaar Authentication for GST registration. Also, we will explore other options as well.

Is Aadhaar Authentication mandatory for GST registration:

New businesses can now opt for a quick authentication of their credentials using Aadhaar, and secure Goods and Services Tax (GST) registration. Aadhaar authentication for new goods and services tax (GST) registration is another step towards enhancing ease of doing business. Hence, Aadhaar is mandatory for new GST registration.

How to get Aadhaar Authentication for New GST registration?

1. Option of Aadhaar Authentication:

• While applying for GST registration, the applicant will be given an option to choose from Aadhaar authentication or physical Verification.
• The applicant will have to select ‘Yes’ for getting Aadhaar Authentication.

2. Authentication link:

• Once you select ‘Yes’, an Authentication link will be shared on your registered mobile number and Email IDs.
• Then click on the Authentication link which was sent to you on your registered mobile number.

3. Enter Aadhaar Number:

• After clicking the Authentication link, you will a declaration will be displayed, where you need to enter your Aadhaar number.
• Once you enter the Aadhaar number, you will have to validate the same.

4. OTP generation:

• If the validation is successful and if the details in registration form are matching with the UIDAI, an OTP will be sent on your email and mobile registered with Aadhaar that has been entered by the applicant.
• On entering the OTP in the box provided on the screen validation will be complete and a message of successful e-KYC authentication will be shown.
• If you fail to Authentic via Aadhaar OTP, the Tax officer might come for physical verification of your place of business.

5. Verification by Tax Authority:

• After the e-KYC authentication, the GST registration application would be sent to the jurisdictional tax authority that may carry out necessary documentary and/or physical site verification before approving registration.
• If there is no action is initiated by the Tax Authority within 21 days, the registration application shall be deemed as approved.

Note: For a person opting for Aadhaar authentication for new GST registration would get it within just three working days.

However, if the applicant chooses not to go through the process of Aadhaar authentication, he may choose No for the same. But if the applicants who do not want to go for Aadhaar authentication will have to undergo physical verification of place of Business.

Aadhaar Authentication for GST registration- Process chart:

What should be done if you do not have Aadhaar card:

When you do not wish to go for Aadhaar authentication, then you may opt for physical verification for your place of business as follows:

• When Applicant do not wish to go for Aadhaar authentication for their GST registration may choose NO while applying.
• After submission of the GST registration Application, an officer will conduct physical verification of place of business within 21 days of application.
• After verification of Place of Business, if the Officer is satisfied, may grant the GST Registration Certificate.
• If within 21 days the clarification officer fails to issue any show cause notice, then there would be deemed registration of GST.

The GST registration via Aadhaar Authentication is a big step towards providing Ease of doing business to the applicants. The main reason for this is that through Aadhaar authentication, the applicant may get GST registration done in just 3 days, while it takes 21 days if the applicant chooses physical verification is selected.

Recently, the exemption limit for GST registration has been increased to 40 lakhs. Know the full details of GST registration in India.