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Class 2 DSC discontinued, Only Class 3 DSC will be issued

Class 2 DSC’s issuance will be withdrawn as per CCA Directions

Class 2 DSC’s issuance will be withdrawn as per CCA Directions

With everything going Digital or Online, even signature has got its Digital Version, commonly known as Digital Signature Certificate or DSC. As per the recent updates and directions given by CCA (Controller of Certifying Authorities), The use of Class 2 DSC will be discontinued. Meaning thereby Class 2 Digital Signature Certificate (DSC’s) issuance, which will be withdrawn and only Class 3 DSC will be issued from 1st January 2021.

What is Class 2 and Class 3 DSC?

Class 2 DSC

The DSC class 2 certificates are issued for both business personnel and private individuals use. This level applies to environments where risks and consequences pertaining to data compromise are moderate.

Class 3 DSC

This certificate is issued to individuals and organizations. Class 3 digital signatures certificates are applicable in environments with significant risks. However, Class 3 Digital Signature Certificate is applicable to environments where threats to data and consequences of failure of security services are high, for instance, high value transactions or high levels of fraud risk.

Update on Class 2 Digital Signature Certificate (DSC)

  • A guidance note dated. 26.11.2020 was issued by Controller of Certifying Authorities (CCA) i.e. the authority which license and regulate the working of Certifying Authorities.
  • The Certifying Authorities (CAs) issue digital signature certificates for electronic authentication of users.
  • The CCA (Controller of Certifying Authorities) has made a lot of changes and the business owners will have to embrace for a newer reality.

Changes which would affect your business

  • CLASS 2 Digital Signature Certificate will discontinue from 1st January, 2021
  • Government DSC would require a Video.
  • There would be no Traditional DSC (No Paper based DSC) from 1st January 2021.
  • ALL DSC have to be downloaded within 30 Days after approval.
  • ClASS 3 will be used in all department (more Clearance and guidelines will be shared in coming days).
  • CA shall issue only class 3 individual signing certificate (both organizational & personal) to subscribers on tokens from 01.01.2021 onwards.

The effect of these changes

  • The Certifying Authorities shall download all the DSC from the system, because all pending download would be rejected by the system automatically.
  • This will include rejection even of the DSC which are approved if not downloaded before 31st December, 2020.
  • The CAs shall ask ask their clients to renew the Digital Signature Certificates now in Class 2 before 31/12/2020, because renewing the certificate with class-3 will be more expensive then class-2.
  • All the conversion from Class 2 to Class 3 would happen automatically, and there would no manual work required.
  • All your DSC Generated that are pending for video, email, phone or other verification, under any objection after 31st December, 2020 will automatically be rejected and stock will be credited to your account.

Important note

  • The Certifying Authorities (CAs) should inform the client about this situation that  from 01/01/2021 Class 3 DSC is mandatory and cost of the Class 3 is higher than class 2.
  • Hence, they should renew or generate DSC of Class 2 for two years or 3 years before 31st December, 2020, so client can save money at least for next 2 or three years.

Suggested Read: QRMP- Quarterly Return filing & Monthly Payment of Taxes – A Scheme for small Taxpayers.

 

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Dharti Popat: Dharti Popat (B.Com, LLB) is a young, enthusiastic and intellectual Content Writer at Ebizfiling.com. She studied Law and after practicing as an Advocate for quite some time, her interest towards writing drew her to choose a different career path and start working as a Content Writer. She has been instrumental in creating wonderful contents at Ebizfiling.com !
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