Details of Aadhaar Authentication Process for GST Registration

Details of Aadhaar Authentication Process for GST Registration

The GST Council in its 39th meeting held on March 14, 2020 approved operationalization of Aadhaar authentication for new taxpayers. The implementation of the same was postponed keeping the lockdown on account of COVID pandemic in view.

As per the notification of the Central Board of Indirect Taxes and Customs (CBIC) Aadhaar authentication for GST registration has become operational with effect from August 21, 2020. Aadhaar authentication for new registration is expected to substantially enhance ease of doing businesses for genuine businesses. A person opting for Aadhaar authentication for New GST registration would get it within three working days, if no notice is issued and would not need to wait for physical verification.

While the applicants not opting for Aadhaar authentication for GST registration would be granted 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.

Timeline of Relevant Notifications:

Notification Date Details
NN 1/2020 1-1-2020

Section 95 of Finance Act 2019 inserted sub sections 25(6A) to (6D) which were made effective from 01-01-2020.

Section 25(6A) to (6D) provided for scheme of Aadhaar authentication.

16/2020 23-03-2020 Brought the rules to put relevant sections into action.
17/2020 23-03-2020 Provided for persons exempted from Aadhaar authentication.
18/2020 & 19/2020 23-03-2020

Set out the 01-04-2020 as the date from which Aadhaar authentication of Individuals shall be carried out.

Note: However no Aadhaar authentication process was rolled on the portal.

NN 62/2020

20-08-2020 The detailed process of Aadhaar authentication has been rolled on portal supported by amending Rules 8,9 and 25.

Manner of Implementation of Aadhaar Authentication:

The Aadhaar authentication introduced through above statutory pronouncements is as under:

  • Aadhaar Authentication 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.
  • Aadhaar Authentication or alternate and viable identification means for already registered persons.
  • Non-authentication shall result in existing number being declared invalid. However no form or manner of Aadhaar authentication in existing registered persons has as yet been introduced.
  • For Individuals and non-individuals, Aadhaar authentications of following persons have been made effective for applications being submitted from 21-08-2020:
    • Individuals and authorized signatories,
    • Managing and authorized partners,
    • Karta of HUF
  • MD, WTD or other directors who are not authorized signatories, Partners of firm who are neither managing partners not authorized signatories, members of managing committes or board of trustee who are not authorized signatories need not go for Aadhaar authentication.
  • Non-citizens/ Non-residents even if they are authorized signatories are also exempted from Aadhaar authentication because as per section 3(1) of the the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, only residents are entitled to obtain Aadhaar.
  • As per section 2(1)(v) of Aadhaar Act, “Resident” means an individual who has resided in India for a period or periods amounting in all to one hundred and eighty-two days or more in the twelve months immediately preceding the date of application for enrolment.

Process of Aadhaar Authentication:

  • Once registration application is submitted, an authentication link will be shared on GST registered mobile numbers and email ids mentioned in the GST application.
  • On clicking the verification link, a window for Aadhaar Authentication will open where Aadhaar Number was entered and the OTP shall be received by applicants on the mobile number linked with Aadhaar.
  • Taxpayer need to complete Aadhaar authentication of all Promoters/Partners/Authorized Signatories/Karta etc. as mentioned in the application to avail this option.
  • Applicant can access the link again for authentication by navigating to following link:
 My Saved Applications -- Aadhaar Authentication Status  -- RESEND VERIFICATION LINK.

Deemed Approval/Clarification on Registration Applications:

A. If Aadhaar authentication is done successfully: Deemed grant of registration, if no action is taken after 3 working days from earlier of:

a) Date of Aadhaar Authentication.


b) 15 days from submitting Part B of REG-01.

B. If Aadhaar Authentication is not opted or Aadhaar authentication is opted but Aadhaar authentication fails:

a) As per Rule 8(4A), date of submission of application is 15 days from submitting Part B of REG-01.
b) The registration shall be granted only after physical verification of the place of business in the presence of the applicant. [Proviso to R.9(1) + R.25].
c) The verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification. [R.25].
d) With approval of officer not below the rank of Joint Commissioner, proper officer may for the reasons to be recorded in writing in lieu of the physical verification of the place of business, carry out the verification of such documents as he may deem fit. [2nd Proviso to R.9(1)].
e) Extended period of 21 days from date of submission of application i.e. after 15 days from submission of Part B of REG-01 shall apply for deemed approval of application, in case of in action or issue of any clarification in REG-03. Hence the period shall get extended to 36 days. [R. 8(4A)+9(5)(b) and 9(5)(c)].
f) Though Aadhaar authentication is effective from 01-04-2020 but extended period for deemed approval/clarification have been made applicable from 21-08-2020, hence the extended period should not apply to applications pending on portal on 20-08-2020.

Note: For deemed approval on account of any clarification due to in action , the period continues to remain 7 working days from date of receipt of REG-04. [R. 9(5)(d)].

Rejection of Application:

  • Rejection of application on account of no response or unsatisfactory response has been made optional. Earlier it was mandatory to reject the registration by issuing REG-05. [R. 9(4)].

Frequently Asked Questions:

Here are some Frequently Asked Questions related to Aadhaar Authentication of Applicant for GST Registration as notified by Central Board of Indirect Taxes and Customs vide Notification No 62/2020 – Central Tax dated 20th August, 2020

Q1: Whether Rule 8(4A) of CGST Rules, 2017 applies on Persons referred u/s 25(6d) of CGST Act, 2017?
ANS 1: No, This rule does applies on applicants other than a person notified u/s 25(6d) of CGST Act, 2017.
Section 25(6d) of CGST Act, 2017, The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the Council, specify by notification.

Q2: What is the effective date of Aadhaar authentication?
ANS 2: This Rule will be effective from 21′ August, 2020.

Q3: What is the object of this rule?
ANS 3: Every applicant other than notified u/s 25(6d) of CGST Act, 2017, opts for authentication of Aadhaar number, while submitting the application for registration under Rule 4 of CGST Rules 2017.

Q4: What is the Date of submission of application for registration?

ANS 4: Date of Authentication of Aadhaar Number or 15 days from the submission of the application in Part B of Form GST Reg 01:- Whichever is earlier.

Q5: What will happen if applicant fails to undergo Aadhaar Authentication or does not opt for Aadhaar authentication as specified in Rule8 (4A) of CGST Rules 2017?
ANS 5: The registration shall be granted only after physical verification of the place of business in the presence of the said person, in the manner provided under rule 25.
The notice in FORM GST REG-03 may be issued not later than twenty one days from the date of submission of the application.

Q6: What will be the results, in case proper officer fails to take any action?

  • If applicant successfully undergoes Aadhaar authentication, Registration will be granted within 3 working days from the date of submission of application.
  • If applicant does not opt for Aadhaar authentication or fails to authenticate Aadhaar number, Registration will be granted within 21 working days from the date of submission of application.
  • If applicant gets any clarifications on registration application, within a period of 7 working days from the date of the receipt of the clarification, information or documents furnished by the applicant.
  • If PO fails to take any action, the application for grant of registration shall be deemed to have been approved.

Notes: – Every applicant who wants to opt for Aadhaar authentication is required to get their mobile number and email id linked with Aadhaar Number.


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