The idea of Aadhaar Authentication for new taxpayers was approved in the 39th GST Council Meeting held on March 14, 2020. However, the implementation was kept on hold considering the lockdown for COVID-19 pandemic. CBIC had issued notifications on 23rd March 2020 about Aadhaar authentication for GST registration from 1st April 2020 however, it was changed later via notification 62/2020 dated 20th August 2020 and made it optional. Now, Aadhaar authentication is not mandatory for already registered personals (but advisable), non-residents, and persons other than citizens of India.
According to the government, this latest requirement will ensure ease of doing registration for new businesses. Aadhaar authentication for New GST registrations is a simple process. A person opting for the same will get it within three working days if all the verification is done appropriately. This is done along with the new GST registration process.
What is Aadhaar Authentication?
A process of submitting the ‘Aadhaar number’ along with other biometric details of the Aadhaar holder to the Central Identities Data Repository (CIDR) for verifying its correctness is known as Aadhar authentication. The CIDR verifies the correctness of details on the basis of information available with it.
This process is an attempt to create an online platform to validate the identity of Aadhaar holders easily from anywhere with an intention to reduce frauds.
GST Notification No. 38/2021-CT dated 21.12.2021 has notified January 1, 2022, as the implementation date for Rule 10B of CGST Rules, 2017. It is mandatory for a registered person to undergo aadhaar authentication.
Aadhaar Authentication / e-KYC for Existing Taxpayers
All taxpayers registered as Regular Taxpayers (including Casual Taxable persons, SEZ Units/Developers), ISD, and Composition taxpayers can do their Aadhaar Authentication for GST registration or e-KYC on GST Portal.
It is not mandatory for every authorized signatory, promoter, or partner to get Aadhaar authenticated for a new GST Registration. Aadhaar authentication is based on the constitution of business (COB).
The following table explains and lists the option of Aadhaar authentication for different types of the constitution of business:
| S.No. | Constitution of Business | Nature of Person | Aadhaar Authentication Required |
| 1 | Proprietorship Concern | Proprietor | Yes (only 1 Proprietor + Primary Authorized Signatory) |
| Authorized Signatory | |||
| 2 | Partnership Firm | Partners | Yes (only 1 Partner + Primary Authorized Signatory) |
| Authorized Signatory | |||
| 3 | HUF | Karta | Yes (1 Karta + Primary Authorized Signatory) |
| Authorized Signatory | |||
| 4 | Company (Public, Private, Unlimited) | Authorized Signatory | Yes (Primary Authorized Signatory) |
| Directors | One Director only | ||
| 5 | Company (Foreign Limited) | Authorized Signatory | Yes (Primary Authorized Signatory) |
| Authorized Person in charge in India | Yes | ||
| 6 | Limited Liability Partnership | Designated Partners | One partner only |
| Authorized Signatory | Yes (Primary Authorized Signatory) | ||
| 7 | Society/Club/Trust/Association of Person | Members of Managing Committee | One member only |
| Authorized Signatory | Yes (Primary Authorized Signatory) | ||
| 8 | Other | Person in Charge | One person only |
| Authorized Signatory | Yes (Primary Authorized Signatory) |
Type of constitution of businesses that are excluded from Aadhaar authentication:
1) Not a citizen of India
2) Department or establishment of Central or State Government
3) Local Authority
4) Statutory Body
5) Public Sector Undertaking
6) Person applying for registration u/s 25(9)
Advisory for applicants where GST Registration application marked for Biometric-based Aadhaar Authentication – 28-08-2023
- The amendment to Rule 8 of CGST Rules introduces a process where applicants who selected Aadhaar number authentication during their application and were verified using data analysis and risk factors will now undergo biometric Aadhaar authentication. This includes capturing photographs of the applicant.
- The implementation pilot for this change is ready, and the feature is prepared for launch on the GSTN portal. The initial rollout will occur in Puducherry, commencing on August 30, 2023. Once an application in Form GST REG-01 is submitted but before the Application Reference Number (ARN) is generated, applicants will either receive a notification to visit a GST Suvidha Kendra (GSK) or receive a link on their declared Mobile and Email ID based on the common portal’s identification. This step is crucial to complete the registration process.
- Applicants receiving the link for Aadhaar Authentication on their Mobile and Email ID can proceed to finalize their application using the existing process.
- Applicants who receive a message to visit a GST Suvidha Kendra (GSK) must go to the specified GSK location, as indicated via Mobile/Email communication. At the GSK, biometric authentication for all necessary individuals must be completed, aligned with the details provided in the GST Application Form REG-01. It is advisable to visit the GSK before the TRN expiry date, as mentioned in the Biometric-based Aadhaar Authentication process email. The Application Reference Number (ARN) will be generated only after the successful completion of the Biometric-based Aadhaar Authentication process.
- The operational days of the GST Suvidha Kendra (GSK) will be determined by the administration in each respective state.
Authenticating the Aadhar or getting the e-KYC done:
If Aadhaar is available, the Primary Authorized signatory and 1 person who is Proprietor/ Partner /Director /Managing Partner or Karta of the entity registered can go for the Aadhaar Authentication.
However, if the aadhaar is not available then the person can upload any of the following documents to undergo e-KYC:
- Aadhaar Enrolment Number
- Passport
- EPIC (Voter ID Card)
- KYC Form
- Certificate issued by Competent Authority
- Others
Steps of Aadhaar Authentication for GST registration:
For all the authorized signatories mentioned in the application, this is the process to be followed:
- The authentication link will be sent to the registered mobile number and email ID (mentioned in the application) after you submit the application for registration.
- You need to click on the link that you have received and then enter the required details such as the aadhaar number and OTP (which will be sent on your mobile number and email id)
If done correctly, you will receive a confirmation message stating ‘successful authentication’
You can get the authentication link anytime on the GST Portal. The link is available in
- My applications > Aadhaar Authentication Status > Resend Verification Link
Here are the screenshots for better understanding:
Step 1:
Step 2:
Step 3:
Step 4:
Step 5:
Step 6:
Image Credits: Gst.gov.in
Aadhar authentication under GST is a step taken by the government to keep a tap on malpractices and to lay down ease of registering the business. It helps a user to authenticate their identity anytime and anywhere in case of any concerns. So, it is now simple and easy for new and existing GST taxpayers to get their aadhaar authentication done as per the guidelines.
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