Aadhaar Authentication for GST Registration: A Simple Guide

When you register for GST in India, you now have the option to authenticate your identity using your Aadhaar number. This article explains how Aadhaar authentication works in the GST registration process, what happens if you choose not to use it, and who needs to get authenticated.

What is Aadhaar Authentication for GST?

Aadhaar authentication was introduced to make the GST registration process more secure and reduce fraud. It helps verify that the person applying for GST registration is who they claim to be. The government introduced this requirement in 2019, but it became mandatory for new registrations from August 21, 2020.

Options Available During GST Registration

When applying for GST registration, you have two main choices regarding Aadhaar authentication:

Option 1: Selecting "YES" for Aadhaar Authentication

If you choose "Yes" for Aadhaar authentication, here's what happens:

1. An authentication link will be sent to the registered mobile number and email ID of:
2. When you click this link, a new window opens where you need to:
3. If authentication succeeds, you'll see a success message. If it fails, you'll see a failure message.
4. Important: The link remains active for only 15 days from the date your Temporary Reference Number (TRN) is generated. If authentication isn't completed within this time, the link expires.

Option 2: Selecting "NO" for Aadhaar Authentication

If you choose "No" for Aadhaar authentication:

1. Your application will be marked for mandatory physical site visit by tax officials.
2. You can optionally upload e-KYC documents for the Primary Authorized Signatory and one Promoter/Partner. These can include:
3. Documents must be in PDF or JPEG format and not exceed 2MB in size.

Benefits of Choosing "YES" for Aadhaar Authentication

If you successfully complete Aadhaar authentication:

1. Your application will be deemed approved within 7 working days.
2. You won't need to undergo a mandatory site visit.
3. If tax officials raise any Show Cause Notice (SCN) within 7 working days, you'll have 7 working days to reply. If officials don't take action after receiving your reply within 7 working days, your application gets automatically approved.

What Happens If Aadhaar Authentication Fails?

If you chose "Yes" but your Aadhaar authentication was unsuccessful:

1. Your registration application won't be deemed approved within 7 working days.
2. Your application will be marked for mandatory site visit by tax officials.
3. Your application will get deemed approved after 30 calendar days if tax officials don't take any action.

Who Needs to Get Aadhaar Authenticated?

Authentication requirements depend on your business type:

1. Proprietorship Concern:
2. Partnership Firm:
3. Hindu Undivided Family (HUF):
4. Company (Public, Private, Unlimited):
5. Foreign Limited Company:

And so on for other business types.

Exemptions from Aadhaar Authentication

The following entities are exempt from Aadhaar authentication:

1. Government Departments
2. Public Sector Undertakings
3. Local Authorities
4. Statutory Bodies
5. Persons who are not citizens of India
6. Persons applying for a Unique Identity Number

Physical Verification Process

If Aadhaar authentication isn't completed or you select "No," tax officials will conduct a physical verification:

1. A tax officer (usually a Superintendent of Central Tax) will visit your business location.
2. They will verify your business exists at the address provided and document the visit.
3. The verification report with photographs will be uploaded to the GST portal.
4. The registration will be granted within 30 days of application submission.

Time Limits for Registration Approval

1. With successful Aadhaar authentication: 7 working days
2. Without Aadhaar authentication or if authentication fails: 30 calendar days

If tax officials don't take any action within these time limits, your registration will be automatically approved.

Note: 7 days and automatic approval is theoretical, and in the practical world, these are not followed.

Aadhaar Authentication for Existing GST Registrations

For already registered businesses, Aadhaar authentication is being implemented gradually since January 1, 2022. It's currently required only for:

1. Filing applications for revocation of cancelled registration
2. Claiming IGST refunds on exported goods
3. Filing refund applications

Conclusion

Aadhaar authentication makes the GST registration process faster and more convenient. By choosing "Yes" for Aadhaar authentication, you can avoid physical verification and get your registration approved more quickly. However, if you don't have an Aadhaar number or choose not to use it, the traditional physical verification route is still available.

Remember to complete the authentication process within 15 days of generating your TRN to avoid delays in your GST registration.