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Authentication of Aadhaar number under the GST Act

By Annapoorna

Updated on: Jul 25th, 2024

4 min read

The Central Board of Indirect Tax and Customs (CBIC) had issued a notification on 23rd March 2020, about Aadhaar authentication for GST registration from 1st April 2020. The same was later amended vide notification 62/2020 dated 20th August 2020 to be made optional. The aadhaar authentication for GST registration is not required for non-residents, persons other than citizens of India and persons who have already been registered under GST.

Latest Updates on GST registration

10th July 2024
1. The CBIC notified via CGST notification no. 13/2024 dated 10th July 2024 that biometric-based Aadhaar Authentication for GST registration, earlier implemented on a pilot basis in Gujarat and Puducherry, has now been extended to the whole of India.
2. Further, the CBIC released CGST notification no. 12/2024 dated 10th July 2024 stating that in cases where applicants do not opt for Aadhaar Authentication, they must submit a photograph of the individual applicant or such individuals in relation to the applicant and get the original documents verified at one of the designated facilitation centres.

What is Aadhaar Authentication?

Aadhaar authentication is a process by which the Aadhaar number along with other biometric details of the Aadhaar holder are submitted to the Central Identities Data Repository (CIDR) for verifying the user for his desired action. The CIDR verifies the correctness of data on the basis of information available with it.

The main purpose behind the Aadhaar authentication is to create an online platform wherein the identity of Aadhaar holders can be validated anytime anywhere. This will keep a check on the malpractices happening, in this case, under the Goods and Services Tax law.

GST law on Aadhaar Authentication for GST registration

At the time of GST registration, every applicant can opt for the Aadhaar authentication. The exceptions are persons exempted by the Central government under the CGST Act or those who must mandatorily undergo the Aadhaar authentication under section 25(6C) of the CGST Act, listed down in the next section.

The rule to opt-in or not for Aadhaar authentication will be applicable for applications made on or after 21st August 2020. However, between 1st April 2020 and 20th August 2020, all the applicants submitting registration application under GST had to mandatorily undergo Aadhaar authentication for obtaining registration.

The applicants who opt for it must submit the Aadhaar number along with the application for registration under GST. After this, they need to e-verify the same on the GST portal using the authentication link sent to the mobile number and email ID linked to the Aadhaar. It consists of an OTP that must be entered on the portal and it gets e-validated. Aadhaar authentication of the primary authorised signatory and at least one promoter or partner is necessary.

Note that in the cases of company/LLP/foreign company/AOP/Society/ Trust/Club, Aadhaar authentication of only the primary authorised signatory would be sufficient.

After this, whenever a taxpayer files his returns or uses any services on the GST portal, an OTP will be sent on the mobile number and email ID, which is linked to its Aadhaar number. Only after entering this OTP, a taxpayer can proceed to file the return.

If a person fails to do an Aadhaar authentication when opted or has not opted for it, proceed to file the application without the Aadhaar authentication steps given above. The registration will be granted only after a physical verification is done of the principal place of business by the GST officer. The officers can instead verify the e-KYC documents of the primary authorised signatory and any one of the promoters/partners on obtaining permission from the officer, not below the rank of Joint Commissioner and in writing.

In such cases, a notice in form GST REG-3 within 30 days from the date of submitting the application. The date of submission of the application is earlier than the below two:

Date of Aadhaar authentication
Date after counting 15 days from the submission of Part B of Form GST REG-01, being the registration application.

The assessee must reply within 7 working days from the date of receipt of notice in form GST REG-4. Once he replies, the officer must verify within the next 7 working days to approve the grant of registration. If the reply is not received within 7 working days from the applicant or he is not satisfied with the reply received, then the GST officer can reject the grant of registration in REG-05. If the officer fails to act within the timelines, the registration is deemed to be granted.

Earlier, the registration would be granted only on physical verification of principal place of business within 60 days from the date of application.

If the Aadhaar number is not allotted to a particular individual applying for registration under GST, then an alternate means of identification is made available to him like physical verification of place of business as per the CGST Rules.

Mandatory Cases of Aadhaar Authentication

As per Section 25(6C) of the CGST Act, the Aadhaar authentication is mandatory for the following class of individuals as per Rule 8 of the CGST Act in order to become eligible for the GST registration:

Authorised signatory of all types
Managing/authorised partners of a partnership firm
Karta of a Hindu Undivided Family

Exceptions

The only exception is if an individual is not a citizen of India or he is a person other than the one mentioned below:

Individual
Authorised signatory of all types
Managing/authorised partners of a partnership firm
Karta of a Hindu Undivided Family

Biometric-based Aadhaar Authentication

The government amended Rule 8 (4A) of the CGST Rules via Notification No.27/2022 released on 27th December, 2022, providing for biometric-based Aadhaar authentication for granting GST registrations, starting with a pilot run in the state of Gujarat. This will be carried out together with a risk-based physical verification for persons identified on the GST portal, based on data analysis and risk parameters. However, on 10th July 2024, the CBIC notified via CGST notification no. 13/2024 that the biometric-based Aadhaar Authentication for GST registration will be extended to the whole of India.

The CBIC further released CGST notification no. 12/2024 on 10th July 2024 stating that in cases where applicants do not opt for Aadhaar Authentication, they must submit a photograph of the individual applicant or such individuals in relation to the applicant and get the original documents verified at one of the designated facilitation centres.

Cases of Deemed approval of GST registration application

The application is deemed to be approved by the officer if that officer fails to take action within the timelines given against the following cases:

Case	Timeline
The person who has successfully completed Aadhaar authentication or the person is exempted from the Aadhaar authentication requirement.	3 working days from the date of submitting an application
The person who has opted but failed to complete Aadhaar authentication	21 working days from the date of submission of the application to send the notice in form REG-3
The person has not opted for Aadhar authentication	21 working days from the date of submitting an application
The person who has opted but failed to complete Aadhaar authentication, notice is issued in form GST REG-3 and the person has replied in REG-4	7 working days from the date of receipt of the response, information or the required documents

Steps for Aadhaar Authentication in GST Registration

The following steps must be followed to authenticate the aadhaar number at the time of applying for GST registration for the primary authorised signatory and any one of the promoters/partners mentioned on the application.

Step 1: While filling up Part-B of the application, go to the Aadhaar authentication tab and select ‘Yes’ as follows:

If you select ‘No’, then a window appears as given below. You have to click the ‘OK’ button and upload e-KYC documents of the signatory and one promoter/partner. Proceed with the verification to complete the filing of the application.

Step 2: The authentication link shall be sent to the registered mobile number and email ID mentioned in the application of both the primary authorised signatory and the particular promoter or partner, as the case may be. The link is valid for the next 15 days only.

Click on the link. A window opens up where the user must enter the aadhaar number and the OTP received on the mobile number and the email.

A confirmation message will be displayed for successful authentication.

The user can get the authentication link once again anytime later by visiting the GST portal. Go to My Saved Applications> Aadhaar Authentication Status> RESEND VERIFICATION LINK to obtain the new link.

aadhaar authentication track application status

Steps for Aadhaar Authentication for existing Taxpayers

Step 1: Login to the GST portal. Navigate to the “MY PROFILE” page. Go to Aadhaar Authentication Status. Two options appear.

Step 2: Choose one of the two options – Send Aadhaar authentication link or upload e-KYC documents.

If the former is chosen, check the links received on the email ID and mobile number of the signatory and the particular promoter or partner, complete the OTP verification.

If the latter is chosen, the documents can be approved or rejected by the tax officer. The taxpayer will be considered e-KYC Authenticated and not Aadhaar Authenticated.

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About the Author

Annapoorna

Assistant Manager - Content

I preach the words, “Learning never exhausts the mind.” An aspiring CA and a passionate content writer having 4+ years of hands-on experience in deciphering jargon in Indian GST, Income Tax, off late also into the much larger Indian finance ecosystem, I love curating content in various forms to the interest of tax professionals, and enterprises, both big and small. While not writing, you can catch me singing Shāstriya Sangeetha and tuning my violin ;). Read more

Quick Summary

The CBIC initially made Aadhaar authentication mandatory for GST registration from April 2020, later made it optional. Recently extended biometric-based Aadhaar authentication to all of India, with alternative options provided in case applicants do not opt for it.