Aadhaar Authentication & Biometric Verification for GST Registration

What is Aadhaar Authentication?

Aadhaar authentication is a process that can be used to verify an individual’s identity through the submission of Aadhaar number and Biometric details. The data should be submitted to the Central Identities Data repository (CIDR). The CIDR then cross-checks the information provided with its records to confirm its accuracy.

The main objective of aadhaar authentication is establishing a secure online system that enables real-time identity verification of aadhaar holders anytime and anywhere. This authentication system prevents fraudulent activities, especially in areas such as compliance with the GST law.

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Aadhaar Authentication for GST Registration

As a part of the GST registration process, applicants can undergo Aadhaar authentication. Here are a few exemptions to this rule -

• Those exempted by the Central Government under CGST Act do not have to get aadhaar authentication.
• Those who require mandatory authentication under section 25(6C) of the CGST Act, particularly in areas such as compliance with the GST law.

Process of Aadhaar Authentication

• The applicant needs to submit their Aadhaar number along with the GST registration application.
• A link for authentication is sent to the registered email ID and mobile number linked to Aadhaar.
• The applicant must enter the OTP received to e-verify the Aadhaar authentication on the GST portal.
• The applicant then has to enter the OTP received to e-verify the Aadhaar authentication on the GST portal.
• Aadhaar authentication is necessary for atleast one promoter or partner and the primary authorized signatory.
• Companies, LLPs , foreign companies, AOPs, BOIs, societies, trusts and clubs only need aadhaar authentication of the primary authorized signatory.

After completing Aadhaar authentication, taxpayers will receive an OTP on their registered mobile number and email ID when filing GST returns or accessing services on the GST portal. They must enter this OTP to continue.

Alternative Process if Aadhaar Authentication is Not Completed

If a person:

• Opts for Aadhaar authentication but does not complete it, or
• Chooses not to opt for Aadhaar authentication,

They can still submit the GST registration application. However, registration will be granted only after a GST officer conducts a physical verification of the principal place of business.

Alternatively, the GST officer may verify the e-KYC documents of the primary authorized signatory and one promoter/partner, with written approval from a Joint Commissioner or higher authority.

Timelines and Process of Verification

If Aadhaar authentication is not completed, the GST officer will issue a notice in GST REG-03 within 30 days of submitting the application. The application submission date is the earlier of the following -

• Date of Aadhaar Authentication
• 15 days after the submission of Part B of form GST REG-01.

The applicant is required to respond within 7 working days using the GST REG-04 form.
The GST officer then verifies the response within the next 7 working days

• If he is satisfied, the registration is granted.
• If not, the registration may be rejected using Form GST REG–05.

If the officer fails to reply within the prescribed time, the registration is automatically deemed granted.

Authentication Method for Individuals Without an Aadhaar Card

If an individual is not allotted an Aadhaar number, alternative identification methods like physical verification of the business premises can be used.

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Mandatory Cases of Aadhaar Authentication for GST Registration

As per section 25(6) of the CGST Act, aadhaar authentication is mandatory for individuals under Rule 8 of CGST rules to become eligible for GST registration -

• Authorized signatories of all types.
• Managing/authorized partners of a partnership firm.
• Karta of Hindu Undivided Family (HUF).

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What are the Exceptions to Mandatory Aadhaar Authentication?

Non-citizens of India are exempted from mandatory Aadhaar authentication. Additionally, any person other than those mentioned above -

• Individual applicants
• Authorized signatories of all types.
• Managing/authorized partners of a partnership firm.
• Karta of Hindu Undivided Family (HUF).

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Biometric-based Aadhaar Authentication for GST Registration

The Government of India introduced biometric-based Aadhaar authentication for GST registration by amending rule 8(4A) of the CGST rules.

Biometric authentication of GST registration was expanded all throughout India on July 10, 2024, by the Central Board of Indirect Taxes and Customs (CBIC).

CBIC also notified that the applicants not opting for Aadhaar authentication must -

• Submit a photograph of an individual applicant.
• Get original documents verified at one of the designated facilitation centers.

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New Advisory for GST Registration Process

Recent amendments to Rule 8 of the CGST Rules, 2017, require new GST registration applicants to either:

• Complete Aadhaar authentication, or
• Visit a designated GST Suvidha Kendra (GSK) for biometric authentication and document verification.

Failure to complete this process within the specified timeframe may result in application rejection.

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Aadhaar and Biometric Authentication for GST Registration

The updated GST registration process classifies applicants based on their Aadhaar authentication preference -

Applicants Not Opting for Aadhaar Authentication

If an applicant chooses not to authenticate their identity via Aadhaar:

• After selecting “NO” for Aadhaar authentication, they will receive an email with details of the designated GST Suvidha Kendra (GSK) and a list of required documents.
• They must schedule an appointment using the link provided in the email.
• At the scheduled time, they must visit the assigned GSK for photo capturing and document verification.
• The Application Reference Number (ARN) will be generated only after completing this step.

Applicants Opting for Aadhaar Authentication and Subject to Biometric Verification

For those opting for Aadhaar authentication, biometric verification at a GSK is required in the following cases -

• Promoters/Partners who choose Aadhaar authentication must visit the GSK for photo capturing and biometric authentication.
• The Primary Authorized Signatory (PAS) must also visit the GSK with the necessary documents for verification, along with photo capturing and biometric authentication.
• If a Promoter/Partner has already undergone biometric verification in any State/Union Territory (UT), they are exempt from repeating the process for new registrations unless they are acting as the PAS for a new entity. In such cases, only document verification at the GSK is required.
• If the Promoter/Partner and PAS are the same individual, they must complete photo capturing, biometric authentication, and document verification. However, if they have been previously verified, only document verification is required.

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Biometric Authentication and Document Verification for GST Registration

The GST registration process has been updated with a Biometric-Based Aadhaar Authentication and Document Verification system.

Applicants must either complete Aadhaar authentication or visit a GST Suvidha Kendra (GSK) for biometric verification if selected for the process.

Those identified for biometric authentication will receive an email notification and must book an appointment at the nearest GSK.

Applicants must carry:

• A hard/soft copy of the appointment confirmation email.
• Jurisdiction details from the intimation email.
• Original Aadhaar Card and PAN Card.
• Original documents uploaded with the application (as listed in the intimation email).

This update aligns with Rule 8 of the CGST Rules, 2017, enhancing security and streamlining the registration process. Failure to complete the verification within the specified timeframe may result in application rejection.

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Consequences of Non-Compliance

Complete the required verification steps within 15 days of submitting Part B of Form REG-01 to ensure the Application Reference Number (ARN) is generated.

• For Aadhaar-authenticated applicants selected for biometric verification: If any Promoter, Partner, or PAS does not visit the GSK for biometric authentication or document verification within 15 days, the ARN will not be generated.
• For non-Aadhaar-authenticated applicants: Failure to complete photo capturing or document verification within the given timeframe will prevent ARN issuance.

Ensure Aadhaar details, such as name, date of birth, and gender, are accurate. Any mismatch may lead to authentication failure, requiring corrections before the deadline.

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Step-by-step GST Registration Process

The GST registration process now requires applicants to complete either Aadhaar authentication or biometric authentication with document verification at a GST Suvidha Kendra (GSK).

Step 1: Submit GST Registration Application (Form GST REG-01, Part A & B)

1. Visit the GST portal and fill out Part A with basic details (PAN, email, mobile number).
2. Verify the OTPs sent to your email and mobile number.
3. Proceed to Part B and choose between Aadhaar authentication or manual verification at a GSK.

Step 2: Choose an Authentication Method

Option 1: Aadhaar Authentication (Faster Processing)

• Select ‘Yes’ for Aadhaar authentication in Part B.
• A verification link is sent to the Primary Authorized Signatory (PAS) and one Promoter/Partner via registered email and mobile.
• Click the link, enter your Aadhaar number, and verify it via OTP.
• Upon successful authentication, a confirmation message appears.

Option 2: Biometric Authentication at a GSK

If you opt out of Aadhaar authentication:

• Select ‘No’ in the Aadhaar authentication tab.
• You will receive an email with GSK details and the list of required documents.
• Schedule an appointment via the provided link.
• Visit the GSK for:
  • Photo capture
  • Document verification

For applicants selecting Aadhaar authentication but flagged for biometric verification:

• Promoters/Partners and PAS must visit the GSK for:
  • Biometric authentication
  • Photo capture
  • Document verification

Exemption: If a Promoter/Partner or PAS has already completed biometric authentication for a previous GST registration in any State/UT, they are exempt from repeating it. However, if they become a PAS, they must still visit the GSK for document verification.

Step 3: Verification & ARN Generation

• If Aadhaar authentication is successful, ARN is generated, and the application moves forward.
• If biometric verification is required, ARN is generated only after successful verification at the GSK.

ARN Will NOT Be Generated If:

• Promoters/Partners or PAS fail to visit the GSK within 15 days.
• Biometric authentication fails.
• Document verification remains incomplete within 15 days.
• Aadhaar details (name, DOB, gender) are incorrect. (In such cases, update Aadhaar and visit the GSK within 15 days).

Step 4: GST Officer’s Approval & Registration Grant

• If all details are verified, the GST officer approves the application, and the GST registration certificate (Form GST REG-06) is issued.
• If additional verification is needed, a notice (Form GST REG-3) is sent, requiring a response (Form GST REG-4) within 7 working days.
• If no response is provided or the details remain unsatisfactory, the application may be rejected (Form GST REG-05).

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