What’s New in GST Registration with Aadhaar Authentication?


The government has made compulsory Aadhar card authentication for new GST registration w.e.f from 21st August 2020. Thus, every person obtaining new GST registration needs to link his/her aadhar with the GST. The government issued a notification in this regard having reference no. 63/2020–Central Tax dt.25.08.2020. Similarly, the govt. has amended the CGST Section 25(6) w.e.f 1st January 2020 for inserting new Sub-sections 6A, 6B, 6C, and 6.

Why Aadhar Authentication for New GST Registration?

There is a class of business people who takes the disadvantage of the online GST registration approval process. Thus, they obtain GST registration by providing false identities and uploading fake documents. Thereafter they close down their business to avoid paying the taxes. Below are some more reasons why the GST registration is necessary with aadhar authentication.

  • Currently the GST Registration is completely online and the system itself approved it within 3 working days. Also, there is no need of field inspection in this new system.
  • To obtain Statistics from e-way bill
  • To stop pretending to be another person for the purpose of GST Registration fraud.
  • Check bogus billing through ‘laptop shops’

How to do Aadhaar Authentication for GST registration?

If you are a new applicant then you can find the below screen while filling up the online GST registration form.

image for aadhar authentication screen
  • Click on Save & Continue >> Choose submission option
  • Click on Submit with E-Signature for Aadhar Authentication
  • Choose either C-DAC and NSDL option as e-sign Service Providers
  • Select the Checkbox

The system sends one Time password(OTP) on your Aadhaar registered e-mail address and mobile number.

  • Enter the OTP Received and your application will be submitted.
  • You will receive another OTP as a Consent for Authentication. Enter your VID or Aadhaar Number to confirm the authentication.

Further, the Applicant can access the link again for authentication by navigating to My Saved Applications > Aadhaar Authentication Status > RESEND VERIFICATION LINK,

Is Aadhar mandatory for GST Registration?

The aadhar Authentication is mandatory for the persons, who are already having Aadhar Card. However, if you do not have aadhar Card, you need not have to undergo aadhar linking process.

However, the applicant who do not authenticate with aadhar, the GST department grants the registration only after physical verification of the place of business. Similarly, the tax authority based on the documents produced can grant the GST registration. On the other hand, if the officer does not take any action within 21 days of the application, the application stands approved as per the law.

Who Exempts from Aadhar Authentication?

The Aadhar authentication is not applicable to:

  • A person who is not a citizen of India
  • Other then Individual, authorised signatory of all types, Managing and Authorised partner and Karta of an Hindu undivided family

Where to upload Aadhar card in GST Registration?

The applicant can not upload nor he/she has to upload the aadhar card. During the new registration process, the applicant has to link the aadhar with the registration. This process is completely online. In order, to link successfully, the taxpayer needs that he/she is registered with aadhar and hold the mobile number linked to Aadhar.

Registration without Aadhar Linking

The government has made a provision for all below persons applying for new GST registration.

  • Normal Taxpayer
  • Composition Dealer
  • Casual Taxable Person
  • Input Service Distributor (ISD)
  • SEZ Developer/ SEZ Unit

Therefore, the Individuals, Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of a Hindu undivided family, shall undergo e-KYC authentication of their Aadhaar number.

Further, the applicants who do not provide Aadhaar or fails to authenticate with new GST registration, the department will make the site visit. However, the authorities may grant the New registration on the basis of documents provided. Therefore, it is the only exception where you can get the new registration without Aadhar linking.

The approved GST registrations prior to 21st August 2020 need not have to go Aadhar authentication.

What are the new timelines for Registration with Aadhar Linking?

Here are the revised timelines for granting new GST registration with or without linking aadhar authentication.

  1. The system will auto-approve new GST registration within 3 days if the applicant links the GST Registration application with Aadhar.
  2. In case, the applicant chooses not to authenticate with aadhar, the tax officials may issue show cause notice(SCN) asking clarification. If they fail to issue such SCN within 21 days of application, the registration stands approved as per the law.
  3. The applicant can reply to the SCN within 7 working days if he/she receives one from the tax officials.

Quick Solutions on Aadhar Linking

Here are some quick question and solutions for your reference. You may have to face below challenges while authenticating Aadhar with GST application.

1. Opted to SUBMIT with E-SIGN but not receiving the OTP

Ans: The Aadhaar authority (UIDAI) sends the OTP on the aadhar linked mobile number. Therefore, it is possible that your existing number is not linked with aadhar card. Thus, you need to update your current mobile number with aadhar. On the other hand, you may choose the “Sign with DSC” option to submit the application.

2. What happens after I choose Yes” for Aadhaar authentication while registering on the GST Portal.

Ans: The system will send an authentication link on the mobile number and the e-mail ID of the Authorized Signatories. Similarly, the authorization link will also be sent to individuals, promoters, and partners, who are selected as owners, partners, and HUF of the Constitution of business.

3. What are the benefits of Aadhaar authentication for GST Registration?

Ans: The system will auto-approve your application within 3 working days. Also, the system will not mark the application as mandatory for site verification. However, if the tax office issues an SCN, you have 7 working days to reply to it. Thereafter, if the tax official does not take any further action on the reply within seven days, the system will auto-approve the registration.

4. What if aadhar details does not match during authentication process?

Ans: The system will mark your application as mandatory site verification. The tax official needs to take action with 21 days on such an application. However, if they fail, your application will be deemed approved after 21 days of such submission.

5. What is the timeline to verify Aadhaar details after submission of registration application?

Ans: 15 days from the generation of TRN.

6. What if Aadhar details are not verified within 15 days?

Ans: The system will generate ARN for Registration Application. Further, it will be marked for mandatory site visit and approval thereafter by the Tax Official.

7. Do I need to complete Aadhaar authentication of all Promoters/ Partners and Authorized Signatories?

Ans: Yes, you need to complete it within 3 working days.

8. Can I do Aadhar Authentication for all existing authorized signatories in approved registration?

Ans: No. The facility is not yet available on the GST portal.

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