Additional Requirement For Gst Registration

Recently, the Central Board of Indirect Taxes and Customs, vide notification no. 94/2020- Central Tax dated 22

nd December 2020, introduced the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020. Vide the said amendment rules, biometric-based Aadhaar authentication was introduced. Accordingly, rule 8 and rule 9 of the Central Goods and Services Tax Rules, 2014, governing the GST registration process, were amended. The present article briefly explains the applicable amendments.

Amendments to the GST registration process

As we know, rule 8 of the Central Goods and Services Tax Rules, 2014 deals with the

application for registration under GST. Further, rule 9 deals with the verification of the GST registration application and approval thereof. Amendment in both the rules are done vide the Central Goods and Services Tax (Fourteenth Amendment) Rules, 2020.

Amendments in a rule governing application for registration and introduction of biometric-based Aadhaar authentication

As seen above, rule 8 governs the provisions of registration application under GST. Sub-rule (4A) to rule 8 is substituted. As per the substituted sub-rule (4A), the GST registration application should be followed by-

Particulars	GST registration should be accompanied by-
Cases which satisfies the following criteria- · The applicant is an individual or person notified under section 25 (6C); and · The applicant has opted for Aadhaar authentication	· Biometric-based Aadhaar authentication; and · Taking photograph
Cases which satisfies the following criteria- · The applicant is either individual or person notified under section 25 (6C); and · The applicant has opted not to get the Aadhaar authentication	· Taking biometric information; · Photograph; and · Verification of KYC documents, as notified.

The GST registration application will be deemed complete only after completion of the above process. However, only the person notified under section 25 (6D) is exempted from the above procedure. It is important to note here that the above provisions will be effective from the date yet to be notified.

Amendments in a rule governing verification of the registration application

Rule 9 to Central Goods and Services Tax Rules, 2014 deals with the verification of the GST registration application. As per the amendment, if the proper officer finds the GST registration application in order, the GST registration can be granted within a period of seven working days (earlier it was three working days) from the date of submission of the application. However, the GST registration will be granted, within thirty days from the date of submission of the application. The registration will be granted only after the physical verification of the place of business of the applicant in any of the following case -

The applicant fails to undergo Aadhaar authentication or doesn’t opt for Aadhaar authentication; or
The proper officer, not below the rank of Assistant Commissioner, deems it fit to carry out the physical verification of the place of business of the applicant.

In case the GST registration application is found to be deficient, the proper officer can issue a notice in

Form GST REG-03 within a period of seven working days (earlier it was three working days) from the date of submission of the registration application. However, the notice in Form GST REG-03 can be issued within thirty days under the following circumstances-

The person either fails to undergo the Aadhaar authentication or the person doesn’t opt for the Aadhaar authentication; or
The proper officer (not below the rank of the Assistant Commissioner) finds it necessary to carry out the physical verification of the place of business of the applicant.

Amendment in rules governing deemed registration

The deemed registration provisions are covered under rule 9 (5) of the Central Goods and Services Tax Rules, 2014. As per the amendment, the deemed registration shall be granted as under -

Particulars	Period within which deemed registration will be granted
GST registration application is in order and Aadhaar authentication is successfully done	Seven working days from the date of submission of the registration application.
The applicant has either not opted for Aadhaar authentication or fails to undergo the Aadhaar authentication	Thirty days from the date of submission of the registration application.
The clarification/ information/ document is submitted by the applicant against the notice issued in Form GST REG-03	Seven working days from the date of receipt of the clarification/ information/ document.

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Frequently Asked Questions

Common questions about Biometric Aadhaar Authentication for GST Registration.

The recent amendment to the Central Goods and Services Tax Rules, 2014, introduced biometric-based Aadhaar authentication as a mandatory requirement for GST registration for individuals and certain notified persons. This is aimed at strengthening the verification process and preventing misuse or fraudulent registrations.

As per the amended rules, Aadhaar authentication is mandatory for individuals and persons notified under section 25(6C) of the GST Act, who have opted for Aadhaar authentication during the registration process.

If an individual or notified person under section 25(6C) doesn't opt for Aadhaar authentication, they need to provide biometric information, photograph, and undergo verification of KYC documents as notified.

If the application is found to be in order and Aadhaar authentication is successfully completed, the registration will be granted within seven working days from the date of submission. If physical verification is required or the applicant fails Aadhaar authentication, the registration will be granted within thirty days.

If the application is found to be deficient, the proper officer can issue a notice in Form GST REG-03 within seven working days (or thirty days in certain cases) from the date of submission, seeking clarification, information, or documents.

If the application is in order and Aadhaar authentication is successful, deemed registration will be granted within seven working days from the date of submission. If physical verification is required or the applicant fails Aadhaar authentication, deemed registration will be granted within thirty days.

Yes, persons notified under section 25(6D) of the GST Act are exempted from the Aadhaar authentication requirement for GST registration.

The new Aadhaar authentication requirements for GST registration will come into effect from a date yet to be notified by the government.

Physical verification of the place of business may be carried out if the applicant fails to undergo Aadhaar authentication or if the proper officer deems it necessary. This is to ensure the genuineness of the business and prevent fraudulent registrations.

The proper officer has seven working days (or thirty days in certain cases) from the date of submission of the application to issue a notice in Form GST REG-03, seeking clarification, information, or documents for deficient applications.