Aadhaar Authentication & Biometric Verification for GST Registration

The Goods and Services Tax (GST) registration process in India has been updated under Rule 8 of the CGST Rules, 2017, introducing stricter authentication measures to enhance security and prevent fraudulent registrations. As per the latest advisory, applicants must either complete Aadhaar authentication or undergo biometric authentication and document verification at a designated GST Suvidha Kendra (GSK). Failure to complete these steps within the stipulated timeframe may result in the rejection of the application. This article provides a step-by-step guide to the Aadhaar & Biometric Verification for GST Registration

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Advisory on Rule 8 of the CGST Rules, 2017: New Verification Requirements for GST Registration

 The Goods and Services Tax Network (GSTN) has released an advisory detailing the updated GST registration process under Rule 8 of the CGST Rules, 2017. As per the new guidelines, applicants must either complete Aadhaar authentication or undergo biometric authentication and document verification at a designated GST Suvidha Kendra (GSK). This measure aims to enhance security, prevent fraudulent registrations, and streamline the registration process. Failure to complete the required authentication within the specified timeframe may lead to the rejection of the application. Taxpayers are advised to follow the updated procedure to ensure a smooth GST registration experience.

The advisory is attached here for reference.

New Update: Biometric Aadhaar Authentication for GST in Uttar Pradesh (March 2025)

Key Points to Note:

The GSTN has introduced biometric-based Aadhaar authentication for GST registration applicants in Uttar Pradesh, effective March 15, 2025. Some applicants may need to visit a GST Suvidha Kendra (GSK) for biometric verification and document checks based on risk assessment.

• Biometric Verification Requirement: Some applicants will be flagged for biometric Aadhaar authentication and document verification.
• Appointment Booking (From March 18, 2025): If required, applicants must book an appointment at the assigned GSK via a link sent by email.
• Mandatory Timeline: The verification must be completed within the specified period to avoid delays.
• Non-Compliance Consequence: Failure to complete biometric authentication on time will lead to the non-generation of the Application Reference Number (ARN) and delay in GST registration.

What is Aadhaar authentication?

Aadhaar authentication is a process used to verify an individual's identity by submitting their Aadhaar number along with biometric details to the Central Identities Data Repository (CIDR). The CIDR cross-checks the provided information with its records to confirm its accuracy.

The primary objective of Aadhaar authentication is to establish a secure online system that enables real-time identity verification of Aadhaar holders anytime and anywhere. This helps prevent fraudulent activities, particularly in areas such as compliance with the Goods and Services Tax (GST) law.

Aadhaar Authentication for GST Registration

As part of the GST registration process, applicants have the option to undergo Aadhaar authentication, except for those exempted by the Central Government under the CGST Act or those required to undergo mandatory authentication under Section 25(6C) of the CGST Act.

Process of Aadhaar Authentication

• The applicant must submit their Aadhaar number along with the GST registration application.
• An authentication link is sent to the registered mobile number and email ID linked to Aadhaar.
• The applicant must enter the OTP received to e-verify the Aadhaar authentication on the GST portal.
• Aadhaar authentication is required for the primary authorised signatory and at least one promoter or partner.
• For entities like companies, LLPs, foreign companies, AOPs, societies, trusts, and clubs, authentication of only the primary authorised signatory is sufficient.

Once Aadhaar authentication is completed, taxpayers will receive an OTP on their registered mobile number and email ID whenever they file GST returns or access services on the GST portal. This OTP must be entered to proceed.

Alternative Process if Aadhaar Authentication is Not Completed

If a person:

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

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

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

Timelines & Verification Process

 If Aadhaar authentication is not completed, the GST officer will issue a notice in Form GST REG-3 within 30 days of application submission.

The application submission date is determined as the earlier of the following:

•  Date of Aadhaar authentication or
•  15 days after submission of Part B of Form GST REG-01.

The applicant must respond within seven working days using Form GST REG-4.

The GST officer will then verify the response within 7 working days:

• If satisfied, registration is granted.
• If not, registration may be rejected using Form GST REG-5.

If the officer does not respond within the prescribed time, the registration is automatically deemed granted.

Previously, physical verification of the business premises had to be conducted within 60 days before registration was granted.

Alternate Verification for Individuals Without an Aadhaar Number

If an individual has not been allotted an Aadhaar number, alternative identification methods such as physical verification of the business premises will be used, as per CGST Rules.

Mandatory Cases of Aadhaar Authentication for GST Registration

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

• Authorised signatories of all types
• Managing/authorised partners of a partnership firm
• Karta of a Hindu Undivided Family (HUF)

Exceptions to Mandatory Aadhaar Authentication

The only individuals exempted from Aadhaar authentication are: Non-citizens of India

Any person other than the categories mentioned above, i.e.:

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

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 through Notification No. 27/2022, issued on December 27, 2022. Initially, this was launched as a pilot program in Gujarat and included a risk-based physical verification process based on data analysis and risk parameters.

• Nationwide Implementation of Biometric Authentication: On July 10, 2024, the Central Board of Indirect Taxes and Customs (CBIC) issued CGST Notification No. 13/2024, extending biometric-based Aadhaar authentication for GST registration across all of India.
• Alternative Process for Non-Aadhaar Authentication Applicants: CBIC also issued CGST Notification No. 12/2024 on July 10, 2024, specifying that applicants who do not opt for Aadhaar authentication must:
• Submit a photograph of the individual applicant (or relevant individuals associated with the applicant).
• Get original documents verified at one of the designated facilitation centres.

New Advisory for GST Registration Process (Rule 8 of CGST Rules, 2017)

Recent amendments to Rule 8 of the CGST Rules, 2017 mandate that new GST registration applicants must 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 given timeframe may lead to rejection of the application.

Aadhaar & Biometric Authentication for GST Registration - Guidelines

The revised GST registration process categorises applicants based on their choice of Aadhaar authentication:

Applicants Not Opting for Aadhaar Authentication

• For those who choose not to authenticate their identity via Aadhaar, the following steps apply:
• After selecting “NO” for Aadhaar authentication, an email will be sent containing details of the designated GST Suvidha Kendra (GSK) and a list of required documents.
• Applicants must schedule an appointment via the link provided in the email.
• Upon confirmation, the applicant must visit the assigned GSK at the scheduled time for photo capturing and document verification.
• Only after completing this step will the Application Reference Number (ARN) be generated.

Applicants Opting for Aadhaar Authentication and Subject to Biometric Verification

• For those choosing Aadhaar authentication, additional biometric authentication at the GSK is required in specific cases:
• Promoters/Partners opting for 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 completing photo capturing and biometric authentication.
• If a Promoter/Partner has previously undergone biometric verification in any State/Union Territory (UT), they are exempt from repeating the process for new registrations unless 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 unless previously verified, in which case only document verification is needed.

Biometric Authentication and Document Verification for GST Registration

 The Goods and Services Tax (GST) registration process has been updated with a new Biometric-Based Aadhaar Authentication and Document Verification protocol. This change, effective from 15th February 2025, applies to GST registration applicants in Jharkhand and Andaman and Nicobar Islands.

Under the updated process, applicants must either complete Aadhaar authentication or visit a designated GST Suvidha Kendra (GSK) for biometric verification in case they opt for biometric authentication as an alternative.

If any applicant is identified for biometric authentication, they will be notified via e-mail and must book an appointment at the nearest GSK.

At the GSK, the applicant will need to carry the following documents:

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

This update aligns with the revised Rule 8 of the CGST Rules, 2017, aimed at improving security and streamlining the GST registration process. Failure to complete the verification steps within the given timeframe may lead to the rejection of the GST application. 

Consequences of Non-Compliance

Failure to complete the prescribed verification steps within 15 days of submitting Part B of Form REG-01 will result in non-generation of the Application Reference Number (ARN):

• For Aadhaar-authenticated applicants identified for biometric verification: If any Promoter/Partner or the PAS fails to visit the GSK for biometric authentication or document verification within 15 days, the ARN will not be generated.
• For non-Aadhaar-authenticated applicants: If photo capturing or document verification is not completed within the stipulated time, the ARN will not be issued.
• Any discrepancies in Aadhaar details, such as name, date of birth, or gender mismatches, may cause authentication failures, necessitating corrections before the deadline.

Step by Step GST Registration Process as per the Latest Advisory

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

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

• Visit the GST portal and fill out Part A with basic details (PAN, email, mobile number).
• Receive and verify OTPs sent to your email and mobile number.
• Proceed to Part B, where you must choose between Aadhaar authentication or manual verification at a GSK.

Step 2: Aadhaar Authentication OR Biometric Authentication

Option 1: Aadhaar Authentication (Faster Processing)

 If you opt for Aadhaar authentication:

• Select ‘Yes’ for Aadhaar authentication while filling out Part B of the application.
• A verification link is sent to the registered mobile number and email ID of the Primary Authorized Signatory (PAS) and one Promoter/Partner.
• Click on the link, enter your UID number, and verify using the OTP received on mobile and email.
• Upon successful authentication, a confirmation message is displayed.

Option 2: Biometric Authentication at GST Suvidha Kendra (GSK)

 If you do not opt for Aadhaar authentication, you must:

• 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 link provided in the email.
• Visit the designated GSK at the scheduled time for:
•  Photo capture
• Document verification

For applicants opting for Aadhaar authentication but requiring biometric verification:

If identified for biometric authentication, the Promoters/Partners and PAS must visit the GSK for:

•  Biometric authentication
• Photo capture
• Document verification

Exemption: If a Promoter/Partner or PAS has already undergone biometric authentication for any previous GST registration in any State/UT, they do not need to repeat the biometric process. However, if they become a PAS, they still need to visit the GSK for document verification. 

Step 3: Verification and ARN Generation

Application Reference Number (ARN) Generation

• If Aadhaar authentication is successful, ARN is generated, and the application is processed.
• If biometric authentication 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 is incomplete within 15 days.
• Aadhaar details (name, date of birth, gender) are incorrect. (In such cases, update Aadhaar and visit the GSK within 15 days).

Step 4: GST Officer's Approval & Registration Grant

• If everything is in order, the GST officer approves the application, and the GST registration certificate (Form GST REG-06) is issued.
• If additional verification is needed, a notice in Form GST REG-3 is sent, requiring a response in Form GST REG-4 within 7 working days.
• If no response is received or the officer is unsatisfied, the registration may be rejected via Form GST REG-05.

Summary of Updated GST Registration Process

Key Takeaways for Taxpayers

Taxpayers seeking GST registration should adhere strictly to the updated verification procedures to prevent unnecessary delays. Here are some key recommendations:

• Ensure Aadhaar details are accurate to avoid authentication failures.
• Schedule and complete GSK visits within 15 days of submitting the application.
• If already biometric verified in a State/UT, check if a revisit is necessary for document verification.

This new verification mechanism aims to enhance the security and authenticity of GST registrations, reducing fraudulent applications and streamlining the registration process. Taxpayers are advised to comply with these guidelines to facilitate smooth GST registration and avoid any potential disruptions to  business operations.

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