CBIC announced that a new GST registration rule has been implemented. This rule mandates biometric authentication through Aadhaar and in-person verification.
Anisha Kumari | Jul 21, 2024 |
No GST Registration without Biometric based Authentication through Aadhaar
The Central Board of Indirect Taxes and Customs (CBIC) announced via social media on July 19 that a new GST registration rule has been implemented. This rule mandates biometric authentication through Aadhaar and in-person verification. This applies to certain taxpayers identified based on data analytics and risk parameters. This change aims to enhance security and prevent fraud.
The rule applies uniformly across all states and union territories in India. According to CBIC’s post on X (formerly Twitter), “New requirements are based on provisions of sub-rule (4A) of rule 8 of the CGST Rules, 2017. These are effective from March 31, 2023. The new process involves biometric authentication and in-person verification. This is before granting GST registration to applicants identified through data analytics and risk parameters.”
Certain taxpayers must visit GST Suvidha Kendras for biometric authentication and document verification. These include:
1. Identified Risky Taxpayers: Individuals flagged by the GST system due to risk parameters and data analytics.
2. Taxpayers Avoiding Aadhaar Authentication: Those who choose not to undergo biometric aadhaar authentication must visit the centre for photo capturing and document verification.
Biometric authentication verifies an individual’s identity using their Aadhaar-linked biometric data. The steps involved are:
1. Aadhaar Submission: Taxpayers provide an Aadhaar number during GST registration.
2. Biometric Verification: At GST Suvidha Kendra taxpayers undergo biometric verification to authenticate their identity.
3. Document Verification: Taxpayers have to present original documents. These include identity proof, address proof and business-related documents for verification.
The new GST registration rule aims to:
1. Prevent Fraud: Ensuring only genuine taxpayers can register helps curb fraudulent activities.
2. Enhance Compliance: Authenticating taxpayer identities improves compliance and reduces tax evasion.
3. Streamline the Process: Although it adds an extra step for some the process ensures accuracy and legitimacy in the registration process.
Certain taxpayers can still complete GST registration online without a physical visit. These exemptions include:
1. Taxpayers Opting for Aadhaar Authentication: Individuals who successfully complete Aadhaar authentication online.
2. Low-Risk Taxpayers: Those categorized as low-risk based on their compliance history.
3. Special Categories: Government entities and specific categories of taxpayers notified by the GST Council.
Eligible taxpayers can register for GST online by:
1. Completing Aadhaar Authentication: Ensuring that Aadhaar details are correctly linked and authenticated.
2. Submitting Documents Online: Uploading all necessary documents such as identity proof address proof and business details through the GST portal.
3. Using E-Signature: Applying an electronic signature to authenticate and submit an application.
The new GST registration requirement offers several benefits:
1. Increased Security: Biometric data is difficult to forge making the process more secure.
2. Reduced Fraud: Verifying the identity of applicants helps reduce fraudulent registrations.
3. Improved Compliance: Ensuring only genuine taxpayers can register increases overall compliance. Trust in the system is enhanced.
The introduction of biometric authentication and in-person verification for GST registration is a significant move towards a more secure and reliable GST system. It requires additional steps for some taxpayers. However, it ultimately helps prevent fraud. It enhances compliance and builds a trustworthy tax environment.
Taxpayers are encouraged to familiarize themselves with the new requirements. They should complete the necessary steps to ensure a smooth registration process.
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