GST Registration: CBIC notifies, Biometric-based Aadhaar authentication & risk-based physical verification for State of Gujarat

In line with decision taken in the recent GST Council meeting, Central Board of Indirect Taxes and Customs (CBIC) has bought a major amendment to GST Registration Rules.

It has been notified to introduce Biometric-based Aadhaar authentication and risk-based physical verification of registration applicants for State of Gujarat.

Another amendment is that now, for sending one-time passwords at the time of PAN verification for GST Registration, you need one-time passwords (OTPs) to be sent to the mobile number and e-mail address linked to the Permanent Account Number.

This has been done to tackle the menace of fake and fraudulent registrations.

The Amendment reads as follows:

2. In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 8,-

(i) in sub-rule (1), the words and letters, ―mobile number, e-mail address, shall be omitted;

(ii) in sub-rule (2), in clause (a), after the words ―Direct Taxes, the words ―and shall also be verified through separate one-time passwords sent to the mobile number and e-mail address linked to the Permanent Account Number shall be inserted;

(iii) in sub-rule (2), clauses (b) and (c) shall be omitted;

(iv) for sub-rule (4A), the following sub-rule shall be substituted, namely:-

(4A) Every application made under sub-rule (4) by a person, other than a person notified under sub- section (6D) of section 25, who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this sub-rule.;

(v) after sub-rule (4A), the following sub-rule shall be inserted, namely:-

―(4B) The Central Government may, on the recommendations of the Council, by notification specify the States or Union territories wherein the provisions of sub-rule (4A) shall not apply.;

(vi) in sub-rule (5), after the words, brackets and figure ―sub-rule (4), the words, brackets, figure and letter or sub-rule (4A), shall be inserted.

3. In the said rules, in rule 9, –

(i) in sub-rule (1), in the proviso, after clause (a), the following clause shall be inserted, namely: –

―(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or;

(ii) in sub-rule (2), in the proviso, after clause (a), the following clause shall be inserted, namely: –

―(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or.

4. In the said rules, in rule 12, in sub-rule (3), after the word, ―Where,, the words, brackets and figure, ―on a request made in writing by a person to whom a registration has been granted under sub-rule (2) or, shall be inserted.

5. In the said rules, in rule 37, in sub-rule (1), with effect from 1st day of October, 2022, –

(i) after the words, ―value of such supply, the words, ―, whether wholly or partly, shall be inserted;

(ii) after the words, ―shall pay, the words, ―or reverse shall be inserted;

(iii) after the words, ―in respect of such supply, the letters and words, ―, proportionate to the amount not paid to the supplier, shall be inserted.

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