An aspiring entrepreneur is saved from the hassle of physical verification for obtaining the registration for the Goods and Services Tax (GST), if the person opts for authentication through his Aadhaar number.
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This is a new process that the Central government launched last Friday, a Union finance ministry official said.
Besides hassle-free registration, an applicant opting for authentication through Aadhaar to get a GST registration would get the approval within three working days without any physical verification, the official said requesting anonymity.
Those, who do not opt for Aadhaar authentication for GST registration, would get the approval only after physical verification of the place of business or verification of documents that could take up to 21 working days, he said. In such cases, more time might be required, if a notice is issued to ascertain certain details, he added.
The official said proper verification of the commercial premises and other details are required to keep the fake and fraudulent entities out of the GST mechanism.
{{/usCountry}}The official said proper verification of the commercial premises and other details are required to keep the fake and fraudulent entities out of the GST mechanism.
{{/usCountry}}In both cases, the tax authorities need to act within a specified time frame. It would take three days for a person opting for Aadhaar authentication, and 21 days for those opting not to undergo the verification, he said. “An application shall be deemed to be approved, if no notice for rejection is issued after the stipulated time frame,” he added.
The new mechanism of Aadhaar-based GST registration was approved in the 39th meeting of the GST Council held on March 14 for new taxpayers.
The mechanism, which aims to enhance the ease of doing business, could not be implemented immediately following the coronavirus disease (Covid-19) outbreak that prompted an imposition of nation-wide lockdown restrictions from March 25 that were in place for over 60 days, he said.
He said the person, who applies for GST registration, would get options of verification either through Aadhaar or in the physical form. If the person opts for Aadhaar authentication, a link would be shared on the promoter’s registered mobile number and email ID. Upon clicking the authentication link, a screen would come up with a declaration, where the applicant needs to enter an Aadhaar number and click to validate. On successful matching of the details, a one-time password (OTP) would be sent in the registered email and mobile number. On entering the OTP, the validation would be complete and a message of successful electronic-know your customer (e-KYC) authentication would pop up.
If the person does not opt for Aadhaar-based authentication, his registration application would be sent to the jurisdictional tax authority that may carry out necessary documentary and physical site verification before approving the registration, he said.
“The facility of quick approval of GST registration through Aadhaar authentication can be availed by all Indian nationals,” he added.