Aadhaar Authentication and Biometric Verification for GST Registration have become essential components of India’s Goods and Services Tax (GST) registration process. With the introduction of updated guidelines under Rule 8 of the CGST Rules, 2017, the government aims to enhance security and prevent fraudulent registrations. This step-by-step guide will walk you through the Aadhaar authentication and biometric verification process to ensure a smooth GST registration experience.
What is Aadhaar Authentication?
Definition and Purpose
Aadhaar Authentication is a process where your identity is verified using your Aadhaar number, along with biometric details (like fingerprints or an OTP). The information is cross-checked with the Central Identities Data Repository (CIDR) to confirm its validity. Aadhaar Authentication is vital for ensuring the authenticity of individuals applying for GST registration.
How Does Aadhaar Authentication Work?
Once you submit your Aadhaar number during GST registration, the system sends an OTP to your registered mobile and email address. After you enter the OTP, the system verifies your identity instantly.
Aadhaar Authentication for GST Registration
Who Needs Aadhaar Authentication?
Any individual or business entity applying for GST registration—such as business owners, company directors, and partners—must complete Aadhaar authentication. Exemptions are limited and are specified below.
Who is Exempt from Aadhaar Authentication?
• Non-citizens of India.
• Persons other than individuals, partners, or authorized signatories.
• Entities notified by the government.
Step-by-Step Process for Aadhaar Authentication
- Submission of Application
- Visit the GST portal and submit both Part A and Part B of Form GST REG-01.
- OTP-Based Verification
- You’ll receive an OTP on your registered mobile and email. Enter it for verification.
- Authentication Confirmation
- After the OTP is verified, you will receive a confirmation, and your Application Reference Number (ARN) will be generated.
Biometric Verification for GST Registration
What is Biometric Verification?
Biometric verification involves capturing your fingerprints and a photograph at a GST Suvidha Kendra (GSK). This is done to further confirm your identity, particularly when Aadhaar Authentication is not possible or fails.
Why is Biometric Verification Introduced?
Biometric verification helps prevent fake GST registrations, especially cases where fraudulent individuals misuse someone else’s identity.
Step-by-Step Process for Biometric Verification
- Submission of Application
- Submit Form GST REG-01 and select “No” in the Aadhaar authentication section.
- Appointment Scheduling at GSK
- After submitting your application, you’ll receive an email with GSK details and a link to schedule your appointment.
- Visiting GST Suvidha Kendra (GSK)
- Visit the nearby GSK on the scheduled date, carrying your original documents.
- Biometric Authentication and Document Verification
- At GSK, your photo and biometric details will be captured, and your documents will be verified.
Timelines for Aadhaar and Biometric Verification
Time Limit for Authentication
Both Aadhaar and biometric verification must be completed within 15 days from the application submission date.
Consequences of Delay
Failure to complete Aadhaar or biometric verification within the given 15-day period will lead to the rejection of your application.
Common Issues During Aadhaar Authentication
• Name Mismatch: Ensure that the name on your Aadhaar matches exactly with the one on the GST application.
• Incorrect Date of Birth: Double-check your date of birth for accuracy.
• Mobile Number Not Linked to Aadhaar: Ensure your mobile number is linked to your Aadhaar for OTP delivery.
Alternative Verification Process Without Aadhaar
If Aadhaar authentication cannot be completed, there are alternative verification processes available:
- Physical Verification: A GST officer may conduct a physical verification of your business premises.
- Document Verification: Key documents like PAN, identity proof, and business address proof are verified.
Mandatory Aadhaar Authentication Categories
Certain categories of individuals must complete Aadhaar authentication: • Authorized signatories
• Managing partners
• Karta of HUF
Key Notifications and Amendments
- Notification No. 27/2022 – Biometric Authentication Pilot: The pilot for biometric authentication was launched in Gujarat.
- Notification No. 13/2024 – Nationwide Biometric Rollout: Biometric verification will be extended across India from July 2024.
Updated GST Registration Process Summary
- Submit Application (Form GST REG-01)
- Aadhaar Authentication OR Biometric Verification
- ARN Generation
- GST Officer’s Approval
Consequences of Non-Compliance
Failure to comply with Aadhaar Authentication or Biometric Verification requirements can lead to: • Rejection of the GST application
• Delayed business operations
Benefits of Aadhaar and Biometric Authentication
• Fraud Prevention: Both Aadhaar and biometric verification prevent fraudulent registrations.
• Faster Processing: Verification processes enable quicker approval and processing of GST applications.
• Enhanced Security: These processes ensure a higher level of security and authentication for business registration.
Conclusion
The introduction of Aadhaar Authentication and Biometric Verification for GST Registration aims to streamline the registration process while ensuring greater security and authenticity. By following the prescribed steps for Aadhaar or biometric verification, you can avoid delays and enjoy a smooth registration experience.
Frequently Asked Questions
It will be deemed accepted and added to GSTR-2B.
No, once accepted, the invoice gets locked for ITC claims.
IMS requires buyer-supplier verification, reducing bogus invoice entries.
Yes, especially for those claiming ITC.
You can’t claim ITC until the supplier corrects and resubmits the invoice.
