GST: CBIC notifies Aadhaar Authentication or Physical Premise Verification now Mandatory for your Business

GST: Aadhar or Physical verification now mandatory

The CBIC (Central Board of Indirect Taxes and Customs) has notified about the amendments in the existing Central Goods and Services Tax Rules, 2017 where in case of a non-verification of Aadhaar one must get the premises verified physically.

The board in the notification mentioned that one while opting for authentication of Aadhaar number must consider the stated authentication while applying with effect from August 21.

“Where a person fails to undergo authentication of Aadhaar number or does not opt for authentication of Aadhaar number, the registration shall be granted only after physical verification of the place of business in the presence of the said person,”

was communicated through the notification.

In case an individual is opting for the Aadhaar authentication then the registration is deemed to be granted within 3 days while in case of physical premise verification the time can extend up to 21 days and the authorities are free to physically verify or ask for a detailed review of documents if need be.

Why is it so necessary?

“With the linkage of Aadhaar with GST and PAN (permanent account number), there would be a centralized database available with the government which will facilitate data analytics and help in checking tax evasion,”

mentioned, Ajay Jain, member – Legal, CX & ST

Strict pre-registration norms would help control the widespread tax evasion and would restrict fake establishments.

The revenue authorities will get an alternate option by verifying the GST registration applications at the time of the pandemic when the physical premise verification is difficult.

How to get Aadhaar Authentication under GST Registration?

Aadhaar Authentication is the process of providing your Aadhaar number along with the demographic and biometric particulars to the concerned authorities.

Under the new amendment, a new tab will be added in GST Registration Form REG-0 in which an individual can choose for Aadhaar authentication. Once Aadhaar authentication has been completed and verified a link would be shared on the registered email id. The applicant can also go for an e-KYC authentication of their Aadhaar number.

How to get Physical Premise Verified?

Physical Premise Verification is the process of getting your business premise and all related documents verified by the concerned authorities.

Under the new amendment, a new tab will be added in GST Registration Form REG-0 in which an individual can choose for non-Aadhaar authentication. In case, the applicant has not opted for Aadhar authentication, an assigned officer would be sent at the business premise for the verification and after approval from the authorized person, the GST will be granted.

Earlier, the government had made it mandatory to link the Aadhaar with PAN (Permanent Account Number) to check tax evasion and monitor tax filings. It will now be immensely crucial for one to authenticate the Aadhaar to opt for a GST registration or be prepared for a visit by the concerned Officers.


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