GST registration can be obtained in 3 days through Aadhaar authentication

The Finance Ministry said that Aadhaa- based authentication will enable GST registration in just three days. This mechanism was made operational from August 21.

The GST laws stipulate a business dealing in goods is required to obtain GST registration, if its annual turnover is more than ₹20 lakh in case its original place of business is located in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand.

For, businesses in the other parts of the country, the limit is ₹40 lakh. Similarly, suppliers of services need to register, if their turnover is more than ₹10 lakh in the States of Manipur, Mizoram, Nagaland and Tripura and more than ₹20 lakh in remaining parts of the country.

As on date there are 1.24 crore registered assessees in India.

In order to expand the base, the GST Council approved operationalisation of Aadhaar authentication for new taxpayers. Its implementation was postponed due to the lockdown.

“Aadhaar authentication for new registration would substantially enhance ease of doing businesses for genuine businesses,” a Finance Ministry official said.

GST registration can be obtained in just three working days if one opts for the Aadhaar authentication route and no physical verification is required.

Those not opting for Aadhaar authentication would get GST registration only after physical verification of the place of business or documentary verification is done which may take up to 21 working days or more if notice is issued.

Keeping the pandemic in view, it has been provided that the officer may, if the circumstances so warrant, opt for asking for additional documents in lieu of the pre-registration for physical verification of the premises. This measure is expected to facilitate genuine and honest taxpayers while keeping the fake and fraudulent entities away from GST, the official added.

At the time of applying for GST registration, the applicant is given an option to select if he wishes to authenticate Aadhaar. In case of YES, an authentication link will be shared on the registered mobile number and e-mail IDs of the Promoters/ Partners and Authorized Signatories.

Upon clicking the authentication link, a screen will appear with declaration where the applicant needs to enter Aadhaar number and click on ‘validate’.

On successful matching of the details in registration form with the UAIDI, an OTP will be sent on their email and mobile registered with the Aadhaar that has been entered by the applicant. On entering the OTP in the box provided on the screen validation will be complete and a message of successful e-KYC authentication will be shown.