The Central Board of Indirect Taxes and Customs (CBIC) via a social media post on July 19, 2024, said that the biometric-based Aadhaar authentication process for Goods and Services Tax (GST) Registration has been made compulsory for those taxpayers who have been identified based on data analytics and risk parameters.
Moreover, the CBIC also said that taxpayers who do not opt for biometric based Aadhaar authentication need to mandatorily visit the GST Suvidha Kendra for photo capturing and document verification.
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The new rule is applicable in all states and UTs
According to the CBIC’s post on X (formerly Twitter), “To PAN India roll out the Provisions of sub-rule (4A) of rule 8 of CGST Rules, 2017 as done by the Center vide Notification No. 04/2023 dated 31.03.2023 have been made applicable to all the States/Union Territories for biometric authentication of Aadhaar number and in-person verification of the applicant before grant of registration in cases identified based on data analytics and risk parameters.”
Advocate Apoorv Phillips, Senior Associate, Sirmacs Consultancy Services (Law Firm) explains the rationale behind the implementation of this new process.
“Even today, Aadhaar authentication remains optional; however, certain new conditions have been added, with the recent two amendments made effective in 2024 and 2022. Before December 26, 2022, taxpayers who opted for Aadhaar authentication were granted registration without any further process. However, to further curb the menace of fake registrations, a new condition has been added: in cases where the department, based on data analysis and risk parameters, believes that a particular individual requires further verification, that person would now have to undergo biometric Aadhaar authentication at the facilitation centre as specified,” says Philips.
Source: CBIC on X.
A notification was issued by CBIC in this regard on July 10, 2024. “Provided that 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 a 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 proviso,” said the notification.
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Who are the specified persons who have to visit GST Suvidha Kendra for photo and document verification?
As per CBIC’s post on X, “Provisions for a mandatory visit to GST Suvidha Kendra for photo-capturing and original document verification for those applicants who do not opt for biometric-based Aadhaar authentication has been made applicable by inserting second proviso to sub-rule (4A) of rule 8 of CGST Rules, 2017 vide notification no. 12/2024…”
According to notification no. 12/2024 issued on July 10, 2024, “Provided further that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has not opted for authentication of Aadhaar number, shall be followed by taking a 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 Centers notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after successful verification as laid down under this proviso.”
Taxpayers who can register for GST without a physical visit to GST Suvidha Kendra?
According to Apoorv, “those individuals who opt for Aadhaar authentication and their profile is not flagged by the data analytics and risk parameters can complete their GST registration without visiting the center.”
