GST Aadhaar Authentication: Your Guide to a Smoother Registration Process

As the GST compliance is getting stringent, Aadhaar authentication has become an essential part of the GST registration process. Have you ever thought about how the government makes sure that businesses are registered legitimately and the claims they make are accurate? Aadhaar authentication is the solution to this problem; now it is an inseparable component of the GST registration process.

But what is the meaning of Aadhaar authentication in GST? And why is it so important to businesses and taxpayers? In this blog, we will explore everything you need to know about Aadhaar authentication in GST, how to authenticate Aadhaar for GST registration, and the role of biometric verification.

Why Is Aadhaar Authentication Crucial for GST?

India has been aggressively driving towards digital identification for tax compliance. The introduction of Aadhaar authentication in GST is a step in the same direction. But what is its effect on you as a taxpayer?

• Reduction of Fraud: Since Aadhaar is a unique identifier, it has a direct positive impact on reducing cases of tax evasion and fraud.

• Faster Processing: The entire process of GST registration is more streamlined with Aadhaar authentication in place. The system does not require any physical document validation, thus it is possible to register a business in a short time online.

• Ease of Filing: After Aadhaar authentication, it contributes to simplifying other processes such as filing GST returns. This minimises the risk of errors during GST filings.

Who Must Complete Aadhaar Authentication?

Section 25(6C) of the CGST Act requires that some categories be subject to Aadhaar authentication:

Mandatory Categories:

All authorised signatories

Managing or authorised partners of partnership firms

Karta of a Hindu Undivided Family (HUF)

Individual proprietors

Exceptions:

Non-resident Indians (NRIs)

Foreign nationals

How to Authenticate Aadhaar for GST Registration

Now, let’s understand how you can authenticate Aadhaar for GST registration.

Step 1: Begin Your GST Registration

Go to the official GST portal.

Click on the ‘New Registration’ tab.

Fill in the necessary business details and personal information.

Once you have entered your basic information, you will be asked to authenticate your Aadhaar for GST registration while filling in Part B of the registration form. 

Turn the toggle switch to ‘Yes’ for Aadhaar authentication. 

Step 2: Enter Your Aadhaar Details

Authentication links will be sent to your registered mobile number and email. Fill in your Aadhaar details, cross-verify to ensure it is correct. A typo may lead to delaying the GST registration process. 

Step 3: Complete the Process

Once Aadhaar authentication is successful, you will receive a confirmation message on the portal. Now you may proceed with your remaining GST registration process. 

GST Biometric Registration: State-wise Implementation

List of states where Aadhaar-based GST biometrics verification is applicable: 

• Maharashtra
• Gujarat
• Karnataka
• Tamil Nadu
• Delhi
• Uttar Pradesh
• Rajasthan
• Telangana
• West Bengal
• Haryana

List of states where Aadhaar-based GST biometrics verification is applicable: 

• Arunachal Pradesh
• Manipur
• Mizoram
• Nagaland
• Tripura

Documents Required for Biometric Verification in GST

• Original Aadhaar card of all Promoters/Partners and the Primary Authorised Signatory

• Temporary Reference Number (TRN) printout 

• PAN card of the entity and all Promoters/Partners

• Proof of business address (electricity bill, rent agreement, property tax receipt)

• Certificate of Incorporation/Partnership Deed/Other registration documents

• Bank account statement or cancelled cheque

• Authorisation letter (if applicable)

• Photographs of the business premises (interior and exterior)

How to do Biometric Authentication for GST Registration?

Not all applicants are required to go through the biometric authentication for the GST registration process. The selection is based on the GST Portal’s risk assessment. If you are selected, you will be informed by email. The following are steps that you need to follow if you have received an email for biometric verification: 

Step 1: Book an Appointment

In the email, you will be provided with a link to schedule your visit to the designated GST Suvidha Kendra (GSK).

Step 2: Carry the documents 

Carry all necessary documents that we have listed in the prior section. 

Step 3: Visit the GSK

Complete the biometric authentication, photo capture, and document verification at the centre.

Step 4: Complete the process within the appropriate timeline

You must finish this process within 15 days of submitting your application. Otherwise, your Application Reference Number (ARN) won’t be generated.

Common Issues with Aadhaar Authentication

The Aadhaar authentication is usually smooth, but there are some common problems that can occur during the process. In such cases, the following is what you need to know:

Incorrect Aadhaar Details

Problem: When the information provided fails to match the information in the Aadhaar database, the authentication can fail. 

Solution: Ensure you are entering the correct Aadhaar number and other information (name, address).

Failed Biometric Authentication

Problem: Failure of biometric authentication at the facilitation centre may delay your registration. This can occur because of the low quality of fingerprints or due to faulty biometric devices. 

Solution: Repeat the procedure or refer to the facilitation centre.

OTP Delays

Problem: There might be a case when you will not get the OTP on time. 

Solution: Verify your mobile number with the network, and verify that the Aadhaar number attached to your mobile is on.

Mismatch with PAN

Problem: It’s important for businesses that the details provided in your PAN card match your Aadhaar details. Any discrepancies between these two documents can cause problems during authentication.

Solution: Update the details in PAN and reapply. 

Tips for Smooth Aadhaar Authentication

Before You Start:

Ensure your Aadhaar mobile number and email are active. 

Keep your Aadhaar card handy for reference.

Ensure that all personal details match across your documents.

During the Process:

Use a stable internet connection to avoid technical glitches.

Keep screenshots of successful authentication for your records (with reference number, if applicable)

After Authentication:

You will need OTP verification for accessing the GST portal in future.

Save your authentication confirmation for future reference.

Monitor your application status regularly.

Closing Notes 

GST registration requires Aadhaar authentication. Be it the sole proprietor registration or running a large company, Aadhaar authentication ensures your registration is secure, fast and easy. Follow the process mentioned in the blog, and we can assure you that you will sail through the process effortlessly. 

Frequently Asked Questions 

Is Aadhaar authentication mandatory for GST refund? 

It is highly recommended that you authenticate your Aadhaar at the time of registration for GST to guarantee a hassle-free and fast GST refund.

What will happen if Aadhaar authentication fails during the GST registration process? 

In case Aadhaar authentication fails at the time of GST registration, the process would be suspended until the problem is solved. Until the authentication is successful, you will not be able to complete your GST registration.