Goods and Service Tax Network (GSTN) keeps on issuing various advisories considering the issues faced by the industry in regular operations on the GST Portal. Considering the biometric-based Aadhar Authentication is getting implemented in all the states on a pilot basis, GSTN has issued certain advisories to make the process easy for businesses such as allowing Directors are now allowed to opt for biometric authentication in their local state, implementing biometric based Aadhar authentication in multiple states etc.
This article discusses the certain key advisories issued by the GSTN recently:
1. Directors are now allowed to opt for Biometric authentication in their home state
- With e-commerce and quick commerce, businesses are not restricted to one state. Every other businessman is setting up businesses in multiple states as stock is kept near the customer’s location for quick delivery.
- The very first step required for setting up a business in another state is to obtain a GST registration in such other state.
- However, with biometric-based Aadhar Authentication, most of the states require the director along with the authorised signatory of the company to come to the respective state for Aadhar Authentication.
- However, travelling to every state for Aadhar Authentication is turning out to be the biggest constraint in obtaining GST registration in multiple states.
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- Understanding the genuine hardship to the taxpayer, GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GST Suvidha Kendra (GSK) in their Home State.
- This facility applies to individuals listed in the Promoter/Partner tab for the following types of businesses:
- Public Limited Company
- Private Limited Company
- Unlimited Company
- Foreign Company
- Such Promoters/Directors can now choose any available GSK within their Home State in India (as per REG-01) for Biometric Authentication.
- GSTN has provided a detailed procedure for opting for biometric authentication in the home state.
2. Introduction of Form ENR-03 for Enrolment of Unregistered Dealers for generating e-way Bill.
- GSTN has introduced a new feature in the E-Way Bill (EWB) system to facilitate the enrollment of unregistered dealers w.e.f. 11.02.2025.
- As per Under Notification No. 12/2024 dated 10th July 2024, Form ENR-03 has been introduced for the enrollment of unregistered dealers.
- Unregistered dealers engaged in the movement or transportation of goods can now generate e-Way Bills by enrolling themselves on the EWB portal and obtaining a unique Enrolment ID.
- This ID will serve as an alternative to the Supplier GSTIN or Recipient GSTIN for generating e-Way Bills.
3. Issues in Filing of GST SLP 01 and GST SLP 02 under Amnesty scheme for waiver of Interest and Penalty
- As per information received by GST Authorities, taxpayers are facing issues in filing of form GST SLP 01 and GST SLP 02 such as order number is not available for selection, payments are not getting auto-populated, After filing the SPL 02 for a demand order, the taxpayer is not able to make payment using “Payment towards Demand” for that order etc.
- Taxpayers have the misconception that the last date to apply for a waiver is 31.03.2025.
- However, it is pertinent to note that taxpayers have to file waiver applications within a period of three months from the notified date. Therefore, waiver applications in SPL 01/02 are to be filed by 30.06.2025.
- However, payment of tax for availing the waiver scheme is 31.03.2025. Therefore, the taxpayers are advised to pay the requisite amount within the due date using the “Payment Towards Demand” functionality in the GST portal.
- If such functionality can’t be used, the taxpayers may make a Voluntary Payment using Form DRC-03 under the category ‘Others’. After completing the payment, they can submit the Form DRC-03A to link the payment made in DRC-03 with the relevant demand order.
- The Taxpayers are required to make the payment on or before 31.03.2025 and file the waiver application on or before 30.06.2025.
Conclusion:
GST is the essential registration needed to initiate business activities in any state, including sales through e-commerce platforms. However, with the introduction of biometric-based Aadhaar authentication, company directors must now visit their respective states to complete the biometric process. Additionally, an Application Reference Number (ARN) will be generated following biometric authentication. The option for biometric authentication in the home state is a long-awaited and positive development for taxpayers.
