Fake firms have increased substantially under GST which are formed merely to pass on the Input Tax Credit without any underlying supply of goods and services. The Government is taking all possible steps to prevent these fake firms from obtaining registration, operating their business, and surrendering GST smoothly. To ensure that no phony firm is operating, the Government runs Special physical verification drives to ensure that businesses operate in the given registered office. Similarly, at the time of cancellation of GST registration on the taxpayer’s application, the proper officer is required to ensure that the supplier of such firm is not canceled.
Along the same lines, to prevent the registration of fake firms, a new requirement of biometric authentication through Aadhar and physical verification in person has been inserted at the time of granting GST registration. Accordingly, no GST registration shall be granted unless the biometric authentication is done in person by the applicant.
This article discusses the requirement and process of biometric Aadhar authentication for obtaining GST registration
1. Legal requirement of Biometric Aadhaar Authentication
a. Amendment in Rule 8(4A) of CGST Rules:
- Rule 8(4A) of CGST Rules was amended through Notification No. 04/2023 – Central Tax dated 31st March 2024 and Notification No. 12/2024-Central Tax dated 10th July 2024.
- As per amended provisions, in the following application for GST registration, the biometric Aadhar authentication is required to be done after applying for GST registration:
- Where the applicant has not opted for Authentication of Aadhar Number;
- The applicant has opted for authentication of an Aadhar Number, and such an application is identified for biometric Aadhar authentication on a common portal based on Data Analysis and Risk Parameters.
b. Requirement of Biometric Aadhar Authentication
- In the case of biometric Aadhaar Authentication, after applying for GST registration, the applicant is required to visit one of the GST Facilitation Centres for:
- Biometric Aadhaar Authentication;
- Providing his photographs
- Verification of the original copy of the documents uploaded with the application in FORM GST REG-01
- The Application shall be deemed to be completed only after completion of biometric Aadhaar authentication.
- Provision of biometric aadhaar authentication was made applicable to all states and Union territories with effect from 10th July 2024 vide Notification No. 13/2024 – central tax dated 10th July 2024.
2. Applicability of Biometric-based Aadhar Authentication
- GSTN has already developed functionality of biometric-based Aadhar Authentication. However, the same shall be made applicable in all the states in a phased manner.
- The process has been made applicable in the following states:
| State | Date of Applicability |
| Gujarat & Puducherry | 7th November, 2023 |
| Kerala, Nagaland, and Telangana | 4th December, 2023 |
| Uttarakhand | 28th July, 2024 |
| Jammu & Kashmir & West Bengal | 2nd August, 2024 |
| Dadar and Nagar Haveli, Daman and Diu and Chandigarh | 24th August, 2024 |
| Bihar, Delhi, Karnataka & Punjab | 6th September, 2024 |
| Odisha | 28th September, 2024 |
| Kerala, Nagaland and Telangana | 5th October, 2024 |
3. Process of Biometric-Based Aadhaar Authentication
GSTN is issuing advisories on time to time basis to ensure smooth implementation of the Aadhar authentication process. Following is the process of biometric-based Aadhar authentication:
- Booking of appointment with GSK
- After filing an application for GST registration in Form GST REG-01 on the GST portal, the applicant will receive either of the following links in the e-mail:
- A Link for OTP-based Aadhaar Authentication, or
- A link for booking an appointment with a message to visit a GST Suvidha Kendra (GSK) along with the details of the GSK and jurisdiction, for Biometric-based Aadhaar Authentication and document verification (the intimation e-mail)
- If the applicant receives the link for OTP-based Aadhaar Authentication then he can proceed with the application as per the existing process, i.e., by completing the Aadhar authentication on the GST portal itself by furnishing the Aadhar Number and OTP.
- However, in case a link is received for booking an appointment with GSK, the applicant will be required to book the appointment to visit the designated GSK, using the link provided in the e-mail.
- The applicant is required to choose an appointment for the biometric verification during the maximum permissible period for the application as indicated in the intimation e-mail. In such cases, ARNs will be generated once the Biometric-based Aadhaar Authentication process and document verification are completed.
- Documents to get verified
- After booking the appointment, the applicant gets the confirmation of appointment through email (the appointment confirmation email), and she/he will be able to visit the designated GSK as per the chosen schedule.
- At the time of the visit to GSK, the applicant is required to carry the following details/documents:
- a copy (hard/soft) of the appointment confirmation e-mail
- the details of jurisdiction as mentioned in the intimation e-mail
- Original Aadhaar Card and PAN Card
- the original documents that were uploaded with the application, as communicated by the intimation e-mail.
- The biometric authentication and document verification will be done at the GSK, for all the required individuals as per the GST application Form REG-01.
4. Frequently Asked Questions (FAQs)
a. Is it mandatory for all the applicants/taxpayers to get Biometric Aadhaar Authentication while applying for GST registration?
- No, Biometric Aadhaar Authentication is not mandatory for all applicants/taxpayers.
- The same shall apply in the following two cases:
- The Applicant does not opt for authentication of Aadhar Number; or
- The applicant has opted for authentication of an Aadhar Number, and such an application is identified for biometric Aadhar authentication on a common portal based on Data Analysis and Risk Parameters.
- As per the information given on the GST portal, once Biometric is done, then the taxpayer doesn’t need to do it again for other applications.
b. How will I get the information regarding Biometric Aadhaar Authentication while applying for GST registration?
- The applicant shall receive the email for booking an appointment with GSK if the application gets selected for biometric-based authentication.
- The Communication will be received over e-mail and SMS with the TRN submission.
c. Is it mandatory for both Partner/Promotor and Primary Authorised Signatory to visit GST Suvidha Kendra for Biometric Aadhaar Authentication?
- In case the promoter/partner and Primary Authorized Signatory are two different persons, then both would have to visit the designated GST Suvidha Kendra to get your Aadhaar authenticated.
- If the Promoter/Partner and Primary Authorized Signatory are the same, then only that person would be required to go designated GST Suvidha Kendra for Biometric Aadhaar Authentication.
- Separate communication for booking appointments with GSK will be received on the email ID of both the partner/promoter and primary authorised signatory.
d. How many days will be provided for the Biometric Aadhaar Authentication? What is the validity of the TRN Number?
- 15 days will be provided to get the Biometric Aadhaar Authenticated. A period of 15 days shall be counted in the following manner:
- The 15 days will be calculated from the date of submission of Part B of the Registration application i.e. before PAN validation.
- In case PAN validation fails, you will be required to resubmit the application. In such a case the 15 days will be calculated from the date of resubmission of application.
- In case you have not submitted Part B and 15 days have elapsed, in such cases, the system will not convert these TRNs into ARNs.
e. What happens if biometric authentication is not done on the date of appointment?
- After submission of Part B, if PAN validation and risk score generation are successful, and Biometric Verification is not completed by the Promoter/Partner and Primary Authorized Signatory within 15 days from submission of Part B, the TRN will be automatically converted into ARN with mandatory Field Visit.
f. When ARN will be generated after the Biometric Aadhaar Authentication?
- If the Biometric Authentication is successful for both the Primary Authorized Signatory and Promoter/Partner, ARN will be generated immediately.
5. Conclusion
The measure is taken to prevent registration of fraud GST firms. However, this will create genuine hardship for the taxpayers who need to obtain GST registration in more than one state. Generally, taxpayers selling through e-commerce platforms are required to obtain GST registration in multiple states where they do not have any physical presence. However, with biometric aadhaar authentication, they need to travel to each state for Aadhar authentication. The government should take some measures to prevent hardship for genuine taxpayers.
