Aadhaar Authentication under GST: Requirements and Process

Aadhaar authentication under GST is the process of verifying the Aadhaar number of GST registrants through the Unique Identification Authority of India (UIDAI). The goal is to maintain integrity and transparency in the tax system.

The GST system relies heavily on taxpayer compliance. Aadhaar authentication acts as an additional layer of security by minimising the chances of GST fraud or non-compliance.

When you enter your Aadhaar number during the registration process, UIDAI authenticates it by matching the data. Having a verified Aadhaar accelerates the GST registration process. It also simplifies verification, thus making it easier for the applicants.

If you’re already registered with the GST as a taxpayer, the following are the steps for completing your GST Aadhaar authentication:

The following are the steps for completing your GST Aadhaar authentication in case of a new registration:

•   1. Go to GST portal and log in using your GST username and password
•   2. Click on ‘Services > Registration > New Registration’.
•   3. Complete filling Part A of the GST registration.
•   4. Move on to Part B of the GST registration and fill in required information for all these sections: Business details, Promoter/Partners, Authorised Signatory, Authorised Representative, Principal Place of Business, Additional Places of Business, Goods and Services and State Specific Information.

The following persons are exempt from getting Aadhaar authentication under GST Act:

• Karta of HUF
• Authorised signatory of all types
• Managing/authorised partners of a partnership firm

Certain groups are not eligible for Aadhaar authentication under GST. These include Non-Resident Indian (NRI) taxpayers and foreign nationals. The reason for their exclusion lies in the Aadhaar system's limitations, which is designed primarily for the residents of India.

If you fall under the category of individual taxpayers or are running a business, Aadhaar authentication can streamline your registration process. On the other hand, NRIs and foreign nationals need not get their Aadhaar card authenticated w.r.t. their GST registration.

Your Aadhaar authentication may fail due to any of the reasons mentioned below:

• Incorrect Aadhaar details

One of the most common issues leading to a failed Aadhaar authentication under GST is incorrect Aadhaar details. If you've entered any information incorrectly, the system will not be able to match the data, and the authentication will fail.

It's always good to double-check every digit and detail before submitting. If you find an error after submission, you can usually correct it by going back to the application and updating the information.

• Mobile number not linked

Another common roadblock is the absence of a linked mobile number to your Aadhaar. The authentication process relies on an OTP (One Time Password) sent to the mobile number associated with your Aadhaar card.

If your mobile number isn't linked, you won't receive the OTP, making it impossible to complete the authentication. The fix here is simple but crucial: ensure your mobile number is linked to your Aadhaar card before you start the GST registration process.

• Technical glitches

Lastly, technical issues can sometimes disrupt the authentication process. These could range from server downtimes to bugs on the GST portal. If you've checked that your details are accurate and your mobile number is linked, but you still encounter issues, it might be a technical glitch. In these situations, it's advisable to wait for a while before attempting again. If the problem persists, contact customer support for further guidance.

The following mentioned are some of the focal points emphasising the importance of GST Aadhaar authentication:

• Quick approval process

Aadhaar authentication under GST is akin to an express lane for tax compliance. Completing this authentication significantly speeds up the approval time for GST registration. The system is designed to verify your details quickly, enabling faster activation of your GST number. This quick turnaround time is particularly advantageous for businesses that are eager to commence operations without unnecessary delays.

• Combats fraud

The Aadhaar authentication system serves as an effective tool for combating fraudulent activities. By requiring this step, the government ensures that all registered entities are legitimate, thereby adding credibility to your business. In a system where fraudulent registrations could potentially cost the government significant revenue; this authentication acts as a vital check.

• Legal requirement

More than just a convenience or an added layer of security, Aadhaar authentication under GST is a legal requirement. Failing to complete this process can result in serious legal consequences, including financial penalties.