Running a business? Big convenience! Now, GST registration in just 3 days with Aadhaar authentication

It is a big convenience for you if you are running any business! According to a notification by The Central Board of Indirect Taxes and Customs (CBIC), businesses which provide Aadhaar number while applying for registration under the Goods and Services Tax (GST) will get approval in three working days. CBIC last week had notified Aadhaar authentication for GST registration with effect from August 21, 2020.

The notification also provides that in case businesses do not provide Aadhaar number, then GST registration would be granted only after physical verification of the place of business. For a person opting for Aadhaar authentication for new GST registration would get it within just three working days, if no notice is issued and would not need to wait for physical verification.

Aadhaar authentication is expected to facilitate genuine and honest taxpayers while at the same time keeping fake and fraudulent entities away from GST. Reportedly, GST Council in its 39th meeting held on March 14, 2020, had approved operationalisation of Aadhaar authentication for new taxpayers. However, its implementation was postponed due to the lockdown on account of COVID-19 pandemic.

While applicants not opting for Aadhaar authentication for GST registration would be granted it only after physical verification of the place of business or documentary verification which may take up to 21 working days or more if notice is issued.

Keeping the COVID-19 pandemic in view, it has been provided that the officer may, if the circumstances warrant, opt for asking for additional documents in lieu of the pre-registration for physical verification of the premises.

Reacting to the development,  Rajesh Gupta, Co-founder and Director, BUSY Accounting Software, said, "Aadhaar authentication for new goods and services tax (GST) registration has been activated from August 21, which will enhance ease of doing business. Through accounting softwares available in the market, this authentication process is becoming more accessible. We are expecting this measure to be fruitful to facilitate honest taxpayers and keep the fake businesses away from GST structure. This authentication will also reduce the burden on officials working for GST registrations of different businesses."