Now Aadhaar can be opted for authentication for getting GST Registration and in case Aadhaar authentication is not opted by the applicant while applying for GST registration then there would be physical verification of his place of business. This latest amendment has been introduced by Central Board of Indirect Taxes and Customs (CBIC) vide the latest Notification No. 62/2020 CT dated 20.08.2020 which shall be effective from 21st August 2020.
To bring this change, CBIC vide N No. 62/2020 CT has amended Rule 8 and Rule 9 of CGST Rules 2017 which are regarding application of GST registration and its approval.
This is being considered as a smart move by CBIC to link registration with Aadhar by offering incentives for those who opt Aadhar authentication.
CA Pradeep Panwar, Chairman of Meerut Branch of CIRC, ICAI, says that Government instead of making Aadhar mandatory, has very smartly put up a price for those who are not opting Aadhar authentication for GST registration. Those who won’t opt Aadhar authentication would not only have to undergo physical verification of their place of business and but also bear with the fact that the time limit for approval of GST registration in this case would be 21 days as against the time limit of three working days in case of Aadhar authentication.
He adds that people are likely to go with Aadhar authentication as no one would like to delay their application for GST registration, or undergo the hassle of physical verification when on the other side Aadhar authentication is comparatively lot easier, accessible and time saving.
Impact of Amendment of CGST Rules 2017 vide N No. 62/2020 CT dated 20.08.20
The newly substituted Rule 8(4A) of CGST Rules 2017 which has replaced earlier sub rule (4A) says that that when an applicant opts for Aadhaar authentication while taking GST registration, the date of submission of application shall be the date of Aadhar authentication or 15 days from the submission of form Part B of FORM GST REG-01, whichever is earlier.
The date of submission of application is important as the statutory time limits provided for approval or rejection of GST registration application are provided with reference to this date of submission of application. Sooner the process of Aadhaar authentication completed, sooner the time bound limit for approval by the department would start. There is a time period of fifteen days provided here for getting Aadhar authentication done.
As per substituted proviso to Rule 9(1), if the applicant fails to get this Aadhar number authenticated within given time period of 15 days or he doesn’t opt for it then there would be physical verification of the place of business in his presence for the purpose of granting GST Registration.
Though there is a provision also for registration in lieu of physical verification but it requires approval from Joint Commissioner or above rank official along with reasons recorded and on basis of documents as the authorised official may deem fit.
As per proviso to Rule 9(2), in case of failure to get Aadhar authentication or not opting it, notice in form GST REG-03 may be issued by the proper officer on verifying the application within time period of 21 days. Notice of GST REG-03 is issued by the proper office to seek any clarification, information or document when the application is found deficient in regard to submitted information or documents. This Notice of GST REG-03 shall have to be issued by the officer within three working days if there is Aadhar authentication.
Rule 9(5) which is regarding deemed approval of GST registration in case there is no action taken by proper officer. This rule also been substituted vide this notification.
As per the substituted Rule 9(5), GST Registration shall be deemed to be have been granted if there is no action from proper officer after the expiry of following time limits:
- Within 3 working days from date of submission of application in case of successful Aadhaar authentication.
- If applicant fails to undergo Aadhaar authentication, then the GST registration shall be granted after the expiry of 21 days from the date of submission of application. In this case it is to be noted that date of application submission shall be after expiry of 15 days from date of submission of Form Part B GST REG-01.
- If applicant doesn’t opt for Aadhar authentication, then the registration shall be deemed to have been granted within 21 days from the date of submission of application.
- In case applicant has furnished a clarification, information or document in response to the notice issued to him (Notice GST REG-03) then the GST registration shall be deemed to have been granted on expiry of seven working days from the date of receipt of such reply from the applicant.
CA Kalpak Kaplash
