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Advisory for GST Registration Process (Rule 8 of CGST Rules, 2017)

Introduction

The Goods and Services Tax (GST) registration process has undergone recent modifications to enhance compliance and verification. As per Rule 8 of the CGST Rules, 2017, applicants must follow specific procedures based on their Aadhaar authentication preferences. This advisory provides detailed guidance to ensure a smooth registration process.

1. Understanding Rule 8 of CGST Rules, 2017

Rule 8 of the CGST Rules, 2017, lays down the procedure for GST registration, which includes furnishing details in Part A and Part B of Form GST REG-01. The rule further emphasizes authentication methods, including Aadhaar authentication and physical verification at a GST Suvidha Kendra (GSK), ensuring credibility in the registration process.

GST registration is a mandatory compliance requirement for businesses crossing the prescribed turnover threshold. Rule 8 streamlines the process by leveraging digital and biometric authentication mechanisms to minimize fraudulent registrations.

2. Applicants Not Opting for Aadhaar Authentication

Applicants who choose not to authenticate their Aadhaar must complete additional verification steps at a designated GST Suvidha Kendra (GSK). The process includes:

•        Upon selecting "NO" for Aadhaar authentication during the registration process, an email will be sent containing details of the designated GSK and a list of required documents.

•        The applicant must schedule an appointment via the link provided in the email. Confirmation of the appointment will be sent through email.

•        The applicant must visit the GSK at the scheduled time for photo capturing and document verification.

•        This additional verification process ensures that only genuine businesses receive GST registration.

3. Applicants Opting for Aadhaar Authentication and Identified for Biometric Authentication: For those who choose Aadhaar authentication and whose applications are flagged for biometric authentication, the process involves multiple steps:

Promoters/Partners and Primary Authorized Signatory (PAS) Verification

•        Promoters/Partners opting for Aadhaar authentication must first visit the GSK for biometric authentication and photo capturing.

•        The Primary Authorized Signatory (PAS) must carry the required documents (as listed in the intimation email) to the GSK for verification. Additionally, PAS must undergo photo capturing and biometric authentication at the GSK.

•        If a Promoter/Partner has already been biometric verified in any State/UT during a previous registration, they do not need to visit the GSK again for photo capturing, biometric authentication, or document verification for any other entity where they act as a Promoter/Partner.

•        If such a Promoter/Partner becomes the PAS of an entity, only document verification at the GSK will be required.

•        If the PAS has previously undergone biometric verification in any State/UT, they will only need to visit the GSK for document verification.

•        If the Promoter/Partner and PAS are the same individual, they must visit the GSK for photo capturing, biometric authentication, and document verification. However, if they were already biometric verified in the past, only document verification at the GSK is required.

This additional authentication ensures greater accuracy in taxpayer verification and prevents misuse of GST registration.

4. Non-Generation of Application Reference Number (ARN): Failure to complete the prescribed verification steps within 15 days of submitting Part B of REG-01 will result in the non-generation of an Application Reference Number (ARN), as explained below:

For Applicants Opting for Aadhaar Authentication and Identified for Biometric Authentication:

•        If any Promoter/Partner or PAS fails to visit the GSK, or if biometric authentication fails or document verification is not completed within 15 days, the ARN will not be generated.

•        It is essential to ensure that Aadhaar details (including name, date of birth, and gender) are accurate to avoid authentication failures.

•        If any discrepancies exist, the applicant must update Aadhaar and visit the GSK within 15 days to complete the process.

For Non-Aadhaar Applicants:

•        If photo capturing or document verification is not completed within 15 days, the ARN will not be generated.

This rule prevents fake registrations and ensures that only verified businesses are onboarded onto the GST portal.

5. Benefits of Aadhaar Authentication in GST Registration

Aadhaar authentication simplifies and expedites the GST registration process. Below are the key advantages:

•        Faster Approval: Aadhaar-authenticated applications are processed much faster compared to those requiring physical verification.

•        Reduced Fraud: Biometric authentication reduces instances of fake or duplicate registrations.

•        Convenience: Aadhaar authentication eliminates the need for multiple visits to GSK, making the registration process smoother.

•        Enhanced Transparency: The use of biometric authentication builds trust between taxpayers and authorities, ensuring compliance with GST laws.

6. Common Issues Faced During GST Registration and Solutions

Despite the structured approach, applicants may face certain challenges. Below are some common issues and their solutions:

1. Aadhaar Authentication Failure:

•        Ensure that Aadhaar details match exactly with those in the GST portal.

•        If discrepancies exist, update Aadhaar details before attempting authentication again.

2. Delay in Receiving Appointment Confirmation for GSK Visit:

•        Check your registered email and spam folder for confirmation.

•        If no email is received, contact GST Helpdesk.

3. Application Rejection Due to Incomplete Document Submission:

•        Review the list of required documents in the intimation email.

•        Ensure all necessary documents are uploaded correctly before submission.

4. Non-Generation of ARN Due to Missed GSK Appointment:

•        If an applicant misses their appointment, they must reschedule within the 15-day deadline to prevent application cancellation.

7. Conclusion

All taxpayers seeking GST registration must adhere to the updated procedures to avoid delays or rejection of their applications. Proper scheduling of GSK visits, ensuring the accuracy of Aadhaar details, and completing biometric authentication (where applicable) are crucial for smooth registration under GST. The introduction of Aadhaar-based and biometric authentication ensures transparency and eliminates fraudulent registrations, thereby strengthening the GST system. For further assistance, applicants should refer to their email notifications and visit the designated GSK promptly. Staying updated on the latest GST advisories will help applicants navigate the registration process efficiently and comply with the law. By following these guidelines, businesses can ensure seamless GST registration and uninterrupted compliance with India's tax regulations.

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