Aadhaar verification or Physical verification of premises mandatory for GST registration from 21.08.2020

1) CBIC has issued Notification No 62/2020 dated 21st August 2020 which seeks to make Tenth amendment to the CGST rules. These rules may be called the Central Goods and Services Tax (Tenth Amendment) Rules, 2020. 

2) These shall be effective from 21st August 2020 i.e date of their publication in the Official Gazette.

3) As per the amendment the Businesses registered under GST can opt for Aadhaar authentication, in absence of which registration would be granted only after physical verification of the place of business.

4) Where a person fails to undergo authentication of Aadhaar number or does not opt for authentication of Aadhaar number, the registration shall be granted only after physical verification of the place of business in the presence of the said person

5) A taxpayer registering under GST can opt for Aadhaar authentication, in which case registration is deemed to be granted within 3 days without a physical inspection of the premises.

6) Notice in Form GST REG- 03 will be issued within 21 days from the date of submission of the application made without opting for Aadhaar Authentication

7) Officer has to act upon the application within 21 working days from the date of submission of the application in cases where Aadhaar Authentication is not opted for.

8) With the linkage of Aadhaar with GST and PAN (permanent account number), there would be a centralized database available with the government which will facilitate data analytics and help in checking tax evasion

9) In a nutshell authentication of Aadhaar number would be a norm for GST registration in absence of which registration would be granted only after physical verification of the place of business.

10) The above changes shall be applicable for all applications of registration wef 21.08.2020