Amendments and Insertion in Registration provisions under GST and how it will streamline registration process

Bhavik Sindhvad | Last updated: 07 January 2023

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Quick Summary

New amendments to GST registration rules, specifically Rule 8 and 9 of the CGST Rules, have been introduced to simplify and secure the registration process. Key changes include automatic fetching and OTP authentication of mobile and email details from the CBDT database, mandatory Aadhaar-based biometrics and photograph verification for individuals, and the introduction of new provisions allowing the government to exempt certain states from these new verification rules. While these changes aim to reduce fraudulent applications, they also promise a more efficient and trustworthy experience for legitimate taxpayers.

On 26th December, 2022 issued notification No. 26/2022 - Central Tax mentioning list of amendments and insertions to the provisions regarding registration under GST regime.

There has been proposed to insert and also amend certain provisions in rule 8 & 9 of CGST Rules regarding registration process under GST.

GST Registration Amendments: Streamlining the Process

Changes in Rule 8 Sub Rule 1 & Sub Rule 2 clause (a)

Where Mobile no. & Email ID were allowed to be input by applicants by their choice manually, now the same will be automatically fetched from the database of CBDT on the basis of details linked with applicant’s Permanent Account Number. Mobile number and email address shall be authenticated through separate OTP in respectively just like as done while registering on the income tax portal.

Clause (b) and clause (c) of Sub Rule 2 of Rule 8 are omitted

Sub-rule 4A rule 8 is amended.

Rule 8(4A) is amended Specifying requirement to undergo “Biometrics based Aadhar Authentication” and Taking Photograph of the applicant in case of individual applicants or individual in relation to the Non-individual applicant as specified under Section 25(6C) along with other documents as uploaded while submission of GST-REG-01 at the facilitation centre notified by Commissioner.

Insertion of new Sub Rule 4(B) under rule (8)

New Rule-8(4B) gives power to Central Government to specify the states or UTs wherein the Sub-rule 4A shall not apply.

The Provision of Rule 8(4A) shall be made applicable to Gujarat state first.

Insertion of proviso clause (aa) under Rule 9(1) and Rule 9(2)

The inserted proviso clause to both the sub rules 9(1) and 9(2) specifies even if the person has undergone Aadhaar Authentication, the department on the basis of Data analysis and risk parameters may carry out physical verification of the place of business within 30 days of submission of application for registration.

Amendments in the registration provisions are likely to curb bogus applicants and put safeguards before the department of revenue and for bonafide applicants, it will become more efficient and streamlined to obtain registration creating a thick line of trust between taxpayers and revenue authorities.

Attached File : 2552851_48185_cci_article.pdf

FAQ :

The amendments focus on Rule 8 and 9 of the CGST Rules, introducing automatic fetching of mobile and email from CBDT via PAN, mandatory Aadhaar biometrics and photo verification for individuals, and new clauses for potential exemptions in specific states.

Previously entered manually, mobile and email details will now be automatically fetched from the CBDT database based on PAN and authenticated with separate OTPs, similar to the income tax portal.

Individual applicants must now undergo biometric-based Aadhaar authentication and have their photograph taken, along with submitting other required documents at a notified facilitation centre.

Yes, even if an applicant has undergone Aadhaar authentication, the department can still conduct physical verification of the place of business within 30 days based on data analysis and risk parameters.

Yes, a new sub-rule allows the Central Government to specify states or UTs where the biometric-based Aadhaar authentication (Rule 8(4A)) will not apply. Gujarat will be the first state to implement this provision.