Changes w.r.t. to Aadhaar authentication made vide amendment in the CGST Rules

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On recommendations made in 39th GST Council Meeting held on March 14, 2020 amendment is made operationalize Aadhaar authentication for new taxpayers. The CBIC vide Notification No. 16/2020- Central Tax dated March 23, 2020 has amended Central Goods and Services Tax Rules, 2017 (“CGST Rules”) in following manner:

  1. Rule 8 of the CGST Rules- Application for registration

Sub-rule (4A) is inserted after sub-rule (4) for authentication of Aadhaar Number:

“(4A) The applicant shall, while submitting an application under sub-rule (4), with effect from 01.04.2020, undergo authentication of Aadhaar number for grant of registration.”

  1. Rule 9 of CGST Rules- Verification of the application and approval

Proviso to sub-rule (1) is inserted w.r.t. Aadhaar card authentication w.e.f. 01.04.2020:

“Provided that where a person, other than those notified under sub-section (6D) of section 25, fails to undergo authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, then the registration shall be granted only after physical verification of the principle place of business in the presence of the said person, not later than sixty days from the date of application, in the manner provided under rule 25 and the provisions of sub-rule (5) shall not be applicable in such cases.”

Section 25(6D) of the CGST Act:

(6D) The provisions of sub-section (6A) or sub-section (6B) or sub-section (6C) shall not apply to such person or class of persons or any State or Union territory or part thereof, as the Government may, on the recommendations of the Council, specify by notification.

Explanation.-For the purposes of this section, the expression “Aadhaar number” shall have the same meaning as assigned to it in clause (a) of section 2 of the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016 (18 of 2016.).

Rule 8(4A) of CGST Rules:

“(4A) The applicant shall, while submitting an application under sub-rule (4), with effect from 01.04.2020, undergo authentication of Aadhaar number for grant of registration.”

  1. Rule 25 of the CGST Rules was substituted as:

Physical verification of business premises in certain cases.-Where the proper officer is satisfied that the physical verification of the place of business of a person is required due to failure of Aadhaar authentication before the grant of registration, or due to any other reason after the grant of registration, he may get such verification of the place of business, in the presence of the said person, done and the verification report along with the other documents, including photographs, shall be uploaded in FORM GST REG-30 on the common portal within a period of fifteen working days following the date of such verification.”

Read more at: http://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-16-central-tax-english-2020.pdf

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