CBIC has made mandatory authentication of Aadhaar for persons applying for new Registration. The provisions and procedure of Aadhaar Authentication has been detailed in the presentation.

1. SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
AUTHENTICATION OF
AADHAAR NUMBER
IN GST
CONTACT US / STAY CONNECTED
https://www.facebook.com/shahjainassoc
https://www.linkedin.com/company/shahjain
+918655030411
office@shahjain.in
Compiled by
CA Priyank Suresh Shah
Partner
SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
601, 6th Floor, 307/309 Rajesh Rayon Bhavan, Opp. Kakad Market
Kalbadevi Road, Mumbai – 400 005

2. SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
 WHAT IS AUTHENTICATION OF AADHAAR NUMBER
Finance (No.2) Act, 2019 inserted sub-section (6A), (6B), (6C) & (6D) to Section 25 of CGST
Act to provide for every person to undergo authentication, or furnish proof of possession of
Aadhaar number.
Provisions under Sub-section (6A), (6B) & (6C)
** Individuals mentioned in Sub-section (6C)
Karta, Managing Director, Whole Time Director, such number of Partners, Members of
Managing Committee of Association, Board of Trustees, Authorised Representative / Signatory,
or such other class of persons.
Sub-sec (6A)
Every registered
person shall undergo
authentication, or
furnish proof of
possession of
Aadhaar Number
Provided..
If Aadhaar number
is not assigned, the
person shall be
offered alternate and
viable means of
identification
Provided also...
in case of faliue registration alloted to
such person shall be deemed to be
invalid and the other provisions of the
act shall apply as if such person does
not have a registration
Sub-sec (6B)
On and from the
date, every Individual
Shall, in order for
grant of registration,
undergo
authentication, or
furnish proof of
possession of
Aadhaar number
Provided..
If Aadhaar number is
not assigned, the
person shall be
offered alternate and
viable means of
identificationPro
Sub-sec (6C)
On and from the
date, person other
than Individual, for
grant of registration,
undergo
authentication, or
furnish proof of
possession of
Aadhaar number of
such individuals as
mentioned**
Provided..
If Aadhaar number
is not assigned, the
person shall be
offered alternate and
viable means of
identification

3. SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
Provisions of Sub-section (6D)
The provisions of sub-section (6A) or (6B) or (6C) shall not apply to such person or class of
persons or any State or Union Territory or part thereof as may be notified.
 RULES FOR AUTHENTICATION OF AADHAR NUMBER
CBIC vide Notification No. 16/2020 – Central Tax dated 23rd
March 2020, notified rules and
made amendments to the rules to give effect to provisions of sub-section (6B) & (6C) of Section
25 of CGST Act. The said notification was made effective from 1st
April 2020 vide Notification
No.18/2020 – Central Tax & Notification No.19/2020 – Central Tax dated 23rh March 2020.
However, CBIC vide Notification No.62/2020 – Central Tax dated 20th
August 2020 has made
further amendments to such rules and made effective the said rules from 21st
August 2020.
Summary of the said rules are as follows:
Sub-rule (4A) Rule 8 of CGST Rules as
amended by Notification No. 62/2020 –
CT dtd. 20th
August 2020
Every person other than a person notified under
sub-section (6D) of Section 25 of CGST Act, if opts
for authentication of Aadhaar:
- Shall undergo authentication of Aadhaar
- and the date of submission of application shall be
the date of authentication of Aadhaar or 15 days
from the submission of application in Part B of
Form GST REG-01, whichever is earlier
1st
Proviso to sub-rule (1) Rule 9 of CGST
Rules as amended by Notification No.
62/2020 – CT dtd. 20th
August 2020
If fails to undergo authentication of Aadhaar or
does not opt for the same, the registration shall be
granted only after physical verification of the POB
in the manner as specified in Rule 25 of CGST
Rules
2nd
Proviso to sub-rule (1) Rule 9 of CGST
Rules as amended by Notification No.
62/2020 – CT dtd. 20th
August 2020
Proper officer may in lieu of physical verification of
the POB, carry out the verification of such
documents as he may deem fit if:
- approval is obtained from officer not below rank
of joint commissioner
- reasons for the same are recorded in writing
Proviso to sub-rule (2) Rule 9 of CGST
Rules as inserted by Notification No.
62/2020 – CT dtd. 20th
August 2020
Where a person fails to undergo authentication of
Aadhaar or does not opt for the same, notice in
Form GST REG-03 may be issued not later than
21 days from the date of submission of the
application.

4. SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
Sub-rule (5) Rule 9 of CGST Rules as
amended by Notification No. 62/2020 –
CT dtd. 20th
August 2020
The application for grant of registration shall be
deemed to have been approved, if the proper
officer fails to take action:
(a)within 3 working days from the date of
submission of application where a person
successfully undergoes authentication of
Aadhaar or is notified under sub-section (6D) of
section 5; or
(b)within time period prescribed under proviso to
sub-rule (2) where a person fails to undergo
authentication of Aadhaar; or
(c)within a period of 21 days from the date of
submission of application in cases where a
person does not opt for authentication of
Aadhaar; or
(d)within a period of 7 working days from the date
of the receipt of the clarification, information or
documents furnished by the applicant under
sub-rule (2)
 PERSONS EXEMPTED FROM AADHAAR AUTHENTICATION
CBIC vide Notification No.17/2020 – Central Tax dated 23rd
March 2020, has notified class of
person under sub-section (6D) of section 25 of CGST Act who are exempted from authentication
of Aadhaar. As mentioned in the said Notification, the provisions of sub-section (6B) & (6C) shall
not apply to a person who is not a citizen of India or to a class of persons other than the following
persons, namely:-
(a) Individual;
(b) Authorised signatory of all types
(c) Managing and Authorised partner; and
(d) Karta of an HUF

5. SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
 KEY HIGHLIGHTS
 No Rules have yet been notified under sub-section (6A) of section 25 of CGST Act, for
persons already registered under GST Act. They shall also undergo Authentication of
Aadhaar once the said rules are notified
 Every person who makes an application for registration has an option to opt for
authentication of Aadhaar. Once the applicant opts for authentication of Aadhaar and
submits the application, a link to authenticate the same is sent on registered e-mail ID.
Specific time limit for authentication of Aadhaar is not mentioned after opting for the same,
however upon reading sub-rule (4A) of Rule 8, it is understood that the same is 15 days.
 If he opts not to authenticate Aadhaar or after selecting the option to opt for authentication,
fails to authenticate the same, the registration shall not be granted unless physical verification
of POB is done by proper officer.
 Upon a valid reason in writing and with an approval of officer not below rank of Joint
Commissioner, the proper officer in lieu of physical verification may carry out verification of
such documents as he deems fit.
 The date of submission of application in case a person opts for authentication of Aadhaar
shall be the date on which the Aadhaar authentication is done or 15 days from the date of
submission of application in Part B of Form GST REG-01, whichever is earlier.
 Deemed approval if the officer does not take any action is 3 days in case of opting and
completing authentication of Aadhaar and 21 days in other cases from the date of submission
of application. The higher period in other cases is allowed for officers to have sufficient time
to conduct physical verification of POB. Hence, if a person doesn’t opt for authentication of
Aadhaar, the process of obtaining GST registration becomes lengthier in terms of time
period of approval.

6. SHAH JAIN & ASSOCIATES
CHARTERED ACCOUNTANTS
 In case where a notice is issued by the officer under Form GST REG-03 seeking clarification,
information or documents to be furnished, the deemed approval shall be 7 working days
from the date of receipt of such notice in case the officer does not take any further action.
 As per Notification No.17/2020 – CT dtd. 23rd
March 2020, except for following persons,
every other person and an Individual who is not a citizen of India is exempted from
authentication of Aadhaar at the time of registration:
- Individual;
- Authorised Signatory of all types;
- Managing and Authorised partner; and
- Karta of an HUF
Since, Authorised signatory of all types is mandatory in application for every person, the
same becomes mandatory in every application except for application by an Individual who
is not a citizen of India. However, apart from Authorised Signatory, Managing and
Authorised Partners and a Karta of an HUF also have to mandatorily undergo authentication
of Aadhaar, in case of an application by Partnership Firm and HUF respectively.
Directors’ whether Managing / Whole Time / Independent, Partners who are not Managing
or Authorised, Members of Managing Committee of Association, Board of Trustees,
Authorised Representative / Signatory are the class of Individuals exempted from
authentication of Aadhaar.
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