GST registration new rules: How businesses can comply with mandatory Biometric Aadhaar authentication

July 19, 2024

Biometric-based Aadhaar authentication has been made mandatory for GST registration across India, as per the latest Ministry of Finance directive.

Effective July 10, 2024, biometric-based Aadhaar authentication has been mandated for GST registration on a pan-India basis. This measure follows the implementation of provisions from the 53rd GST Council meeting and aims to enhance verification processes.

Nationwide rollout

The new rules, as per the notification dated July 10, 2024 (No. 12/2024), apply to all states and Union Territories. This change extends the biometric Aadhaar authentication requirements, previously applied only in select regions, to the entire country.

Biometric authentication requirement

According to the provisions of Sub-rule 4A of Rule 8 of the CGST Rules, 2017, applicants for GST registration must now undergo biometric authentication. This process includes in-person verification before the granting of registration. The decision to apply biometric verification is based on data analytics and risk parameters identified by the authorities. 

Alternative verification process

For those opting not to use biometric Aadhaar authentication, a mandatory visit to a GST Suvidha Kendra (GSK) is required. This visit will involve photo capturing and the verification of original documents. This requirement is stipulated in the newly inserted second proviso to Sub-rule 4A of Rule 8, as outlined in the notification.

Document verification

All original documents submitted with the GST registration application (Form GST REG-01) must be verified. This verification process is to be conducted at facilitation centers designated by the respective Commissioner.

[CNBC TV18]