The CBIC vide Notification No. 62/2020 – CT dated August 20, 2020 has made certain amendments in the CGST Rules, 2017. The gist of the following amendments are discussed as under:-
- Rule 8: Application for Registration
- Aadhaar Authentication process has been introduced, for the persons applying for GST registration as Normal Taxpayer/ Composition/ Casual Taxable Person/ Input Service Distributor (ISD)/ SEZ Developer/ SEZ Unit etc, in Form GST REG 01. [sub rule 4A of Rule 8 of the CGST Rules]
- Under this, Individuals, an Authorised signatory of all types of businesses, Managing and Authorised partners of a partnership firm and Karta of a Hindu undivided family, applying for new registration, can opt to undergo e-KYC authentication of their Aadhaar number.
- Rule 9: Verification of the application and approval effective from August 21, 2020
- Applicants, who, either do not provide Aadhaar, while applying for new registration or whose Aadhar authentication fails in validation, would be subjected to site verification by the tax department. However, Tax authority based on the documents produced can grant registration. [Proviso to sub-rule 1 of Rule 9 of the CGST Act]
- In case of successful authentication of Aadhaar, registration will be deemed approved within 03 working days. [sub rule 5(a) of Rule 9 of the CGST Rules]
- If Aadhar authentication is not opted for or if authentication fails in validation and no SCN is issued within 21 days by tax official, registration will be deemed approved. [sub rule 5(c) of Rule 9 of the CGST Rules]
- Tax Officer can issue SCN within the period specified for grant of registration, like in cases of successful Aadhar authentication i.e. 03 working days, or in cases when taxpayers do not opt to provide Aadhaar or when Aadhar authentication fails i.e. 21 working days. Applicants can submit their reply within 07 working days from the issue of SCN. [sub rule 5(d) of Rule 9 of the CGST Rules]
The detailed amendment can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/gst/notfctn-62-central-tax-english-2020.pdf