Background:
The GST Council in its 48th meeting dated December 17, 2022, has recommended to commence a pilot trail in the state of Gujarat for biometric-based Aadhaar authentication and risk-based physical verification of applicant for registration, which would help in tackling the menace of fake and fraudulent registrations.
Notification:
Now, the CBIC vide Notification No. 04/2023-Central Tax dated March 31, 2023, has substituted Rule 8(4A) and Rule 8(4B) of the Central Good and Services Tax Rules, 2017 (“the CGST Rules”) w.e.f. December 26, 2022, in order to align the Rules with the recommendation of the GST Council.
Further, the CBIC vide Notification No. 05/2023-Central Tax March 31, 2023, has amended Notification No. 27/2022-Central Tax dated December 26, 2022 (“Notification No. 27/2022”), in order to align the Notification with above amendment in Rule 8(4B) of the CGST Rules.
Our comments:
The substituted Rule 8(4A) of the CGST Rules states:
Where an applicant, other than a person notified under sub-section (6D) of section 25, opts for authentication of Aadhaar number, he shall, while submitting the application under sub-rule (4), undergo authentication of Aadhaar number and the date of submission of the application in such cases shall be the date of authentication of the Aadhaar number, or 15 days from the submission of the application in Part B of FORM GST REG-01 under sub-rule (4), whichever is earlier.
Provided that every application made under sub-rule (4) by a person, other than a person notified under sub-section (6D) of section 25, who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this proviso.”;
The stated rule has now provided a general provision of Aadhar authentication in case where the applicant opts for such authentication and prescribes the time limit for date of submission of registration application which would be the earlier of, date of authentication of Aadhar or 15 days from the date of submission of application in Part B of form GST REG-01.
Further, proviso to Rule 8(4A) provides a legal backing to biometric based Aadhar authentication and risk based physical verification of applicant for registration which is currently is in pilot trail phase in the state of Gujarat.
Furthermore, there is amendment in Rule 8(4B) of the CGST Rules to align the rule with the amended Rule 8(4A) of the CGST Rules and similar amendment is done in Notification No. 27/2022.
Hence, on success of pilot trail in the state of Gujarat for biometric-based Aadhaar authentication and risk-based physical verification of applicant for registration, the Govt will introduce the same in other state(s) as well.
The Notification No. 04/2023 can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009686/ENG/Notifications
The Notification No. 05/2023 can be accessed at: https://taxinformation.cbic.gov.in/view-pdf/1009687/ENG/Notifications