Aadhaar Authentication under GST
The Indian government enabled Aadhaar authentication for some Goods and Services Tax (GST) processes. By making sure that only real users can get these benefits, this move is meant to make the GST system safer, more open, and more efficient. Here is a full explanation of why Aadhaar authentication under GST is needed for GST returns, what that means for taxpayers, and how to do it.
Background and Rules for the Law
This is what the Central Board of Indirect Taxes and Customs (CBIC) said. It is applicable on January 1, 2022. Rule 10B of the Central Goods and Services Tax (CGST) Rules, 2017. The rule says that registered people must show proof of Aadhaar to apply to cancel their GST registration under Rule 23.
- Rule 89 says you can file a return claim.
- Under Rule 96, you can ask for returns on IGST you paid on exports.
Based on choices made at the 45th GST Council meeting, these changes were made by the Central Goods and Services Tax (Eighth Amendment) Rules, 2021. These rules were put in place by the government on January 1, 2022, to stop false claims and improve compliance.
Why do You Need to Authenticate Your Aadhaar Number
The UIDAI keeps the Central Identities Data Repository (CIDR). This is where the taxpayer’s Aadhaar number and biometric information are checked against. It checks the applicant’s name in real time, which lowers the risk of fake registrations, false refund claims, and misuse of the GST network.
Why do We Need Aadhaar Verification for GST Returns and Cancellation Requests?
Getting Rid of Fraud
By linking Aadhaar to GST registration and refund requests, only taxpayers with valid claims will be able to make these requests.
Improving Transparency
Aadhaar-based verification means that the taxpayer’s name is checked electronically.
Speeding Up Processes
Aadhaar authentication speeds up verification; it returns requests and revocation.
Legal Compliance
The government wants to make sure people follow the law and don’t cheat on their taxes. They’re thus connecting Aadhaar with different banking and tax-related services.
Which people need to go through Aadhaar Authentication?
- Registered taxpayers who want to file a return claim under Rule 89 must provide Aadhaar authentication.
- Individuals who need to recover the IGST they paid on exports are in line with Rule 96.
- Taxpayers who want to cancel their GST registration according to Rule 23.
- Non-resident Indians (NRIS) and people from other countries do not have to use Aadhaar authentication.
How to Verify Your Aadhaar Number Under GST
The Aadhaar authentication method is built into the GST portal for people who are already registered for GST. Here’s how the process works:
- Go to the GST Portal and sign in: Use your details to get into your GST account.
- Select Aadhaar Authentication: Within “My Profile,” click on “Aadhaar Authentication Status.”
- Click on the “Request Authentication Link” button to get an Aadhaar verification link.
- Type in your Aadhaar number: Type in your Aadhaar number and the phone number that is linked to your Aadhaar.
- OTP Verification: A one-time password (OTP) will be sent to the phone number you used to join. To finish the authentication process on the GST site, use this OTP.
- Complete: Your state will be marked as “complete” once your Aadhaar number is verified on the GST portal.
- An Aadhaar card must be shown as valid for the main approved signatory and at least one of the firm’s founders or partners.
How It Affects Taxpayers
The need to verify your Aadhaar number affects Indian taxes in several ways:
Safety has been improved
- It makes identity theft and fake refund requests much less likely.
- Verification is easy because Aadhaar is a single government-issued ID that can be used to prove who you are.
Faster Processing
Authentication speeds up the approval process for requests for refunds and cancellations.
Compliance Burden
Taxpayers need to make sure that their Aadhaar information is right and linked to their GST registration.
Legal Obligation
If you don’t follow the steps for Aadhaar identification, your refund requests or revocation requests may be turned down.
Get Started with TaxDunia
In order to improve GST compliance in India, one important step is to use Aadhaar-based authentication. By linking these important tasks to Aadhaar, the government will be able to keep the system free of fraud, make it more open, and cut down on working time. This is something that Indian taxpayers must do by authenticating their Aadhaar numbers through the GST site. This way, their refund and cancellation requests can be processed quickly and easily. Reach out to TaxDunia to get your Aadhaar authenticated under GST.
