IMPORTANCE OF ADHAR IN GST REGISTRATION

Adhar Card which is a unique identification number plays a prominent role in various aspects. It mainly permits the Adhar Cardholder to make use of all government subsidies that a person is eligible for. Importance of Adhar Card is increasing day by day and now many institutions/ banks have made it mandatory.

The notification which was released by the Central Board of Indirect Tax and Customs (CBIC) on August 21, 2020, has made Adhar Card mandatory for Goods and Service Tax (GST) registration. This circular has stated that those businesses which are registering under Goods and Service Tax (GST) can choose for Adhar authentication. If a person fails to undergo Adhar Card authentication or does not opt for authentication of Adhar Number, in such a case registration shall be granted only after physical verification of place of business. This notification has brought amendments in Central Goods and Service Tax (CGST) Rules. Rule 8 of sub-rule 4A has been revised and the revised rule says that when a person opts for authentication of Adhar Number such a person, with effect from 21st August 2020, undertake the said authentication while applying and in this case, date of submission shall be the date of authentication of Adhar Number or 15 days from the submission of application in Part B of FORM GST REG-01 under sub-rule 4A, whichever is earlier. Taxpayers registering under GST can opt for Adhar authentication in such a case registration is deemed to be granted within 3 days without any physical inspection of the premises. If the person fails to do so then the period could be up to 21 days and the authorities could undertake physical verification or detailed review of documents as necessary. When Adhar linked with PAN and GST this would benefit in checking tax evasion as there would be a centralized database available with the government.