New businesses can now opt for a quick authentication of their credentials using Aadhaar, the 12- digit biometric identification number, and secure Goods and Services Tax (GST) registration without physical verification of their premises.
Aadhaar authentication facility, which was cleared by federal tax body, the GST Council in March, has now been rolled out from Friday, said a statement from the finance ministry. The option for Aadhaar authentication was kept in abeyance temporarily on account of the pandemic.
“Aadhaar authentication for new registration would substantially enhance ease of doing businesses for genuine businesses," said the ministry statement. A person opting for Aadhaar authentication for new GST registration would get it within just three working days, if no notice is issued and would not need to wait for physical verification.
However, in the case of those opting not to use Aadhaar, GST registration would be given only after physical verification of the business premise, which could take upto 21 days and in case a notice is issued, even more time.
The government has also introduced a system of deemed registration. If the concerned official has not taken any action within the specified time—that is, three days when Aadhaar is used and 21 days when Aadhaar is not used—then registration is deemed to have been granted. “If the registration application has neither been accepted, nor a notice for rejection has been issued, after the specified period, the application shall be deemed to be approved," said the statement. There are over 12.2 million registered GST businesses currently.