• Notification Date: 03-01-2023
• Notification No: N/A

Changes in Aadhaar Authentication and PAN-linked Mobile Verification in GST Registration

The government in its latest notification has directed all PAN-linked mobile numbers and email IDs to be verified through a One-Time Password (OTP) at the time of GST registration. Further, biometric-based Aadhaar authentication, along with risk-based physical verification, has been introduced, starting with the applicants registering from Gujarat.  

The Central Board of Indirect Taxes and Customs (CBIC) issued CGST Notifications no.26/2022 and 27/2022 on 26th December 2022, making various amendments to Rule 8 of the CGST Rules. According to these notifications, applicants need not disclose their mobile number or email address for OTP verification as long as their contact details are linked with PAN. Accordingly, in sub-rule (1) of Rule 8, the authorised person of the GST registration applicant must declare their PAN number and state or Union Territory while filling Part A of the REG-01 application. Sub-rule (2) is also modified with the condition that OTP verification is now possible only through PAN-linked mobile numbers and email addresses. 

After the OTP verification with the PAN-linked contact number, the applicant gets a transaction reference number or application reference number for proceeding with Part B of the REG-01 application. 

This change will not be applicable for those applicants who are non-resident taxable persons, Tax Deducted at Source (TDS) deductors, Tax Collection at Source (TCS) collectors, and service providers of Online Information and Database Access or Retrieval (OIDAR) from outside India to online recipients not under the scope of GST law. 

The modification in the CGST Rules will help curb any misuse of the applicants’ PAN by unscrupulous elements without their knowledge using two-factor authentication. On the other hand, the government is implementing biometric authentication for granting GST registration with the pilot run in Gujarat, together with a risk-based physical verification provision. Amendments to Rule 9 of CGST Rules were also made to facilitate the same. 

Earlier, there were no provisions for conducting physical verification based on a study of risk parameters and data metrics available on the GST portal. With this amendment, the sub-rule (4A) of Rule 8 is modified to allow the same only for applicants registering from Gujarat. These changes will apply with effect from 27th December 2022, i.e., the date of publishing these notifications in the Official Gazette.