In-person verification must for GST registration: Finance Ministry

December 24, 2020

The Finance Ministry has notified new norms for GST registration in a bid to check the menace of fake invoices. According to new norm, if the applicant has opted for Aadhaar-based authentication, then every application will be followed by biometric-based Aadhaar authentication and taking photograph.

GST Council

In case the applicant does not go for first option, then the process involves taking biometric information, photograph an as well as verification of various KYC (Know Your Customer) documents.
Authentication will be done at one of the Facilitation Centres notified by the Commissioner. This amendment will come into effect from a date to be notified in near future after setting up of facilitation centres on the lines of Passport Seva Kendras or Aadhaar Seva Kendras.
The new norms have been prepared on the basis of recommendations of Law Committee of GST Council. The new timeline for grant of registration for Aadhaar authenticated applicant is now 7 days for proper scrutiny of application.
To counter the cases of fake invoices, in a few risky cases where a person has successfully undergone Aadhaar authentication, some additional physical verification may be carried out with the approval of an officer, authorized by the Commissioner.

The timeline for grant of registration in such cases would now be of 30 days.Under the new arrangement, the suspension and cancellations would be based on data analytics.
Besides, businesses with monthly turnover of over Rs 50 lakh will also have to mandatorily pay at least 1 per cent of their GST liability in cash. This change will come into effect from January 1, 2021. In cases where GSTIN is suspended, no refund under section 54 of the CGST Act 2017 can be availed by taxpayers.