Aadhar Authentication for GSTIN made compulsory by MCA

The Ministry of Corporate Affairs or MCA, by way of a notification dated 05.03.2021, has notified that Aadhar Authentication for GSTIN will be made compulsory for the incorporation of company. The same has been notified by the rules named the Companies (Incorporation) Third Amendment Rules 2021.

Also, it shall be noted that the above mentioned rules will amend the Companies (Incorporation) Rules 2014 and will come into force from the date of publication.

Further, the said amendment has been notified by exercising the powers provided under section 469 (1) and (2) of the Companies Act 2013.

In this learning blog, we will talk about the concept of GST Registration, and Aadhar Authentication, together with the changes made in the provisions of the Companies (Incorporation) Rules 2014 concerning mandatory Aadhar Authentication for GSTIN.

Concept of GST Registration

The acronym GST stands for Goods and Service Tax Registration. In this, all the businesses having an annual business turnover of Rs 40 lakhs or Rs 10 lakhs (in the case of Hilly or North Eastern states) requires to register themselves as normal taxable person. The process followed for the same is known as GST Registration.

Further, it shall be noted that taking GSTIN Registration is compulsory for every business entity. That means carrying out the operations without a valid registration will attract hefty penalties.

Concept of Aadhar Authentication

The term Aadhar Authentication denotes a process by which the provided Aadhar Number, together with the biometric information or demographic information of the Aadhar Card Holder, is submitted to the CIDR (Central Identities Data Repository) for its verification. Also, it shall be notified that such repository verifies and examines the correctness, or the lack thereof, based on the information available with it.

Further, the purpose behind the process of Aadhar Authentication is to facilitate a digital and online identity platform so that the identity of the Aadhar Number Holder can be authenticated instantly anytime, anywhere.

Lastly, it shall be noted that a request for authentication shall be entertained by the Authority only if the applicant has sent a request electronically in accordance with the regulations prescribed and complying with the specifications provided by the Authority.

Key Changes regarding Aadhar Authentication for GSTIN

The key changes made in the provisions of the Companies (Incorporation) Rules 2014 concerning the Aadhar Authorisation for GSTIN can be summarised as:

• A tab stating “Do you want to undergo the Aadhar Authorisation for GSTIN Registration” will be inserted at the end of Table A of serial number 12, part of SPICe+ in Annexure of MCA Form INC 35 AGILE – PRO.

Conclusion

In a nutshell, the Ministry of Corporate Affairs has made the Aadhar Authentication for GSTIN compulsory by amending the provisions of the Companies (Incorporation) Rules 2014. The same has been done to infuse more transparency in the process of company incorporation and to facilitate a digital and online identity platform to check and authenticate the identity of the Aadhar Number Holder instantly anytime, anywhere.

Also, Read: MCA Decides to Relax Additional Fees and Extend the Last Date of Filing of Form CRA-4

Official MCA Notification on Aadhar Authentication for GSTIN