The Central Board of Indirect Taxes and Customs (CBIC) has notified the amendments to the Central Goods and Services Tax (CGST) Rules, 2017, mandating the mobile number and email linked to PAN to be verified by One Time Passwords (OTPs).
The amendment came following a recommendation made by the 48th GST Council Meeting held on 17.12.2022.
The meeting had recommended that PAN-linked mobile and email is to be used along with Biometric Authentication for GST Registration. The GST Council also recommended a test-run in Gujarat for the same.
Pursuant to the recommendations, the CBIC issued the latest amendment to CGST Rules to enable the same.
The amendments to the Central Goods and Services Tax Rules, 2017 (CGST, 2017) are as follows:–
“in rule 8,-
(i) in sub-rule (1), the words and letters, ―mobile number, e-mail address, shall be omitted;
(ii) in sub-rule (2), in clause (a), after the words ―Direct Taxes, the words ―and shall also be verified through separate one-time passwords sent to the mobile number and email address linked to the Permanent Account Number shall be inserted;
(iii) in sub-rule (2), clauses (b) and (c) shall be omitted;
(iv) for sub-rule (4A), the following sub-rule shall be substituted, namely:- ―(4A) Every application made under sub-rule (4) by a person, other than a person notified under subsection (6D) of section 25, who has opted for authentication of Aadhaar number and is identified on the common portal, based on data analysis and risk parameters, shall be followed by biometric-based Aadhaar authentication and taking photograph of the applicant where the applicant is an individual or of such individuals in relation to the applicant as notified under sub-section (6C) of section 25 where the applicant is not an individual, along with the verification of the original copy of the documents uploaded with the application in FORM GST REG-01 at one of the Facilitation Centres notified by the Commissioner for the purpose of this sub-rule and the application shall be deemed to be complete only after completion of the process laid down under this sub-rule.;
(v) after sub-rule (4A), the following sub-rule shall be inserted, namely:- ―(4B) The Central Government may, on the recommendations of the Council, by notification specify the States or Union territories wherein the provisions of sub-rule (4A) shall not apply.”
This was suggested to restrict misuse of PAN of a person by unscrupulous elements without knowledge of the said PAN-holder by way of the two-factor authentication.
The GST Council had also proposed to conduct a test-run in the State of Gujarat for Biometric-based Aadhaar authentication and risk-based physical verification of registration applicants. Amendments to rule 9 of CGST Rules, 2017 were also suggested to be made to facilitate the same.
The following amendments were notified in the Official Gazette by the Central Board of Indirect Taxes and Customs.
“In rule 9,
(i) in sub-rule (1), in the proviso, after clause (a), the following clause shall be inserted, namely:–
(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or
(ii) in sub-rule (2),
in the proviso, after clause (a), the following clause shall be inserted, namely:
(aa) a person, who has undergone authentication of Aadhaar number as specified in sub-rule (4A) of rule 8, is identified on the common portal, based on data analysis and risk parameters, for carrying out physical verification of places of business; or”
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