Avalara > Blog > Goods and Services Tax > Aadhar authentication & eKYC now enabled on GST portal

Aadhar authentication & eKYC now enabled on GST portal

  • Jan 15, 2021 | Divita S Gupta

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The government authorities have recently enabled existing taxpayer authentication using the 12-digit Aadhaar number or eKYC to introduce faster and robust means of verification of taxpayers registered on the Goods and Services Tax Portal. This step has come after the authorities enabled Aadhaar authentication for newly registered taxpayers at the 39th GST council meeting in August 2020.

Implemented in the first week of January 2021, the new mandate allows all registered taxpayers to avail of this mechanism.Here registered taxpayers include :

  • Regular taxpayers
  • Taxpayers registered as casual taxable persons
  • Taxpayers registered as Input Service Distributors
  • Taxpayers registered under the GST composition scheme for goods and services and
  • Taxpayers operating within Special Economic Zones.

However, the Aadhaar authentication has not been made available for Government Departments, Public Sector Undertakings, Local authorities, and Statutory Bodies. 

How does this mechanism work? 

Aadhaar authentication or eKYC can be opted by the registered taxpayer if the registered business entity's primary authorised signatory, usually the Proprietor, Managing Director, Managing Partner, holds an Aadhaar card. 

If the above-mentioned authorised signatories of a registered business entity does not possess an Aadhaar number, they can also use other eKYC collaterals for authentication. These will include the following documents 

  • Aadhaar enrolment number 
  • Passport 
  • Voter ID card 
  • KYC form 
  • An identifying certificate issued by a Competent Authority 
  • Other documents that might be specified by the GSTN

As this mechanism is new, taxpayers who will be logging into the GST Portal will see a pop up asking them to opt for authentication using Aadhaar or eKYC. 

Taxpayers can choose to ignore the pop-up and continue to navigate on the portal or head to the 'My Profile' section of the portal and click on the new tab called 'Aadhaar Authentication Status'. 

Taxpayers can use the option to send the Aadhaar authentication link received on their registered mobile number. Alternatively, taxpayers can use the new facility to upload their identity proof documents to complete eKYC. These documents will be subject to scrutiny by tax officials, and on approval, the authentication process will be complete. 

While Aadhaar authentication was introduced in light of the COVID-19 pandemic in August 2020, expanding its purview to existing taxpayers should allow them to have their identities verified without a physical verification - saving time and effort for both, the taxpayer as well as the Centre.

Avalara helps businesses of all sizes get GST return filing, e-way bill generation and e-invoicing right with cloud-based GST compliance solutions in India. Goods and Services Tax (GST) rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Divita S Gupta
Avalara Author Divita S Gupta
Divita has served as a writer and editor for top financial services organizations in India. She has written on topics like mutual funds, insurance, taxes, SME financing for globally recognized banking and financial organizations including ICICI, Aditya Birla Group, News Corp. With a Masters in Business Administration from Symbiosis International University, she currently owns a small business in Mumbai.

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