Mandatory Aadhaar authentication for GST refund and revocation applications will be effective from 1st January 2022

Mandatory Aadhaar authentication for GST refund and revocation applications will be effective from 1st January 2022

The Central Board of Indirect Taxes and Customs (CBIC) has announced that the rules governing mandatory Aadhaar verification for GST refund and revocation applications would go into effect on January 1, 2022.

In its 45th meeting, the GST Council made recommendations, that Aadhaar authentication of registration be made essential in order to be eligible for submitting refund claims and applications for revocation or cancellation of registration under GST.

As a result, the CBIC revised the Central Goods and Services Tax Rules, 2017 (“the CGST Rules”) via Notification No. 35/2021–Central Tax dated September 24, 2021 to reflect the above-mentioned suggestion of the 45th GST Council meeting.

As per Notification :

The CBIC notified the following revisions to Notification No. 35/2021–Central Tax dated September 24, 2021 w.r.t Aadhaar authentication w.e.f. January 1, 2022 in Notification No. 38/2021–Central Tax dated December 21, 2021.

Rule 10B of the CGST Rules has been notified to specify that, for the purpose of Aadhaar authentication for registered persons,

i. submitting an application for revocation or cancellation of registration in Form GST REG-21 in accordance with Rule 23.

ii. submitting a refund application in Form RFD-01 in accordance with Rule 89

iii. reimbursement of integrated tax (IGST) paid on goods exported from India under Rule 96

Authentication of Aadhar is required for all registered individuals, and the authorised signatory must have an Aadhaar number.

In the event of a sole proprietorship firm, the proprietor or

In the case of a partnership firm, any partner, or

In the case of a Hindu undivided family, the karta, or

In the case of a corporation, the Managing Director or any full-time Director, or

any member of the Managing Committee of a Persons’ Association, a Body of Individuals, or a Society, or

In the event of a Trust, the Trustee on the Board of Trustees

Provided, however, that if an Aadhaar number has not been allocated to the person required to undertake Aadhaar number authentication, such person must provide the following identifying documents: –

a) a copy of her or his Aadhaar Enrolment ID slip; and

b) A bank passbook with a photograph, a voter identity card, a passport, or a driver’s licence issued under the Motor Vehicles Act of 1988.

Furthermore, such person must get his or her Aadhaar number authenticated within thirty days after receiving the Aadhaar number.

In effect, Rule 23(1) of the CGST Rules [i.e., Revocation of cancellation of registration] has been revised and notified, as follows:

“(1) A registered person whose registration is cancelled on his own initiative by the proper official may, subject to the terms of rule 10B, file an application for revocation of cancellation of registration in FORM GST REG-21………”

Similarly, Rule 89(1) of the CGST Rules [i.e., Application for refund of tax, interest, penalty, fees, or any other amount] has been revised and notified, as follows:

“(1) Any person, except those covered by notification issued under section 55, claiming a refund of any tax, interest, penalty, fees, or other amount paid by him, other than a refund of integrated tax paid on goods exported from India, may file an application electronically in FORM GST RFD-01………..”

Similarly, clause (c) in Rule 96(1) of the CGST Rules [i.e., Refund of integrated tax paid on goods or services exported out of India] has been revised and notified, and it now reads as follows:

“(1) A shipping bill filed by a goods exporter is assumed to constitute an application for refund of integrated tax paid on goods exported out of India, and such application is deemed to have been filed only when:-

a) the person in charge of the conveyance transporting the export items submits a departure manifest, an export manifest, or an export report that includes the number and date of shipping bills or bills of export; and

b) the applicant has submitted a valid return in FORM GSTR-3 or FORM GSTR-3B, as applicable;

c) the applicant has completed Aadhaar authentication in accordance with Rule 10B;”

Conclusion:

For the purpose of claiming a refund, the bank account must be in the name of the registered person and must be obtained using the registered person’s Permanent Account Number.

Furthermore, Aadhaar authentication is required for refund applications as well as applications for revocation or cancellation of registration.

from Studycafe https://ift.tt/3msHxgz