GST Network has decided to make Aadhaar verification mandatory for new dealers from January 2020

The GST Network recently had decided to make Aadhaar authentication or physical verification mandatory for new dealers from January 2020 in order to curb malpractices in paying Goods and Services Tax.

All new dealers would be required to submit their Aadhaar number for authentication from 1st January 2020. However it is currently optional, but it has been made compulsory from 2020 to control fake invoices that were noticed after the new tax regime came into force from 1st July 2017.

The GST Network had also decided towards completing online refunding from 24th September from the central GST or the state GST.

The GST Network stated that they have also decided towards unveiling the simplified new returns system from 1st January 2020.

The 35th ST Council meeting which was held under the Finance Minister Nirmala Sitharaman has permitted the use of the Aadhaar card for the enrollment on the Goods and Services Tax Network (GSTN). The usage of Aadhaar card shall be doing away with the requirements of many other documents.

Sushil Kumar Modi, who administers the group of ministers of GST Network, stated that Aadhaar authentication of new dealers shall be mandatory. Previously it was optional. But recently they have noticed in 2 years that there are a good number of fly-by-night operators. They make false invoices.

In the previous system, people have to furnish many documents and submit them in physical as well as scan form. Now the GST Network has decided the use Aadhaar and in doing so many advantages shall take place to businesses. The person applying could go online and by his Aadhaar number and OTP authentication, he could register himself in the GSTN portal and obtain GSTN registration number.

Individuals who don’t want Aadhaar authentication, physical verification shall be conducted, which would be completed in 3 days.

Modi also stated that the procedures which were conducted manually lacked transparency and took a long time. But after the online procedure, dealers would get payment from the Public Finance Management System.

Exporters didn’t suffer much as their payments were through IGST and they received refunds within six to seven days. The GSTN also suggested the launch of the much simplified new return system from 1st January 2020, as the previous system was a bit complicated.

It (new return), shall be rolled out in the three formats of Sahaj, Sugam, and Normal, in one go for every type of taxpayers, adding that the annual return date was also extended to 30th November 2019. Amongst the 92.58 lakh registered dealers, only 64.17 lakh were permitted to file their returns as they had submitted the 3B and GSTR-1 forms, as stated by Sushil Kumar Modi.

Out of 64.17 lakh, only 21.35 lakh had filed their returns, which is near about 33%. Therefore, the GST council has to decide concerning what to do with these non-filers as their numbers are very low, as stated by him.

Modi also held that they were getting a number of recommendations to simplify the return filing procedure. Consequently, the GST council would decide how to simplify the return filing system. However, those who are not filing their returns for 2 months would have their E-Way bills blocked, starting from 1st November this year.

The GST Council meeting is scheduled to take place in Goa on 20th September.

eStartIndia is the professional tech-based online business and legal service providing a platform which helps the clients to simplify the procedures of all kinds of registration, implementation, tax concerns and any additional legal compliances and services related to the business in India.

Get a free consultation service for any registration with Our Top-skilled Experts.

Author:

eStartIndia Team