Physical Verification is Necessary for GST Registration: CBIC

Last Updated at: Feb 02, 2021
Physical Verification is Necessary for GST Registration_ CBIC
As per new requirements by the GST council, taxpayers with aggregate turnover over 500 Crores started e-invoicing from 1st October, 2020. In the month of October itself, about 4.95 Crore invoices were generated by 27400 GSTINs. The Government of India has also made GST e-invoicing mandatory from 1st January 2021- for all the taxpayers with aggregate turnover over 100 Crore.


With effect from 21st August 2020, businesses applying for GST registration can opt for authentication of their Aadhaar numbers while submitting the registration application.  The CBIC (Central Board of Indirect Taxes) has announced this vide Notification No. 62/2020- Central Tax dated 20th August 2020. It said if a business does not opt for Aadhaar authentication or fails to undertake. Further, authentication while applying for GST registration, a Physical Verification would become mandatory. This means the GST registration would is only after physical verification of the business premises, in presence of the owner.

Vide this notification; the Government has exercised the powers conferred by Section 164 of the CGST Act, 2017. This new rule, called the Central Goods and Services Tax (Tenth Amendment) Rules, 2020, seeks to amend sub-rule 4A, Rule 8 of the CGST Act, 2017.

Make GST Registration

Industry reactions

The PWC India Partner National Leader said that if a business opts for Aadhaar authentication, the registration is deem to grant inside 3 days, without physical verification. However, if Aadhaar is not having authentication, the period may go up to 21 days. As the authorities would undertake a physical verification of the business place. Further, detailed inspection of documents if required. Mr Jain also said that the linkage of Aadhaar with PAN and GST would make a centralized database available to the Government. This would further help the Govt. to check tax evasion through efficient use of data analytics.

Under the Indian taxation system, all the goods and services are categorized into 6 slabs. It is significant for all business people to know under which category their goods or services fall. The GST rate finder service is used to find the GST rates of all the goods and services. This service is also referred to as the HSN finder. By using the HSN finder, we can also find the HSN codes for goods and services.


One of The AMRG & Associates Senior Partners has welcomed this new initiative of making Aadhaar authentication as the new norm for GST registration. He said that such rigorous verification procedures before the registration will help address the issue of tax evasion. It is by identifying and reducing the number of fake entries.

One of the EY Tax Partners believes that this will provide the revenue authorities with an alternate option to verify. This is for the GST registration applications during this pandemic period. This will be useful particularly for scenarios where the mandatory physical verification was not possible recently due to the COVID-19 disruption.

See the below comparison between SGST and CGST