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GST and Aadhar: An Easier Way To Registering Firms
GST Registration Made Easier With Aadhar Card
The present government brought about two massive changes. The first was GST – the single goods and services tax system that took over all previous taxations. While the switch over from VAT to GST was filled with hurdles and obstacles, majorly it helped businesses from all sectors and niches. The second change was the Aadhaar number. A twelve-digit number, it is issued to every citizen of the nation by the Unique Identification Authority of India or UIDAI.
The Aadhaar number is equivalent to the social security number given to residents of the US. Using Aadhaar, one can pay bills, open a bank account, etc. It acts as an identification for a person similar to a voter ID or driving licence. So, it should not come as a surprise that in June this year the government made one more announcement connected to Aadhaar.
As per the new rules, a new business or firm can register using the Aadhaar number. This move will ease the process of enrolment considerably for all those starting in the world of business.
What Else You Need To Know About Registration With Aadhar Meeting
It was at the 35th Council meeting of GST that at a press conference Ajay Bhushan Pandey announced to the world that the council has agreed to allow the use of Aadhar card for GST registration for businesses. The Revenue Secretary also noted that the date for filing the annual returns had been extended. The deadline for ITR under the Goods and Services Tax system was extended by 60 days. The date was set as 30th August.
During the same council meeting which was chaired by Nirmala Sitharaman, the present Finance Minister, the penalty on not passing the advantages of GST to the customer was increased. At present, a company or business who doesn’t offer the paybacks GST rate cuts offer to a consumer has to pay fine. The fine levied can be Rs. 25,000 at the maximum. The limit to the penalty was changed to 10%. Now, a business will have to pay 10% of the profiteered amount, instead of a simple fine.
There were two more rules announced after the council meeting which has representatives from every state and Union territory of India.
- An electronic invoicing system for multiplexes that will be rolled out in stages. It will be for all business to business transactions. An e-ticketing system was also approved.
- To ensure that organisations and business pass the merits of lesser tax rates under GST to the average consumer, the council increased the tenure of the National Anti-Profiteering Authority. The authority is charged with the responsibility to guarantee the reach of GST benefits to customers. Its mandate was extended till November 2012, which is two more years.
How Does Aadhar Help With GST Registration For Businesses?
As her first GST meeting as chair, Nirmala Sitharaman’s move to allow Aadhaar as a valid proof on the GSTN portal is a powerful one because it benefits businesses a lot. Under the new rule, any person can register their business on the GST website by using the 12-digit unique number. The entire process can be done online without the need of a mountain of other documents.
Before this new system, the process a business had to go through for registration was lengthy and complicated. A person who wished to register was required to:
- Submit proof of identity
- Give evidence of address
- Offer several other documents
These had to be submitted in scanned and physical form, turning the procedure long and confusing.
Now, a person who wishes to register for GST can go online on the GSTN portal and submit their Aadhaar number. An OTP will be sent to the mobile number linked with the Aadhaar card. The person can utilise the OTP to authenticate their application. After authentication, the person will obtain a GST registration number.
There are two-step advantages to the rule. First, the application is completed on the internet. Therefore, there is no need to run around. Second, it requires only one document to submit the form, which reduces the time spent.