GST new rule: Aadhaar authentication now mandatory for GST refunds

GST Council had decided to make Aadhaar authentication mandatory for GST refunds in its 45th meeting in Lucknow, Uttar Pradesh.

New Delhi: In the 45th meeting of GST Council in Lucknow early this month, the members had decided to make Aadhaar authentication mandatory for claiming GST refund. To bring the change into effect, the Central Board of Indirect Taxes and Customs (CBIC), on Saturday (September 26), announced that it has amended GST rules.  

The new rules have been introduced to bring in various anti-evasion measures. Some of these measures include disbursal of GST refunds only in the bank account linked with the same PAN on which Goods and Services Tax (GST) registration has been obtained.

Moreover, the CBIC’s notification also stated that businesses defaulting on filing the summary of returns and paying monthly GST will not be able to file GSTR-1 for returns for the succeeding month. This rule will come into effect starting from January 1, 2022. 

On the increased scrutiny by CBIC, AMRG & Associates Senior Partner Rajat Mohan told PTI, "To arrest tax evasion, the government has made Aadhaar authentication for the proprietor, partner, karta, Managing Director, whole-time Director, and authorised signatory compulsory before filing an application for revocation of cancellation registration and refund application."

CBIC will amend Rule 59(6) of the Central GST Rules with effect from January 1, 2022, to bring the new rule related to GSTR-1 return filing to effect. Also Read: Punjab cabinet expansion: 7 fresh faces likely to take oath as ministers today

As of now, GST filers can file for returns for outward supplies or GSTR-1 if the filer defaults on GSTR-3B for the preceding two months. All the new changes were discussed and approved in the GST Council meeting headed by Finance Minister Nirmala Sitharaman on September 17. Also Read: Flipkart changes dates for Big Billion Days sale after Amazon Great Indian Festival announcement