Aadhaar authentication must for refund application and revocation for registration

The CBIC vide Notification No. 35/2021–Central Tax dated September 24, 2021 has further amended Central Goods and Services Tax Rules, 2017 (“CGST Rules”) to adhere to the recommendations of the 45th GST Council meeting held on September 17, 2021.

Giving effect to the recommendation of GST Council meeting, the CBIC vide this Notification has amended CBIC Rules as under:

1. In Rule 10A of the CGST Rules [i.e., Furnishing of Bank Account details] after the words “details of bank account”, the words “which is in name of the registered person and obtained on Permanent Account Number of the registered person” has been inserted.

2. Further, a proviso has been inserted in Rule 10A making it mandatory for proprietorship concern to link the Permanent Account Number (PAN) of the proprietor with the Aadhaar number of the proprietor.

Rule 10A ibid now reads as under:

“10A. Furnishing of Bank Account Details. –

After a certificate of registration in FORM GST REG-06 has been made available on the common portal and a Goods and Services Tax Identification Number has been assigned, the registered person, except those who have been granted registration under rule 12 or, as the case may be rule 16, shall as soon as maybe, but not later than forty-five days from the date of grant of registration or the date on which the return required under section 39 is due to be furnished, whichever is earlier, furnish information with respect to details of bank account which is in name of the registered person and obtained on Permanent Account Number of the registered person, or any other information, as may be required on the common portal in order to comply with any other provision.

Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.”

In effect Rule 96C has been inserted in CGST Rules which reads as under:

“96C. Bank Account for credit of refund.- For the purposes of sub-rule (3) of rule 91, sub-rule (4) of rule 92 and rule 94, “bank account” shall mean such bank account of the applicant which is in the name of the applicant and obtained on his Permanent Account Number:

Provided that in case of a proprietorship concern, the Permanent Account Number of the proprietor shall also be linked with the Aadhaar number of the proprietor.”

3. After Rule 10A of the CGST Rules, Rule 10B [i.e., Aadhaar authentication for a registered person] has been inserted to provide that, for the purpose of

i. the filing of an application for revocation of cancellation of registration in Form GST REG-21 under Rule 23

ii. filing of refund application in Form RFD-01 under rule 89

ii. refund under Rule 96 of the integrated tax paid on goods exported out of India

authentication of Aadhar is a must for every registered person. Authentication shall be of Aadhaar number of authorized signatory and

• the proprietor, in the case of proprietorship firm, or
• any partner, in the case of a partnership firm, or
• the Karta, in the case of a Hindu undivided family, or
• the Managing Director or any whole-time Director, in the case of a company, or
• any of the Members of the Managing Committee of an Association of persons or body of individuals or a Society, or
• the Trustee in the Board of Trustees, in the case of a Trust

Provided that, if Aadhaar number has not been assigned to the person required to undergo authentication of the Aadhaar number, such person shall furnish the following identification documents, namely: –

a) her/his Aadhaar Enrolment ID slip; and

b) Bank passbook with photograph or voter identity card or passport or driving license issued under the Motor Vehicles Act, 1988

Provided further that such person shall undergo the authentication of the Aadhaar number within a period of thirty days of the allotment of the Aadhaar number.

In effect, Rule 23(1) of the CGST Rules, [i.e., Revocation of cancellation of registration] has been amended and it reads as under:

“(1) A registered person, whose registration is canceled by the proper officer on his own motion, may, subject to the provisions of rule 10B, submit 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 amended and it reads as under:

“(1) Any person, except the persons covered under notification issued under section 55, claiming refund of any tax, interest, penalty, fees or any other amount paid by him, other than refund of integrated tax paid on goods exported out of India, may file, subject to the provisions of rule 10B, an application electronically in FORM GST RFD-01………..”

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

“(1) The shipping bill filed by an exporter of goods shall be deemed to be an application for refund of integrated tax paid on the goods exported out of India and such application shall be deemed to have been filed only when:-

a) the person in charge of the conveyance carrying the export goods duly files departure manifest or an export manifest or an export report covering the number and the date of shipping bills or bills of export; and

b) the applicant has furnished a valid return in FORM GSTR-3 or FORM GSTR-3B, as the case may be;

c) the applicant has undergone Aadhaar authentication in the manner provided in rule 10B;”

Conclusion:

For the purpose of the refund claim, Bank Account must be in name of the registered person and it must be obtained on the Permanent Account Number of the registered person.

Further, Aadhaar authentication is a must for filing refund applications and applications for revocation of cancellation of registration.

Source- https://www.cbic.gov.in/resources/htdocs-cbec/gst/notfctn-35-central-tax-english-2021.pdf