GST Aadhaar Authentication Rule 8 CGST Explained Simply

Think of Rule 8 of CGST as a security gate that the Government makes sure that real people are starting real businesses, not fake profiles, through Aadhar Authentication that focuses on how you use your Aadhaar card to prove who you are, what happens if the system wants to see you in person, and the strict deadlines you must follow. This article is a guide to understanding Aadhaar authentication, rule 8 of CGST governing Aadhaar authentication, who are applicable and not applicable for verification under this rule and the procedure of Aadhaar authentication, explained in a simplified version

About Aadhar Authentication

It is essential to have a high-tech identity check where you provide your unique Aadhaar number and biometric data like fingerprints or iris scans to a massive central database called the CIDR. This process automatically compares your live information with the information they already have on file to ensure that you are indeed who you say you are. This setup is a safe and efficient means of checking the identities of individuals anywhere and at any time, which is very helpful in preventing identity theft and fraud

Rule 8 of Aadhar Authentication

Rule 8 of the CGST Act is basically the identity check part of the GST application. It explains how you use your Aadhaar card to sign up, what happens if the system wants to double-check your face or fingerprints in person, and how the official deadlines work so your application doesn't get stuck in between. Here is what it states ;

Starting process: Before you do anything else, you have to provide your PAN card details and your State. The system will double-check your PAN with the tax department and send an OTP to your linked phone and email to make sure it’s really you.
The date of submission: If you decide to use Aadhaar to verify your identity, your application will not be considered submitted until you complete the verification process. The date of your application will be either the date you complete that Aadhaar verification or 15 days after you submit the form, whichever is earlier.
In-person security. Sometimes, the GST computer program flags an application as "risky" based on your data. If that happens, you have to go to a physical "Facilitation Centre" in person. There, they will take your live photo and scan your biometrics. You also have to bring your original documents so they can verify them.
State Rules and Final Receipts. The government can decide that this in-person check isn't required in certain States or Union Territories. Once everything is successfully verified, you will receive an electronic receipt called FORM GST REG-02. However, if you are a temporary business owner, you won't get this receipt until you pay a tax deposit in advance using a temporary reference number.

Who needs authentication under Rule 8?

Under Rule 8 of the GST Act, the government requires certain people to prove their identity using their Aadhaar number. Below is a list of people who are required for Aadhar authentication under GST:

Solo Business Owners: If you run a business by yourself (Proprietorship), you must authenticate your Aadhaar.
The Signers: Anyone officially allowed to sign legal papers for the business needs to be verified.
Partnership Bosses: The managing or authorised partners who run a partnership firm together.
Family Business Heads: Karta, known as the head of a Hindu Undivided Family,
Company Leaders: For companies, at least one Director and the main authorised signer

Who can Skip Authentication under Rule 8?

The government has made a few exceptions for people who either don't have an Aadhaar or fall into a special category.

Non-citizens: If you are not a citizen of India, you are exempt from mandatory Aadhaar authentication.
Government groups: Groups such as Central or State Government departments and local authorities
Public Companies: They comprise Public Sector Undertakings (PSUs) and statutory bodies (groups formed by special laws)
Specific Organizations: These comprise specialised agencies such as the United Nations or specific international financial institutions.

Updation under Rule 8

As per the updates in February 2025 to Rule 8 of the CGST Rules, 2017, the GST registration process now requires specific verification steps to ensure security.

If not choose Aadhaar: In this case, you must visit a GST Suvidha Kendra. After choosing "NO" for Aadhaar, you will get an email with a list of documents and a link to book an appointment. At the kendra, an official will take your photo and check your original documents.
If you have Aadhaar but are flagged for biometrics: Even if you choose Aadhaar, the system might ask for biometric verification based on a risk check.
1. The Visit: Promoters or Partners must go to the GSK first for biometrics and photos, followed by the Primary Authorised Signatory (PAS).
2. Prior Verification: If you have already done biometric verification in any State or Union Territory for a previous GST registration, you don't need to do the biometrics again.
3. Same Person: If one individual is both a Partner and the PAS, they handle everything in one visit.
Application rules: Your Application Reference Number, which proves your application is active, will not be created if you fail to complete the GSK visit, biometric check, or document verification within 15 days of submitting your application (Part B of REG-01).

Also read How to check GST registration and ARN status

Procedure of Aadhar Authentication

Below are step on how to verify Aadhar under rule 8, which are as follows ;

Fill form GST REG-01: You begin on the GST portal by filling out Form GST REG-01 with Part A with your PAN, email, and phone number. After verifying these with an OTP, you move to Part B to provide business details and, most importantly, choose how you want to prove your identity.
Choosing your verification path: You have two main choices of verification, which are ;

Aadhaar Authentication: If you select ‘YES,’ a verification link is emailed and texted to the Primary Authorised Signatory and one Partner or Promoter. You click the link, enter your Aadhaar number, and confirm it with a final OTP from the Aadhaar database.
Visiting a GSK: If you select ‘NO,’ or if the system flags you for a security check, you must visit a GST Suvidha Kendra (GSK). You’ll get an email with the location and a list of documents to bring

Handling the biometric check: If you are flagged for a biometric check, the key people in the business must go to the GSK in person. There, they will capture your live photo, scan your fingerprints or eyes, and check your original documents
Stay on top of deadlines: You have 15 days from the date of submission of Part B to complete your Aadhaar OTP or visit the GSK. If you fail to meet this deadline, fail the biometric test, or have errors in your Aadhaar details, your Application Reference Number will not be generated. If you finish the Aadhaar check successfully, the officer has 7 days to look at it. If you didn't do Aadhaar and had to do a physical check, they have 30 days to process it.
Final Approval and ARN Generation: Your ARN is only created after the Aadhaar check is done or the GSK visit is successful. If the officer is happy, you get your GST Certificate (REG-06). If they have questions, they’ll send a notice (REG-03), and you’ll have 7 days to reply

Note: If the GST officer doesn't take any action within the 7-day or 30-day time limits mentioned above, the system automatically considers your application approved.

Conclusion‍^‍‍

Following Rule 8 of CGST for Aadhar authentication is the most important step to getting your business off the ground legally. By authenticating your Aadhaar, you are assuring the government that your business is genuine and is ready to take off. Just remember to keep an eye on that 15-day clock and ensure that your Aadhaar information is spot on in your application.

FAQs

What happens If i donot finish aadhar verification on time?

If you don't complete your verification within 15 days, the system won't generate your Application Reference Number (ARN). This applies to everyone: if you were picked for a biometric check but the partners or signers don't visit the GSK, or if you opted out of Aadhaar and missed the photo/document deadline, your application essentially stops.

What do I need to carry with me to the GST Suvidha Kendra for authentication?

When you go for an appointment at the GST Suvidha Kendra for Aadhar authentication, you need to carry your original Aadhaar card and PAN card. You’ll also need to carry the original versions of every document you uploaded during your online application. To get through the door, keep a copy, either printed or on your phone, of your appointment confirmation email and the specific jurisdiction details that were sent to you in your notification email.

Is the biometric Aadhar check mandatory for everyone?

Biometric authentication is required for the people running the business. Promoters and directors have to finish their biometric checks before the Primary Authorised Signatory (PAS) visits the GSK. If you happen to be both the boss (Promoter/Director) and the person signing the papers (PAS), you just need to visit your assigned local GSK.

What to do if Aadhar authentication fails?

If the online verification fails, the first thing to do is to check if there are any typos or errors in your details, such as your name or date of birth. Once you've checked for any errors, you can try the process again. If it still fails, you'll have to visit an Aadhaar enrollment centre or contact UIDAI to sort out the problem.