Government Makes Aadhaar Authentication Mandatory To Claim GST Refunds

The notification also states that from January 1, 2022, businesses who have defaulted in filing summary return and paying monthly GST will not be able to file GSTR-1 sales return of the succeeding month.

The government has made Aadhaar authentication of taxpayers mandatory for claiming GST refund.The Central Board of Indirect Taxes and Customs (CBIC) has amended GST rules bringing in various anti-evasion measures, including disbursal of GST refunds only in the bank account, which is linked with same PAN on which Goods and Services Tax (GST) registration has been obtained.

The notification also states that from January 1, 2022, businesses who have defaulted in filing summary return and paying monthly GST will not be able to file GSTR-1 sales return of the succeeding month. The notification follows the decisions taken at the meeting of the GST Council in Lucknow on September 17.

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

EY Tax Partner Abhishek Jain said with the objective of preventing revenue leakage, the government has made Aadhaar authentication mandatory for a taxpayer to be able to claim refunds.