India’s tax authorities have introduced an update to the Goods and Services Tax (GST) registration process, allowing company promoters and directors to complete biometric authentication in their home state when registering for GST in another state. The new policy aims to streamline the registration process while maintaining security measures.
The change applies to officials of public limited companies, private limited companies, unlimited companies, and foreign companies. Previously, these individuals had to travel to the state where they were seeking GST registration to complete the biometric verification process.
Under the new system, eligible applicants receive an email with instructions to select a GST Suvidha Kendra (GSK) in their home state. After selecting their preferred center, they can schedule a convenient time slot for the biometric authentication process. This facility is currently available in 33 States and Union Territories, with Uttar Pradesh, Assam, and Sikkim expected to join the network soon.
The implementation builds upon earlier successful pilots of biometric authentication in states like Arunachal Pradesh, where the system was first tested in January. The national rollout comes as part of India’s broader push toward digital authentication, which recently saw the expansion of Aadhaar face authentication access to private sector applications.
However, there are some important caveats. The selection of a home-state GSK is a one-time choice that cannot be modified once confirmed. Additionally, if the promoter or director is also serving as the Primary Authorized Signatory (PAS), they must still visit the jurisdictional GSK in the state where they’re seeking registration for document verification.
The new system leverages India’s established Aadhaar biometric infrastructure, which has been progressively integrated into various government services over the past several years. This integration has shown promising results in reducing fraudulent registrations and strengthening the verification process for tax administration.
Tax experts note that this development is particularly beneficial for companies expanding their operations across multiple states, as it eliminates the need for multiple inter-state trips solely for biometric verification. The streamlined process is expected to facilitate easier business expansion while maintaining the integrity of the GST registration system.
Sources: India Briefing, Vakilsearch, Cleartax
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March 5, 2025 – by the ID Tech Editorial Team
