Notification No. 03/2021 – Central Tax Explained

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Notification No 03/2021 - Central Tax: Seeks to notify persons to whom provisions of sub-section (6B) or sub-section (6C) of section 25 of CGST Act will not apply.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R.....(E).— In exercise of the powers conferred by sub-section (6D) of section 25 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Government, on the recommendations of the Council and in supersession of the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 17/2020-Central Tax, dated the 23" March, 2020, published in the Gazette of India,

Extraordinary, vide number G.S.R. 200(E), dated the 23'4 March, 2020, except as respects things done or omitted to be done before such supersession, hereby notifies that the provisions of sub- section (6B) or sub-section (6C) of section 25 of the said Act shall not apply to a person who is,

(a) not a citizen of India; or
(b) a department or establishment of the Central Government or State Government; or
(c) a local authority; or
(d) a statutory body; or
(e) a Public Sector Undertaking; or
(f) a person applying for registration under the provisions of sub-section (9) of section 25 of the said Act.

(Rajeev Ranjan)
Under Secretary to the Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 03/2021 – Central Tax

Q1: What is Notification No. 03/2021 – Central Tax all about?

Answer:
Notification No. 03/2021 – Central Tax, dated 23rd February 2021, specifies categories of persons to whom provisions of sub-section (6B) or (6C) of section 25 of the CGST Act will not apply. In simple terms, it exempts certain entities from Aadhaar authentication requirements for GST registration.

Q2: Who are exempted from Aadhaar authentication under this notification?

Answer:
The following categories are exempted:
Non-citizens of India 🌍
Central Government and State Government departments 🏛️
Local authorities (e.g., municipalities, panchayats) 🏘️
Statutory bodies
Public Sector Undertakings (PSUs)
Persons applying for GST registration under section 25(9) of the CGST Act

Q3: How does this notification benefit businesses and government entities?

Answer:
It reduces compliance burden for entities like government departments, PSUs, and statutory bodies. They no longer need to undergo Aadhaar-based biometric authentication during GST registration, saving time and avoiding procedural hurdles.

Q4: What happens to the earlier Notification No. 17/2020 – Central Tax?

Answer:
Notification No. 03/2021 supersedes Notification No. 17/2020 dated 23rd March 2020, except for actions already undertaken under the old notification.

Q5: What is Section 25(6B) and (6C) of the CGST Act?

Answer:
Section 25(6B): Introduces mandatory Aadhaar authentication for certain GST applicants.
Section 25(6C): Provides that if Aadhaar authentication is not completed, GST registration can be granted only after physical verification and other prescribed procedures.
Notification No. 03/2021 clarifies that the listed exempted persons don’t fall under these requirements.

Q6: I am a business applying under Section 25(9). Do I need Aadhaar authentication?

Answer:
No ✅. Persons covered under section 25(9) are exempted. For other taxpayers, Aadhaar authentication or e-KYC is generally mandatory.

Q7: How does this exemption affect GST registration?

Answer:
For exempted entities:
Faster registration process
No need for Aadhaar-based e-KYC
Reduced documentation hassle
For others, Aadhaar authentication remains a compliance requirement. Businesses can learn more about GST registration here: Online GST Registration.

Q8: Where can taxpayers get help in GST compliance related to this notification?

Answer:
For expert GST guidance, businesses can consult professionals at Finodha GST Compliance or seek assistance from a GST Expert.

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Notification No. 03/2021 – Central Tax Explained

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Notification No 03/2021 - Central Tax: Seeks to notify persons to whom provisions of sub-section (6B) or sub-section (6C) of section 25 of CGST Act will not apply.

📚 Frequently Asked Questions (FAQs): Notification No. 03/2021 – Central Tax