Notification No. 17/2020 – Central Tax Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 17/2020 – Central Tax: Seeks to Specify the Class of Persons Who Shall be Exempted from Aadhar Authentication.

GST: [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), the Central Government, on the recommendations of the Council, hereby notifies that the provisions of sub-section (6B) or sub- section (6C) of the said Act shall not apply to a person who is not a citizen of India or to a class of persons other than the following class of persons, namely:–

Individual;

authorized signatory of all types;

Managing and Authorized partner; and

Karta of an Hindu undivided family.

2. This notification shall come into effect from the 1^st day of April, 2020.

(Pramod Kumar)
Director,
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 17/2020 – Central Tax

Q1: What is Notification No. 17/2020 – Central Tax?

Answer:
It is a GST notification specifying which persons are exempt from Aadhaar authentication during GST registration.
It states that Aadhaar authentication (Sec. 25(6B)/(6C)) does not apply to:
Non-citizens of India
Anyone who is not an Individual / Authorised Signatory / Partner / HUF Karta
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Q2: Who must undergo Aadhaar authentication for GST registration?

Answer:
Aadhaar authentication is mandatory for:
Individuals
Authorised Signatories
Managing/Authorised Partners
HUF Karta
All others are exempt.

Q3: Who is fully exempt from Aadhaar authentication?

Answer:
The following categories are exempt:
✔ Non-citizens of India
✔ Companies
✔ LLPs
✔ Trusts, societies
✔ Government departments
✔ Statutory bodies
✔ Local authorities
✔ Foreign entities
This exemption prevents Aadhaar-related bottlenecks in GST registration.

Q4: Does this mean companies don’t need Aadhaar?

Answer:
Correct ✔
A company applying for GST registration does not need Aadhaar.
However, the authorised signatory, if an Indian individual, must still authenticate Aadhaar unless exempt.
Register company easily →
👉 https://finodha.in/private-limited-company/

Q5: What about NRIs and foreign nationals?

Answer:
NRIs & foreign nationals are exempt from Aadhaar authentication, as they are not citizens of India.
They can register using passport & other KYC documents.

Q6: Where is the Aadhaar authentication requirement defined?

Answer:
It is defined in:
Rule 8 of CGST Rules – Aadhaar authentication during registration
Rule 9 – Alternate verification if Aadhaar unavailable
Section 25(6B)/(6C) – Legal mandate for Aadhaar verification
Notification 18/2020 – date from which authentication is required

Q7: What happens if an individual does not have Aadhaar?

Answer:
If Aadhaar is not assigned, GST portal provides:
Alternate ID verification
Physical verification
Additional document checks
This is governed by Rule 9.
Need help completing KYC?
👉 https://finodha.in/gst-compliance/

Q8: What real-life scenarios does this exemption impact?

Answer:
Example 1:
A US-based consultant wants GST registration in India → No Aadhaar needed.
Example 2:
A private limited company applies → Company doesn’t need Aadhaar, only the authorised signatory does.
Example 3:
A partnership firm appoints a foreign partner → Foreign partner is exempt from Aadhaar authentication.

Q9: Is Aadhaar authentication required for DSC-based registration?

Answer:
If the authorised signatory is an Indian citizen, Aadhaar authentication is required even if DSC is used.
Foreign citizens → Exempt.
Buy DSC instantly →
👉 https://finodha.in/online-dsc-digital-signature-certificate/

Q10: Does this exemption apply to GST amendment applications too?

Answer:
Yes ✔
The rules apply to both:
New registrations
Amendments changing authorised signatory / partner / Karta

Q11: Does this affect GST return filing or compliance?

Answer:
No.
It affects only the registration stage, not return filing.
But incorrect Aadhaar authentication may delay registration → which affects compliance start dates.
File GST returns easily →
👉 https://finodha.in/gst-return-filing/

Q12: What happens if Aadhaar authentication fails?

Answer:
GST portal initiates:
Biometric-based verification
OTP-based authentication
Physical verification of business place

Q13: Is the notification effective immediately?

Answer:
Notification takes effect from:
👉 1 April 2020
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Q14: Does this relate to Notification No. 18/2020 – Central Tax?

Answer:
Yes ✔
Notification 18/2020 notified 1 April 2020 as the date from which Aadhaar authentication becomes mandatory.
Notification 17/2020 tells who is exempt from that requirement.
Both must be read together.

Q15: Does this exemption cover HUF members?

Answer:
Only the Karta must undergo Aadhaar authentication.
Other HUF members are not required.

⭐ Conclusion

Notification No. 17/2020 – Central Tax is crucial for understanding who is exempt from Aadhaar authentication during GST registration.
It ensures foreign nationals, companies, trusts, and non-individual applicants face no Aadhaar-related hurdles.

If you want smooth GST registration without rejection:

Claim your TDS Refund before it EXPIRE in

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