Important Keyword: Notification No. 18/2020 – Central Tax, Aadhaar authentication GST, GST Aadhaar rule 2020, CGST Act Section 25(6B), GST Rule 8 Aadhaar, GST registration Aadhaar requirement, Aadhaar GST notification, Finodha GST services, GST registration 2020 guidelines.
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Table of Contents
[F. No. CBEC-20/06/04/2020-GST]
Government of India
Ministry of Finance
(Department of Revenue)
Central Board of Indirect Taxes and Customs
New Delhi, the 23rd March, 2020
Notification No. 18/2020 – Central Tax: Seeks to Notify the Date from Which an Individual Shall Undergo Authentication, of Aadhaar Number in Order to be Eligible for Registration.
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 (6B) 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 the date of coming into force of this notification as the date, from which an individual shall undergo authentication, of Aadhaar number, as specified in rule 8 of the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in order to be eligible for registration:
Provided that if Aadhaar number is not assigned to the said individual, he shall be offered alternate and viable means of identification in the manner specified in rule 9 of the said rules.
2. This notification shall come into effect from the 1st day of April, 2020.
(Pramod Kumar)
Director,
Government of India
📚 Frequently Asked Questions (FAQs): Notification No. 18/2020 – Central Tax
Q1: What is Notification No. 18/2020 – Central Tax?
Answer:
It is a GST notification that notifies 1 April 2020 as the date from which individuals must undergo Aadhaar authentication to be eligible for GST registration.
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👉 https://finodha.in/online-gst-registration/
Q2: Whose Aadhaar authentication is required for GST registration?
Answer:
The following individuals must authenticate Aadhaar:
Proprietor (for proprietorship businesses)
Authorised signatory (for companies, LLPs, firms)
Karta (HUF)
Partners / Directors (if they act as authorised signatories)
Q3: What if the individual does not have Aadhaar?
Answer:
As per the proviso in the notification, if Aadhaar is not assigned, the individual will be offered alternate identification under Rule 9, such as:
Passport
Voter ID
Driving licence
Biometric-based verification
This ensures no one is blocked from GST registration.
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Q4: Is Aadhaar authentication mandatory for all types of GST registrations?
Answer:
Yes, Aadhaar authentication applies to:
Regular GST registration
Casual taxable person
ISD
TDS/TCS registrants
Composition dealers (when switching to normal scheme)
Q5: How is Aadhaar authentication done on the GST portal?
Answer:
Submit GST REG-01
System sends OTP to Aadhaar-linked mobile
Enter OTP → Authentication complete
Registration moves to approval stage
If Aadhaar fails, Rule 9 verification begins.
Q6: What happens if Aadhaar authentication fails?
Answer:
Your application will undergo:
Document verification
Possible physical verification
Officer scrutiny
This may increase approval time from 3–7 days to 20–30 days.
Need help resolving Aadhaar mismatch?
👉 https://finodha.in/gst-compliance/
Q7: Why was Aadhaar authentication introduced for GST?
Answer:
To prevent:
Fake GST registrations
Fraudulent ITC claims
Shell company registrations
Paper-only businesses
And to improve:
Identity verification
Business authenticity
Faster registration approvals
Q8: Is Aadhaar authentication mandatory for existing GST holders?
Answer:
Not mandatory for all existing taxpayers.
However, it becomes mandatory if:
Changing authorised signatory
Updating core business fields
Department seeks re-verification
Q9: Does Aadhaar authentication speed up GST registration?
Answer:
Yes ✔
If Aadhaar is authenticated:
Registration is approved faster (3–7 days)
No physical verification required
Fewer clarifications from officer
Q10: Does this notification apply to NRIs or foreign nationals?
Answer:
No ❌
NRIs and foreign applicants who do not possess Aadhaar fall under Rule 9 alternate identification and biometric verification norms.
Q11: Real-life Example – How does Aadhaar help?
Answer:
A digital marketer in Bengaluru applies for GST.
With Aadhaar authentication, GSTIN is approved quickly without physical verification.
Without it, officer may visit the location, delaying business onboarding.
Q12: Can businesses operate without Aadhaar authentication?
Answer:
No.
Without Aadhaar authentication or its alternative verification:
GST registration cannot be approved
Business cannot raise GST-compliant invoices
E-way bill access is not available
Get registration quickly:
👉 https://finodha.in/online-gst-registration/
Q13: Under which section is this notification issued?
Answer:
Under Section 25(6B) of the CGST Act, 2017, which empowers government to mandate Aadhaar authentication for GST registration.
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Q14: Which rules govern Aadhaar authentication?
Answer:
Rule 8 → Aadhaar authentication during registration
Rule 9 → Alternate verification when Aadhaar is unavailable
Both are referenced in the notification.
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Q15: Does Aadhaar authentication affect DSC (Digital Signature Certificate)?
Answer:
No.
DSC is still needed for:
Companies
LLPs
Organisations choosing DSC mode
Apply for DSC online:
👉 https://finodha.in/online-dsc-digital-signature-certificate/
Q16: From when does Notification 18/2020 apply?
Answer:
It applies from:
👉 1 April 2020
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⭐ Conclusion
Notification No. 18/2020 – Central Tax made Aadhaar authentication a compulsory step for GST registration from 1 April 2020. This strengthened the GST ecosystem by ensuring real, verifiable identities and stopping fraudulent registrations.
If you need hassle-free help with:
✔ GST registration
✔ Aadhaar authentication
✔ GST notices
✔ GST filing and compliance
✔ New business setup
👉 Get Expert GST Registration Support from Finodha
https://finodha.in/online-gst-registration/
Download PDF: Notification No. 18/2020 – Central Tax
More Information: https://taxinformation.cbic.gov.in/
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