Notification No. 27/2022 - Central Tax Rule 8 OTP Exemption

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Notification No. 27/2022 - Central Tax: Notification Under Sub-Rule (4B) of Rule 8 of CGST Rules, 2017

[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]

G.S.R. ……(E).— In pursuance of the powers conferred by sub-rule (4B) of rule 8 of the Central Goods and Services Tax Rules, 2017, the Central Government, on the recommendations of the Council, hereby specifies that the provisions of sub-rule (4A) of rule 8 of the said rules shall not apply in all the States and Union territories except the State of Gujarat.

(Alok Kumar)
Director

📚 Frequently Asked Questions (FAQs): Notification No. 27/2022 - Central Tax

Q1: What is Notification No. 27/2022 - Central Tax about?

Answer:
Notification No. 27/2022 - Central Tax, dated 26th December 2022, clarifies that the provisions of Rule 8(4A) of CGST Rules, 2017 relating to Aadhaar OTP authentication for GST registration will not apply in all States and Union Territories, except the State of Gujarat.
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Q2: What is Rule 8(4A) of the CGST Rules, 2017?

Answer:
Rule 8(4A) mandates that an applicant seeking GST registration must undergo Aadhaar-based OTP authentication for identity verification. This notification suspends its applicability in most States and UTs, except Gujarat.
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Q3: Why has Gujarat been excluded from this exemption?

Answer:
The government has not officially specified the reason. However, Gujarat may be continuing Aadhaar OTP verification under state-specific compliance monitoring to enhance identity authentication and prevent fraudulent registrations.
📌 For state-specific GST queries, contact Finodha GST Experts.

Q4: Does this mean Aadhaar authentication is no longer needed for GST registration?

Answer:
Not entirely. While OTP-based Aadhaar authentication is waived in most States and UTs, applicants still need to provide valid documents for GST registration, such as PAN, proof of business, and identity proof.
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Q5: Who benefits from this notification?

Answer:
This exemption benefits:
Startups and small businesses who faced technical OTP issues
Applicants from remote areas with limited Aadhaar-linked mobile access
Businesses aiming for faster GST registration processing
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Q6: What documents are required now if Aadhaar OTP is not used?

Answer:
Applicants must submit:
PAN card of the business
Proof of business address
Digital Signature Certificate (DSC) for authorized signatory
Bank details and supporting documents
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Q7: When does Notification No. 27/2022 come into effect?

Answer:
It was notified on 26th December 2022 and took effect immediately upon publication in the Gazette of India.
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Q8: Does this exemption apply permanently?

Answer:
The notification does not specify a sunset clause, meaning it remains effective until further orders. However, the GST Council may review Aadhaar authentication in future meetings for consistency.
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Q9: How does this affect the security of GST registration?

Answer:
While Aadhaar OTP is waived, the document verification process remains strict. Authorities may require physical or digital scrutiny to ensure genuine registrations and prevent fraudulent GST accounts.
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Q10: How can Finodha.in help new businesses adapt to this change?

Answer:
At Finodha.in, you can:
Apply for GST Registration hassle-free
Get expert support for GST compliance and return filing
Register as a Private Limited Company or OPC
File ITR online: Income Tax Return Filing
Register MSMEs: Apply for Udyam/MSME Registration

📌 Summary

Notification No. 27/2022 - Central Tax exempts Aadhaar OTP verification for GST registration in all States and UTs, except Gujarat, reducing hurdles for new applicants. Businesses still need to provide proper documents for approval. This is a move towards smoother GST registrations and enhanced ease of doing business.