The Central Board of Indirect Tax and Customs (CBIC) has clarified that non-Indian citizens do not need Aadhaar certification for Goods and Services Tax (GST) registration.

The board said in a notice Wednesday that Aadhaar certification for GST registration is not required for government agencies, local governments, public sector businesses, or specialized agencies of UN agencies, or foreign consulates or embassies.

“The Government has replaced the notification dated March 23, 2020, based on the recommendation of the Board of Directors, with the provisions of Section 25 (6B) or Subsection (6C) of the CGST Act not being Indian citizens. It does not apply to humans, “CBIC said.

Experts have stated that this move provides the very necessary clarity and relaxation for the entity and the individual.

EY’s tax partner, Abhishek Jain, said: “This notice provides a very necessary remedy for multinational companies with foreign directors who did not specifically need to obtain an Aadhaar number and failed to comply with the requirements.

The exemption applies to central or state government departments or facilities, local or statutory or public sector businesses, or anyone applying for registration under the provisions of Section 25 subsection (9). The law, notifications have been added.

“This will be a bailout for a variety of low-risk companies backed by the Government of India, foreign governments and the United Nations,” said Rajat Mohan, senior partner at AMRG

Last year, the government introduced significant changes to the central GST rules related to GST registration and available temporary tax credits to check for fake invoices and tax leaks.

This strengthens GST registration requirements, requires direct confirmation by all applicants, shows very high sales, and 1% for unreliable and high-risk dealers and night operators. GST payment is required.

CBIC has enabled biometric-based Aadhaar certification for applicants and allowed GST registration within 7 days instead of 3 days ago. If you do not choose Aadhaar-based authentication, GST registration will occur after 30 days.

Certification is done at one of the facilitation centers located on the Passport Seva Kendras or Aadhaar Seva Kendras lines.

New rules from January 1, 2021 limit the use of input tax credits to 99% of output tax, and the value of taxable supplies other than one month tax exemption and zero valuation supplies exceeds Rs 500,000. I will.

This rule does not apply to government departments, local governments or statutory bodies and if the previous account paid income tax in excess of 1 rupee or if the registrant received a refund in excess of 1 rupee. Year for unused temporary payment tax credit.

CBIC exempts non-Indian citizens, PSUs from Aadhaar certification for GST registration

Source : PTI