The Goods and Services Tax Network (GSTN) has introduced an additional facility allowing promoters and directors of a company to complete their Bvbiometric Aauthentication for completion of GST registration process in their home state. Earlier for getting a Goods and Services Tax (GST) registration, you either needed to use the OTP verification method or use Biometric Authentication process by physically visiting the GST Suvidha Kendra in the company’s registered jurisdiction, which is in the state in which you are registering your GST. Howeve, Nnow the bBiometric aAuthentication process can be completed in one’s home state instead of the state where the GST registration is being sought.
Like For instance, if the company is being registered in Delhi but you are from Nagaland then you have to travel to Delhi and complete the GST registration. With this update made on March 3, 2025 by GSTN now you can complete the GST registration from Nagaland itself without going coming to Delhi, as per this example.
Who should choose Biometric Authentication and OTP method?
Experts say Biometric Authentication was introduced by the government to curb fake registrations for claiming input tax credit (ITC). By opting for Biometric authentication taxpayers get additional evidence about physical verification of the company’s personnel which can make the case stronger in a court of law, should the need arise.Chartered Accountant Bimal Jain, founder, A2Z Taxcorp LLP says, “GST registration can be authenticated either by using OTP verification or Biometric Authentication at a designated GST Suvidha Kendra (GSK). We advise all our big clients to always choose Biometric Authentication as it adds a layer of security and genuineness to the GST registration. In the past where the Biometric authentication option was not available there were many fake registrations, and misuse of input tax credit (ITC). However, if a taxpayer uses Biometric Authentication, then the GST officials have on record the physical presence of the company officials and it verifies their existence. This evidence can be produced in a court of law if the question of genuineness of GST registration is raised. With this recent amendment to the GST registration process, it will now be easier for the company’s directors to complete the Biometric Authentication through their respective home state. This is a step in the right direction.”
What did GSTN say about who is eligible for this new facility of GST registration?
According to the GSTN advisory dated March 3, 2025 here are the details:
- 1. As per the existing system, applicants selected for Biometric Authentication must visit the designated GSK mapped to their jurisdiction. However, GSTN has now introduced an additional facility allowing certain Promoters/Directors to complete their Biometric Authentication at any GSK in their Home State.
- 2. This facility applies to individuals listed in the Promoter/Partner tab for the following types of businesses:
○ Public Limited Company
○ Private Limited Company
○ Unlimited Company
○ Foreign Company
“Under this enhancement, such Promoters/Directors can now choose any available GSK within their Home State in India (as per REG-01) for Biometric Authentication,” said GSTN in the advisory.
Experts highlight how the earlier pain point has now been removed. “Previously, corporate applicants selected for biometric authentication were required to visit the GSK mapped to their jurisdiction, often causing significant inconvenience, especially for businesses operating in multiple states. Promoters and directors faced numerous challenges, including long-distance travel to different states, delays in securing slots, and disruptions to business operations due to time-consuming verification procedures. Many taxpayers earlier had to make illogical trips, sometimes crossing state borders, just to complete a process that could have been more flexible,” says Chartered Accountant Himank Singla, partner, SBHS & Associates.
What might be the objective behind new facility for GST Authentication?
Chartered Accountant Ashish Karundia, says: “The introduction of the option for promoters/directors of certain specified entities to perform biometric authentication in their Home State’s GSK is a positive step for enhancing the ease of doing business. The Andhra Pradesh High Court, in the case of Tirumala Balaji Marbles and Granites, ruled that GST registration cannot be refused solely because the taxpayer is from a different state, with a caveat that the tax department retains the right to verify the authenticity of the taxpayer’s activities.”
Karundia adds: “This new relaxation aims to address concerns stemming from this decision by permitting promoters/directors to complete biometric authentication in their Home State, but only if they are not the Primary Authorised Signatory (PAS). If the promoters/directors are the PAS, they will still be required to visit the designated jurisdictional GSK for the necessary process, including document verification. It further substantiates the fact that GST registration should not be denied merely because the taxpayer belongs to a different State.”
Some important points to note about this new GST authentication process
According to the advisory here are some important point to consider about the revamped GST authentication process:
- If a new registration application is selected for Biometric Authentication, an intimation email will be sent to the applicant. Eligible Promoters/Directors will be given the option to select any GSK in their Home State through this email.
- To avail of this option, such Promoter/Director must follow the instructions provided in the intimation email and select a GSK within their home state.
- The selection of a GSK in the Home State is a one-time facility and cannot be changed once selected. Promoters/Directors are advised to choose their GSK carefully.
- This facility is currently available in 33 States/UTs where Biometric Authentication has been enabled. It will soon be extended to the remaining three states: Uttar Pradesh, Assam, and Sikkim. Such Promoters/Directors whose Home State is other than Uttar Pradesh, Assam, or Sikkim can opt for any GSK in their Home State.
- Upon selection of a Home-State GSK, the Promoter/Director will receive an email confirmation, along with a new slot booking link.
- Using the provided link, the Promoter/Director can book a slot at their convenience, subject to availability at the chosen GSK.
- The required photo capture and Biometric Authentication process will be completed at the selected GSK in the Home State.
- If a Promoter/Director has already completed the biometric process, they will not be required to undergo it again.
- If the Promoter/Director and the PAS are the same person, the Home-State GSK selection option will not be available. The PAS must visit the designated jurisdictional GSK for the required process, including document verification.
- To ensure a smooth process, it is advised that the Promoter/Director completes Biometric Authentication before the Primary Authorized Signatory visits the GSK.
- Opting for Biometric Authentication at a GSK in the home state is not mandatory. Promoters/Directors can visit their designated jurisdictional GSK if preferred.
Singla from SBHS and Associates says: “By allowing biometric authentication within an individual’s home state, the GSTN has addressed these pressing concerns. This change is particularly beneficial for large corporations with directors residing in different states, eliminating the need for unnecessary travel and streamlining compliance.”
GSTN Advisory
