Notification 94/2020 has put in place strict conditions, where non-compliance would result in the cancellation of GST registration. Taxpayers applying for a new GST registration will now need to get Aadhaar authentication done, complete with providing both biometrics and a photograph. If Aadhaar authentication is not done at the time of registration, then KYC data along with a photograph and biometric information will need to be provided. The authentication is to be done for one promoter/partner and for the Primary Authorised Signatory, and the facility has already been enabled on the common GST portal.

Along with the aforementioned Aadhaar authentication, the applicant will further require to get the original documents verified, the copies of which were uploaded at the time of registration. This will be required to be done at one of the notified facilitation centres. The government has further made the registration process stringent by giving GST authorities the right to undertake a physical verification of the place of business before granting the GST registration in cases where Aadhaar authentication has not been successfully done, or if the GST authorities deem it fit to be done in certain cases.
The new laws governing new GST registration will curtail the number of fake entities being created and indirectly limit GST fraud. Besides registration, Notification 94/2020 has amended the CGST Rules with regard to suspension and cancellation of registration, in cases of default.