Worked Solution
✓ VerifiedThe statement is partially correct and requires careful qualification with reference to the statutory provisions governing Aadhaar authentication for GST registrants.
Examination of the Statement:
The statement cannot be accepted as wholly accurate. While it is true that persons already registered under GST may not require Aadhaar authentication in certain circumstances, the exemption is not absolute and is subject to specific statutory conditions and exceptions.
Legal Framework - Section 25(6A) of CGST Act 2017:
Section 25(6) originally mandated Aadhaar authentication for all applicants seeking GST registration. However, Section 25(6A) introduced exemptions from this requirement. The section provides that Aadhaar authentication shall not be required in the following cases: (i) persons whose Aadhaar number or Aadhaar Enrolment Number is not available; (ii) non-residents; (iii) persons not having Indian citizenship; (iv) bodies corporate, partnership firms, Hindu Undivided Families, trusts, and associations of persons where Aadhaar authentication is provided by the authorized signatory; and (v) such other categories as may be prescribed.
Rule 10B of CGST Rules 2017:
Rule 10B prescribes the procedure and mechanism for Aadhaar authentication. The rule specifies that Aadhaar authentication is mandatory for natural persons seeking GST registration, except where exemptions under Section 25(6A) apply. Importantly, the rule applies to new applicants and those seeking voluntary registration.
Critical Distinction - Existing Registrants:
For persons already registered before the mandatory Aadhaar authentication requirement came into effect, the position is as follows: They are generally not required to undergo fresh Aadhaar authentication merely by virtue of their existing registration status. However, this exemption is conditional and limited in scope. If an existing registrant seeks to:
1. Renew their registration
2. Modify their registration details
3. Carry out transactions that trigger authentication requirements
4. Comply with subsequent statutory compliance measures
they may still be required to provide Aadhaar authentication or link their Aadhaar number as per the prevailing GST provisions and notifications issued from time to time.
Practical Position:
While existing registrants are not mandatorily required to provide Aadhaar authentication for their continued registration, the practical requirement to link Aadhaar has been progressively enforced for compliance purposes, including for filing returns, claiming input tax credit, and undertaking certain transactions.
Conclusion:
The statement is correct in a limited sense — existing GST registrants are not required to undergo fresh Aadhaar authentication merely for maintaining their existing registration. However, it is incorrect if interpreted as an absolute exemption from all Aadhaar-related requirements. The actual legal position is that Aadhaar authentication/linking is mandatory for new applicants under Section 25(6) and Rule 10B, with exemptions for existing registrants that are qualified by subsequent compliance requirements and statutory notifications.
Write it like this
1The skeleton
- Open with 'partially correct' + cite §25(6A) in your very first line — examiners are scanning for the section number within 5 seconds; if it's buried, you've already lost easy marks.
- Lay down §25(6) first (rule for new applicants), THEN pivot to §25(6A) (exceptions) — this sequencing shows you understand the parent provision before the carve-out, which is exactly how ICAI's suggested answer is structured.
- State Rule 10B in a separate mini-para — it's the procedural arm to §25(6A)'s substantive arm; examiners award a dedicated mention because it shows you know the Act–Rules linkage.
- List the specific categories exempt under §25(6A) as numbered points — writing it as running prose buries the marks; numbered points = examiners can tick each one individually and give you part-credit.
- Carve out the 'existing registrant' nuance in its own paragraph — explicitly say they are NOT exempt when they seek amendment, modification, or compliance-triggered re-authentication; this is the crux the question is testing and where most marks sit.
- Close with a one-line conclusion restating 'partially correct' and naming both provisions — brings the answer full-circle and shows the examiner you answered the exact question asked, not a generic essay on GST registration.
2Examiner-rewarded phrases
3Common trap
Watch out — most students treat this as a straight 'true' or 'false' and write a one-sided answer. The moment you don't use 'partially correct' with a clear qualification, you've thrown away the entire analytical component of the question. Also, mixing up §25(6) (mandatory Aadhaar for new applicants) with §25(6A) (exemptions) without distinguishing them is the second killer — they're separate sub-sections and conflating them reads like you don't know the difference.