Understanding Digital Authentication Methods: EVC, E-Sign, and DSC on the GST Portal

This article explains the different digital authentication methods available on the GST Portal: EVC, e-Sign, and DSC. It clarifies what each method entails, the prerequisites for their use, and whether they are mandatory for GST registration or return filing for various entities. The content details the step-by-step process for registering a Digital Signature Certificate (DSC) on the portal.

📖 2 min read read🏷️ GST Authentication

Digital authentication methods, including e-signatures and Electronic Verification Codes (EVC), are widely utilized today. These tools allow users to digitally sign documents submitted on various government platforms, such as the GST Portal and the income tax e-filing portal.

Distinguishing EVC, E-Sign, and DSC on the GST Portal

There are three primary authentication methods available for users on the GST portal: Electronic Verification Code (EVC), Digital Signature Certificate (DSC), and e-Sign.

What is an Electronic Verification Code (EVC)?

The Electronic Verification Code (EVC) functions as a One Time Password (OTP) sent to the registered mobile number of the authorized signatory. This mobile number is provided during the GST registration process along with other necessary information. Authentication is completed by generating and entering this OTP.

What is a Digital Signature Certificate (DSC)?

Digital Signature Certificates (DSCs) are issued exclusively by recognized certifying authorities. These can be procured directly from these providers. The GST portal supports the use of PAN-based Class II and Class III DSCs for authentication.

What is e-Sign?

The e-Sign facility is available to any individual holding an Aadhaar Card. This electronic signature is digitally applied to documents through an OTP sent to the mobile number associated with the Aadhaar account.

Required Documents for E-Sign and EVC Authentication

To utilize e-Sign and EVC authentication services, an applicant (taxpayer) must possess an Aadhaar Card. Additionally, a mobile number must be actively linked to this Aadhaar Card, as the One Time Password (OTP) is sent to this number for verification.

Is a DSC Mandatory for GST Registration?

Digital Signature Certificates (DSCs) serve as a digital equivalent to handwritten signatures, enabling electronic document signing. For companies and Limited Liability Partnerships (LLPs), a DSC is a mandatory requirement during GST registration. Conversely, for all other taxpayer categories, DSCs are optional, both for registration and for subsequent filing of returns or other authentication needs.

Steps to Register a DSC on the GST Portal During Registration

Users can register their Digital Signature Certificate (DSC) on the GST portal by following these steps:

Access the official GST Portal.
Navigate to the top-right section, click on your username, and choose 'Register/Update DSC'.
Ensure the DSC token is connected to your system and the emSigner utility is running.
On the 'Register/Update DSC' page, select your Permanent Account Number (PAN) from the provided drop-down menu.
Verify that emSigner has been installed by checking the corresponding box, then click 'Proceed'.
The system will display your certificate; select it and then click 'Sign'.
A confirmation message stating 'Your DSC has been successfully registered' will appear.

Is a DSC Necessary for GST Return Filing?

In accordance with the Information Technology Act, 2000, all applications and documentation related to GST necessitate a digital signature. This requirement applies to various entities, including individuals, Hindu Undivided Families (HUFs), Limited Liability Partnerships (LLPs), companies, and government agencies.

Is DSC Compulsory for Proprietorships During Registration?

For proprietorships, a Digital Signature Certificate is not mandatory at the time of GST registration. Its use remains optional for proprietorships, even for subsequent return filings.

Frequently Asked Questions

What is the primary purpose of GST in India?

The Goods and Services Tax (GST) in India was introduced to streamline the indirect tax structure by subsuming multiple central and state taxes into a single, comprehensive tax, thereby reducing complexity and promoting a common national market.

Who is generally required to register under GST?

Businesses exceeding a specified annual turnover threshold (which varies by state and type of goods/services) are generally required to register under GST. Additionally, certain businesses, regardless of turnover, must register, such as those engaged in inter-state supply of goods or e-commerce operators.

What are the different types of GST levied in India?

In India, there are four main types of GST: Central GST (CGST) and State GST (SGST) for intra-state transactions, Integrated GST (IGST) for inter-state transactions and imports, and Union Territory GST (UTGST) for transactions within Union Territories without a legislature.

Can small businesses voluntarily opt for GST registration even if their turnover is below the threshold?

Yes, small businesses whose turnover is below the mandatory registration threshold can voluntarily opt for GST registration. This allows them to claim Input Tax Credit (ITC) on their purchases, broaden their market reach, and establish themselves as legally compliant entities.

What is Input Tax Credit (ITC) under the GST regime?

Input Tax Credit (ITC) is a mechanism under GST that allows registered businesses to claim credit for the GST paid on their purchases of goods or services used for making taxable supplies. This credit can then be utilized to offset the GST liability on their outward supplies, preventing the cascading effect of taxes.