The Centre Board of Indirect Taxes and Customs (CBIC) has asked individuals with GST registration number including mutual fund distributors (MFDs) and insurance agents to do Aadhaar authentication.
The Aadhaar authentication is compulsory with effect from January 1, 2022.
With this, MFDs having GST registration no. will have to authenticate his/her Aadhar on GST portal. The rule is applicable for all Indian MFDs having
- Individual or HUF (Karta)
- Sole proprietorship
- Partnership firm
- LLP
- Private or public limited company (Managing director or whole time director)
- Or any authorized signatory
If MFDs do not authenticate their Aadhaar with GST no. then:
- They cannot make GST cancellation request
- Non applicability of refund or any relaxation
- May subject to punishment or penal action
You can authenticate your Aadhaar by visiting GST portal.
Industry data shows that close 4700 MFDs manage assets in excess of Rs.25 crore. This indicates that these distributors earn gross commission of more than Rs.20 lakh annually.
