GST portal has its quirks. But there’s one particular issue that feels less like a quirk and more like a ghost story that we tax professionals tell each other.
It’s the tale of the mandatory PAN-linked mobile and email OTP verification for new registrations. You read about it in the rule book, you see the notification, and you think, “Great, a solid step to weed out fake firms.” Then you go to actually register a client, and… nothing. The rule simply isn’t there.
If you’ve filed a GST registration lately, you know exactly what I’m talking about. So, let’s get to the bottom of this disconnect between what the law mandates and what the portal actually does.
The Rule on Paper: What Should Happen
Back on December 26, 2022, the government issued Notification No. 26/2022–Central Tax. It wasn’t a minor tweak; it was a fundamental change to the registration process. In essence, it did two things:
1.It changed Rule 8 to state that the OTP for verification must be sent to the mobile number and email address that are officially linked to the applicant’s PAN card in the Income Tax database.
2. It changed the GST registration form itself, noting that these contact details “shall be auto-populated” directly from the PAN database.
The logic was flawless: tie the registration to the PAN’s verified contacts to ensure the right person is applying. Sounds straightforward, right?
The Portal in Reality: What Actually Happens
Well, the reality is anything but. You log on to the GST portal today, start a new registration, and you’re greeted with blank fields for the mobile number and email. You type in the details, an OTP is sent to the number you just typed, and you proceed.
The legally mandated cross-check with the PAN database? The auto-population? It’s a ghost. The portal functions as if that 2022 notification never existed.
So, What’s the Holdup?
Why is a two-year-old law still sitting on the sidelines? While we don’t have an official memo from GSTN, we can read between the lines. The likely culprits are a mix of technical and practical hurdles.
For one, syncing the massive GST and Income Tax databases in real-time is a herculean IT task. More importantly, think of how many of your clients have an old, forgotten phone number attached to their PAN from years ago. Forcing this rule could instantly block thousands of legitimate businesses from getting registered. It’s possible the government hit the pause button to avoid this massive operational headache.
How Do We Work With This?
So what are we supposed to do? The answer is thankfully simple: you follow what’s in front of you.
There’s no need to panic; you are not violating any law by using the portal as it is designed. You can’t be expected to comply with a feature that hasn’t been enabled.
But here’s my advice to every professional: start making it a standard practice to get your clients to update their contact information in their PAN records. It’s just good housekeeping. Because one day, we’ll log in and this ghost rule will have finally come to life, and you’ll be glad you were already prepared.
At the end of the day, this situation is a classic reminder for all of us in the field. It’s not enough to just know the law; you have to know how it works—or doesn’t work—in the real world.
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A quick disclaimer: This article is based on my personal analysis and experience for informational purposes. It’s not professional advice. Tax laws and the GST portal are always changing, so it’s best to consult with a qualified professional for your specific situation.
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