DSC (Digital Signature Certificate), Electronic Signature (E-Sign) and Electronic Verification Code (EVC) are the three methods of user authentication in the GST portal. Before proceeding, one should be clear about the difference between EVC and e-signature, difference between DSC and EVC, as well difference between DSC and e-signature.
What is DSC, E-sign and EVC?
DSC or Digital Signature is equivalent to physical signature used to authenticate the identity of individual or organisations in any kind of document signing. DSCs use a cryptographic keys to keep your signature safe. Where e-sign or electronic signature is digital way to sign a document online, an alternative to the traditional handwritten paper signature.
EVC or Electronic verification code service is only available individual registered users of the e-Filing portal to generate EVC. It's a one-time password (OTP) used for GST system o verify the taxpayer.
Why it's mandatory for user authentication in GST portal?
In the GST portal, to verify the taxpayer’s identity, secure sensitive data, and ensure legal validity of filings. These methods prevent unauthorized access, comply with GST laws, and make every submission secure, authentic, and enforceable under the Information Technology Act.
DSC, E-sign and EVC difference
Digital Signature Certificate (DSC)
Digital Signature Certificates (DSC) can be used to sign documents digitally. In India, DSC are issued by authorized certifying authorities. You can obtain a DSC from one of the authorized DSC-issuing certifying authorities. Click here to obtain a DSC. Note that the GST portal accepts only PAN based Class II and III DSC.
To authenticate the user using DSC, a person should first register the DSC in the GST Portal. This can be done from the user login in the GST Portal. You can visit our blog ‘How to register DSC’ for the step-by-step details to do this.
As per the recent update, using a Digital Signature Certificate (DSC) for user authentication in the GST portal is mandatory for companies and Limited Liability Partnerships (LLPs). To comply, the taxpayer must ensure that the DSC is PAN-based, valid (not expired or revoked), registered on the GST portal, and that the DSC dongle is properly connected to the computer.
Electronic Signature (E-Sign)
Electronic Signature (E-Sign) is an electronic signature service in India which facilitates an Aadhar holder to digitally sign a document.
In the GST Portal, a person can digitally sign a document using a One Time Password (OTP) which will be sent to the mobile number registered with Aadhar.
Electronic Verification Code (EVC)
In the GST portal, a person can authenticate the user using an OTP (One Time Password). The OTP will be sent to the registered mobile number of the Authorized Signatory. The OTP is called the Electronic Verification Code (EVC) and a person who wants to do the user authentication using an OTP can select this method.
Here's the table format for your better understanding
Feature | DSC (Digital Signature Certificate) | E-Sign (Electronic Signature) | EVC (Electronic Verification Code) |
---|---|---|---|
Who Can Use | Any taxpayer with Class II/III PAN-based DSC | Aadhar holders | All taxpayers |
How It Works | Uses a USB token or file-based digital certificate issued by a Certifying Authority | Uses OTP sent to mobile linked with Aadhar for signing | Uses OTP sent to mobile/email of Authorized Signatory |
Special Requirement | DSC issued by authorized CA and registered on GST portal | Active Aadhar and linked mobile number | Registered mobile/email in GST portal |
Security Level | Very high (cryptographic signature) | High (Aadhar OTP verification) | Moderate (OTP-based verification) |
Mandatory For | Companies and LLPs | Optional (non-companies/LLPs) | Optional (non-companies/LLPs) |
Hence, all taxpayers can now easily perform activities of GST compliance completely online. Companies and LLPs should note that they mandatorily need to acquire a DSC and register the same in the GST portal for user authentication. Other dealers can choose either the E-Sign or EVC modes. An Aadhar holder can easily do the user authentication with his/her Aadhar number by using the E-Sign option. Users can also use the EVC option, wherein, an OTP will be sent to the mobile number of the Authorized Signatory.
FAQs
1. Who is required to use DSC mandatorily in the GST portal?
In the GST portal, companies and Limited Liability Partnerships (LLPs) are required to use a Digital Signature Certificate (DSC) mandatorily for authentication and return filing. This rule ensures compliance with GST law and provides a high level of security for business filings. Individual taxpayers, proprietorships, and partnership firms can choose E-Sign or EVC instead, but companies and LLPs cannot file GST returns without a registered DSC.
2. Can individual taxpayers use DSC for GST filing?
Yes, individual taxpayers can use a DSC for GST filing, but it is not mandatory. They can complete their filings using either E-Sign (Aadhaar OTP-based authentication) or EVC (OTP sent to their registered mobile/email). Many individuals prefer E-Sign or EVC since they are simpler and do not require a USB token or DSC dongle. However, if an individual wants an extra layer of security, they can register and use a DSC.
3. Is E-Sign valid for GST return filing?
Yes, E-Sign is valid for GST return filing. Any taxpayer with a valid Aadhaar number and a mobile number linked to Aadhaar can use the E-Sign method. The process is quick, as it only requires an OTP sent to the registered Aadhaar mobile. While E-Sign is secure and legally valid, it is not applicable for companies and LLPs, which must use a DSC. For all other taxpayers, E-Sign is a convenient option for GST compliance.
4. What type of DSC is accepted in the GST portal?
The GST portal accepts only PAN-based Class II and Class III DSCs issued by authorized Certifying Authorities in India. The DSC should be valid, not expired, and registered on the portal. Class II and III DSCs use cryptographic encryption for high security, making them suitable for filing legal and financial documents like GST returns.
5. Can I use an expired DSC for GST filing?
No, you cannot use an expired DSC for GST filing. The system will reject it as invalid. To continue filing returns, you must renew your DSC with an authorized Certifying Authority and then re-register it on the GST portal. Using an active DSC ensures the legal validity of your GST submissions.
6. What to do if my DSC is not working or not detected in the GST portal?
If your DSC is not working or not detected in the GST portal, try the following steps:
- Ensure your DSC USB token is properly connected.
- Check if your DSC is valid and not expired.
- Install or update the emSigner utility on your computer.
- Use a compatible browser (GST portal works best with Internet Explorer or updated Chrome/Firefox).
- Re-register your DSC on the GST portal if required.
- If the issue persists, contact the GST Helpdesk or your DSC provider for technical support.
7. Can an Aadhaar-based E-Sign be used instead of DSC for companies?
No, companies and LLPs cannot use Aadhaar-based E-Sign instead of DSC. For these entities, using a PAN-based DSC is mandatory under GST rules. E-Sign and EVC are valid only for individual taxpayers, proprietorships, and partnership firms. Companies must obtain a valid DSC from a Certifying Authority and register it on the GST portal for all filings.
8. What is the validity of an Electronic Verification Code (EVC)?
The Electronic Verification Code (EVC) is valid for a single transaction only. It is a one-time password (OTP) sent to the registered mobile number or email of the Authorized Signatory. Each time you file a return or authenticate a document using EVC, a new OTP is generated. This one-time use system ensures security while keeping the process simple for taxpayers.
9.Which is better – DSC or EVC for GST filing?
Both DSC (Digital Signature Certificate) and EVC (Electronic Verification Code) are valid authentication methods in the GST portal, but the better option depends on the type of taxpayer:
DSC is better for companies and LLPs because it is mandatory, offers very high security, and ensures compliance with GST rules.
EVC is better for individual taxpayers, proprietors, and partnership firms because it is simple, fast, and only requires an OTP sent to the registered mobile/email of the Authorized Signatory.
If you are a company or LLP, you must use DSC. If you are an individual taxpayer, EVC is easier and more convenient.
10. Can individuals use EVC for GSTR-1?
Yes, individual taxpayers can use EVC for filing GSTR-1. The GST portal allows proprietors and individual taxpayers to authenticate returns using EVC, where an OTP (Electronic Verification Code) is sent to the registered mobile number and email ID of the Authorized Signatory.
Companies and LLPs, however, cannot use EVC for GSTR-1. They must file using a valid PAN-based Class II/III DSC registered on the GST portal.
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