Difference Between DSC, EVC and E-Sign in GST Portal (The Complete Guide)
Understanding the difference between DSC, EVC, and E-Sign in the GST portal is essential for every taxpayer, business owner, and professional dealing with GST compliance. These three authentication methods are used for verifying returns, applications, and other submissions on the GST portal, but each works differently and is suitable for different users.
In this detailed guide, we will explain DSC vs EVC vs E-Sign in GST, their meaning, usage, benefits, and which option you should choose for your business.
What is DSC in GST? (Digital Signature Certificate)
A Digital Signature Certificate (DSC) is a secure digital key issued by certifying authorities to verify the identity of the person filing GST returns or applications.
It is commonly used by companies and LLPs for authentication on the GST portal.
Key Features of DSC:
- Provides high-level security authentication
- Issued by licensed Certifying Authorities
- Stored in a USB token
- Mandatory for:
- Companies (Private Limited / Public Limited)
- LLPs
- Foreign companies registered in India
Advantages of DSC:
- Most secure method of GST authentication
- Legally recognized under IT Act
- Ensures data integrity and non-repudiation
Disadvantages:
- Requires USB token device
- Paid service (cost involved)
- Installation and setup required
What is EVC in GST? (Electronic Verification Code)
EVC (Electronic Verification Code) is a simple OTP-based authentication method used for verifying GST returns and filings.
It is sent to the registered mobile number or email ID of the taxpayer.
Key Features of EVC:
- OTP-based verification
- No physical device required
- Can be generated via:
- Mobile OTP
- Email OTP
- Net banking
- Aadhaar OTP
Advantages of EVC:
- Easy and quick verification
- No additional cost
- Suitable for small taxpayers
Disadvantages:
- Less secure compared to DSC
- Depends on mobile/email access
- Not allowed for companies and LLPs
What is E-Sign in GST? (Electronic Signature using Aadhaar)
E-Sign is an Aadhaar-based authentication method that allows taxpayers to digitally sign documents using OTP sent to their Aadhaar-linked mobile number.
It is widely used due to its convenience and paperless process.
Key Features of E-Sign:
- Based on Aadhaar authentication
- OTP sent to Aadhaar-linked mobile number
- No hardware required
- Completely online process
Advantages of E-Sign:
- Fast and paperless
- No need to purchase DSC
- Legally valid under IT Act
Disadvantages:
- Requires Aadhaar-linked mobile number
- Not suitable for companies/LLPs in some cases
- Depends on Aadhaar authentication success
Difference Between DSC, EVC and E-Sign in GST Portal
Understanding the comparison between DSC, EVC, and E-Sign helps in choosing the right method for GST compliance.
| Feature | DSC (Digital Signature Certificate) | EVC (Electronic Verification Code) | E-Sign (Aadhaar Based) |
|---|---|---|---|
| Security Level | High | Medium | Medium-High |
| Cost | Paid | Free | Free |
| Requirement | USB Token | Mobile/Email OTP | Aadhaar OTP |
| Suitable For | Private Limited Companies, Partnership Firm & LLPs | Individuals & Proprietors | Individuals & Proprietors |
| Legal Validity | Yes | Yes | Yes |
| Ease of Use | Moderate | Very Easy | Easy |
| Mandatory | Yes (for companies) | No | No |
Which is Better: DSC, EVC or E-Sign in GST?
The choice between DSC vs EVC vs E-Sign in GST portal depends on the type of taxpayer:
For Companies & LLPs:
- DSC is mandatory
- Cannot use EVC or E-Sign for most filings
For Individuals / Proprietorships:
- Can use EVC or E-Sign
- DSC is optional but recommended for higher security
For Professionals (CA/CS):
- DSC is preferred for multiple client filings
When to Use DSC in GST?
You should use Digital Signature Certificate in GST when:
- You are running a company or LLP
- Filing GST returns regularly
- Want maximum security and compliance
- Handling multiple GST registrations
When to Use EVC in GST?
Use EVC for GST verification when:
- You are a small business owner
- Filing returns occasionally
- Want a quick and simple process
- Do not want to invest in DSC
When to Use E-Sign in GST?
Use E-Sign in GST portal when:
- You have Aadhaar linked with mobile
- Want a paperless authentication method
- Prefer faster verification than DSC
Step-by-Step Process to Use DSC, EVC and E-Sign in GST
How to Use DSC in GST Portal:
- Install DSC utility on your system
- Connect USB token
- Register DSC on GST portal
- Select DSC while filing return
- Sign and submit
How to Use EVC in GST Portal:
- Choose EVC option while filing
- OTP sent to registered mobile/email
- Enter OTP
- Submit return
How to Use E-Sign in GST Portal:
- Select E-Sign option
- Enter Aadhaar number
- OTP sent to Aadhaar-linked mobile
- Enter OTP
- Submit successfully
Important Points to Remember
- DSC is mandatory for companies and LLPs
- EVC and E-Sign are mainly for individual taxpayers
- All three methods are legally valid under the IT Act
- Choose based on security, convenience, and eligibility
FAQs on DSC, EVC and E-Sign in GST
1. What is the difference between DSC and EVC in GST?
DSC is a secure digital certificate requiring a USB token, while EVC is an OTP-based verification method.
2. Is DSC mandatory for GST registration?
Yes, DSC is mandatory for companies and LLPs.
3. Can I use E-Sign instead of DSC in GST?
Yes, but only if you are an individual or proprietor. Companies must use DSC.
4. Which is safer: DSC or EVC?
DSC is more secure than EVC.
5. Is EVC free in GST portal?
Yes, EVC is completely free.
6. What is Aadhaar E-Sign in GST?
It is a digital signature method using Aadhaar OTP verification.
Conclusion
The difference between DSC, EVC, and E-Sign in GST portal lies mainly in security, cost, and usability. While DSC offers maximum security and is mandatory for companies, EVC and E-Sign provide convenient and cost-effective alternatives for individuals and small businesses.
Choosing the right method ensures smooth GST compliance and avoids unnecessary complications.
If you are still confused about which authentication method to use in GST, it is advisable to consult professionals for proper guidance and compliance support.
