Digital Signature Certificate – Types and Process

A digital signature certificate (DSC) is mandatory to file GST returns. Moreover, domestic and foreign companies including LLPs are required to e-sign the registration form using a digital signature certificate (DSC). And, for other entities including individuals, e-signing the GST return and registration form, using a digital signature certificate (DSC) is optional. 

What is Digital Signature Certificate (DSC)? 

Digital Signature Certificate (DSC) is a computerized impression for somebody’s mark. It is utilized as an online verification tool for an individual or entity. In simple words, DSC is an e-certificate affirming one’s identity. 

Utilizing DSC, one can easily get all the data related to an individual or entity. Digital Signature Certificate (DSC) is used around the world, and in India, it must be given by approved organizations. 

Types of DSC 

The class of digital signature certificates is classified as per the utilization and type of applicant. There are 3 different class of DSCs issued by the certifying authorities: 

Class 1 DSC 

Class 1 DSC is issued by the certifying authorities to: 

1. An individual or 
2. Private subscriber 

Class 1 DSC carries the name and email id of the DSC holder. 

Class 2 DSC 

Class 2 DSC is issued by the certifying authorities to the persons who have signing authorities and this includes 

1. CEO 
2. Directors 

Class 2 DSC can be used by them for Income Tax Returns (ITR), GST Returns (GSTR), and other government e-forms. 

Class 3 DSC 

Class 3 DSC is issued by the certifying authorities to a person or entity who wants to participate in the e-auction and online tenders. 

Digital Signature Certificate (DSC) Issuing Authorities 

Digital Signature Certificate (DSC) is issued by the certifying authorities (CAs) authorized by the Government of India. Here is the list of certifying authorities authorized by the Government of India to issue DSCs: 

1. National Informatics Center (NIC) 
2. e-MUDHRA 
3. Code Solutions 
4. Safes-crypt 
5. Institute for Development and Research in Banking Technology (IDRBT) 

How to Apply for DSC? 

To apply for a Digital Signature Certificate (DSC), the applicant needs to follow the below-mentioned steps: 

1. Fill the application form 
2. Attach the relevant documents along with the application 
3. Submit them to any certifying authority 
4. Pay the fees 

Digital Signature Certificate (DSC) Advantages 

1. Identity Validation 

Generally, DSCs are used to authenticate the identity of the signatory. Along with this, it helps in validating the data issued. 

2. Data Authenticity 

Once a document is digitally signed by a DSC holder it assures the recipient that the data in the document is true and fair. Moreover, in case of any falsification of data, the beneficiary can take legal action against the entity or person. 

3. Easy and Efficient 

Digital Signature Certificate (DSC) is easy to carry and efficient to use as the authorized signatory can sign multiple documents online from anywhere at any time. 

4. Online Data Surety and Security 

Once a document is digitally signed by the authorized signatory using a digital signature certificate (DSC), the data cannot be modified or altered. Hence, we can conclude that a digital signature certificate (DSC) provides Online Data Surety and Security. 

Important Points to Note 

1. Documents signed using DSC can be used in a court of law. 
2. Generally, a digital signature certificate (DSC) is issued for a maximum of 2 years after which the holder needs to renew the same. 
3. A person can hold more than one digital signature certificate (DSC) of different classes.