What is Digital Signature Certificate (DSC): Definition, Benefits, How To Get DSC, and Classes

Discover what a digital signature certificate is, along with its applications for statutory compliance.
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3 min
02 Aug 2024
Widely used for online transactions and filing statutory documents, Digital signature certificates (DSCs) eliminate the need for physical signatures and provide a secure way to verify identities in the digital realm. They ensure the authenticity, integrity, and non-repudiation of electronic documents and transactions.

What is a digital signature certificate (DSC)?

A Digital signature certificate (DSC) is an electronic form of signature used to authenticate the identity of the signer. It binds the identity of an individual or entity to a public key, verified by a trusted certifying authority. DSCs are issued under the provisions of the Information Technology Act, 2000 in India.

What are the applications of DSCs (digital signature certificates)?

  • E-filing of income tax returns: DSCs are used to file tax returns electronically.
  • Company incorporation: Essential for the registration of companies and LLPs.
  • Online GST registration: Required for GST-related compliance and filing.
  • E-tendering: Used in online tendering processes for authentication.
  • Banking transactions: Utilised in online banking for secure transactions.
  • Digital document signing: Important for signing digital documents, contracts, and agreements.
  • MCA services: Necessary for various Ministry of Corporate Affairs services.

Digital signature certificate advantages

  • Security: Provides secure transactions by encrypting data.
  • Identity authentication: Authenticates the identity of individuals and entities.
  • Cost-effective: Reduces costs associated with paperwork and physical signatures.
  • Legally binding: Offers legal validity under Indian law.
  • Convenience: Enables easy access and signing of documents from anywhere.
  • Time-saving: Speeds up processes like filing and approvals.
  • Non-repudiation: Prevents denial of participation in a transaction.

Importance of DSC for fulfilling statutory compliances

  • GST Compliance: DSCs are mandatory for GST filings and registration processes.
  • Income Tax Filing: Essential for filing income tax returns and e-verification.
  • Company Law Compliance: Necessary for ROC filings and company registration.
  • E-tendering: Required for participating in government and private tenders.
  • EPFO and MCA Filings: Used for compliance with EPFO and Ministry of Corporate Affairs requirements.
  • Legal Document Signing: Ensures authenticity and legal standing of digital documents.
  • Data Security: Ensures secure submission of confidential data.

Certifying authorities for issuance of a digital signature certificate

In India, Certifying Authorities (CAs) are trusted entities that issue Digital Signature Certificates. These authorities are licensed by the Controller of Certifying Authorities (CCA) under the Information Technology Act, 2000. CAs are responsible for verifying the identity of applicants and ensuring the security and authenticity of DSCs. Some well-known CAs in India include the National Informatics Centre (NIC), eMudhra, Sify Technologies, and (n)Code Solutions. These authorities offer different classes of DSCs for individuals, organisations, and devices, catering to various security needs and compliance requirements.


Types of digital signature certificates (DSCs)

  • Class 1 DSC: For securing email communication and online transactions.
  • Class 2 DSC: Used for e-filing documents with the Registrar of Companies and IT returns.
  • Class 3 DSC: Required for e-tendering, e-procurement, and high-security transactions.
  • Organisation DSC: Issued to authorised signatories of organisations.
  • Individual DSC: Issued to individuals for personal use.
  • Device DSC: For securing devices like servers and hardware.

Classes of digital signature certificate (DSC)

  • Class 1 DSC: Basic level of security, for non-commercial use.
  • Class 2 DSC: Higher level of security, used for e-filing and compliance.
  • Class 3 DSC: Highest level of security, mandatory for e-tendering and e-commerce.
  • DGFT DSC: Specific to the Director General of Foreign Trade (DGFT) transactions.
  • Document Signer DSC: For automated signing of documents.

How to get a digital signature certificate?

  • Choose a Certifying Authority: Select a licensed CA like eMudhra or Sify.
  • Select the DSC type: Choose between Class 1, Class 2, or Class 3 DSC.
  • Fill application form: Complete the application form provided by the CA.
  • Submit required documents: Provide necessary identification and address proofs.
  • Payment of fees: Pay the applicable fees for the selected DSC.
  • Verification: Complete the verification process, including video verification.
  • Receive DSC: The DSC is issued and delivered, often in a USB token format.
  • GST: Use DSC for GST number and related other compliance and filings.

Documents required for submitting a DSC application

  • Identity proof: Aadhaar card, PAN card, or passport.
  • Address proof: Voter ID, driving licence, or utility bills.
  • Passport-sized photograph: Recent photo for the application.
  • Organisation proof: Certificate of incorporation or business registration.
  • Authorisation letter: For organisation DSC, authorisation from the company.
  • Email ID proof: Valid email address for communication.
  • Mobile number: For OTP verification and communication.

How to download a digital signature certificate?

  • Log in to the CA portal: Access the portal of the Certifying Authority.
  • Select DSC: Choose the DSC to be downloaded from the list.
  • Enter application details: Provide the application number and other details.
  • Verification: Complete verification, if required.
  • Download certificate: Click on the download option and save the DSC.
  • Install DSC: Install the DSC on the system or USB token as instructed.
  • Backup: Ensure a secure backup of the DSC. 

How to check the validity of a digital signature certificate?

  • Access the CA portal: Log in to the portal of the issuing Certifying Authority.
  • Enter DSC details: Provide details such as the certificate number and serial number.
  • Check expiry date: Verify the expiration date of the DSC.
  • Verify status: Check if the DSC is active, revoked, or expired.
  • Renewal option: If expired, follow the steps to renew the DSC.
  • Notification alerts: Set up alerts for expiry reminders.
  • Reissue if lost: If the DSC is lost, apply for reissue.

Conclusion

Digital signature certificates are crucial for secure and authenticated online transactions, especially in sectors like GST compliance, income tax filing, and e-tendering. With their legal validity and cost-effectiveness, DSCs are indispensable for businesses in India. Obtaining a DSC involves selecting a trusted Certifying Authority, submitting the required documents, and completing verification processes. It is essential for businesses to ensure their DSCs are valid and renewed timely to avoid disruptions in statutory compliances and online transactions.

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Frequently asked questions

How can I get a DSC certificate?
To obtain a Digital Signature Certificate (DSC) in India, follow these steps:

1. Choose a licensed Certifying Authority (CA).

2. Fill in the application form available on the CA's website.

3. Submit required documents such as identity and address proof.

4. Complete the verification process, which may include video verification.

5. Pay the applicable fees.

6. Once verified, the DSC will be issued and delivered, often in a secure USB token format.

What is the use of DSC?
A Digital Signature Certificate (DSC) is used to authenticate the identity of individuals and organisations in electronic transactions. It ensures the integrity and security of digital documents, making them legally binding. DSCs are commonly used for e-filing income tax returns, GST compliance, company registrations, e-tendering, and signing digital contracts. They provide a secure, cost-effective, and time-saving method to verify identities and authenticate documents, thereby reducing the need for physical signatures and enhancing online security.

Can I create my own digital signature certificate?
No, individuals cannot create their own Digital Signature Certificates (DSCs) in India. DSCs must be issued by a licensed Certifying Authority (CA) recognised by the Controller of Certifying Authorities (CCA) under the Information Technology Act, 2000. These CAs follow stringent processes to verify the identity of the applicant and ensure the security and authenticity of the certificates. Self-created DSCs are not legally recognised and cannot be used for official purposes such as GST filing or e-tendering.

How to register for DSC?
To register for a Digital Signature Certificate (DSC), choose a licensed Certifying Authority (CA) in India. Complete the application form, selecting the appropriate DSC type (Class 1, Class 2, or Class 3). Submit the required documents, such as identity and address proof, and pay the applicable fees. Undergo the necessary verification processes, which may include video verification. Once approved, the DSC is issued and can be downloaded or received in a USB token format.

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