What is GST and GSTIN Number?
GST: Introduced in July 2017, GST (Goods and Service Tax) is an indirect tax regime. The main purpose of introducing the GST by the government was to simplify the existing structure in India and follow one nation, one tax, one market. So many central and state levied taxes were replaced with the implementation of GST like VAT, Excise tax, and Service tax. All registered taxpayers are pooled onto a single platform for compliance and administration purposes, and registration is delegated to a single authority under the GST regime.
Prior to the implementation of GST, the respective state tax authorities provided a unique TIN number to all dealers registered under the state VAT law. Similarly, the Central Board of Indirect Taxes and Custom granted service providers a service tax registration number (CBIC).
GSTIN: Every GST registered person is given a GSTIN, which is a 15-digit PAN-based unique identification number. A GST-registered dealer should verify the GSTIN Number before putting it in into GST Returns.
Every GST taxpayer is given a 15-digit Goods and Services Taxpayer Identification Number based on their state and PAN (GSTIN). The GSTIN format is broken down as follows:
- According to the Indian Census 2011, the first two digits denote the state code. Each state has its own code. Karnataka, for example, has a state code of 29, Delhi’s state code is 07.
- The taxpayer’s (person or the business entity) PAN number will be the next ten digits.
- The thirteenth digit is determined by the amount of registrations the company has made within a state using the same PAN.
- By default, the fourteenth digit will be the letter “Z.”
- The check code is the last digit, which is used to detect faults and can be represented by a number or an alphabetic character.
Example: If a legal entity or business firm only has one registration in the same state, the number “1” will be assigned as the GSTIN’s 13th digit. If a company obtains a second or additional registration in the same state, the GSTIN’s thirteenth digit will be allocated the number “2.” If the entity has completed 11 registrations in the same state, the letter “B” will be issued as the GSTIN’s 13th digit. Similarly, each legal entity can have up to 35 business verticals and use this method to register within a state.
How Can I Apply for GSTIN?
The GST Registration method includes applying for a GSTIN. A unique GSTIN is assigned to your GST application once it has been authorized by the competent GST authorities. GSTIN can be obtained through one of two methods.
- GST Online Portal or
- GST Seva Kendra set up by Government of India
Applying for GSTIN through Online GST Portal
- First of all, go to the official website of Goods and services Tax.
- On the home page, go to ‘New Registration‘ and fill out Part A of the application with your name, e-mail address, and mobile number.
- The portal will then issue an OTP to your registered cellphone and email address to verify your information. You will receive an Application Reference Number (ARN) by mobile or email once the verification procedure is completed.
- You will receive an Application Reference Number (ARN) by mobile or email once the verification procedure is completed.
- Now you can use the ARN to fill out Part B of the application. You’ll need the following documents for this step:
- Bank account details
- Constitution of taxpayer
- Proof (s) of the location of the business
- Authorization form
- Provide all of the relevant information and upload the required documents in the application, then submit it using DSC or Aadhaar OTP.
- The GST officer will evaluate your application within three working days once you have also filed Part B. After verifying your application, the officer can either approve it, in which case you will obtain your Certificate of Registration (Form GST REG 06), or ask for more information (Form GST-REG-03).
- Within 7 working days, the further information must be submitted. After you’ve provided the information, the authority can reject your application and explain reasons in Form GST-REG-05. The application will be processed and you will obtain a Certificate of Registration if the GST officer finds the information you supplied to be accurate.
Applying for GSTIN through GST Seva Kendra
The second option is to go to a GST Seva Kendra and register for a GSTIN there. The government has set up a slew of service centers, or “Seva Kendras,” to help taxpayers with all things GST-related. The government has established SevaKendras to help many taxpayers migrate to GST.
Details Required to Apply for GSTIN
Following are the details required to apply for GSTIN.
- Valid Bank Account Number from India
- Valid Permanent Account Number (PAN)
- Jurisdiction Details
- Valid Indian Mobile Number
- Prescribed documents and information on all mandatory fields of Registration Application
- At least one Proprietor / Partner / Director / Trustee / Karta / Member with corresponding PAN
- An authorized signatory who is resident of India with valid details, including PAN
- Valid e-mail address
- Indian Financial System Code (IFSC) number of same bank and branch
- Place of business
How to Verify GSTIN Number?
Many businesses generate erroneous or false GSTIN Numbers in order to charge more money and avoid paying GST taxes. To begin, every service provider/trader who charges GST to their consumers is required by law to print their GSTIN Number on all invoices they make. If you have any doubts, you can check the validity of the GSTIN that was provided to you. It’s simple to check the GSTIN Number’s validity; simply follow the instructions below:
- First of all, go to the https://www.gst.gov.in/ and look for the “Search Taxpayer” option in the menu bar.
- In the search box, type the GSTIN you want to check and the captcha code you were given.
- If the submitted GSTIN is a valid GST registered business as defined by GST regulations, the following information will be displayed in seconds.
- Date of GSTIN Registration
- Status of GSTIN
- Business Structure Type: Sole proprietorship, Company.
- Taxpayer’s type: Regular Taxpayer, Composition, SEZ unit
- If the GSTIN entered is incorrect, the website will display an “error” message.
Benefits of GSTIN Number
- Legal recognition of a business as a provider of goods or services. As a result, you’ll be able to attract more customers and expand your business.
- Your firm will be GST compliant if you register for GST (because most returns are automated). This will improve your company’s GST rating and help to grow the business. You’ll be able to compete with small firms because buying from them ensures input credit.
- A person with a GSTIN can claim input credit for purchases and services they make on their own.
- You have the option of registering on e-commerce sites or creating your own eCommerce site. This will broaden the scope of a registered person’s business once more.
- There are no limits on sales across states (it will be treated as casual taxable persons). As a result, the potential market for SMEs has risen to a new level.
How much does it cost to get a GSTIN?
The GSTIN and GST Registration are both free of charge.
How can I apply for GSTIN?
You can apply for GSTIN Number either through Online GST Portal or through GST Seva Kendra.
What is the difference between GSTIN and GSTN?
Make sure you don’t mix up GSTIN with GSTN. GSTIN stands for Goods and Services Tax Identification Number. The Goods and Service Tax Network (or GSTN) is an organization that oversees the GST portal’s whole IT system. The Government of India will use this portal to track all financial transactions and will give taxpayers all services – from registration to filing taxes and keeping track of all tax information.
What is the official website to apply for GSTIN Number?
To apply for GSTIN you need to go to the official website of Goods and Services Taxi.