What is the GSTIN?
GSTIN stands for Goods and Services Tax Identification Number. It is a unique fifteen-digit identification number issued to every taxpayer under the GST system. Before implementing the GST system, each merchant registered under the state’s VAT statute received a specific TIN number. GSTIN now takes the place of TIN.
Similarly, the Central Board of Indirect Taxes and Customs issued service providers with a service tax registration number (CBIC).
Under the GST regime, all registered taxpayers are consolidated into a single platform and registered under a single authority for compliance and administration purposes.
Each firm in a state or union territory will be assigned a unique GSTIN or Goods and Services Tax Identification Number.
Since we have learned what is GSTIN, it’s time to move forward and learn more about it.
BOOK A FREE DEMO
Benefits of a GSTIN
A GSTIN, or Goods and Services Tax Identification Number, provides several benefits to businesses that register for it. Below are some of the benefits of GSTIN.
- The business entity can legally be a provider of goods and services if it has a valid GSTIN number. This promotes the company’s growth and enables a commercial organization to gain the trust of its clients.
- A person may claim input credit on purchases if they have a valid GSTIN number.
- You will be more competitive than a small business if you have a GSTIN number because doing business with them will guarantee input credit.
- Businesses can avoid limitations on interstate sales by using their GST Identification Number.
- By registering on e-commerce websites or creating your e-commerce website, you can expand the reach of your business.
How Is Gstin Different From GSTN?
Each taxpayer is given a unique 15-character alphanumeric code called a GSTIN. On the other hand, GSTN, the acronym for Goods and Service Tax Network, is a company managing the information technology aspects of the official GST portal.
The GSTIN number has contributed to the new tax system becoming more transparent. Because it is unique, clients can now independently verify their GSTIN numbers, which is crucial for building trust. The most significant distinction from the system it has replaced is that a GSTIN number enables enterprises to avoid limitations on interstate sales.
Format of GSTIN
Each taxpayer is assigned a 15-digit Goods and Services Taxpayer Identification Number based on their state’s PAN.
- The first two numbers represent the state code, according to the Indian Census of 2011. Each state has its own code. Karnataka’s state code, for instance, is 29. Delhi’s state designation is 7.
- The PAN of the person or business entity is the remaining set of numbers.
- The 13th digit is determined by the number of times the firm has registered within a state using the same PAN.4
- The fourteenth digit will be “Z” by default.
- The last digit will be the check code. It might be a number or a letter.
For example, if a corporation only has one registration in the same state, the 13th digit of the GSTIN will be “1.” The thirteenth digit of the GSTIN will be assigned as “2” if the same company obtains another registration in the same state.
The 13th digit will be “B” if the corporation has completed 11 registrations in the same state. Similarly, legal corporations can utilize this system to register inside a state and operate in up to 35 economic sectors.
How to apply for GSTIN
To apply for GSTIN (Goods and Service Tax Identification Number), one must visit the GST portal and complete the registration process online. The registration process involves providing personal and business information, such as PAN, email address, and phone number, as well as uploading essential documents, such as proof of business ownership ab address.
After filling out the required information, the applicant must verify their application using a digital signature or Aadhar-based electronic verification code. Once the application is approved, a unique GSTIN will be issued to the applicant, allowing them to conduct business in compliance with GST regulations. It is important to know that GST registration is mandatory for businesses whose annual turnover exceeds a certain threshold.
- You can log on to services.gst.gov.in and start a new registration. After entering your mobile number, you will receive an OTP. After the verification, you will receive an ARN (application reference number) on your mobile number and email address.
- The process is also facilitated via GST Seva Kendra, established by the government of India.
Part B of the application process can be completed through ARN. It should include the following documents
- Photographs
- Constitution of taxpayer
- Proof(s) of the location of the business
- Bank account details
- Authorization form
Verification
Daily, fake GSTIN numbers are discovered, which aids firms in tax evasion and enables them to charge more taxes. You should be aware that every service provider that charges their clients GST is required to print their GSTIN number on every invoice they make.
The following steps should be undertaken to verify GSTIN:
- Visit gst.gov.in, the GST Portal.
- The menu bar will have a “Search Taxpayer” option.
- In the search box, type the GSTIN number you want to confirm and enter the captcha code that appears.
- The subsequent information will be displayed if the provided GSTIN is a legitimate GST-registered firm:
- GSTIN Status Registration Date
- Organizational Structure: Corporation, Sole Proprietorship
- Type of Taxpayer-class, composition, and SEZ unit
However, the website will show an “error” message if the GSTIN entered is invalid.
BUSY’s GST Accounting Software is a one-stop solution for all GST-related queries and functions. The GSTIN verification tool makes the process seamless.
Conclusion
After reading this article you may have understood, what is GSTIN number and why it is important. It helps in the seamless flow of Input tax credit across the supply chain and aids in authorities’ efficient administration and monitoring of GST.
GSTIN is mandatory for every registered taxpayer in India, and it plays a crucial role in compliance, tax payment and filing of GST returns. It also helps create a transparent and reliable system for taxpayers and authorities, thereby promoting the growth and development of the Indian economy.
Frequently Asked Questions
- What is the cost of obtaining GSTIN?Obtaining a GSTIN (Goods and Services Tax Identification Number) is free of cost. Businesses and individuals can apply for it online via the GST portal without paying any fees. However, consulting fees may apply if professional help is used.
- Is the GSTN and GSTIN the same?No, GSTN (Goods and Services Tax Network) and GSTIN (Goods and Services Tax Identification Number) are different. GSTN is an organization that manages the technology backbone of the GST system in India. GSTIN, on the other hand, is a unique 15-digit identification number assigned to every registered taxpayer under GST. So, GSTIN is an identifier, while GSTN is the network that facilitates GST operations.
- How do I find my GST number?You can find your GSTIN by logging into the GST portal using your registered credentials. Additionally, the GSTIN is often mentioned on invoices and bills issued by businesses registered under GST. You can also search for your GST number by entering the registered business name or PAN on the GST portal’s search feature for GSTIN.
- Is GST number free?Yes, obtaining a GST number is free of charge. Registration on the GST portal doesn’t involve any fees. However, if you choose to hire a tax consultant or professional to assist with the registration process, they may charge a service fee for their assistance, but this is separate from the government’s registration process.
- Are GST and PAN numbers the same?No, GST and PAN (Permanent Account Number) numbers are different. PAN is a 10-digit alphanumeric identifier issued by the Income Tax Department, mainly for income tax purposes. The GSTIN, on the other hand, is a 15-digit number that is specific to GST-related transactions. However, the PAN forms part of the GSTIN as the middle 10 digits.
- How do I file a complaint regarding a forged GSTIN?To file a complaint about a forged GSTIN, visit the GST portal and navigate to the “Grievance Redressal Portal for GST.” Provide the necessary details, including the forged GSTIN, supporting evidence, and your contact information. Alternatively, you can call the GST helpline at 1800-103-4786 or email the complaint with relevant details to the GST grievance redressal email.
