GSTIN: Everything You Need to Know

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Date: 28 Jan 2023


What is the GSTIN Number?

GSTIN 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.

Benefits of a 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 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.

 

  • 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

The GST enrolment process includes the GSTIN application process. You will be given a specific GSTIN number as soon as the relevant GST officer approves your GST application. Namely, two methods exist for requesting a GSTIN:

 




 

  • 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.

https://busy.in/gst-accounting-software is a one-stop solution for all GST-related queries and functions. The GSTIN verification tool makes the process seamless.