Fundamentals of GSTIN:
Before the implementation of GST in 2017, all the businesses were required to get a Tax Identification Number (TIN) which is now replaced by GSTIN. Under the GST regime, the businessmen who are registered under the CGST Act, 2017 are mandatorily required to get their businesses assigned to a unique Goods and Service Tax Identification Number (GSTIN). We’ll use an GST number example in this article to explain it better. Under the old indirect tax regime, multiple registrations were required under different laws whereas only one registration is required under the GST law. Also, multiple GSTINs can be allotted to a single person depending on the States or Union Territories from where he operates his business from. The business should also follow accounting golden rules.
GSTIN is a 15-digit PAN-based unique identification number allotted to every person registered under the Act. It can be obtained free of cost. The main difference between GST and GSTIN is that GST means the overall indirect tax structure, whereas GSTIN is the unique identification code provided under the CGST Act, 2017. GSTIN is for public information and the ‘GST number search’ by name is an important task that must be carried on by every vendor to check the authenticity of the business as well as the GSTIN. It can be easily verified with just a click. Every business owner must know the break-up of the GSTIN format.
The GSTIN format can be further explained by one such GST number example – 22AAAAA0000A1Z5, here the first two numbers represent the State Code, the next 10 characters represent the PAN of the registered person. The next number is the entity number of the same PAN holder of the State, and the next character alphabet ‘Z’ is by default. The last number is the ‘check sum digit’ which can be a digit or alphabet and is used for the detection of errors.
If the accounting golden rules are followed and GST is paid by the business owner then in case if any situation of refund arises it can be claimed through the GSTIN.
How to apply for GSTIN:
Applying for GSTIN is not a very difficult task and can be completed within a few steps. However, there are 2 ways by which an assessee can apply for GSTIN.
Through GST Portal:
- Login to the GST portal https://services.gst.gov.in/services/quicklinks/registration
- Then go to the section of ‘New Registration’ and then fill in your details in Part A of the applications. Such details include name, mobile number, email id.
- After this, you will then receive an OTP to your registered mobile number and email.
- You will then receive an Application Reference Number (ARN) which means that the verification process is completed.
- Part B of the Application form can now be completed using the ARN. For this step, the following documents are required- photographs, bank account details of the taxpayer, constitution of the taxpayer, authorization form, proof, and details of the location of the business.
- After providing the details and uploading the aforesaid documents, submit the application using Aadhar OTP or DSC.
After the submission of Part B of the Application, the GST Officer will verify the application within 3 working days. Now the GST officer will either reject or approve the form. He can approve it in the Form GST Reg 06 and you will receive the Certificate of Registration. Also, he can ask for more information in Form GST REG 03. These additional details can be provided within 7 working days. Otherwise, he can reject it after giving proper reasons in Form GST REG 05.
Through GST Seva Kendra:
The taxpayer can also visit GST Seva Kendra directly which is established by the Government. These are done to facilitate the migration to GST and also for those taxpayers who do not have access to the online tax service portal facility.
There are certain benefits of obtaining a GSTIN as your business will get legal recognition thus attracting more customers and help to increase the rating of your business. Further, the input tax credit obtained through GSTIN will also help the business to expand and become more competitive in the market.We hope you have understood GSTIN with help of GST number example.