What is Goods and Services Identification Number (GSTIN)?

GSTIN is short form for Goods and Services Tax Identification Number. It is a unique 15 digit identification number allotted to every taxpayer (primarily supplier or dealer or any business entity) registered under the Goods and Services Tax regime.

Obtaining Goods and Services Tax Identification Number and registering for GST is entirely free of cost. Before GST was introduced, all dealers were registered under the state VAT law which issued a unique TIN number by the tax authorities of the respective state; Goods and Services Tax Identification Number has replaced the same. Business entities registering under GST regime are now given a unique identification number known as the GSTIN. Filing

Structure of GSTIN

Each taxpayer registered under the GST regime is given a State + PAN-based unique 15-digit Goods and Services Tax Identification Number. Here is the structure of the Goods and Services Tax Identification Number format:

· The first two digits of the fifteen digits GSTIN represent the code of the state.

· The next ten digits are the PAN Number of the business entity or a person.

· The 13th digit is regarding the number of registrations done by the business entity or an individual within a state with the same PAN card.

· The fourteenth digit will be by default the alphabet “Z”.

The last digit is known as check code to identify errors and can be denoted by either an alphabet or a number.

How to apply for GSTIN?

Applying for Goods and Services Tax Identification Number falls under the GST registration procedure, after the GST application is approved by the pertinent GST official, a unique 15 digit GSTIN is allocated. There are two ways to apply for Goods and Services Tax Identification Number, viz.

GST Portal

· Log on to the official GST online portal.

· Click ‘New Registration’ and fill in the details such as name, mobile number and e-mail address in Part A of the application form.

· The online portal will then verify the details by sending an OTP to the registered mobile number and email address.

· After the verification process is completed, an Application Reference Number (ARN) will be sent to mobile or email address.

· Now the applicant has to fill Part B of the application form using the ARN. The following documents are required:

· In the next step, the applicant has to provide all the information and upload the necessary documents in the application form and submit the application form using Aadhaar OTP or DSC.

After submitting the Part B, the GST official will verify your application form within 2–3 working days. The official, after verification, can either approve registration application, in which case Certificate of Registration (Form GST REG 06) will be granted, or the official may ask for more details using the Form GST-REG-03.

GST Seva Kendra

The second way to obtain registration for GSTIN is by visiting a Goods and Services Tax Seva Kendra directly. The government has established a surplus of service centers or “Seva Kendras” to facilitate everything regarding GST. The government has established the Seva Kendras to smooth the process of migration to GST for a lot of taxpayers. These taxpayers are the individuals who do not have easy access to or don’t know how to make use of the official GST online portal.

Benefits of getting a GSTIN

· Lawful recognition of the business entity as a supplier of goods and services or both. This, in turn, assists in attracting more customers.

· You will grow to be more competitive than small businesses as purchasing from them will guarantee input credit.

· An individual who is having GSTIN can obtain input credit on their own purchases.

· No limitations on interstate sales (it will be treated as casual taxable individuals). Thus, the potential market for Small and Medium Enterprises reach to the next level

· You can either get registration on e-commerce websites or open your own ecommerce site. This will again improve the scope of business for a registered individual.

· GST registration will make sure that your business is compliant as most of the returns are computerized. This will result in a good GST rating of your organization and help to boost up the business.

Conclusion

Obtaining Goods and Services Tax Identification Number and registering for GST is entirely free of cost. Before GST was introduced, all dealers were registered under the state VAT law which issued a unique TIN number by the tax authorities of the respective state; Goods and Services Tax Identification Number has replaced the same. Business entities registering under GST regime are now given a unique identification number known as the GSTIN.