What is GSTIN?
The Goods and Services Tax Identification Number (GSTIN) is a 15-digit number given to an applicant in a registration certificate. It will replace the already existing Tax Identification Number (TIN), which was allocated to businesses by the respective state tax authorities for registration under VAT. This number is given after the application is approved for the grant of GST registration. The main objective of the implementation of the new tax regime is one nation, one tax, one market.
In the new GST regime, all registered taxpayers will be consolidated on a single platform for compliance and administration purposes and registered under one authority. Around 8 million taxpayers moved on GST from various platforms.
Structure of GSTIN
Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
Here is a format break-down of the GSTIN:
- The first two digits represent the state code as per the Indian Census 2011. Every state has a unique code. For Example,
- The state code of Rajasthan is 08
- The state code of Delhi is 07
- The next ten digits will be the PAN number of the taxpayer
- The thirteenth digit will be assigned based on the number of registration within a state
- The fourteenth digit will be Z by default
- The last digit will be for check code. It may be an alphabet or a number.
How to obtain GSTIN?
To obtain GSTIN, all the existing taxpayers registered under any of the following Acts, will have to enrol themselves on GST Common Portal – www.gst.gov.in.
- Central Excise
- Service Tax
- State Sales Tax or VAT or Central Sales Tax (CST)
- Entry Tax
- Luxury Tax
- Entertainment Tax
These traders will be provided a Provisional ID and a Provisional Password to access GST portal and start with the registration process. Once they complete the registration process, they will be allotted the GSTIN. Registration process for existing taxpayers will start from 1st November, 2016.
Why do you need GSTIN?
GST registration is critical for business entities to avail of various benefits that are available under the GST regime. A GSTIN is mandatory by the government for businesses with an annual turnover exceeding Rs.20 lakh. If you are a registered dealer, you need to file GST returns and make a payment if GST liability exists. Also, if the GST paid by you is more than the GST liability, you can claim a refund through your GSTIN.
Additionally, a GSTIN also helps when you are looking to avail of a loan to fund your business. Financiers such as Bajaj Finserv provides Business Loans for businessmen to buy inventory, expand commercial space, and grow their business. Your business should be registered with the Government of India and have a valid GSTIN to be eligible for a business loan.
How to apply for a GSTIN?
Registering for GST and obtaining GSTIN by the government of India.
There are two ways to register for GST:
- via GST Online Portal or
- via GST Seva Kendra set up by the Government of India
Hence, following are the steps to apply for the GSTIN number:
- Log on to https://www.gst.gov.in/
- Fill the details carefully into the form.
- enter the two OTPs that you have received on your email ID and phone number, respectively.
- The screen will then display a TRN or Temporary Reference Number. Note this, and then go back to the home page, click on the ‘Services’ tab, hover over ‘Registration’ and then click on ‘New Registration’.
- click on ‘Temporary Reference Number’ instead of ‘New Registration’. Enter the TRN and the CAPTCHA code as well as a new OTP that will be generated.
- Once you’re directed to the ‘My Saved Application’ page, you will be able to access a form which you must fill and submit within 15 days.
- fill the enrolment form.
- provide information under the ‘Authorized Signatory’ section.
- Then, continue to fill the rest of the tabs, namely ‘Primary Place of Business’, ‘Goods and Services’, ‘Bank Accounts’, etc.
- digitally sign your application via e-signing, DSC or EVC. Then you can submit your application.
- You will receive an Application Reference Number or ARN on your mobile number and email ID shortly after, to help you track your application.
- After the application is approved by the GST officer, you’ll be assigned a unique GSTIN for your business.
- After 3–5 days have passed, you can download your registration certificate by navigating to the ‘Services’ tab. Click on ‘User Services’ and then on ‘View or Download Certificates’ to do so.