The introduction of the Goods and Services Tax (GST) system in India has caused as much confusion as it has intrigue. It is not surprising that most people do not have a structured idea of the GST, GST Number, and everything else it entails. In this article, we will simplify and concretize the concept of GST number and its subtopics.
What is GSTIN?
GSTIN stands for Goods and Services Tax Identification Number. It is a unique identification number that is assigned to various dealers and service providers. With the advent of GST, there is only one platform to manage and view the records of all the taxpayers.
The GST number is a 15-digit number, which is unique for each taxpayer.
- The first two digits represent the state code. Each state in India is assigned a unique state code.
- The next ten digits of the GST number contain the PAN of the taxpayer.
- The next two digits of the GST number represent the entity code. It represents the number of registrations that were made by a business entity within a state.
- The last digit serves as a check code. It is used to detect errors.
Should you Register for a GST Number?
You ought to register for a GST number if your business turnover exceeds Rs. 40 Lakhs in a financial year. However, the threshold for your business turnover is Rs. 20 Lakhs in Himachal Pradesh, and North-Eastern states.
Be sure to note that you do not have to register for a GST number in the following cases:
- If you are involved in the interstate supply of goods and services
- If you operate as an e-commerce operator
- If your business receives invoices for the services that are used by its branches
- If you are operating as an agent for a supplier
Why is GST Number Important?
- A GST number gets you recognized as a supplier of goods or services. Businesses that are transparent, and file returns and consistently pay taxes often get noticed and become more credible in the eyes of the market and the government.
- A GST number simplifies the process of Input tax crediting. Businesses that ensure consistent tax payment under the GST regime can avail income tax returns on the tax they pay on purchases.
- It is vital that you have a registered GST number for your business to make inter-state transactions and widen your market without any constraints. A GST number also allows you to sell products online through E-commerce.
- Correctly specifying your GST number goes a long way in making sure that the correct input tax credit is allocated. You also need to mention the GST numbers of the vendors and other customers to include them in your invoices.
Registering your Business to a GST Number
Visit the GST portal and click on the ‘Register Now’ option under ‘Taxpayers (Normal).’
This constitutes the first half of the GST registration process. Click on ‘New Registration’ and choose ‘Taxpayer’ in the drop-down menu that shows up under ‘I am a.’ Then, proceed to select the required state and district. Enter the business name and the associated PAN along with your mobile number and email ID. You will receive an OTP on your registered mobile number.
Once you receive the OTP, type the password and click on ‘Continue.’
You can expect to get a Temporary Reference Number (TRN), which will be forwarded to your registered phone number and email address.
Head back to the GST portal and hit the ‘Register now’ button.
Select the TRN option, enter your TRN, and the given captcha code. Following this, click on ‘Proceed.’ You will receive an OTP on your registered mobile number. Enter the given OTP and hit ‘Proceed.’
Your application will be displayed as a draft. Make sure you click the Edit Icon.
This is the second part of the GST number registration process. Enter the required details and submit your documents listed below.
- Proof of constitution
- Document proving the location of your business
- Photographs for identity proof.
- Details of your bank account
- Your authorization form
Head over to the verification page, check and click the declaration, and then send in your application using one of the following ways:
- Through Electronic Signature (E-Sign): E-sign is an electronic signature service in India that allows Aadhar cardholders to sign a document digitally. Your registered mobile number will receive an OTP
- Through Electronic Verification Code: An OTP will be sent to your registered mobile number.
- Through Digital Signature Certificate (DSC): DSC is compulsory for companies.
You will receive a message that will tell you the verification was successful. Your Application Reference Number (ARN) will be forwarded to your registered email ID and mobile number.
Searching for a GST Number
Search for a GST number by name
There are numerous sites like KnowYourGST and Masters India, which make the GST number search by name easy. However, to significantly narrow down your search and get the results you want, typing a few letters of the company name or its PAN will take you a long way.
How to search GST number by PAN?
To search for a GST number and in turn, the GST details is reasonably straightforward if you have the PAN. If you do, follow these steps:
Step 1: Visit the GST portal
Step 2: Hit the ‘Search Taxpayer’ tab on the menu bar
Step 3: Click on the ‘Search by PAN’ option
There you have it. This article should give you a good idea about the importance of GST numbers in this day and age. Given how GST has been implemented, it is crucial that you have a firm grasp of the subject.