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written by khatabook | December 6, 2019

What is GST Number (GSTIN) and How does it Help your Business?

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Table of Content


India adopted the Goods and Services Tax (GST) system on July 1, 2017, which formalized and simplified India’s indirect tax structure. All eligible businesses entities need to register under the GST taxation system which has replaced the previous VAT system.  If you are a GST registered dealer, you will have been allotted a GSTIN number or Goods and Services Tax Identification Number. Let’s know more about what is GSTIN and its format to understand what GST number represents and how many numbers are contained in GSTIN.

Did you know ?

GSTIN and UIN are 2 different numbers? UIN stands for Unique Identification Number and is issued to special organizations to allow them to claim a tax refund on the purchase of goods and services. Contrarily, the GSTIN is for the regular taxpayer and stands for the Goods and Services Tax Identification Number.

What is GSTIN?

To understand the concept of GSTIN and GST number digits, let us look at what is GST Number and the format of GST Number in the following section.

GSTIN’s full form is Goods and Service Tax Identification Number. GSTIN number means a number that is allocated to manufacturers, dealers, and service providers by the Central Government. Earlier, VAT TIN and CST TIN were given to the manufacturers, dealers, and service providers.

GST number stands for a unique alphanumeric identification number known as GSTIN. It contains letters and numbers and the GSTIN digits are 15 in number. Every business that is registered under the GST regime is mandatorily required to specify GSTIN in its invoice.

What is the format of GSTIN?

Do you want to know how many digits are in the GST number and its format? There are 15 digits contained in the GSTIN. The format of GSTIN is as follows - 

  • The first two digits give the state code. Every state in India has a unique code.

Here are a few important state codes in India -

State Name

State Code

Haryana

6

Delhi

7

Rajasthan

8

Uttar Pradesh

9

Bihar

10

Madhya Pradesh

23

Gujarat

24

Maharashtra

27

Karnataka

29

Kerala

32

Tamil Nadu 

33

  • The next 10 digits consist of the PAN of the taxpayer. 
  • The 13th digit signifies the number of registrations of the same PAN holder in the same state. 
  • The next digit is ‘Z’ by default, and 
  • The last digit of the GSTIN is a random checksum digit.

Let’s see a GST number example. Say your GSTIN is 37BLRIP7683D2ZY. Here,

  • 37 refers to the state code of Andhra Pradesh. 
  • BLRIP7683D is the PAN number of the taxpayer.  
  • 2 refers to the number of registrations in the state under the same PAN.
  • Z is the default letter.
  • Y is a random checksum digit or letter.

Also Read: All you Need to Know About Composition Scheme under GST

Who should register for GST Number?

Any individual whose business turnover crosses ₹ 40 Lakhs in a financial year, must make an application for GST registration. Post GST registration, the individual will get his or her unique GSTIN.  Note that the threshold for business turnover is Rs. 20 Lakhs in Himachal Pradesh, and North-Eastern states. It is important to remember 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

The taxpayer can also obtain the GSTIN voluntarily, even if they are not crossing the threshold limit. GST number is granted to every person who makes an application, whether resident or non-resident. However, under Section 25(9), any specialized agency of the United Nations Organization or any Multilateral Financial Institution and Organization notified under UN Act, 1947, Consulate, or Embassy of foreign countries and any other person or class of persons, as may be notified by the commissioner shall be granted a Unique Identity Number (UIN). 

GST Jurisdiction

A GST taxpayer who has registered themselves on the GST Portal is required to fill in the information about their GST jurisdiction as well. If you want to find out your jurisdiction, it is a simple process that you can understand from the steps given below -

How to find your GST Jurisdiction?.

  • To find your TIN’s state jurisdiction, log in to the CBIC GST portal.
  • Look under the ‘Know Your Jurisdiction’ tab.
  • Enter the TIN number.
  • The page will display the state, zone, division, range, etc.

 

 

Importance of GSTIN

Why is having a GST Number important? Let’s look at some of the reasons given below - 

  • 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 the Input tax credit. Businesses that ensure consistent tax payment under the GST regime can avail of 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.

Also Read: What is GST Amnesty Scheme? GSTR-3B Late Fee Relief, Benefits, Eligibility, and Last Date

Steps to Register your Business to a GST number

The GST Registration process is simple and can be understood as follows -

  1. Visit the GST portal and click on the 'Register Now' option under 'Taxpayers (Normal)
  2. Click on 'New Registration' and choose 'Taxpayer' in the drop-down menu that shows up under 'I am a.’ 
  3. Then, proceed to select the required state and district. 
  4. Enter the business name and the associated PAN along with your mobile number and email ID. 
  5. You will receive an OTP on your registered mobile number.
  6. Once you receive the OTP, type the password and click on 'Continue.'
  7. You will get a Temporary Reference Number (TRN), which will be forwarded to your registered phone number and email address.
  8. Go back to the GST portal and click the 'Register now' button.
  9. 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. 
  10. Enter the given OTP and hit 'Proceed.' 
  11. Your application will be displayed as a draft. Make sure you click the Edit Icon.

In 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
  1. Go to the verification page, check and click the declaration, and then send in your GST 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. 
  1. 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.

Conclusion

SInce GSTIN is seeded with the PAN number of the taxpayer, how to find your GST number becomes easy by just entering the Permanent Account Number (PAN) number. This is because the linked 15 digit GSTIN in the PAN card has the PAN number included where an individual can find their GSTIN by PAN search. Do you know how to find the GST number by name? It is very easy to do a GSTIN search by name to find your GST number, legal name, and trade name of the business, and other such details.
Do you have issues with payment management and GST? Install the Khatabook app ,friend-in-need and one-stop solution for all issues related to income-tax or GST filing, employee management, and more. Try it today!

FAQs

Q: Is it necessary to procure GSTIN to avail ITC paid on input goods and services?

Ans:

Yes,It is necessary since a non-registered person cannot avail of ITC.

Q: What are the various GST rates in India?

Ans:

The GST council has classified over 500 services and 1300 goods under 4 slabs of 18%, 12%, 28%, and 5% under the GST Act. The GST on gold is 3%, and rough semi-precious or precious stones have a special GST rate of 0.25%.

Q: Does GST apply to all goods and services?

Ans:

GST applies to all goods and services, except for natural gas, aviation turbine fuel, petrol, diesel, crude petroleum, and alcoholic liquor for human consumption.

Q: Are the GSTIN and UIN the same?

Ans:

GSTIN and UIN are not the same. UIN stands for Unique Identification Number and is issued to special organizations in order to allow them to claim a tax refund on the purchase of goods and services. Contrarily, the GSTIN is for the regular taxpayer and stands for the Goods and Services Tax Identification Number.

Q: How to do GST number search by PAN?

Ans:

To search for a GST number and other GST details is simple if you have your PAN. Follow these steps to search for GSTIN: 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.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.