Must Knows

What is GSTIN?

[ecis2016.org] Under the GST regime, all registered users are issued a GSTIN to carry out tax payment related tasks.

Under the Goods and Services Tax (GST) regime in India, registered entities are allocated a 15-digit identification number. This number is known as GSTIN or GST Identification Number. GSTIN has replaced the TAX Identification Number issued to businesses under the erstwhile VAT regime.

 

Format of GSTIN

07AAACD1257F1Z2

Let us break down the above GSTIN to understand its structure:

The first two digits indicate the state code.

The next 10 digits represent the PAN number of taxpayers doing businesses.

The 13th number is the entity number of the same PAN.

The 14th digit is always Z, a default entry.

The 15th digit (could be a number or a letter) is the check code to detect errors.

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GSTIN sample

Here is a GSTIN sample:

07AAACD1257F1Z2

Here, the first two numbers ‘07’ represent the state code for Delhi.

The next 10 digits ‘AAACD1257F’ represent the PAN of the entity.

The 13th digit ‘1’ represent the entity number of the same PAN.

The 14th digit ‘Z’ is the default alphabet.

The 15th digit ‘2’ is the checksum digit.

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Why do you need a GSTIN?

A GSTIN is mandatory for businesses with an annual turnover exceeding Rs 20 lakhs. However, other businesses paying GST should also apply for the same for the following reasons:

  • To pay GST.
  • Legal recognition as a supplier of goods or services.
  • More visibility.
  • To claim input tax credit.
  • To claim tax deductions available under GST.
  • For business/vendor verification.
  • To check business/vendor authenticity.
  • To avoid frauds.
  • To correct GST payments misreporting.

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How to apply for GSTIN?

Step 1. Visit the GST online portal www.gst.gov.in

Step 2: Click on the ‘New Registration option.

 

What is GSTIN?

 

Step 3: Fill Part A of the application. Provide details like your name, e-mail ID, and mobile number.

Step 4: An OTP will be sent to your mobile and e-mail.

Step 5: After successful verification, you will receive the Application Reference Number (ARN) via mobile or e-mail.

Step 6: In Part B of the application, you will have to provide the following details:

  1. Photographs
  2. Constitution of taxpayer
  3. Proof(s) of place of business
  4. Bank account details
  5. Authorisation form

Step 7: Input details and upload all documents. Submit the application, using DSC or Aadhaar OTP. Your application will be verified within three working days.

 

You can conduct a GSTIN search on the official GST portal. Read our guide on GST search to understand the step-by-step process.

Source: https://ecis2016.org/.
Copyright belongs to: ecis2016.org

Debora Berti

Università degli Studi di Firenze, IT

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