A GST Number, also known as Goods and Services Tax Identification Number (GSTIN), is a unique identifier provided to a firm or individual registered under the GST Act. Tax authorities use GSTIN to keep track of GST dues and regular and business loan payments registered under the GST Act.
The GST Number replaces previous taxpayer-identification systems such as the TIN (Tax Identification Number), which state taxing agencies used to manage state tax data such as VAT.
What exactly is GST registration?
All firms must apply for a GST number in each state where they are registered. Under the GST regime, it is best to determine whether the firm must register for a GSTIN or Goods and Services Tax Identification Number and then register appropriately.
Businesses that were previously registered using TIN systems for all their business activities, like getting capital MSME loans, were immediately transferred to the GSTIN system and assigned a new GST number.
New GST registration, on the other hand, will obtain a new GSTIN after their registration is finished and authorized. According to current GST legislation, all GST registered firms must print the GSTIN on all GST invoices they give to clients.
Fees for GST registration
Business loans already cost a lot and are expensive for a business. Thankfully GST registration costs are not charged by the government when done online through the government portal. After you’ve uploaded all of the required papers, you’ll get an Application Reference Number (ARN) by SMS and email to confirm your registration.
Although, if you seek professional assistance from a CA, you must pay their costs, which might be expensive, especially if you seek MSME loans or any other form of borrowing.
Individuals and businesses eligible for GST registration
While it is obligatory for a business owner with a revenue of more than Rs. 40 lakhs to register for GST, the following entities should also definitely do so:
- Anyone who has registered for Exercise, VAT, or Service Tax before the implementation of the GST.
- People who pay taxes using the reverse charge technique. Reverse charge is a system that requires GST to be paid by the beneficiaries of goods or services.
- Small businesses have taken up business loans from online lenders like ZipLoan.
- Supplier’s agents and input supply distributors.
- Individuals who provide inputs via ecommerce aggregators.
Format for GST numbers
A defined framework governs the GST Numbers given to registered businesses and individuals. Various small businesses and individuals take up business loans and borrowings of other sorts. It is easy to keep track of all these financial transactions and MSME loans.
The following are some key information concerning the GST Number Format:
- The GSTIN is made up of 15 digits.
- According to the Indian Census of 2011, the first two numbers can vary from 01 to 35 and reflect the state code for registration.
- The consequent 10 digits are the GST registered entity’s PAN number.
- The entity code is the 13th digit of the GST number. It refers to the sequence in which the registrations were fulfilled by a legal body having several registrations in the same state. If a single legal entity registers two business verticals in the same state, the first registration will have 1 as the 13th digit, while the second registration will have 2.
- According to the present GST number structure, the 14th digit for current registrations is “Z,” although this digit is effectively being kept for future usage.
- The final digit (15th) is currently utilized as a check code and maybe a randomly determined integer or alphabet.
GST registration process in India
The following is the method for applying for GST registration:
Step 1: Go to gst.gov.in
Step 2: Go to the Services->Registration-> and Click on New Registration.
Step 3: Click on ‘Proceed’ after selecting ‘New Registration’ and filling in the below-mentioned information.
Step 4: In the relevant places, input the OTP issued to the email address and cellphone number.
Step 5: The Temporary Reference Number (TRN) will be shown on the screen. Keep a record of the TRN.
Step 6: Revisit Head over to Services->Registration-> and choose ‘Temporary Reference Number (TRN)’. Enter the TRN and the captcha details and Click on ‘Proceed’.
Step 7: An OTP will be sent to your registered phone number and email address. Click on ‘Proceed’ after entering the OTP.
Step 8: On the following page, you’ll see the status of your application. Click the Edit icon on the right side.
Step 9: Once you’ve finished the form, you’ll see a message on the screen, and the Application Reference Number (ARN) will be emailed to your registered phone number and email address.
GST Registration process for new businesses
- Step 1: Visit www.gst.gov.in
- Step 2: Begin filling out Section A of registration form 1.
- Step 3: You will now receive a reference number for your application on your phone and through email.
- Step 4: Complete the second section of the registration form and submit the necessary papers based on business.
- Step 5: Go to the GST portal and get a registration certificate.
- Step 7: Submit the appropriate documentation, together with the GST REG-04, within 7 working days.
- Step 8: Go over the email and search for any mistakes. Your application may be denied if there are any problems, and you will be notified about it in form GST REG-05 of registration.
Documents needed to register for GST
Here is a list of all the paperwork you’ll need to finish your GST registration:
- A PAN card
- Aadhaar card
- Proof of business address
- A bank statement and a cancelled cheque
- A certificate of incorporation or proof of business registration
- Electronic signature.
- Photocopies of the director’s or promoter’s identification, as well as proof of address
- Authorized Signatory Letter of Authorisation or Board Resolution
Now that you know all the details to get a GST number, get a GST number for your business and register now!
GST Registration – Frequently Asked Questions
Yes, GST registration is mandatory for businesses whose turnover exceeds the specified threshold limits.
Not until, you have business that are registered in more than one states. The taxpayer should get a separate GST registration for each state.
Yes, only if you have multiple businesses within a state.
Small taxpayers who wish to have lesser compliances to deal with and lower rates of taxes under GST, can opt for the Composition scheme.
GSTIN (Goods and Service Tax Identification Number) is a 15-digit alpha-numeric PAN-based unique code, which is allocated to every GST-registered person.
The following are the benefits of registering under the Goods and Service Tax (GST) regime :
1) Take input tax credit
2) Make interstate sales without restrictions
3) Limited compliance
4) Less tax liability
5) High working capital
6) Register on an e-commerce website
Yes, you can apply for GST Registration online on the official GST portal and then scan and upload all the required documents to get GSTIN.
ARN full form is Application Reference Number. It is the conclusive proof of successful submission of the application to the GST servers. It is generated after the TRN (Temporary Reference Number) & uploading of requisite documents.
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