Do You Have a GSTIN? If Not, Here’s Why You Should Apply For It
GST is a replacement of several different states and central levels taxes such as the VAT, service tax, and excise. Hence, businesses need to have a unique number assigned by the tax authorities called the GSTIN. This number is mandatory for every entity that has a turnover of more than INR 20 lakhs in one year. The GSTIN has replaced the Tax Identification Number or the TIN which was assigned by state authorities under VAT laws.
Under the new GST regime, the consolidation of all taxpayers is under a single platform. This single platform serves as a conduit for all administrative and compliance purposes. The taxpayers registered under the GST are answerable to a sole tax authority.
Approximately 8 million taxpayers have migrated from different platforms to the new GST platform.
How Does the GSTIN Benefit You?
Having a GSTIN is essential for any individual or business that has an annual turnover which is more significant than INR 20 lakhs. Various benefits accrue to the entities that have a GSTIN.
After you become a registered dealer under the GST, you will need to file GST returns and make payments to the tax authorities if a GST liability exists.
Furthermore, in case the GST that has been paid by you is more than the GST that is due, then you can claim the excess amount as a refund.
One of the fringe benefits of having a GSTIN is that it can help your business avail a business loan. Several banks and NBFCs demand a GSTIN from a business before they process a loan.
Such a loan serves a variety of purposes such as expanding commercial space, buying inventory, or expanding your business. To be eligible for such a loan, your business needs a GSTIN.
What Does the GSTIN Consist Of?
The GSTIN is a fifteen-digit unique code that is assigned to each taxpayer registered under the GST. This number is based on the PAN of the taxpayer and state to which they belong. Check out the different parts of a GSTIN:
- The first two digits of the GSTIN is the state code. The assigning of state codes to each state in India happened during the 2011 census. For example, the state code of Maharashtra is 27.
- After the state code, the ten-digit PAN of the taxpayer is inserted.
- The thirteenth digit represents the number of registrations that have taken place in that state for the same PAN.
- The fourteenth digit is “Z” by default.
- The final digit will be a check code that is designed to detect any errors. This digit can be an alphabet or a number.
How to Get a GSTIN?
Remember that obtaining a GSTIN and registering yourself with the GST authorities is free of cost.
There are two ways to register yourself. You can either use the GST online website to register yourself, or you visit the GST Seva Kendra which have been set up around India by the Government. If you know your way around the internet, then it is recommended that you register yourself with the GST authorities using their website.
Go to the GST website and click on the ‘Services’ category. You will see ‘Registration’ as an option and ‘new registration’ as a sub-option. You need to click on ‘new registration’.
You will be provided with a form. You need to fill in all the relevant details. All the information that is marked by a red dot needs to be provided compulsorily. Make sure to enter the correct email ID and phone number. You will be sent an OTP on both to verify them.
After you have filled the form, click on ‘proceed’. You will be asked to fill the two OTPs that you have received on your email ID and your mobile phone, respectively.
Subsequently, the screen will display a Temporary Reference Number. You need to note down this number. Now, enter this number under ‘services’ – ‘registration’ – ‘temporary reference number’.
Then another page opens up. Under this page, you will be provided access to a form that needs to be filled within fifteen days. The entire form has ten sections.
You need to attach scanned copies of a lot of documents, so be prepared for that. Some of the details that you will be asked for is proof of incorporation, bank account number, and IFSC code.
After this, you will need to provide information under the ‘Promoters/Partners’ tab, the ‘Authorized Signatory’ tab, the ‘Primary Place of Business’ tab, the ‘Goods and Services’ tab, the ‘Bank Accounts’ tab, and so on.
Once all the steps are completed, the GST officer reviews your application. After the review is successful, you will be assigned a GSTIN.
There are several advantages to having a GSTIN. If you are mandated by the Government to have one, then you should apply for it right away. You need to know about gst number verification, and in case you have any doubts, you can contact gst customer care.