GST is a household term in India, not just because it’s a tax levied on most goods and services, but because it’s a relatively new phenomenon that also attracted controversy. But there’s more to it than its oft-repeated controversies. Like GSTIN.
The Goods and Services Tax Identification Number (GSTIN) is a unique identification number provided to firms in India that are registered under the Goods and Services Tax (GST) system.
Significant changes have been made to the Indian taxation system as a result of the implementation of the GST, which has simplified the tax collecting and compliance processes. Businesses must register for GST and get a GSTIN to comply with laws and reap the benefits of the GST system.
Nonetheless, as the number of firms registering for GST continues to rise, it has become vital to check the legitimacy of GSTIN to prevent fraudulent actions.
In this article, we will explore in depth what GSTIN is, how you should apply for a GSTIN, and how to check its legitimacy, assuring a compliant and efficient business operation under the GST regime.Also Read: Income tax slabs in India 2023-24: Old vs new tax regime, deductions and more
What is GSTIN?
GSTIN (Goods and Services Tax Identification Number) is a unique identifier granted to firms in India that are registered under the Goods and Services Tax (GST) regime. It is a 15-digit alphanumeric code used for a variety of GST-related procedures, including submitting returns, obtaining input tax credits, and making payments. The GSTIN identifies the taxpayer and allows the GST system to follow their transactions.
The first two digits of the GSTIN signify the state code, followed by ten digits of the business's PAN (Permanent Account Number), followed by the entity code and the check digit. Businesses must obtain a GSTIN to comply with India's GST legislation and regulations. Since the 2017 adoption of the Goods and Services Tax (GST), the GSTIN has become required for conducting business in India.
GSTIN structure simplified
Here’s another look at the structure of a GSTIN:
|First two digits||State Code|
|Next 10 digits||PAN allotted to the business|
|13th digit||The number of registrations in a state|
|14th digit||Default character|
|Last digit||Checksum digit or number|
- Registrations in the state are represented by the 13th digit. It's a combination numeric/alphabetic code, with digits 0 through 9 preceding the letters A through Z.
- The 14th digit is a default that is determined by the type of company. The letter Z is used to indicate a typical taxpayer.
- The GST department grants a GST Number to an NRTP (non-resident taxable person) who doesn't have a Permanent Account Number. Therefore, the following 10 digits of GSTIN would be the foreign government's tax identification number.
The example of a GSTIN would go like this: 22AAAAA0000A1Z5, where 22 is the state code, which is Chattisgarh, AAAAA0000A is the PAN or the Personal Account Number, 1 is the entity number of the same PAN holder in a state, Z is the default alphabet and 5 is the checksum digit.
What is the importance of GSTIN?
Under GST regulations, a business must know its GST number in India, as this is the number that must be included on every invoice from a supplier to receive the correct amount of input tax credit.
Businesses should also collect customers' GST numbers and include them on invoices since these are required for customers to claim input tax credits.
In a nutshell, obtaining a GST number in India is a necessary step for any company. This will aid enterprises in maintaining their market credibility and claiming the right input tax credit.
Who should register for GST?
Under the Goods And Services Tax (GST), all businesses that have a turnover exceeding the threshold limit of INR 40 lakh or INR 20 lakh or INR 10 lakh, depending on the area of operation, must register as a normal taxable person
Here is a list of companies that must register for GST regardless of their annual revenue:
- Input Service Distributor (ISD) or Casual taxable person
- Non-resident taxable person
- Supplier of goods and services to businesses located in multiple states
- Provider of goods through an e-commerce platform
- Any service provider
- Reverse charge method tax liability
- TDS/TCS deductor
- Data retrieval and storage service are offered online
How to apply for GSTIN?
The GST enrollment process encompasses the application for GST. Your business will be issued a GSTIN once your application has been accepted by the appropriate GST officer. You can submit your GSTIN application through one of these two methods.
Head to the GST Portal
- To register for GST online, go to https://services.gst.gov.in/services/quicklinks/registration.
- Select "New Registration" and then fill out "Part A of the Application" with your personal information.
- To confirm your identity, the portal will send a one-time password to your phone number or email address.
- An Application Reference Number (ARN) will be sent to your phone or email after the verification procedure is complete.
- Part B of the application can now be completed with the help of the ARN. For this stage, you'll need the following materials:
b) Proof(s) of the location of the business
c) Bank account details
d) Authorization form
e) Constitution of taxpayer 6. Next, complete the application by entering all requested information and attaching any supporting documents using DSC or Aadhaar OTP.
Once Part B is filed, the GST officer will review your application within three business days. After verifying your application, the officer may either approve it, in which case you will obtain your Certificate of Registration (Form GST REG 06), or request additional information using Form GST-REG-03.
The additional information must be provided within seven business days. Once the details have been submitted, the officer has the right to reject the application and indicate reasons for doing so on Form GST-REG-05.
If the GST officer determines that the information you have supplied is legitimate, your application will be completed, and you will be issued a Certificate of Registration.
GST Seva Kendra
The second method of registering for a GSTIN is to visit a GST Seva Kendra in person. The government has developed a multitude of service centres or "Seva Kendras" to facilitate all GST-related services to make life easier for taxpayers.
The government has established Seva Kendras to aid the transition of many taxpayers to the GST system. These taxpayers are those who do not have access to the service's online site or have little to no knowledge of how to utilize it.
What is the difference between GSTIN and GSTN?
The difference between GSTIN and GSTN may seem baffling at first. Both of these are connected to GST in some way. The GSTIN represents the taxpayer identification number.
On the other hand, GSTN, which stands for "Goods and Services Tax Network," is an information technology system that manages the GST portal. It aids in the successful synchronization of all parties involved in GST, including state and central governments, taxpayers, etc. The government is aided in its efforts to monitor domestic financial activity with the GSTN.
Business owners who exceed an INR 10 lakh/ 20 lakh/40 lakh annual revenue threshold should consider registering their company under the GST rule, depending on the area of operation. Once you've registered, you'll be issued a 15-digit GSTIN that must be included on all GST bills. This figure will help you report the appropriate amount of input tax to the government. In addition, your GSTIN serves as a crucial identifier for your company.
How to verify a GSTIN?
To avoid paying taxes and maximize profits, many businesses that aren't technically registered nonetheless charge GST using what appears to be a legitimate GSTIN. Since issuing a false GSTIN is the same as committing theft, checking the legitimacy of a GSTIN is essential.
The genuineness of a GST number can be quickly and easily verified. Simply perform a search for a GST number on its website. Each invoice includes the company's GSTIN for tax purposes.
Once you've located it, just double-check by doing the following:
- Visit the GST website at https://services.gst.gov.in/services/searchtp
- The entity's GSTIN will be required on the next page when you click the link. Simply type in the GSTIN and hit the "Search" button.
- Enter the correct captcha code and hit the search button.
- You will subsequently be sent to a page that contains the organization's legal information. If prompted to enter a legitimate GSTIN, you are dealing with a fraudulent GSTIN. Ineligible entities include those whose "Taxpayer Type" indicates "Composition." Otherwise, the GSTIN is legitimate and can be used.
- The following step is to verify the accuracy of the shown rates. A business may charge you more than the legal amount of GST. If you are unfamiliar with its rates, you can view a confirmed list of GST rates at https://cbic-gst.gov.in/.
If you have any questions or concerns about GST, you can reach the support desk at 011-21400643 or send an email to firstname.lastname@example.org.
Frequently Asked Questions
1. How much does it cost to register for a GSTIN?The government does not charge a fee to issue a GST Number. However, employing the services of a GST Practitioner or a Chartered Accountant may incur additional costs.
2. In what ways does GSTIN vary from GSTN?There is no overlap between the two concepts. When a company registers for Goods and Services Tax (GST), it is given a unique identification number known as a Goods and Services Tax Identification Number (GSTIN). On the other hand, the Goods and Services Tax Network (GSTN) is responsible for maintaining the GST Portal's computer systems.
3. Should GSTIN be included on all GST invoices?Your company's Goods and Services Tax Identification Number (GSTIN) must be included on all GST invoices. In addition, if your client is GST-registered, you must additionally include their GSTIN on the invoice.
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The example of a GSTIN would go like this: 22AAAAA0000A1Z5, where 22 is the state code, which is Chattisgarh, AAAAA0000A is the PAN or the Personal Account Number, 1 is the entity number of the same PAN holder in a state, Z is the default alphabet and 5 is the checksum digit.What is the format of 15 digit GST number? ›
GSTIN Meaning and Structure
The first 2 digits of the 15 digit GSTIN represents the state code. The next 10 digits are the PAN of the person or the business entity. The thirteenth digit is based on the number of registrations done by the firm within a state under the same PAN.
Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN). Here is a format break-down of the GSTIN: The first two digits represent the state code as per Indian Census 2011. Every state has a unique code.How many digits is GST number in India? ›
Under the GST act, businesses and individuals have to register their business with the state authorities and obtain a unique 15-digit Goods & Services Tax Identification Number (GSTIN).What is the format of GST number in Karnataka? ›
According to the GST state code list, Karnataka's GST state code is 29. The first two numbers (29) in the GSTIN 29AABMS0175C3Z6 signify the GST state code for Karnataka, for example.What is the format of GST? ›
GST Number Format
The GSTIN consists of 15 digits. The first 2 digits can range from 01-35 and indicate the state code for the registration as per the Indian Census of 2011. The next 10 digits are the PAN number of the GST registered entity. The 13th digit of the GST Number is the entity code.
- GST Amount = (Original Cost*GST Rate Percentage) / 100.
- Net Price = Original Cost + GST Amount.
Example: India's Adoption of the GST
This means that they pay Rs. 1 in tax for Rs. 9 worth of materials. In the process of manufacturing the notebook, the manufacturer adds value to the original materials of Rs. 5, for a total value of Rs. 10 + Rs. 5 = Rs. 15. The 10% tax due on the finished good will be Rs. 1.50.
In a GST registration number, the first two digits represent the State Code. The following 10 digits represent the PAN of the applicant. In addition, one digit represents entity code, one digit is left blank and the last digit is a check digit.What is GST tax in India with example? ›
GST can be calculated simply by multiplying the Taxable amount by GST rate. If CGST & SGST/UTGST is to be applied then CGST and SGST both amounts are half of the total GST amount. For example, GST including amount is Rs. 525 and GST rate is 5%.
INDIAFIRST LIFE INSURANCE COMPANY LIMITED GST Number - 27AADCB6215G2ZW.How long is GST number valid in India? ›
GST registration for regular taxpayers do not have an expiry date and is valid until it is surrendered or cancelled. Only the GST registration for non-resident taxable persons and casual taxable persons is valid for ninety days.Is GST number mandatory in India? ›
Is GST registration mandatory? Yes, you are required to obtain GST registration once your turnover exceeds the specified threshold limits. Click on the hyperlink to read more about the latest GST registration limits.What is the GST number of Delhi? ›
|GST STATE CODE||STATE|
- Step 1: Login to the Portal. The taxpayer has to login to the official GST Portal.
- Step 2: Enter the Details. ...
- Step 3: Click ITC Forms. ...
- Step 4: Click Prepare Online. ...
- Step 5: Select the Section. ...
- Step 6: Enter the GSTIN. ...
- Step 7: Enter the Invoice Number. ...
- Step 8: Enter Invoice Date.
VAT or GST registration number
This number is an alphanumeric identifier unique to the person or entity doing business. A VAT or GST number is used to identify the tax status of a customer and also to identify the place of taxation.
What is the importance of GSTIN? Under GST, knowing one's GST number India is extremely important for any business – as the suppliers of the business need to quote the GSTIN correctly as the GST invoice serial number in all the invoices which are supplied, which will lead to the right allocation of input tax credit.How many digits is a HSN code? ›
HSN codes are eight digits long, each with a specific meaning. HSN codes are designed to be used by businesses to classify their products for purchase or resale. This classification can be for pricing purposes, product descriptions, or inventory purposes.What are the 2 methods of calculating GST? ›
To work out the cost of an item including GST, multiply the amount exclusive of GST by 1.1. To work out the GST component, divide the GST inclusive cost by 11.How to calculate GST in Excel in India? ›
The formula for calculating your GST taxes is exceedingly simple: you take the cost of the product, multiplied by the GST rate on that product or service, and then multiply by 100. It also helps to know that before calculating your GST, you can deduct the discount from the total.
- First 2 characters i.e. State Code must be between 01 to 37.
- Next 10 characters i.e. PAN is validated as illustrated in ISVALIDPAN function.
- 13th character must be between 0 to 9.
- 14th character must be Z.
- Checksum is calculated based on 14 characters & is matched with 15th character of GST Number.
Types of GST in India - CGST, SGST, and IGST explained - Bajaj Finserv.Is there GST in USA? ›
The U.S. is one of the few countries that does not charge VAT or GST. Instead, the U.S. uses state sales tax as its method of taxation.What is Indian GST similar to? ›
The Indian GST model is based on the Canadian dual GST model. Also read: MCQs on GST.How do you show GST on a balance sheet? ›
The tax liability or positive input tax credit is to be shown as liability or asset in the balance sheet. Fixed assets on which input tax credit is allowed and taken are to be shown as cost excluding gst.Which country has the highest rate of GST? ›
Moreover, with the highest rate in the four slabs being at 28 percent, India easily has the highest GST rate in the world. Compared to India, even European countries like Denmark and Germany, where the standard of living is much higher, have lower tax rates.Why did GST start in India? ›
To subsume a majority of the indirect taxes in India
Some taxes were governed by the states and some by the Centre. There was no unified and centralised tax on both goods and services. Hence, GST was introduced. Under GST, all the major indirect taxes were subsumed into one.
HSN code stands for “Harmonized System of Nomenclature”. This system has been introduced for the systematic classification of goods all over the world. HSN code is a 6-digit uniform code that classifies 5000+ products and is accepted worldwide.Do we need to file GST every month in India? ›
All gst registered businesses have to file monthly or quarterly GST returns and an annual GST return based on the type of business. These GSTR filings are done online on the GST portal.Are you know which year GST is available in India? ›
The genesis of the introduction of GST in the country was laid down in the historic Budget Speech of 28th February 2006, wherein the then Finance Minister laid down 1st April, 2010 as the date for the introduction of GST in the country.
The maximum time limit is 5 years from the due date for filing of annual return for the year to which the amount relates.Can foreigners have GST number in India? ›
All regular taxpayers having residence in India should obtain Permanent Account Number (PAN). However, the foreign non-resident taxpayer can submit the application for GST registration, whether incorporated or established outside India.Can an individual have a GST number in India? ›
As per the GST Act, any individual who carries out a business activity anywhere in India, needs to have GST individual registration. This means, if you are engaged in any economic activity in an individual capacity that generates income, you are treated as a taxable person in the GST regime.Can I run a business without GST in India? ›
Every taxpayer whose annual revenue exceeds 40 lakhs must register for GST. If you wish to offer goods and services at occasions or exhibitions where you don't need a permanent home for your business, you must register for GST. Based on a 90-day projection of sales, such a merchant is required to pay GST.How do I write an invoice without GST? ›
If your customer requests a tax invoice and you're not registered for GST, provide a regular invoice showing there is no GST included in the price. You can do this by including the statement 'No GST has been charged' or by showing the GST amount as zero.How do you format an invoice number? ›
- numbering your invoices sequentially, for example, INV00001, INV00002.
- starting with a unique customer code, for example, XER00001.
- including the date at the start of your invoice number, for example, 2023-01-001.
- combining the customer code and date, for example, XER-2023-01-001.
The list of GST State Code is in the form of numbers such as 07 GST state code in Delhi, 19 GST code, 29 state code in Karnataka in the same way, GST state code 19 for West Bengal, 09 GST state code for Uttar Pradesh, and so on in GST number search.Which type of GST is applicable in Delhi? ›
The GST state code for Delhi is 07, as per the GST State Code List.What is GST number of SBI Delhi? ›
STATE BANK OF INDIA (07AAACS8577K1ZR)
They come under Central Government Jurisdiction of Commissionerate - DELHI SOUTH,Division - CONNAUGHT PLACE,Range - RANGE - 46.
When the GST is paid at the time of the purchase of a good, it is called 'Input Tax' and then the trader collects the GST during the sale which is called 'Output Tax'.
For example- you are a manufacturer: a. Tax payable on output (FINAL PRODUCT) is Rs 450 b. Tax paid on input (PURCHASES) is Rs 300 c. You can claim INPUT CREDIT of Rs 300 and you only need to deposit Rs 150 in taxes.What are capital goods in GST input? ›
The Concept of Capital Goods Under GST Law:
The word capital goods has been clarified in GST law. Capital goods refer to the goods, whose value is capitalized in the books of account of the person who is claiming the Input Tax Credit and which are purposefully used in the development of the business.
Under GST, a SAC code consists of six digits. Since services are covered under chapter 99, all SAC codes start with 99.How many digits is an e invoice HSN code? ›
In accordance with Notification No. 78/2020 – Central Tax dated 15th October 2020, taxpayers must provide 6-digit HSN Codes for their outward supplies having AATO(Annual Aggregate Turnover) more than Rs 5 Crores.How can I know my GST registration number in Pakistan? ›
The NTN inquiry is available in “Search Taxpayers” at https://e.fbr.gov.pk/ which can be accessed without logging in.What is the format of SAC code? ›
The SAC is strictly numeric and is six digits. The first two digits are same for all services i.e. 99, the next two digits represent the major nature of service and the last two digits represent the detailed nature of service. To understand this better, let us take an example of SAC code 9954.What is the SAC code 997158? ›
The HSN CODE FOR Financial transactions processing and clearing house services is 997158.What is SAC code 997152? ›
997152 For Brokerage and related securities and commodities services including commodity exchange services.What is GST details for? ›
GST is a digitalized form of VAT where you can also track the goods & services. Both VAT and GST have the same taxation slabs. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes.Is HSN 4 digit or 6 digit? ›
There is an HSN code requirement on B2B invoices if the previous fiscal year's turnover was up to ₹ 5 crore. Previously, the number of digits required was four and two.” Six-digit HSN codes are commonly used for commodities. Consequently, both Customs and the GST utilise the identical HSN codes.
HS Code which is known as HSN Code in India was developed by World Customs Organization (WCO) as a standardised system that classifies goods all over the world in a systematic manner. In India, HSN Code has 4, 6 & 8-digit uniform codes that classify more than 5000 products and are accepted worldwide.Is HSN code mandatory for GST? ›
As per Notification No. 78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digit or 6 digit of HSN Code in table-12 of GSTR-I on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year.Who is registered for GST? ›
You must register for GST if: your business has a GST turnover of $75,000 or more. your non-profit organisation has a GST turnover of $150,000 or more. you provide taxi or limousine travel (including ride-sourcing services like Uber, GoCatch, Didi or OLA) regardless of your GST turnover.