What is GSTIN And How To Apply For It?

Aug 17, 2022

Every GST taxpayer gets a 15-digit number known as the Goods and Services Tax Identification Number (GSTIN). Before the government implemented the GST system, each merchant registered under the state VAT statute used to receive a specific TIN. GSTIN has now replaced The TIN.

What is GSTIN?

Before the introduction of the GST, each state’s tax office provided a new TIN to every merchant registered under the state’s VAT statute. Additionally, the Central Board of Indirect Taxes and Customs provided businesses with service charges registration details (CBIC).

Under the GST system, a single agency takes care of identification, and a single platform pools all authorized applicants for oversight and management. Each organization operating in a state will get a unique Goods and Services Tax Identification Number or GSTIN.

The user obtains a 15-digit alpha-numeric number with alphanumeric characters upon registration. Accordingly, each person who exceeds the threshold should apply to get a GSTIN. In addition, the taxpayer may receive a GSTIN voluntarily even if they do not go above the limit value.

Everyone who requests a GST Registration, regardless of whether they are a resident or a non-resident, receives one. 

Necessity of GSTIN

Indian Prime Minister Narendra Modi’s indirect tax system gives importance to the GSTIN. Let’s look at its significance in light of what the GST Act mandates.

  • Obtaining ITC: ITC stands for Input Tax Credit, which applies to Taxable goods and services that you purchase during the business. As a result, you must have a GSTIN that allows uninterrupted ITC use if you want to be able to subtract input GST from GST due on sales.
  • GST Returns: The GST Act stipulates that you must file several GST Returns, such as GSTR-1, GSTR-3, 3A, GSTR-9, and others. To give the government an accurate record of the products, you must obtain a GSTIN. 
  • Requesting GST Reimbursement: Export, delivery to an SEZ unit, and a variety of other situations qualify for reimbursement under the GST Act. To request a refund under these regulations, one must have a GSTIN.
  • How important is GSTIN for final bills, promissory notes, and letters of credit? Keep in mind that the Invoice, Promissory Note, and Letter of Credit contain the GSTINs of the provider and the beneficiary.

Format of GSTIN

Every taxpayer has a 15-digit GST identity number, which depends on their PAN. Here’s the GSTIN format:

  • The first two numbers indicate the unique state code, according to the Census of 2011.
  • The next 10 digits represent the PAN number.
  • The thirteenth digit will serve as the applicant’s registration number within a state.
  • The 14th digit is ‘Z’ by default.
  • The last digit is for check code, which can be any letter of the alphabet or a number.

How to apply for GSTIN?

You can register for GST in two ways: 

  • Through a Government of India’s GST Seva Kendra
  • Through a GST online portal.

Necessary information to apply for GSTIN

  • Valid PAN
  • Mobile number
  • Valid e-mail address
  • The firm’s name
  • Valid bank account details
  • IFSC code of the given bank
  • Trustee or partner with a valid PAN ID
  • A resident of India who is an authorized signatory
  • Jurisdiction and the day when the business began
  • Recall that GSTIN registration is free of charge

Difference Between GSTIN and GSTN

GSTIN and GSTN are two different terms that you should not use interchangeably. A GSTIN is a registration number for GST and GSTN tax payments (Goods and Services Tax Network). Additionally, GSTN oversees the complete IT infrastructure of the GST portal. The Indian Government uses the site to access data on all financial transactions. Additionally, it also offers GST taxpayers comprehensive services from registration to filing and maintaining tax records.

Conclusion

GSTIN makes it simple to identify a business or supplier and obtain information about them through a unified GST gateway. When depositing GST received from the receiver, the portal offers information on the dependability of the recipient or provider. If the beneficiary doesn’t make his deposit on time, he cannot use the ITC. As a result, you should check the supplier’s legitimacy on the portal before making a purchase or using a service.

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