GSTIN

GSTIN, short for Goods and Services Tax Identification Number, is a unique 15 digit identification number assigned to every taxpayer (primarily dealer or supplier or any business entity) registered under the GST regime.

Before GST was introduced, all dealers registered under the state VAT law were issued a unique TIN number by the respective state tax authorities; the GSTIN number has replaced the same.

Business entities registering under GST are now provided with a unique identification number known as the GSTIN.

Obtaining GSTIN and registering for GST is absolutely free of cost.

What is GSTIN Meaning, Format and Structure 

Every taxpayer under the GST regime is provided with a State + PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).

Here is the breakdown of the GSTIN format-

  • GSTIN Full Form: Goods and Services Tax Identification Number
  • First 2 Digits: The first 2 digits of the 15 digit GSTIN represents the state code.
  • Next 10 Digits: The next 10 digits are the PAN of the person or the business entity.
  • Thirteenth Digit: The thirteenth digit is based on the number of registrations done by the firm within a state under the same PAN.
  • Fourteenth Digit: The fourteenth digit will be the alphabet "Z" by default
  • Last Digit: The last digit is called the check code to detect errors and can be denoted by either a number of an alphabet

GST Number Example

If any legal entity or business firm has only one registration in the same state, then the number “1” will be assigned as the 13th digit of GSTIN under its format. If the same company obtains one more or second registration in the same state itself, the thirteenth digit of GSTIN will be assigned as number ”2”.

Similarly, the letter “B” will be assigned as the 13th digit of the GSTIN if the entity has done 11 registrations in the same state. In the same way, any legal entity can have up to 35 business verticals and can be registered within a state using this system.

How to Apply for GSTIN? 

Applying for GST comes under the GST enrolment procedure. Once your GST application is approved by the concerned GST officer, a unique GSTIN is allocated. For learning how to get GSTIN number, there are 2 ways to apply, viz.

Documents Required

When applying for a GST identification number, you will typically need the following documents-

  • Photographs
  • The taxpayer's constitution
  • Proof(s) of the business's location
  • Account information
  • Form of authorization

-  Through GST Portal

  1. Log on to GST online portal https://services.gst.gov.in/services/quicklinks/registration
  2. Go to 'New Registration' and fill in the details such as your name, e-mail ID and mobile number in Part A of the application
  3. The portal will then verify your details by sending an OTP to your registered mobile and email
  4. After the completion of the verification process, you will receive an Application Reference Number (ARN) via mobile or email
  5. You can now fill Part B of the application using the ARN. The documents that you will need in this step include:
  • Photographs
  • Constitution of taxpayer
  • Proof(s) of the location of the business
  • Bank account details
  • Authorization form
  1. In the next step, provide all the information and upload the required documents in the application and submit the application using DSC or Aadhaar OTP.

Once you have submitted Part B also, the GST officer will verify your application within 3 working days. The officer, after verification, can either approve your application, in which case you will receive your Certificate of Registration (Form GST REG 06), or the officer may ask for more information using Form GST-REG-03.

The additional details must be provided within 7 working days. Once you have provided the details, the officer has the authority to reject the application providing reasons for the same in the Form GST-REG-05.

If the GST officer finds the details provided by you genuine, then the application will be processed, and you will receive a Certificate of Registration.

- Through GST Seva Kendra

The second way to register for GSTIN is by visiting a GST Seva Kendra directly. The government has established a plethora of service centres or “Seva Kendras” to facilitate all things related to GST and for the ease of taxpayers as well.

The government has set up the Seva Kendras to facilitate the migration to GST for many taxpayers. These taxpayers are the people who do not have access to or don’t have an idea of how to make use of the GST’s online portal.

How to Verify GSTIN?

There are many firms that produce invalid and fake GSTIN numbers just to charge extra money and avoid taxes under GST regulations.

First of all, as per the regulations, every service provider/ trader charging GST to their customers has to print their GSTIN number on all their produced invoices. You can, however, check the validity of the GSTIN provided to you in case you are having some doubts. 

Checking the validity of the GSTIN Number is quite easy; just follow the given below steps-

  1. Go to the GST Portal https://www.gst.gov.in/
  2. You will see a "Search Taxpayer" option on the menu bar
  3. Enter the GSTIN you wish to verify in the search box, along with the captcha code provided to you.
  4. If the given GSTIN is a valid GST-registered business as per the regulations of GST, the following details will be in front of you in seconds-
  • GSTIN Status
  • Registration Date
  • Type of Business Structure: Company, Sole proprietorship
  • Type of Taxpayer. Regular Taxpayer, Composition, SEZ unit
  • If the entered GSTIN is an invalid one, the website will display a message saying "error”

Benefits of Getting a GSTIN 

  1. Legal recognition of the business entity as a supplier of goods or services. This, in turn, helps in attracting more customers and growing business.
  2. You will become more competitive than small businesses as purchasing from them will ensure input credit.
  3. A person who has GSTIN can take input credit on their own purchases and input services. 
  4. No restrictions on interstate sales (they will be treated as casual taxable persons). Thus, the potential market for SMEs reaches the next level.
  5. You can either register on e-commerce sites or open your own e-commerce website. This will again enhance the scope of business for a registered person. 
  6. GST registration will ensure that your business is compliant (because most returns are automated). This will result in a good GST rating for your firm and help to boost the business.
You May Also Be Interested to Know
Tax on Mutual Funds Documents Required To File Income Tax Returns
How to Save Tax in India Top Reasons Why You Can Get An Income Tax Notice
Basics of Income Tax for Beginners How to Avoid LTCG Tax?

Spotting Fake GSTIN

Spotting fake GSTINs can be done simply by having a quick glance or a thorough check.

Alternatively, one of the most helpful ways to identify fake GSTIN numbers is by checking them via the GSTIN search tool. In addition, many free official and 3rd-party online tools are available to verify the number.

To verify if a GSTIN is authentic, follow the listed steps-

Step 1: Make a visit to https://www.gst.gov.in/

Step 2: Click on ‘Search Taxpayer’ and then click on ‘Search by GSTIN/UIN’.

Step 3: Fill in the GSTIN of the business in the field.

Step 4: Click ‘Submit’ after filling out the Captcha.

If the GSTIN is accurate, you will get much information related to the business, including the place of business, registration date, legal business name, etc. On the other hand, if the number is fake, no results will be displayed.

Difference Between GSTIN and GSTN

GSTIN number means the Goods and Services Tax Identification Number, whereas Goods and Service Tax Network (or GSTN) is an organisation that oversees the GST portal's whole IT system.

The Government of India will use this portal to track every financial activity and to give taxpayers all services, from registration to submitting taxes and preserving all tax records.

Explore Popular Calculators

Income Tax Calculator

Salary Calculator

GST Calculator

TDS Calculator

HRA Calculator

Retirement Calculator

Save up to Rs.46,800 on taxes
Check out the top tax-saving funds with the highest returns in the past 3 years
Loading...
ⓒ 2016-2024 Groww. All rights reserved, Built with in India
MOST POPULAR ON GROWWVERSION - 5.1.2
STOCK MARKET INDICES:  S&P BSE SENSEX |  S&P BSE 100 |  NIFTY 100 |  NIFTY 50 |  NIFTY MIDCAP 100 |  NIFTY BANK |  NIFTY NEXT 50
MUTUAL FUNDS COMPANIES:  GROWWMF |  SBI |  AXIS |  HDFC |  UTI |  NIPPON INDIA |  ICICI PRUDENTIAL |  TATA |  KOTAK |  DSP |  CANARA ROBECO |  SUNDARAM |  MIRAE ASSET |  IDFC |  FRANKLIN TEMPLETON |  PPFAS |  MOTILAL OSWAL |  INVESCO |  EDELWEISS |  ADITYA BIRLA SUN LIFE |  LIC |  HSBC |  NAVI |  QUANTUM |  UNION |  ITI |  MAHINDRA MANULIFE |  360 ONE |  BOI |  TAURUS |  JM FINANCIAL |  PGIM |  SHRIRAM |  BARODA BNP PARIBAS |  QUANT |  WHITEOAK CAPITAL |  TRUST |  SAMCO |  NJ