The Basics Of The New Goods And Services Tax Identification Number

The Basics Of The New Goods And Services Tax Identification Number

Until the introduction of the Goods and Services Tax regime in India, all business owners were forced to enroll under State Value Added Tax ( VAT) Act. Once registered, they would be given a unique TIN number depending on the state where they carry out their business activities.

Nevertheless, with the launch of the GST in July 2017, all companies were expected to receive a unique GST Identification Number. With this in effect, all licensed taxpayers should be unified into a single forum for management and enforcement. The major transition has seen about 8 million taxpayers move from all past tax systems to the current GST system.

Goods And Services Tax Identification Number Break-Up

Each taxpayer enrolled under the GST shall be given a 15-digit identification State Wise number depending on the PAN. below is the structure of the goods and services tax identification number

  • The very first 2 numbers of the GSTIN represent the code of the respective state where the organization conducts its business operations.
  • The following 10 figures denote the Permanent Account Number (PAN) of the registered business entity
  • The 13th number depicts the number of enrollments in a particular state using the very same Permanent Account Number
  • The 14th number by default is the alphabet “Z”
  • The 15th figure is what they refer to as an error check code, it can either an alphabet or a number.

Documents Required For GSTIN

The best way to acquire a GST Identification Number is to enroll on the GST site. You would be required to submit the relevant documentation.

  • Online application filled in with all the required details
  • Bank account details (account number, IFSC Code of the preferred branch of the bank)
  • Phone number
  • Email address
  • Location of the business organization
  • Information of their respective jurisdiction
  • Permanent Account Number (PAN)

Currently, with the above papers, the taxpayer is also expected to send to the PAN the particulars of at least one operator, business associate, trustee, or shareholder. Details of an approved signatory residing in India are necessary.

Who Is Required To Register?

In simple words, not every taxpayer must register for the Goods and Service Tax Identity Number. It extends only to those individuals who exceed the above annual turnover requirements.

States With No Special Status

  • One should have a yearly revenue of more than Rs 40 lakh from the sale of commodities/goods.
  • When it comes to service the annual revenue for an organization should be Rs. 20 lakh or above.

Śtates With Special Status

  • An organization should have a yearly revenue of more than Rs. 20 lakh from the sale of commodities/goods
  • When it comes to service the annual revenue for an organization should be Rs. 20 lakh or above.

States under the “Special Status” category are Arunachal Pradesh, Uttarakhand, Jammu & Kashmir, Assam, Nagaland, Tripura, Manipur, Sikkim, Meghalaya, Himachal Pradesh, and Mizoram.

GST Registration Procedure

The method of applying for GST via the online GST platform can be very complicated, to make things even simpler, follow the steps mentioned below.

  • Head over the GST portal
  • Click on the “Services” tab and then click on Registration
  • Now select “New Registration”
  • Enter the details required and submit
  • You will be required to give you email address and mobile phone number for the One Time Password (OTP)
  • Once you get the OTP, enter the same
  • Now you will be given a Temporary Reference Number (TRN) note down the same
  • Go back to the main page of the GST website
  • Click on “Services” and then click on “Registration”
  • Here click on “TRN” in place of “New Registration”
  • Enter and then submit the TRN
  • You will see a captcha code on the screen, enter the same.
  • You now be redirected to the “My Saved Application” section

You will fill out the form inside 15 days, it is at this point that you are required to send scanned versions of the other paperwork, like evidence of business, required bank details, etc.

After you enter and submit all the required details, select “Save and Continue” and lastly provide information in the “Authorized Signatory” section.


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