The month of July ushered in Goods and Services Tax (GST) into the Indian economy. While the experts are yet to find out the implications of GST, certain appendages of the tax would be implemented with immediate effect as far as businesses are concerned. One such feature is the GSTIN (Goods and Services Tax Identification Number).
GST, a 15-digit number has replaced the Tax Identification Number (TIN) that business entities were allotted while registering under a state’s Value Added Tax law. Several other identification numbers were also necessary for these firms. However, after implementation of GST, all such numbers will be replaced by GSTIN. Under the GST regime, all these different identification numbers required for indirect tax purposes will be superseded by a single umbrella number, the GSTIN.
Filing for the GSTIN can be carried out in a two-step simple process. GST practitioners and taxpayers can just log in to the portal gst.gov.in and file for the GSTIN by uploading the right documents. GST registration is essential as it is the gateway for availing various benefits available under the GST regime.
The two-step procedure has been described as below:
Stage 1: Upon registration on the GST Network portal, a business is given a provisional GSTIN.
Stage 2: In the second stage, the business entity has to log on to the GSTN portal and provide details of its business, such as the main place of business, additional place of business, directors and bank account details.
Notably, the government has allowed traders and businesses to continue even after July 1 with provisional IDs, until the time they get their final identification numbers.
Also, while registering on the GST portal one would be handed over an ARN (Application Reference Number), which is required for further queries regarding one’s application, including that of the GSTIN number validation. The ARN will be sent to the Registered User’s Mobile number and Email Address provided. There are five types of possible ‘status’ of your application: ‘Provisional’, ‘Pending for Verification’, ‘Validation against Error’, ‘Migrated’, and ‘Cancelled’.
A complete break-up of the proposed GST Identification Number is provided below:
Each taxpayer is allotted a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
- First two digits of the number represent the state code as per Indian Census 2011.
- Next ten digits are the PAN number of the taxpayer.
- 13th digit gets assigned based on the number of registrations within a state.
- 14th digit is Z by default.
- The last digit is the ‘sum’ check code
No charge or fee applies to register under GST and for obtaining the GSTIN.