GSTIN: Single Tax Identification Number
Goods and Services Tax is a taxation framework under which the implementation of destination-based tax takes place. It is a multi-stage tax, levied whenever there is any value addition in the product. It is implemented at the time of doing the supply and transportation of goods and services. Before GST implementation, a total of 17 State and Central taxes are there. But now, all subsumed into GST. The GST implementation converted India into a unified market where a product will cost the same all over the country irrespective of state boundaries.
GST Registration
The process of registering a business under GST is known as GST registration. Any business can go for GST registration both online and offline. People can log on to the GST portal and register themselves on their business online and can also visit a nearby GST Seva Kendra to register under GST offline.
After registration, entities allotted with an identification number known as GSTIN which functions the same as TIN or Tax Identification number.
People can apply for GST registration by filling the details in GST REG-06 form for both primary business destinations as well as for other destinations.
All businesses and entities successfully register under GST were provided a unique number called Goods and Services Identification Number.
Before GST implementation, people used to have different numbers for different taxes. Dealers which are registered under State VAT get a unique TIN by state taxation authorities whereas service providers were assigned a unique service tax registration number by Central Board of Excise and Customs (CBEC).
GSTIN act as a single tax identification number. It helps in improving the system of tax collection and reducing the number of tax evasions because of good administration capabilities. With GSTIN, single authorities will now do registration of companies and individual on a single platform. It makes it easier for both tax authorities and companies to comply with rules and smoothly manage things.
According to the estimates, more than 08 million taxpayers have been migrated from various platforms to the network of GST.
Verification and Validation of GSTIN
In case, you newly applied for GST registration, received your new GSTIN number, it is a must to ensure that all details of your business have been updated correctly on the website of GST.
To verify GST details, all you need to do is input your GST number on the Official GST portal page titled Search Taxpayer by GSTIN. Alternately you could also use the ‘Search Taxpayer by PAN’ option to complete GST Number verification online. The same options are also suitable for carrying out GST Number verification online in the case of prospective vendors and business partners.
Structure of GSTIN
It is a unique 15-digit alphanumeric code assigned to every entity that has successfully registered under GST. It is the sole reference number to find out details about all the transactions undertaken as a part of the GST. GSTIN number designed to furnish maximum information of the business as easily as possible. The structure of a GSTIN is mentioned below:
- First Two Digits – The first two-digit number depicts the state code from where the business is being operated. In the Indian Census of 2011, one can find the state code.
- Next 10 digits: From the 3rd to 12th digit of GSTIN comprises information about the Taxpayer’s Permanent Account number.
- Thirteenth digit: It provides information about the number of registrations done by an entity in a state with the same PAN. One can do only 35 registrations in such cases. This is an alphanumeric number. For the first 9 registrations, 1 to 9 codes are given and after that, alphabets are assigned. For example, if it is the first registration for a specific PAN, the code is 1 and if it is the tenth registration, the code assigned is A.
- Fourteenth Digit – The fourteenth digit is kept Z by default. This number is assigned for future reference.
- last Digit – The fifteenth digit is the check code which is used for detecting the errors. This may be a number or an alphabet.
To every entity, GSTIN is being allotted on the successful completion of the GST registration process. Once the application is filled and documents submitted successfully, in a few days’ verification will take place and after completion of the verification process, the user gets registered at the GST portal.
After registration, he or she is provided with a GSTIN which can be used to file taxes, view statements and communicate with authorities.
Process to do GSTIN number search
The GSTIN records are available easily not just only to the tax authorities but also the general public via online route. All a person needs to search GST number provided by a prospective vendor and can-do verification of the name or address etc. according to GST registration records.
After the implementation of the GST and GST number search, multiple websites started advertising about the same. So, it is wise to check the GST registration details only through the official GST portal. The availability of the option to search GSTIN of prospective business partners and vendors is expected to enhance the trust among businesses across the country including across the state borders. The Goods and Services Tax Identification Number search page on the GST website is as follows:
GSTIN number search by PAN
The updated GST registration database also given a facility to search GSTIN number with the help of a PAN number of the business or individual.
In case business or individual is not registered under GST, the ‘No Records Found’ message will be displayed. Otherwise, the GSTIN records of the PAN linked to the GST registration will be displayed.
GSTIN number search by Name
Presently the official GST Database is not providing the option of completing a GST number search by name of registered business or individual under GST. But still, some websites are advertising the option of the same. It is wise to always to double-check any records you are receiving from such websites.
Do existing taxpayers under Central Excise/Service Tax/State VAT have to apply for fresh registration under GST?
It is must know that all those businesses and individuals who are already registered under any of Central Excise/ service tax or any state VAT authority do not need to do any migration to the GST portal. GSTIN would itself migrate such assesses to the GSTIN network.
In that case, GSTIN and password would be generated automatically, and such entities will have to submit all documents required during the registration period. When the GST officer does the verification of these documents, entities get the GSTIN.
In case the applicant unable to submit his or her documents or get any approval, then GSTIN is canceled. Service Tax assessee registered under the Central Government needs to apply in the state of operation of their business.
What is the cost of obtaining GSTIN?
There is no cost or fee is charged for obtaining GSTIN. The complete cost incurred by the Central Government. Payment neither to be made online nor offline by applicant. The applicant only needs to fill the registration form online and get the approval of the same.
The other tasks are done with minimum interaction of the applicant and GSTN executive, thus reducing the chances of corruption and bribery.
