GSTIN – Meaning, Structure and How to apply and applicable Fees

Every GST taxpayer is assigned a 15-digit identifying number known as the Goods and Services Tax Identification Number (GSTIN). Prior to the implementation of the GST system, all merchants registered under the state VAT statute were assigned a unique TIN number. GSTIN has now taken the role of TIN.

Before we delve into the specifics of GSTIN, consider how the one-of-a-kind number might benefit your company.

What exactly is GSTIN?

Prior to the implementation of GST, the individual state tax department offered a new TIN number to each of the merchants authorized under the state VAT statute. Likewise, the Central Board of Indirect Taxes and Customs  granted enterprises a service charges registration details (CBIC).

These authorized applicants are pooled onto a unified platform for oversight and management concerns, and identification is delegated to a single agency under the GST system. A specific Goods and Services Tax Identification Number, or GSTIN, will be issued to each entity functioning in a state of the federation.

It’s a 15-digit alpha-numeric number with alphanumeric characters which the user receives upon registration. So each individual who surpasses the set point, depending on the type, should file an application in order to get a GSTIN. Furthermore, even though the taxpayer does not exceed the limit value, he or she might receive a GSTIN on a voluntary basis.

Every individual who applies for a GST Registration, whether either resident or a non-resident, receives one. However, under Section 25(9), any organization of the United Nations Organization, whatever Multilateral Financial Institution and Organization under the United Nations Act of 1947. Any Consulate or Embassy of a foreign land, as well as any other individual or body of individuals; as the official might indeed notify shall be made available a Unique Identity Number (UIN).

Necessity of Goods and Services Tax Identification number

GSTIN is important as per Indian Prime Minister Narendra Modi’s indirect tax system because earlier schemes have already taken place with GSTIN. Let us examine its significance in light of the GST Act’s requirements.

• Obtaining ITC: ITC refers as Input Tax Credit, and it refers to the Taxable goods and services on products or services purchased in the conduct of the business. As a result, in order to deduct input GST from GST payable on sales, you should have a GSTIN such that ITC should be used without interruption.
• GST Returns: The GST Act requires the filing of a variety of GST Returns, including GSTR-1, GSTR-3, 3A, GSTR-9, and others. It is necessary to have a GSTIN in order to provide the government with a proper record of the products. Further for services delivered and received on a monthly, quarterly, and annual basis, which will aid in the ITC claim.
• Requesting GST Reimbursement: Reimbursement is available under the GST Act for a variety of reasons, including export, delivery to a SEZ unit, and so on. It is essential to get a GSTIN in order to seek a refund under these regulations.
• The significance of a final bill, promissory note, and a letter of credit Note is that the GSTINs of both the provider and the beneficiary are in the Invoice, Promissory Note, and Letter Of credit.

Format of Goods and Services Tax Identification number

Each taxpayer has a GST identification number, a 15-digit number based on the PAN. Further, here is the format of GSTIN

• First two digits represent the unique state code according to the Census 2011.
• Further, 10 digits represent the PAN number.
• 13th digit will act as per the registration number of applicant within a state.
• 14th digit is by default act as ‘Z’
• Furthermore, the last digit is the check code and it can be any alphabet or a number.

How to file an application of GSTIN?

Steps for Registration of GST application are:

• GST’s Online Portal
• GST Seva Kendra set up by Government of India

Important information required while applying for GSTIN 

• Valid PAN                                                                                                                                   
• Mobile number
• E-mail id
• Name of the business                                      
• Valid bank detail                      
• IFSC number of given bank                                                       
• Partner or Trustee with valid PAN ID 
• An  authorized signatory who is resident of  India
• Jurisdiction and date of commencement of business
• Note: registration for GSTIN is free of cost

How GSTIN and GSTN are different from one another?

GSTIN and GSTN are two different terms and may not be used interchangeably. GSTIN is a registration number for tax payment under GST and GSTN (Goods and Services Tax Network). Further, is the organization that manages the entire IT system and the entire GST portal. Indian government uses the portal to access all financial transaction information. It will also provide all services to GST taxpayers from registration until they file their tax returns and maintain tax details.

Conclusion

GSTIN helps you easily identify a business or supplier to get information about that business or supplier through a common GST  portal. The portal provides information about the reliability of the recipient or provider when depositing  GST received from the recipient. The recipient will not able to use the ITC if he did not make deposit on time. Therefore, you should verify the authenticity of the supplier on the portal before purchasing  goods or using the service from that supplier.