What is a GST number?

Goods and services tax has an identification number called GSTIN, a 15-digit unique number available after GST login- GST portal. This number is availed to every person who is a taxpayer (individual or dealer/supplier/owner of a business entity). Obtaining a GST number and registering it is free of cost available to everyone. 

Use of GST number!

We are already aware that goods and services tax came in 2017, replacing central and state-levied tax like excise tax, sales tax, and VAT, as this number gives a unique identification to every business or the person paying taxes.

GST identification number opens doors to benefits available under the GST regime

Once you get your GST -IN, there are various benefits available to the one who is registered and has an identification number under the GST regime. GSTIN is mandatory for every business whose turnover exceeds INR 20 lakhs; you must file a GST return if you are a registered dealer. 

If you have a GST number, you can also avail refund in case of extra tax paid. It is also helpful in business funding and loans. Generally, registered businesses are demanded at the time of loan application.  

How GST-IN looks like!

A unique 15-digit code is state-based and PAN-based 

  • First, two digits reflect the state code of the individual as per the census; each and every state has a different code.
  • The upcoming ten digits are the PAN number of the taxpayer, individual or business.
  • The thirteenth digit is the number of state registrations for the same PAN.  It is alphanumeric.
  • The fourteenth digit is an alphabet. 
  • The last character is a check code to detect errors. It can be an alphabet or a number. 

How to apply for a GST number using the GST portal?

  • If you need a new GST number visit the “GST portal” and click on “Register now”  under the taxpayer (Normal/ TDS/TCS) column. 
  • Click on the "New Registration" and fill out the necessary details asked. 
  • The next step after filling out the form is OTP verification; a total of two OTPs will appear, one by e-mail and the other by mobile number.  
  • Thereafter temporary reference number (TRN) will appear on the screen, saved for later use. 
  • Go to the GST portal again, click on the Taxpayer column, and this time log in from the TRN option. 
  • After filing the TRN number, click proceed, again two step OTP verification will take place; OTP on the mobile number and E-mail will appear. 
  • The next page will display your application status; click the edit button and start your GST registration process. 
  • Submit all the necessary documents and fill out the business details and proceed with a verification process. 
  • Review the declaration and apply for a Digital signature certificate (DSC) for e-signature
  • After the completion success message appears on the screen, you will receive the ARN number and acknowledgement on your registered e-mail.
  • ARN status can be checked using the GST portal.

Documents required for GST registration    

For registering at GST portal, one needs to have certain documents like 

  • PAN card 
  • Aadhar card 
  • Proof of business registration
  • Incorporation certificate 
  • Proof of address 
  • Digital signatures 
  • Photograph 
  • AOA/MOA certificates 
  • Letter of authorisation 
  • Bank account statement 

Advantges of having GSTIN and registration 

The benefits of availing GST registration number are 

  • It gives uniqueness to every business. 
  • Your business is the recognised legal entity.
  • Your tax is deducted in a steady manner.

Who should register for GST and GST number?

GST number is given to those individuals / companies who have met the minimum eligibility criteria of GST registration. 

  • A tax-paying person who is recognised as the non -resident.
  • Supplier agent and input service distributor.
  • Person supplying e-commerce aggregators.
  • Businesses whose turnover is above INR 40 lakhs (10 lakhs for northeastern states, Himachal, Uttarakhand and Jammu & Kashmir )
  • Individuals those who pay tax under the reverse charge mechanism. 

Different types of GST registration in India?  

As per the GST act, registration is of various types having different requirements and functions. Different types are availed to a distinct category of people. 

Casual Taxable person  

Those business owners who set up businesses, shops and stalls for a limited period of time are covered under this category. The amount  equivalent to expected GST liability is deposited to the government for the time period when the shop or business was in operation.

The duration of GST registration under this category is three months and can be extended. 

Normal Taxpayer 

Majority of the Indian businessmen fall under this category, with no need to provide any deposit and no expiry date for taxpayers. 

Composition scheme  

Those entrepreneurs whose business turnover is less than INR 1.5 crore for the year can register GST under this composition scheme. This is easy to handle scheme for small taxpayers to avoid complex GST formalities and can pay tax at a fixed rate.  

Non-resident taxable persons 

If you are living out of India but supply goods and services to people who live in India. You can opt for this category. The amount deposited should be equal to the GST liability active during the time of registration. The duration is three months and can be renewed. 

Read : Types of GST Returns 

Conclusion 

Whenever you register yourself or your business into the GST portal, a unique identification number is allotted to every person who's been registered. The 15-digit authentication number is uniquely designed with distinct features and specifications in itself.

If you want to avail of GSTIN, log on GST login-GST portal, follow all the steps, and give the required information.  In order to register for GST numbers, be prepared with personal documents like Aadhar, PAN, business documents etc. 

GST registration in India offers different kinds of registration, identifying the person, business and place where the business operation takes place.

Must Read : GST certificate download 

FAQS  

What are the types of GST registration 

  • Compulsory registration
  • Voluntary registration
  • Registration under the composition scheme

Who can claim a GST refund?

In case if you have paid access GST amount by mistake or omission.

What items are GST-free? 

GST-free items are 

  • Food 
  • Education 
  • Exports 
  •  Health 
  • Some charitable activities 
  • International travel 

Is GST compulsory?

Yes, it is mandatory to obtain GST registration once you exceed the threshold limit. 

Which person pays the highest GST in India?

The reliance industry pays the highest tax of Rs 16 297 crore with a net profit of Rs 60,705 crore.