Goods and Services Tax

The Goods and Services Tax Identification Number or GSTIN is the unique number which an enterprise requires to conduct import/export after the implementation of the GST system back in July 2018.

What is GSTIN?

The GST Identification number is a unique 15-digit alphanumeric code that exporters and importers have to declare when doing business.

A typical GSTIN has the following:

  • The first two digits are the state code. Each state has a unique 2-digit code according to the 2011 Indian Census.

For example, Jammu and Kashmir’s state code is “01” while that of Andhra Pradesh is “37”.

  • The following digits are the PAN of a trader. PAN is a 10-digit alphanumeric code.
  • GSTIN’s 13th digit represents the number of registrations a business currently holds in the state with PAN.
  • The 14th digit in GSTIN is “Z” by default.
  • The 15th and last digit is a checksum code used for errors detection.

 

Who Can Opt for a GST Identification Number?

Individuals who can have a GSTIN include:

  • Sole proprietorship – Proprietor.
  • Hindu Undivided Family (HUF) – Karta.
  • Private Ltd. or Public Ltd. – Directors or Managing Directors.
  • Partnership or LLP – Managing Partners or Authorised Partners.  
  • Trust – Trustees or Managing Trustees.
  • Association of Body or Persons – Member of the Managing Committee.
  • Local Authority or Statutory Body – CEO or an equivalent person.

Any authorized personnel can opt for a GSTIN in case of any other business types.

What Are the Documents Required to Avail A GSTIN?

Businesses need to have the following to avail a GST Identification Number:

  • PAN
  • Identity proof – Passport, Voter ID, Aadhaar, Driving License, etc.

Identity proof is mandatory for KYC verification not only when it comes to GST but also to avail financial products and services. These documents are compulsory when entities want to avail business loans.

Bajaj Finserv is an NBFC that offers up to Rs. 30 Lakh as Business Loan within 24 hours against such minimal KYC related documentation.

Additional documents a business will require for GST registration includes:

  • Address proof – Latest utility bill, latest property tax, municipal khata, rental agreement/lease deed (in case of rented properties), Government-issued documents/certificates (in case the business operates from an SEZ), etc.
  • Proof of business – Memorandum of Association (MOA), Articles of Association (AOA), registration certificate, board resolution certificate, Partnership Deed, Shops and Establishments Act certificate, etc.
  • Bank account details.

Bank account details are mandatory to avail the simplified composition GST tax rate in India.

How to Get your GSTIN?

Any business which has registered for GST will have a GSTIN. Registration can be done either from the official portal of GST or a GST Seva Kendra set up by the Government.

How to Register in the Official Portal?

Individuals can follow these steps to register in the official portal:

  • Click “Services, then “Registration”, and finally “New Registration”.
  • Provide the necessary details – State, District, Name, PAN, mobile number, email address, etc.
  • Click “Proceed”.
    An OPT will be shot to the mobile number and email for verification.
  • Enter the OTP.
    Next, the applicants will receive their Application Reference Number (ARN) on their mobile or via email.
  • Provide the necessary details along with the ARN.
  • Upload the required documents.

Applicants will receive their certificate of registration after the successful completion of the above steps.

In some cases, they may be required to submit additional documents. Only after they provide these documents will applicants receive their certificate of registration.

Businesses will get to enjoy the numerous benefits of GST only after registering themselves and availing the GSTIN.

GST benefits both taxpaying entities as well as the authority with a streamlined process other than a more transparent overall taxation system. Its sum total of positive benefits is expected to show up over the coming years.

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