Goods and Services Tax Identification Number (GSTIN)

The PAN and state of a business are represented by GSTIN. The breakdown of GSTIN is as follows:

1. The first two digits of GSTIN indicate the Code of a State.
2. The next ten digits indicate the PAN number of the taxpayer/business.
3. The 13th digit is determined by how many registrations the company has completed within a state with the same PAN.

1. The 14th digit will always be ‘Z’ by default.
2. The last digit refers to the check code. This code, which may be either an alphabet or a number, is used to find errors.

GST Number Example

For example, if a business has just one registration in the same state, then the 13th digit of GSTIN will be number ‘1.’ If the same firm receives another registration in the same state, number ‘2’ will be assigned as the 13th digit of GSTIN.

If the business has made 11 registrations in a state, the 13th digit will be assigned as ‘B.’  In the same way, all businesses can use this system to register within a state and have up to 35 business verticals.

How to Apply for GSTIN?

The GST enrolment process includes the GSTIN application process. You will be given GSTIN after the GST officer approves your GST application. To apply for GSTIN, follow the steps mentioned below:

Step 1: Visit the official website of Goods and Services Tax at https://services.gst.gov.in/services/quicklinks/registration. 

Step 2: Navigate to the ‘New Registration’ option.

Step 3: Enter the requested information such as your mobile number, PAN, email address, etc. 

Step 4: You will receive an OTP on your registered mobile number.

Step 5: On completion of the verification process, you will receive an Application Reference Number (ARN) on your registered mobile number.

Now, you must complete Part B of the application using your ARN. For this, you will require the following documents:

1. Authorisation form
2. Proof of business’s location
3. Constitution of taxpayer
4. Bank account details

1. Photographs

Step 6: The verification of your documents will be completed within three business days. The officer may request more information using Form GST-REG-03 within seven working days. If the certificates are valid, a Certificate of Registration will be issued to you.

How to Verify and Check Status of GSTIN?

Often fake GSTIN numbers are discovered, allowing firms to dodge taxes and charge additional taxes. All service providers that charge their clients GST must print their GSTIN number on all invoices issued. In case you are doubtful about the GSTIN provided, you can verify it as follows:

Step 1: Visit the official GST Portal

Step 2: On the menu bar, click on ‘Search Taxpayer.’

Step 3: In the search box, enter the GSTIN you want to verify. 

Step 4: Enter the captcha code displayed on the screen.

The following information will be displayed if the GSTIN you entered is a legitimate GST registered business:

1. GSTIN Status

1. Date of Registration
2. Business Structure: Company, sole proprietorship
3. Taxpayer Type: Composition, SEZ unit, and regular taxpayer

The website will display an ‘error’ notice in case the GSTIN is incorrect.

Benefits of Having GSTIN

The benefits of GSTIN are as follows:

1. A business can be legally recognised as a supplier of goods and services with a valid GSTIN. 
2. GSTIN helps you be more competitive than a small firm because buying from them guarantees input credit.
3. You will be able to expand your business’s reach by registering on e-commerce sites or building your own e-commerce site.
4. Any individual may claim input credit on their purchases if they have a valid GSTIN.

1. Businesses can avoid limitations on interstate sales by using their GSTIN.

Difference between GSTIN and GSTN

GSTIN is a 15-character alphanumeric code that is assigned to all taxpayers. Goods and Service Tax Network (GSTN) is an organisation in charge of managing the information technology aspects of the official GST portal. With the introduction of GSTIN, the new tax system is now more transparent.

Customers can verify a business entity’s legitimacy by doing GSTIN checks. GSTIN enables businesses to avoid interstate sales limitations, which is a significant improvement over the previous system.