What is the GST Number?
Before the implementation of GST, all the dealers registered under the state VAT law were assigned a unique TIN number by the state tax authorities. Similarly, service providers received a service tax registration number from the CBIC.
However, under the GST regime, all the registered taxpayers are consolidated into one single platform for administration and compliance purposes. Every business operating in a state or union territory are assigned a unique Goods and Services Tax Identification Number also known as GSTIN.
Why is GSTIN Required?
To legally operate your business in India, you need a GSTIN if your annual turnover exceeds a specified limit. Registering for GST and getting a GSTIN helps you avoid fines and penalties.
Here’s why you require a GSTIN -
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Filing GST Returns
A GST number is essential for filing GST returns, which are periodic statements of your business's transactions and tax liability. All GST-registered businesses must file returns, even if there is no business activity or tax liability during the period.
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Claiming Input Tax Credit
You need a GST number to claim the input tax credit, which allows you to deduct the GST paid on business purchases. This claim is only possible if the supplier has uploaded the invoice details on the GST portal and included your GST number on the invoice.
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Avoiding Penalties
A GST number helps you avoid penalties for non-compliance with the GST Act. Failing to register when required can result in a penalty of 10% of the tax due or Rs. 10,000, whichever is higher. Additionally, collecting GST but not remitting it to the government can lead to a 100% penalty on the tax amount.
Importance of GSTIN
GSTIN is very important for businesses as it provides them with a unique identity that can be used for various purposes. Given below are the benefits and the importance of GSTIN number for businesses -
- It helps reduce tax evasion, fraud, duplication, identity theft, and other economic crimes.
- It allows transactions across states and union territories to be tracked.
- It provides a single platform for all indirect tax-related compliances.
- Having a GSTIN enables businesses to engage in interstate sales without restrictions, expanding the market for small and medium-sized enterprises.
- With a GSTIN, businesses can claim input credit on purchases and services, ensuring compliance with GST regulations and improving their GST rating.
Each taxpayer receives a state-wise 15-digit PAN-based Goods and Services Tax Identification Number (GSTIN). The format of a GSTIN number is given below -
- The first two digits show the state code as per the Indian Census 2011. Every state has a unique code. For example, if the state code of Karnataka is 29, and the state code of Delhi is 07, then the GSTIN will start with the state code.
- The next ten digits will be the taxpayer's PAN number.
- The 13th digit is assigned based on the number of registrations within a state.
- The 14th digit is ‘Z’ by default.
- The last digit is for the check code. It can be both an alphabet or a number.
Let’s take an example -
- The business registered in Delhi has a state code 07.
- The PAN number of the business is ABCDE1234F.
- The thirteenth digit is ‘2’, which represents the number of registrations done by the firm within the same state using the same PAN number.
- The fourteenth digit is ‘Z’.
- The fifteenth digit is 5, which is a check code and can be a number or an alphabet.
Then, the GSTIN will be -07ABCDE1234F2Z5
Where,
- 07 is the state code
- ABCDE1234F is the PAN number
- 2 is the number of registrations
- Z is the default alphabet
- 5 is the check code.
How to get a GST Number?
Getting a Goods and Services Tax Identification Number (GSTIN) in India is a simple process. Here's a step-by-step guide on how to apply for a GSTIN online:
- Login to the GST Portal
Go to the GST portal (services.gst.gov.in) and click on the 'New Registration' tab.
- Provide Your Details
Enter the required details such as your name, phone number, email ID, and other relevant information. Verify these using the OTP sent to your mobile number or email.
- Receive Application Reference Number (ARN)
Once you've entered your details, you'll receive an ARN (Application Reference Number) via mobile or email. Use this to fill out Part B of the GSTIN application form.
- Submit Documents
Upload the necessary documents, including proof of business, bank statements, residential proof, PAN card, certificate of incorporation, and partnership deed, as applicable.
- Submit Your Application
Submit the completed form with the attached documents. The verification process usually takes up to three working days, after which you'll receive an approval notification via GST REG 06.
Alternatively, you can visit the nearest GST, Seva Kendra, to complete the registration offline by submitting the required documents.
What are the Benefits of GSTIN Number?
Compliance
GSTIN provides legal recognition, ensuring that the business complies with GST laws and regulations.
Seamless Input Tax Credit (ITC)
If you’re registered under GST, you can offset the tax paid on inputs (raw materials, services, etc.) against your output GST liability, reducing overall tax burdens.
Business Expansion
With a GSTIN, businesses can operate across India without any hassle.
It opens doors for inter-state trade, as GST is a nationwide tax, allowing smoother cross-border transactions between states.
Enhanced Credibility
GSTIN adds credibility and shows that your business is registered under the formal taxation system. It makes your business more trustworthy in the eyes of suppliers, customers, and potential investors.
Easy Filing of GST Returns
Businesses can file monthly/quarterly GST returns through the GST portal. With GSTIN, filing becomes organized, transparent, and systematic.
Avoid Penalties & Legal Issues
- GST registration ensures compliance with tax laws and helps avoid penalties for not registering under GST.
- Failure to register may result in fines and legal consequences.
Access to Government Tenders
Many government contracts and tenders require businesses to have a valid GSTIN to participate.
GSTIN opens doors to government opportunities and increases your marketability.
Ability to Collect GST
GSTIN enables you to charge GST from your customers for B2B transactions. It’s important for businesses that want to register as suppliers of goods or services under GST.
Better Reporting & Record-Keeping
GST registration helps businesses keep accurate records of their sales, purchases, and taxes paid/received. It promotes transparency in business operations.
What is the cost of obtaining GSTIN?
The cost of obtaining a GSTIN (Goods and Services Tax Identification Number) in India can vary depending on how you apply. The government does not charge any fee for GST registration. You can apply for free through the official GST portal.
Applying GSTIN from Tax2win costs you around ₹500 to ₹1,500, depending on the services
What you get:
- Expert assistance
- End-to-end support with document preparation and submission
- Timely updates and follow-ups
- Help with queries from the GST department (if any)
Contact the tax experts to receive your GSTIN hassle-free today.
Documents Required for GSTIN
To obtain a GST number (GSTIN), you must submit the following documents with your application:
- PAN Card
Required for both the business entity (e.g., company PAN for companies) and the authorized signatory (individual PAN).
- Business Constitution Documents
This includes documents like the partnership deed, registration certificate, memorandum of association, or articles of association, depending on your business structure.
- Identity and Address Proof of Promoters/Directors/Partners
Acceptable documents include an Aadhaar card, Passport, Voter ID card, etc.
- Proof of Principal Place of Business
You can submit a property tax receipt, electricity bill, rent agreement, or any document that verifies your business address.
- Bank Account Proof
A canceled cheque or bank statement with your business account details is required.
- Signed Authorization Form
This form allows a designated person to act as the authorized signatory for GST purposes.
- Photographs
Recent photographs of the promoters, directors, or partners are also needed.
What is the Difference Between GSTIN and GSTN?
A GSTIN (Goods and Services Tax Identification Number) is a unique identifier for businesses registered under the Goods and Services Tax. On the other hand, the Goods and Services Tax Network (GSTN) is the organization responsible for managing the entire IT infrastructure of the GST portal.
The Government of India uses this portal to monitor all financial transactions and provide taxpayer services like registration, tax filing, and maintaining tax records, ensuring smooth operations under the GST system.
GSTIN has replaced state VAT laws, making it the sole identification number for businesses. It provides legal recognition and helps build trust with customers and business partners. A GSTIN helps businesses file their GST returns and be compliant with the tax laws.
How to Apply for GSTIN Through GST Portal
1. Access the https://www.gst.gov.in/ URL. The GST Home page is displayed.
2. Click the Services > Registration > New Registration option.
Alternatively, you can also click REGISTER NOW link.
The Application form is divided into two parts as Part A and Part B.
Part A of Registration Application:
3. The New Registration page is displayed. Select the New Registration option.
4. In the I am a drop down list, select the Taxpayer as the type of taxpayer to be registered.
5. In the State/UT and District drop down list, select the state for which registration is required and district.
6. In the Legal Name of the Business (As mentioned in PAN) field, enter the legal name of your business/ entity as mentioned in the PAN database.
7. In the Permanent Account Number (PAN) field, enter PAN of your business or PAN of the Proprietor.
Note:
- PAN is mandatory for registration with GST.
- In case you don’t have PAN, you can apply for PAN. To do so, click the here link.
8. In the Email Address field, enter the email address of the Primary Authorized Signatory.
9. In the Mobile Number field, enter the valid Indian mobile number of the Primary Authorized Signatory.
Note: Different One Time Password (OTP) will be sent on your email address and mobile number you just mentioned for authentication.
10. In the Type the characters you see in the image below field, enter the captcha text and click the PROCEED button.
11. On clicking proceed, GST Portal displays all the GSTINs / Provisional ID’s / UINs / GSTP IDs mapped to the same PAN across India. Click the PROCEED button.
Note:
- You can click the DOWNLOAD button to download the existing registration details in PDF format.
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Following Color code has been used to donate different status of the ARN:
- Green Color: Green color reflects the Approved Registration Application.
- Red Color: Red color reflects the Rejected Registration Application.
- Orange Color: Orange color reflects the Pending for Processing/Pending for order Registration Application.
12. The OTP Verification page is displayed. In the Mobile OTP field, enter the OTP you received on your mobile number. OTP is valid only for 10 minutes.
13. In the Email OTP field, enter the OTP you received on your email address. OTP is valid only for 10 minutes.
Note:
- OTP sent to mobile number and email address are different.
- In case OTP is invalid, try again by clicking the Click here to resend the OTP link. You will receive the OTP on your registered mobile number or email ID again. Enter both the newly received OTPs again.
14. Click the PROCEED button.
15. The system generated Temporary Reference Number (TRN) is displayed. Click the PROCEED button.
Note:
- You will receive the TRN acknowledgment information on your e-mail address as well as your mobile number.
- Alternatively, you can also click Services > Registration > New Registration option and select the Temporary Reference Number (TRN) radio button to login using the TRN.
Part B of Registration Application:
16. In the Temporary Reference Number (TRN) field, enter the TRN generated and enter the captcha text as shown on the screen and click the PROCEED button.
17. The Verify OTP page is displayed. You will receive same Mobile OTP and Email OTP.
Note: These OTPs are different from the OTPs you received in previous step.
18. In the Mobile / Email OTP field, enter the OTP received on your mobile number and email address. OTP is valid only for 10 minutes.
Note:
- OTP sent to mobile number and email address are same.
- In case OTP is invalid, try again by clicking the Need OTP to be resent> Click here link. You will receive the OTP on your registered mobile number or email ID again. Enter the newly received OTP again.
19. Click the PROCEED button.
20. The My Saved Application page is displayed. Under the Action column, click the Edit icon (icon in blue square with white pen).
Note:
- Notice the expiry date shown below in the screenshot. If the applicant doesn’t submit the application within 15 days, TRN and the entire information filled against that TRN will be purged after 15 days.
- The status of the registration application is ‘Draft’ unless the application is submitted. Once the application is submitted, the status is changed to ‘Pending for Validation’.
21. The Registration Application form with various tabs is displayed. On the top of the page, there are ten tabs as Business Details, Promoter/ Partners, Authorized Signatory, Authorized Representative, Principal Place of Business, Additional Places of Business, Goods and Services, State Specific Information, Aadhaar Authentication and Verification. Click each tab to enter the details.
Note1: Details to be entered in Bank Accounts tab has been made optional and non-mandatory w.e.f. 27th Dec 2018. You can now enter the Bank Accounts details by filing an Amendment application only. Post grant of GSTIN, when you login for the first time on the GST Portal, you will be prompted to file a non-core amendment application to enter Bank Accounts details.
Note2: Persons applying for registration as a regular taxpayer can also add additional places of business or new authorized signatory, if required.
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