GST introduced in 2017 was implemented to replace most of the existing taxes to create a structured and centralized taxation policy all over the country, simplifying the way taxes are levied on businesses. Operating a business or being liable for registration but not filing your GST returns on time can lead to a heavy penalty and even be registered as a criminal offence.
Having a GST number and filing GST is mandatory for you if you are a business or an individual who sells goods, and the annual turnover limit is over Rs 40 lakhs in normal category states and over Rs 20 lakhs in special category states. Meanwhile, the threshold limit for services is over Rs 20 lakhs for normal categories and over Rs 10 lakhs for special categories. In this blog, we will cover everything you need to know about how to get a GSTIN number in India.
Table of Contents
Meaning of GSTIN Number
GSTIN is the abbreviation for Goods and Services Tax Identification Number. It is a 15-digit alphanumeric code assigned to every taxpayer registered under the GST regime.
GSTIN is a unique identifier that helps the tax authorities track the tax transactions of different businesses nationwide.
A GSTIN has five parts: the initial two digits are the state code, the following ten digits are the PAN of the taxpayer, the thirteenth digit is the entity code number of registrations on that PAN in that state, the fourteenth digit is the default letter Z, and the fifteenth digit is an alphanumeric check code.
For eg: The GSTIN of Razorpay is 29AAGCR4375J1ZU, where
- 29 refers to the state code,
- AAGCR4375J is the PAN of the company/business,
- 1 is the entity code number of registrations on PAN in the state,
- Z is the default letter, and
- U is the alphanumeric check code.
GSTIN replaced the previous tax identification numbers, such as TIN, Service Tax No, etc., used under the different indirect tax laws before GST was implemented.
Every business liable to register under the GST Act must obtain a GSTIN for each state or union territory from which it operates. This number is important for businesses as it enables them to file GST returns, claim input tax credits, issue GST invoices and comply with the GST rules and regulations.
Who Should Apply for GSTIN Number?
As per the GST laws, it is mandatory to register for a GSTIN if:
- Any business with an aggregate turnover over Rs. 40 lakh (for normal category states) or over Rs. 20 lakh (for special category states)
- Any individual has an annual income exceeding Rs. 20 lakh (for normal category states) or exceeding Rs. 10 lakh (for special category states)
- Any business entity or e-commerce company operating in India must have a GST Registration.
- In case some rules do not apply, the business can still register using Voluntary Registration to get GST claims.
Now, let’s learn about how to get a GSTIN number online
A Step-By-Step Guide to Apply GSTIN Number Online
Now that we have discussed all about the GST registration process let us go over the step-by-step process on how to create a GSTIN number in India:
To begin, visit the official GST portal at “https://www.gst.gov.in“ and click the ‘Register Now‘ link under the ‘Services‘ tab.
1. Part – A Registration:
- Select your taxpayer status, such as regular taxpayer, casual taxpayer, non-resident taxable person, etc.
- Select your state and district from the drop-down menus.
- Enter your business details, such as trade name, legal name, and PAN.
- Input your email ID and mobile number for OTP verification. Ensure they are active and accessible, as they will be used for future communication.
- After verification, you will receive a TRN, a Temporary Reference Number. Note it down and keep it safe, as it will be required for Part-B registration.
2. Part – B Registration:
- Continue from Part – A by selecting TRN, entering the captcha code and verifying the OTP.
- Fill in the 10 sections on the screen, such as business details, promoter details, authorised signatory, principal place of business, additional place of business, goods and services, bank accounts, state-specific information, and verification.
- Upload the mandated documents, such as proof of identity, address, business registration, etc. The size and format of the documents may vary depending on the taxpayer’s status and state.
- Choose one of the submission methods: EVC, DSC, or e-Sign. EVC is an Electronic Verification Code sent to the registered mobile number or email ID. DSC is a Digital Signature Certificate that requires a USB token. e-Sign is an Aadhaar-based electronic signature that requires OTP verification.
- Go to the verification page and check the declaration box. Make sure all the information you provide is correct and complete.
- Depending on the submission method you choose, follow the verification steps. For example, if you chose EVC, enter your received code and click ‘Verify.’
- After successful verification, you will see a message on your screen and receive an email confirming your application. You will also get an ARN, which is an Application Reference Number. It is a unique number that identifies your application and helps you track its GST Registration status.
3. For the GST number check of your application, go to the GST portal and click on the ‘Track Application Status’ link under the ‘Services’ tab. Enter your ARN and captcha code and click on ‘Search.’
4. Keep your ARN for future reference and compliance. It will be required for filing returns, paying taxes, and claiming refunds. Once you are allotted with this number you can always run a GST search by PAN.
Read More: GST Registration and their Eligibility Process
Documents Required to Get GSTIN Number
Now that you know how to apply for a GSTIN number, the next crucial thing is to learn about the documents required:
- PAN Card of the business or individual (Mandatory as the GSTIN number is based on the PAN card number)
- Aadhaar Card
- Proof of registration of the business or incorporation certificate
- Bank details for the account associated with the business or individual
- Passport Size Photograph
- Proof of business address
- Digital signature
In addition to the documents mentioned above, the GST council can ask for additional documents or details based on the requirement for the GST Number for Online Business. It takes 2-6 days for the GST registration process to be completed, within which the registered email or mobile number will get communication from the GST council on any additions required. After that, all documents and forms need to be submitted to the authority as per the deadline provided.
Related Read: How to Get a Business Pan Card?
What Are the Fees to get a GSTIN Number?
After you know how to make a GSTIN number and the mandatory documents required in the process, let’s learn about the fees.
Getting a GSTIN number is free of cost for any eligible taxpayer who wants to register for GST. There is no fee or charge for applying online through the official GST portal.
However, there are some scenarios where a taxpayer may have to pay a penalty for not complying with the GST rules and regulations.
Some of these scenarios are:
- Failing to register for GST when required by law.
- Failing to submit GST returns on time or filing incorrect or incomplete returns.
- Failing to pay GST taxes or paying less than the due amount.
- Failing to issue GST invoices or issuing fake or wrong invoices.
- Failing to maintain proper records and accounts of GST transactions.
- Failing to cooperate with GST authorities during audits or inspections.
The penalty amount may vary depending on the nature and severity of the offence. You may have to pay a penalty of 10% of the tax amount due if you have paid a minimum of Rs. 10,000 or 100% if you have tried to evade tax completely. You can easily calculate the tax amount due using Razorpay’s GST Calculator.
Advantages of GSTIN
- Registers your business entity as a supplier of goods or services, helping bring more credibility to your business among customers and partners
- Any individual or business having a GSTIN can file their GST on the portal and take input credit on their business purchases.
- With GST, there are no restrictions to interstate sales and operations all over India.
- Having a GSTIN for an e-commerce website or business will help enhance the seller’s reputation and the scope of the business.
- It simplifies the GST filing process since businesses can file their GST claims on the portal and get a good rating for compliance.
Conclusion
GSTIN is a unique 15-digit alphanumeric code that identifies every registered taxpayer under the Goods and Services Tax (GST) regime. GSTIN plays a vital role in the taxation system, as it enables the authorities to track the tax transactions and compliance of the businesses.
By applying for your GSTIN number, you can enjoy the advantages of GSTIN and simplify your tax compliance. If you have any concerns or hesitations about the application process, visit the official GST portal or contact the GST helpdesk for assistance.
The most important thing is to prepare the necessary documents in advance, as they will determine the success of your application. A well-prepared document set will expedite the application and approval process and help you get your GSTIN number without any hassle.
If you are discontinuing your business, you can proceed with the cancellation of GST registration.
Frequently Asked Questions (FAQs)
1. How do I find my GST number?
You can locate your GST number by visiting the GST portal and logging in with your credentials. Alternatively, you can also use the portal to find the GST numbers of other registered taxpayers by entering their name, PAN or state.
2. How many days will it take to get a GST number?
After submitting the online application, it takes 3-6 working days to get a GST number. However, the processing time may vary depending on the tax authorities’ verification of documents and information.
3. Who is not eligible for GST registration?
The following persons are not eligible for GST registration:
- Persons who are making only exempt supplies are not liable for GST.
- Individuals who only provide goods or services that fall under the reverse charge mechanism, where the recipient is responsible for paying GST.
- Agriculturists who are engaged in the cultivation of land and supply of agricultural produce
4. Can I take 2 GST numbers in one state?
No, you cannot take 2 GST numbers in one state for the same PAN. However, you can obtain separate GST numbers for different business verticals within the same state, subject to certain conditions and approval by the tax authorities.
5. Can I sell different products with the same GST number?
Yes, you may sell various products with the same GST number if they fall under the same category of goods or services. You must mention the HSN or SAC code of each product or service in your invoice and GST returns.
6. Can I use GST for personal purchases?
No, you cannot use GST for personal purchases. GST applies to the goods or services supplied/provided during business. Personal purchases are not considered business transactions and are not subject to GST.
