Everything You Need to Know About GSTIN: Meaning, Format & Importance to Businesses

Ever wondered how a 15-digit number could unlock a world of ease and efficiency, especially within India's tax landscape? From aiding the timely filing of taxes to availing loans, this magical number has revolutionised the way businesses operate in our country! Learn why the GSTIN number is viewed as a game-changer by entrepreneurs and companies alike. This blog shall highlight the GSTIN full form, its format and importance in detail.

What is GSTIN & Why Do Businesses Need it?

The GSTIN, or Goods and Services Tax Identification Number, is a 15-digit number that single-handedly simplifies India's entire tax landscape. This unique identifier is assigned to each taxpayer, including:

• Businesses

• Dealers

• Suppliers

All who are registered under the Goods and Services Tax (GST) system.

The best part is that registering for GST and subsequently obtaining a GSTIN is free. This makes it a win-win situation for businesses.

The GSTIN is required to smoothly and legally run a business in India, given that the entity’s annual turnover is over ₹40 lakh (or ₹10 lakh in case of Northeast states). Registering for GST and getting a GSTIN allows one to avoid fines/penalties. Highlighted below are the reasons for getting the GSTIN:

1. GST Return Filling

One needs the GST number in order to file GST returns. This is a necessary step for each GST-registered individual, whether or not there’s relevant business-related activity taking place/tax due.

2. Input Tax Credit Claim

You need the GST number to claim back the GST you've paid upon making business-related purchases. Note that the input tax credit claim can only be made if the supplier records the invoice details on the GST portal.

3. Minimised Chances of Fines 

If you have the GST number, you can avoid fines even for not following certain GST rules. For example, if you’re required to register for GST but haven’t done so, a 10% fine of the tax owed/₹10,000 (the higher amount) is otherwise levied. Not possessing a GST number could also negatively impact your chances of getting a Business Loan.

Format of the GST Number

A GST number comprises 15 digits. An example of a GST number would be 19 ABCDE9999F1Z8. Here’s what the digits denote:

• The first 2 digits are the state code; for West Bengal, it would be 19.

• The following 10 digits correspond with the PAN number of the respective business.

• The 13th number indicates the number of firms that are registered under this GST.

• Lastly, the final 2 digits are a unique combination assigned to the concerned firm.

Steps for Applying for a GST Number

You can apply for the GST number offline by visiting the Indian Government set-up, GST Seva Kendra. Alternatively, apply online by following these steps:

Step 1: Visit the GST Portal and click on 'Services' > 'Registration' > 'New Registration'.

Step 2: Fill the form with the necessary details and verify the email as well as phone, as you'll receive an OTP via both.

Step 3: Click on 'Proceed' and type in the OTPs within a 10-minute-long window.

Step 4: Make note of the Temporary Reference Number (TRN) before logging back in.

Step 5: Click on the ‘Temporary Reference Number’ this time, instead of ‘New Application’. Type in the TRN, CAPTCHA, and the latest OTP to open up the application form.

Step 6: You’ll be redirected to 'My Saved Application'. Fill out the 10-section form. Proceed to upload the required documents. Be sure to submit it within 15 days.

Step 7: Fill out the enrollment form.

Step 8: Provide the necessary business and promoter-related details, and proceed to sign digitally.

Step 9: Submit your application and note down the Application Reference Number (ARN).

Step 10: You can track the application and download the registration certificate after approval is granted.

Thus, you’ll get the GSTIN and be able to log in with temporary credentials. Make sure to download the certificate within 3-5 days.

How to Check for the GST Registration Number?

You can check the validity of the GST number (GSTIN) to ensure the authenticity of your business by following these simple steps:

Step 1: Visit the GST Portal.

Step 2: Click on the "Search Taxpayer" button, which you can locate under the "Search" tab.

Step 3: Enter the 15-digit GSTIN into the search box.

Step 4: Submit by clicking on the "Search" button.

Step 5: Verify the business details associated with your GSTIN to confirm its validity.

Also Read: Online GST Registration and Guidelines

To Conclude

The GSTIN is a game-changer, especially in regard to businesses in India, as it has simplified tax compliance and administration. This unique 15-digit number, replacing the TIN system, has made it easier for businesses to operate and prosper. Plus, applying for a GST number is super quick and easy! With its various benefits and simplified application process, obtaining a GSTIN has become a crucial step for businesses looking to thrive in India's economy. 

If you’re ready to get your business started and in the same league as other booming markets, apply for an Instant Business Loan today! With Poonawalla Fincorp, be assured of competitive interest rates, minimal documentation requirements and quick loan disbursal!

FAQs

What is my GSTIN number?

The GSTIN is a 15-digit number uniquely assigned to your business upon GST registration.

Who can get a GST number?

Businesses, like partnerships, sole proprietorships, companies, and LLPs, which have a turnover exceeding ₹40 lakhs or are engaged in inter-state goods or services supply, are eligible for the GST number.

Can any person get a GST number?

A normal person can only obtain the GST number if he/she is engaged in a business activity. For example, if one is selling goods or extending services and the prescribed threshold limits are met, they can get a GST number.

Is it difficult to get a Business Loan?

While it can be challenging to get a business loan, a solid business plan, an excellent credit score and the necessary documentation shall make it easier. Plus, Poonawalla Fincorp offers Instant Business Loans, which you can consider.

How can I find my GST registration number?

Easily find your GST registration number (GSTIN) on the GST registration certificate. Alternatively, check for it on the GST portal by providing your PAN/login credentials.