Everything You Should Know About GST Identification Number (GSTIN)

The CBIC department assigns a unique identifying number known as the GSTIN, or GST identifying Number, to any business that has registered for Goods and Services Tax. The main goals of granting a single GSTIN are to improve compliance, streamline administrative procedures, and expand the base of taxes collected overall. All business entities are subject to a single taxing authority under the GST tax structure, and a single registration number known as the "GSTIN" will replace all of the different identifying numbers.

Understand GSTIN

Prior to the implementation of GST, each state tax authority provided a unique TIN to each merchant registered under the state VAT statute. Similarly, the Central Board of Indirect Taxation and Customs (CBIC) issued service providers a service tax registration number. Under the GST regime, registration is given to a single authority and all registered taxpayers are combined into a single platform for compliance and administration purposes. Each company that operates within a state or Union territory will be given a GSTIN, or Goods and Services Tax Identification Number.

GST Number Format & Example

This is a breakdown of the GSTIN's format:

• According to the Indian Census 2011, the first two digits stand for the state code. Each state has its own code. For example, Karnataka's state code is 29. Delhi's state code is 07.
• The taxpayer's PAN number will appear in the following ten digits.
• The amount of registrations inside a state will determine which thirteenth digit is awarded.
• By default, the fourteenth digit will be "Z."
• The check code will be the final digit. It could be a number or an alphabet.

Will current taxpayers who are subject to Central Excise, Service Tax, or State VAT need to register again under the GST? No, there is no need for the 'assessee' with a PAN verified by the CBDT database to apply for a new GST registration. To provide the necessary information in accordance with the GST registration form, they can obtain a provisional GSTIN via the GST portal, valid for six months. Their provisional registration will be converted to regular registration upon the conclusion of the data submission process. 

After that, all upcoming tax department communications will be handled for any new directives. However, regardless of where they conduct business, service tax 'assessees' with centralized registration will need to reapply for registration in the specified states.

How Does a GSTIN Get Verified?

Many companies use what turns out to be a legitimate GSTIN to charge GST even if they are technically non-registered in order to avoid paying taxes and boost revenue. It is crucial to confirm the legitimacy of the GSTIN because obtaining a fake one would be the same as stealing. Verifying the validity of the GST number is easy and quick. Simply look up the GST number on the company's website. Each invoice includes the company's GSTIN for tax purposes.

Once you've located it, make sure it's there again by doing the following:

• Visit the https://services.gst.gov.in/services/searchtp website to access the GST.
• After clicking the link, the entity will need to provide their GSTIN on the following page. After entering the GSTIN, press the search button.
• After entering the correct captcha code, press the search button.
• You will be taken to the page containing the statutory information about the company. You are worried about the fake GSTIN when you are forced to input the legitimate one.
• Among the erroneous entities are those whose "Taxpayer Type" indicates "Composition." In all other cases, the GSTIN is valid and used.
• The accuracy of the displayed rates would be verified using the previously described process. A company may charge you more than what's allowed.

How Can You Verify Any Business's GST Identification Number If You Need One?

The introduction of the GST sparked a lot of questions and concerns among general trade units across the country. A GSTIN finder tool has been made available by the government for the general public to use as an investigative tool to determine whether a business, regardless of size, is registered under the GST scope. Given that some local business units have begun to improperly benefit from this mandatory registration procedure, it is imperative to ascertain this crucial piece of information. 

It is also necessary to realize that the GST has no bearing on regular, day-to-day purchases in order to comprehend this activity. Daal pulses, milk, toothpaste, and related products are not affected by the GST modifications. It's possible that traders all around the country have begun to charge CGST and SGST to customers without first entering the registration tax bracket. 

If nothing is done about this questionable conduct, it will negatively impact both the economy and the wallets of consumers. It is believed that even a small change in the product's value of one or two rupees could result in the loss of an opportunity for clarification, which encourages merchants to engage in more illicit activity.

Comparison between GSTN and GSTIN

Since GSTIN and GSTN are related to GST, confusion frequently arises. The taxpayer identification number is abbreviated as GSTIN. On the other hand, the computerized system that oversees the GST site is known as the "Goods and Services Tax Network," or GSTN. 

All stakeholders involved in GST, including taxpayers, state and federal governments, etc., benefit from its effective synchronization. The government receives assistance from the GSTN in monitoring domestic financial transactions. Business owners whose yearly revenue surpasses INR 10 lakh, INR 20 lakh, or INR 40 lakh should register their business under the GST system, depending on the region in which they operate. 

You will be issued a 15-digit GSTIN upon registration, which must be noted on all GST invoices. This figure can be used to report to the government the accurate amount of input tax. Your GSTIN also serves as a crucial company identity.

Conclusion

GST Another way to register for a GSTIN is through Seva Kendra. You could go to the adjacent GST Seva Kendra. To provide all GST-related services to the public, the government has set up "Seva Kendra" locations across the nation. The center for the needy is also open to taxpayers. The government has made this measure to facilitate the transition of numerous taxpayers to the GST regime. This service is offered with the understanding that a large number of taxpayers lack awareness, basic knowledge, or access to online services.