What’s “GSTIN” and How to Apply for GSTIN?
In GST system, there a wide range of questions that continue steadily to puzzle tax payers, including individuals & smaller businesses.
The new tax system requires businesses, small and large, to look at to new technology to document tax returns and become part of any economy influenced by digital methods.
Following the roll from the GST, businesses must furnish their duty details online. At the instant, they have the choice to file profits manually.
So, here are the key points that taxes payers need to find out before the GST:
What’s GSTIN that is Goods & Services Duty Identification Number?
All of the business entities registering under GST provide a unique identifier known as GSTIN or GST Id Number.
Presently any dealer registered under state VAT law has a different TIN assigned to him by state tax authorities. In the same way, service fees registration is in the hands of a service agency by Central Board of Excise and Customs (CBEC).
Under GST routine, all these functions should come under a unitary authority, and different identification figures will be replaced by a particular kind of registration number for everybody (GSTIN) which can ensure better supervision by the power and greater conformity by taxpayers and hopefully improve duty collection.
Let’s Understand the Composition of GST Recognition Numbers:
Every taxpayer will be assigned a state wise PAN based GSTIN which is 15 digits long number.
The first two digits of GSTIN represents their state code according to Indian Census 2011. Each has a unique two digit code like “27” for Maharashtra and “10” for Bihar.
Another ten digits of GSTIN would be the PAN number of the taxpayer.
The 13th digit indicates some registrations an state has within circumstances for the same PAN.
It will be an alpha-numeric value (first 1-9 and then A-Z), and you will be assigned based on the number of registrations a legal entity (getting the same PAN) has within one express.
For example, in case a legal entity has solitary or one registration only within circumstances then it will be assigned the quantity “1” as a 13th digit of the GSTIN.
If the same legal entity gets another or second registration for another business vertical within the same express, then your 13th number of GSTIN allocated to the state can be “2”.
In the same way, if an entity has 11 registrations in the same status then it will be given notice “B” in the 13th place.
In this manner, up to 35 business verticals of any legal entity can be recorded within circumstances using this technique.
The fourteenth digit presently does not have any use and for that reason will be “Z” by default.
The final digit is a check code which is used for diagnosis of errors.
Will existing taxpayers under Central Excise or Service Duty or Express VAT have to Apply for New Registration under GST?
The answer is no. All of the taxpayers with PAN validated from CBDT’s databases are not forced to make an application for new registration of GST.
They can get temporary GSTIN from GST portal with a validity of six months so that they provide relevant data according to GST registration form.
After they complete data processing process, their provisional registrations are certain to get changed into regular registration. Following this, further notification by appropriate duty specialists will be given for offering timelines.
However, the service taxes assesses having centralized registration must obtain a new enrollment in the respective areas wherever they operate their businesses.
Will there be any Cost for Obtaining GSTIN through GST website?
No, there is absolutely no charge or fee applicable for enrollment under GST and obtaining GSTIN.