The Goods and Services Tax (GST) is an all-encompassing indirect tax levied on the supply of goods and services throughout India. It was implemented in India on July 1, 2017, replacing several indirect taxes that were previously applicable at both the central and state levels. The businesses registered under the GST regime collect taxes from their customers and remit the collected GST to the government, creating a unified and streamlined tax structure. One crucial aspect of operating within this GST regime is acquiring a GST number. How to get the GST number though, you wonder?
What is the GST number?
The Goods and Services Tax Number, or the Goods and Services Tax Identification Number (GSTIN), is a unique 15-digit alphanumeric code assigned to businesses registered under India’s GST system. It’s a unique ID card for businesses registered within the GST framework.Here’s a breakdown of what the GST number comprises:
First two digits: The first two digits represent the state where the business is registered, i.e., the state code.
Next ten digits: The next ten digits represent the PAN (Permanent Account Number) of the business owner.
Thirteenth digit: The thirteenth digit denotes the number of registrations done by a firm within a state under the same PAN.
Fourteenth digit: The fourteenth digit is the alphabet ‘Z’ by default.
Last digit: The last digit denotes the check code to detect errors.
Next up: obtaining a GST number, which begins with the GST registration process.
Different types of GST registration
GST registration is the process through which businesses in India enrol under the Goods and Services Tax (GST) system. It’s a mandatory procedure for businesses that meet the authority’s turnover threshold or fall within specific categories specified by the GST law. There are different types of GST registration depending on the nature and turnover of the business. Some of the types of GST registration are:
Normal taxpayer registration
Normal taxpayer registration is the most common type of GST registration for businesses with turnover exceeding Rs. 40 lakhs for goods and Rs. 20 lakhs for services. An average taxpayer is not required to pay any deposit and has no expiration date for paying the taxes.
Casual taxable person registration
The casual taxable person registration is one of the types of GST registration applicable for people who occasionally supply taxable goods or services. Individuals who set up a seasonal shop or stall are the ones who choose this registration category. The GST registration under this category is valid for 90 days or the duration of the supply period, whichever ends earlier.
Composition taxpayer registration
The composition scheme of GST registration is for small businesses whose turnover is under Rs. 1.5 crore for goods and Rs. 50 lakhs for services. Under this scheme, the taxpayer has to pay GST at a fixed rate on turnover, and compliance is also less than normal registration. However, the input tax credit cannot be obtained under this category.
Non-resident taxable person registration
The non-resident taxable person registration for people residing outside India but supplying goods or services in India. The GST registration under this category is applicable for 90 days or the supply period duration, whichever ends earlier. However, it can be extended or renewed at the time of expiry.These were some of the most common types of GST registration. There are a few more types that can be checked out here.
Documents required for GST registration
Before starting with the GST registration process, certain documents are needed. Here is the list of documents required for GST registration:
Permanent Account Number (PAN) card
Bank account details
Proof of principal place of business (Property Tax Receipt, Municipal Khata copy, Electricity Bill, Rent / Lease Agreement, Consent Letter, Certificate issued by Government)
Proof of additional place of business (same documents as mentioned above)
Proof of appointment of authorised signatory (Letter of Authorisation, Copy of Resolution passed by BoD/ Managing Committee, and Acceptance letter)
Proof of constitution of business (Partnership Deed, Trust Deed, Certificate of Incorporation, Any proof substantiating Constitution, Certificate for Establishment, Registration Certificate)
A consent letter or No objection certificate (NOC) from the owner is required in the case of a leased property.
For LLP (Limited Liability Partnership), the registration certificate/LLP Board resolution is required.
Non-resident suppliers in India must submit a scanned copy of their passport with Visa Details.
Online service providers without a physical presence in India must submit a clearance certificate from the Indian Government or a trade licence from their country of operation.
Retired government officials enrolling as GST practitioners must submit a copy of the pension certificate.
Articles of Association / Memorandum of Association
Check out the document advisor on the official website for more clarity on the documents required for GST registration.
Before acquiring a GST number, now you have to complete the online GST registration process.
Online GST registration process
To start the online GST registration process, follow the given steps:
Step 1: Visit the GST Portal and select the ‘Registration’ option under the ‘Services’ tab.
Step 2: Select the new registration option.
Step 3: Fill in the asked user details and click on ‘proceed.’
Step 4: Next is the OTP verification stage. Enter the two OTPs sent to the email ID and mobile number, then click ‘proceed.’
Step 5: You will be shown the Temporary Reference Number (TRN) on the screen. Note the TRN, as it will be used in the following steps.
Step 6: Revisit the GST portal and select the ‘Register’ option from the ‘Services’ tab.
Step 7: Select ‘Temporary Reference Number (TRN)’ and enter your TRN number and the captcha details. Click ‘proceed.’
Step 8: Complete the OTP verification process.
Step 9: The status of your application will be available on the next page. Click on the edit icon to continue the GST registration process.
Step 10: Submit the necessary details and documents.
Step 11: Review the declaration by visiting the ‘verification’ page.
Step 12: Submit the application form and apply for either the Electronic Verification Code (EVC) or the Digital Signature Certificate (DSC)
A success message will appear once the online GST registration process is completed. TheApplication Reference Number (ARN) and an acknowledgment will be sent to the registered phone number and email address.
How do I get the GST number?
The GST number is automatically generated and assigned to your business upon completing the online GST registration process. You can check the validity of the GST number if you have doubts by following these steps:
Go to the GST Portal and select the ‘Search Taxpayer’ option on the menu bar.
Enter the GST number you wish to verify in the search box and the captcha provided.
If the given GST number is a valid GST-registered business, the following details will be displayed: GST number status, registration date, type of business structure, and type of taxpayer.
The website will display an error if the entered GST number is invalid.
Benefits of GST number and registration
Registering under the GST scheme and obtaining the GST number has several benefits:
GST number signifies a business’s legal recognition within the Indian tax system, enhancing trust and credibility among customers and suppliers.
Registering under GST ensures compliance with tax regulations, avoiding penalties and legal complications.
Businesses can also reduce their overall tax burden by claiming input tax credits for the GST paid on purchases.
Registered businesses can benefit from government schemes and subsidies made for GST-compliant entities.
Registering under GST promotes uniformity in tax accounting.