How to Get a GSTIN Number: Everything You Need to Know About Getting a GSTIN Number

The Goods and Services Tax (GST) was Introduced in India on July 1, 2017, it is a comprehensive tax which is applied through multiple stages, on every value addition. It has helped in streamlining and simplifying India’s indirect taxation system. The GST tax system works towards an objective of one nation, one taxation. According to GST rules, it is mandatory for a business to comply with GST regulations, if their turnover comes under the prescribed threshold. For compliance with GST regulation the business owner must register and obtain 

a Goods and Services Tax Identification Number (GSTIN). A GSTIN is a unique 15-digit code assigned to businesses registered under the Goods and Services Tax (GST) in India. It’s crucial for various tax-related activities like filing returns and claiming input tax credits. In this article we will provide a detailed guide on how to get GSTIN number and how to apply for it.

What is GSTIN?

GSTIN (Goods and Services Tax Identification Number) is a 15-digit unique identification number allotted to every registered taxpayer (business entity) under GST act. GST is a mandatory requirement for the identification of taxpayers and for facilitating compliance with GST rules and regulations. The GSTIN Number is very important for compliance with various GST-related procedures, such as filing returns, claiming input tax credits and paying taxes.

Understanding the GST Number

The 15-digit unique identification number allotted to every registered taxpayer contains various details depending on the state, UT and PAN. Below is the breakdown of the GST number.

• The first two digits of the GST number represent the state code for example: Maharashtra 27, Karnataka 29 and Uttar Pradesh 09.
• The next ten digits are the PAN number of the business entity or tax payer.
• The 13th digit is based on the number of registrations within a state for the same PAN. It can be an alphabet or numeral.
• The 14th digit in the GST number is alphabet Z by default.
• The 15th digit is a check code.

Why Do You Need a GSTIN?

A GST number (Goods and Services Tax Identification Number) holds several benefits for businesses registered under the GST act in India. Here’s why it’s important:

Compliance: It is mandatory for complying with GST regulations such as  filing tax returns, and paying taxes.

Input Tax Credit (ITC): Taxpayers and business entities can claim input tax credit, against the GST paid on purchases and expenses used for business. ITC helps reduce your overall tax liability and improve cash flow.

Credibility and Transparency: GSTIN allows you to issue GST compliant invoices and identify the business as legitimate under the GST regime. It fosters trust with customers and suppliers.

Who Should Register for a GST Number?

• GSTIN is an essential requirement and has been mandatory under the GST Act for business for taxpayers with an annual turnover exceeding threshold limit of Rs.40 lakh, Rs.20 lakh, or Rs.10 lakh (₹10 lakhs for special category states).

• It is required for suppliers dealing in inter-state taxable goods and services 

• GST is required for E-commerce operators who dealing in goods and services through online model

• Individuals eligible for tax deduction under section 37

• Casual taxable persons and non-resident taxable persons.

• Agents of a supplier and input service distributors.

• Those paying tax under the reverse charge mechanism.

• Aggregators or marketplaces who are providing services under new trade name

Types of GST Registration:

Under the GST Act, registration is done depending on the nature of operations and turnover.. Here’s an overview of the various types of GST registrations:

Normal Taxpayer:  The registration under normal tax payer is the most common and most of the businesses fall under this category. The prescribed annual turnover exceeds threshold limits:

₹20 lakhs for most states.

₹10 lakhs for special category states.

Casual Taxable Person: A casual taxable person category is suitable for seasonal businesses, the GST registration under this category is provided for 3 months which  can be extended or renewed subject to the approval of authority.

Composition Scheme: This category is most suitable for small businesses as the eligible taxpayer under this category can pay GST at a fixed rate on their turnover instead of the regular tax rates.

Non-Resident Taxable Person:  This category applies to non-residents who supply goods or services occasionally in India and do not have a fixed place of business in India.

Input Service Distributor (ISD): An ISD is a business that receives invoices for services and distributes the tax credit to branches or units within the same organization. This is commonly used by companies with a head office and multiple branches.

How to get GSTIN Number ?

We will provide the step-by-step procedure that individuals can follow to complete GST their  Registration

Steps for Generating Temporary Reference Number (TRN)

1. Start by visiting the GST Portal through the official link – https://www.gst.gov.in/ and select the “Registration”  option under the “Services” tab.
2. Now select the option of  ‘New Registration’ and Fill the below-mentioned details
3. Under the ‘I am a’ cascading menu, select the option of ‘Taxpayer’.
4. After that  select and provide respective states and districts information from the cascading menu.
5. Provide the legal name of the business.
6. Enter the Permanent Account Number (PAN) of the business.
7. Enter the email ID and mobile number in the respective boxes. The entered email ID and mobile number must be active as OTPs will be sent to them.
8. Now click on proceed to access the other section of the form
9. Note down the Temporary Reference Number (TRN) on the screen. 

Steps for Completing GST Application with Temporary Reference Number (TRN)

1. Now with the Temporary Reference Number, revisit the official GST portal and click on ‘Register’ under the ‘Services’ menu.
2. This time select the option of ‘Temporary Reference Number (TRN).
3. Enter the Temporary Reference Number (TRN) and confirm the captcha code shown on the portal
4. The portal will send OTP on your registered email and mobile number for verification, enter the OTP and click on ‘Proceed’.
5. Once you proceed to the next page, you’ll see your application status. There’s an “Edit” icon on the right – click it to make any changes.
6. The Next Step in the application process will show you 10 sections which must be filled and have to submit the required documents. The list of documents that must be uploaded are
   1. Photographs 
   2. PAN Card
   3. Address proof of the business
   4. Address proof of the person in charge
   5. Bank details such as account number, bank name, bank branch, and IFSC code along with bank account statements.
   6. Authorisation form
   7. The constitution of the taxpayer
7. Upload all the required documents

Declaration & Verification

After uploading the required documents you need to visit the ‘Verification’ page and read the declaration before proceeding further. After checking the declaration option the next step is to submit the application.

For submitting the application there are 3 methods available, you can use the one that suits you.

• By Electronic Verification Code (EVC): In this method the verification code will be sent to the registered mobile number.

• By Digital Signature Certificate (DSC): In case companies are registering, the application must be submitted by using the Digital Signature Certificate (DSC).

• By the e-Sign method. An OTP will be sent to the mobile number linked to the Aadhaar card.

An Application Reference Number (ARN) will be sent via email and SMS. This will help you for any future communication and checking the status of your GST application.

The submitted application will be reviewed, processed and verified by GST officers. You will be informed in case any additional information or documents are required. Upon successful verification, you will receive your GSTIN and the Certificate of Registration via email.

List of Key Documents For GST Registration: 

Below is the list of documents required for different types of GST registration, the list includes the common documents required, you may be required to submit additional documentation depending upon your application.

For Individuals and Sole Proprietors: 

1. PAN Card of the owner.
2. Aadhaar Card.
3. Photograph.
4. Bank account details.
5. Address proof of the business place.

For Partnerships and LLPs:

1. Partnership deed.
2. PAN Card of the firm.
3. Address proof.
4. Bank details.
5. Authorization letter.

For Companies:

1. Certificate of Incorporation.
2. PAN Card of the company.
3. Memorandum/Articles of Association.
4. Board resolution.
5. Proof of appointment of authorized signatory.
6. PAN and Aadhaar of the authorized signatory.
7. Bank details.
8. Address proof of principal place of business.

How Insaaf99 Can Help You Obtain Your GSTIN Number Hassle-Free

Insaaf99, an online legal consultation firm uses digital technology to provide easy access to legal services. We simplify the GST registration process for businesses and individuals by providing expert guidance and support. We have a team of expert lawyers that have years of experience regarding the specific requirements and eligibility criteria for different types of GST registrations, we help our clients in gathering and preparing all necessary documents, ensuring accuracy and compliance with GST regulations. 

Our experts handle the entire application process on the GST portal, from filling out forms to submitting the required documents. Additionally, Insaaf99 offers support in responding to any queries from GST authorities, ensuring a smooth and hassle-free registration process.

Conclusion:

Understanding the GST regulation and applying for the GST number under the correct category is very important for the compliance purposes. The GST registration not only helps in paying taxes and complying with regulations, it also helps in improving the credibility of the business. The one nation, one taxation of GST has simplified and streamlined the tax system for business, now there is less complexity while doing interstate business. Staying informed and prepared with all necessary documents and information will make the registration process smooth

Frequently Asked Questions