By: Admin Super
Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit number, which has gradually replaced the Tax Identification Number (TIN). Dealers that were registered under the state laws were given a unique TIN by the respective state authorities before GST was implemented. Business organizations and entities registered under GST will be provided a unique identification number known as GSTIN.
Under the GST regime, all the registered taxpayers are fairly consolidated into one single platform for compliance and administration purposes by the government authorities.
You can register for GST through:
Businesses that migrate their registration from previous indirect tax regimes to applying for a GST number would have received a 15-digit provisional GSTIN with a confirmation upon successful verification of the documents submitted.
Businesses can search GST number by company name on the official GST website.
Here’s a diagram explaining the same:
A business needs to know its GST number, as the suppliers of the business need to quote the GSTIN correctly in every transaction. It is important to quote the GST number correctly as the GST invoice serial number in all the invoices that are made and are supplied will lead to the right allocation of an input tax credit. It is furthermore important for businesses to seek GST numbers from their customers, which can be included in invoices issued to them. GSTIN will help businesses not only to avail the right input tax credit but also to uphold its credibility and goodwill in the market. It is advised that businesses should go through ‘how to get a GST number’ and ‘how to apply for the GST number in India’.
Business entities that are registered under the GST act are required to apply for a GST number.
GST registration is required for business entities like manufacturers, traders, and service providers based on their turnover. The benefit that is granted to businesses is that you can charge GST on your sales invoices, and the buyers can claim the credit called input credit, which they can utilize for payment of their tax liability. Businesses registered with the GST department can avail input credit of the GST paid on the purchased invoices, which can be utilized and adjusted for the payment of GST.
To understand the working of GST reform, businesses have to migrate the registration under the previous indirect tax regime to the new GST era. As discussed earlier, GST registration is quite seamless due to everything taken to online platforms. One needs to ensure that all the information filled is correct, and the documents submitted are authentic to complete the procedure in time.
The procedure to apply for a GST number is as follows:
Businesses have to either update their existing accounting software or buy a new GST software so that their business keeps going. In either way, there is an increased cost that is availed by the business for the effective working of the organization.
Some of the small and medium scale organizations who haven’t signed for GST still have to understand the GST tax regime as they might have to issue GST-complaint invoices and file timely returns.
GST was implemented on 1st July 2017, which shook the working of every industry. Businesses that followed the old tax structure have to undergo a thorough procedure to continue further tax-paying. It was hard to adjust to the new tax regime, resulting in confusion and compliance issues.
GST has changed ways on how tax is paid. Businesses will now have to employ a tax professional to be GST-Complaint. This will increase costs for small businesses as they will have to bear all the additional costs that might have to hire tax experts.
While the pros of GST include a comprehensive and compact tax system, the cons of GST are something to be worked around. However, it is also important to consider both the advantages and disadvantages of GST.
Registering for GST and also obtaining GSTIN is free of cost. So beware of anyone charging you for this.
GSTN and GSTIN are very much separate from each other, so you should not get confused between these two numbers.
GSTIN is a unique number that is quoted on all invoices to improve your credibility in the industry. And so use only the authorized sites to apply for a GST number. All the information addressed above is verified and consolidated.