All about GSTIN and how the GST number check works
Most businesses and individuals do not seem to have a clear idea of what the Goods and Services Tax (GST) is and the GST registration procedure. If you find yourself in this category, continue reading to get a decent grip on certain fundamentals. Goods and Services Tax is a tax structure introduced in place of the previous tax structure to subsume the indirect taxes that came with it like Entertainment Tax and Services Tax. You also need to know about the Goods and Services Tax Identification Number (GSTIN).
The Basics of GSTIN
At its base, GSTIN is a unique 15-digit identification number you get that is exclusive to you after you complete the GST registration online in India.
What is the Structure of the GSTIN?
Here’s what your 15-digit GSTIN looks like:
- First of all, the beginning two digits of your GST number denote your state code. There exists a state code for every state in the country
- These digits are followed by ten digits that are reserved for your Personal Account Number (PAN).
- The two digits that follow the PAN represent the entity code. The entity code describes the number of registrations that were carried out in the state.
- The last digit of the GSTIN is reserved for a check code, which is used to look for errors.
What is the Importance of a GSTIN?
The importance of a GSTIN is three-fold. Here’s how:
- A GSTIN eases the process of claiming your Input Tax Credit (ITC). You may claim your ITC without any hassle provided you are making regular tax payments. Make sure you enter the correct GSTIN.
- A GST number raises your chances of becoming known as a legitimate supplier of goods and services. You will have no problem cementing your name as a credible business provided you operate with total transparency and file your GST returns on time.
- Finally, it helps you reach out to your market by allowing you to make inter-state transactions and maximize your E-commerce capabilities. You will need a GSTIN for both these things.
How to Check your GST Number?
Keep in mind that many companies have tried to evade tax payments by generating fake GST invoices. It is vital to know how to verify your GST number. Here’s how the GST number check works in a nutshell:
GST Search Via PAN
GST no verification through your Personal Account Number is an easy, straightforward process. It happens in three steps:
- Start by heading over to the GST portal.
- After this, click on the ‘Search Taxpayer’ tab that will pop up on the menu.
- Finally, select and use the ‘Search by PAN’ option.
GST Via name
If you want to verify your GST no through a name, you will have to use a tool like Masters India or Know Your GST.
How can one register for a GSTIN?
Now that you’ve probably understood the requirement and importance of a GSTIN, here’s how you register for one.
- Start by visiting the GST registration portal and log in with your respective details.
- Next, visit the ‘Services’ tab, where you will find an option that says ‘New Registration.’ You will have to submit all your vital details like PAN, phone number, and email address for GST registration online. Then proceed.
- At this point, you should get a One Time Password (OTP) on your registered phone or email address. Confirm your details, and you will have a Temporary Reference Number (TRN).
- Once you get your Temporary Reference Number (TRN), head to the services section, select the registration option, and click on new registration. Now, enter the given TRN, the captcha code, and proceed to the next step.
- You can expect to receive another OTP at this point. Now, you will be redirected to a page called ‘Saved Applications.’ Hit the edit option and continue to the next step.
- Be sure to fill up the important details like business location, business name, business partners, bank account details, and many others with documents that serve as proof for these details. This means you will need to include a document to prove your business location is valid.
If you were surfing the web for a quick, seamless way to understand GSTIN and its related aspects, this should do the trick.