Under the Goods and Services Tax (GST) regime in India, registered entities are allocated a 15-digit identification number. This number is known as GSTIN or GST Identification Number. GSTIN has replaced the TAX Identification Number issued to businesses under the erstwhile VAT regime.
Format of GSTIN
07AAACD1257F1Z2
Let us break down the above GSTIN to understand its structure:
The first two digits indicate the state code.
The next 10 digits represent the PAN number of taxpayers doing businesses.
The 13th number is the entity number of the same PAN.
The 14th digit is always Z, a default entry.
The 15th digit (could be a number or a letter) is the check code to detect errors.
See also: All about the Goods and Services Tax Network – GSTN
GSTIN sample
Here is a GSTIN sample:
07AAACD1257F1Z2
Here, the first two numbers ‘07’ represent the state code for Delhi.
The next 10 digits ‘AAACD1257F’ represent the PAN of the entity.
The 13th digit ‘1’ represent the entity number of the same PAN.
The 14th digit ‘Z’ is the default alphabet.
The 15th digit ‘2’ is the checksum digit.
See also: All about GST on real estate
Why do you need a GSTIN?
A GSTIN is mandatory for businesses with an annual turnover exceeding Rs 20 lakhs. However, other businesses paying GST should also apply for the same for the following reasons:
- To pay GST.
- Legal recognition as a supplier of goods or services.
- More visibility.
- To claim input tax credit.
- To claim tax deductions available under GST.
- For business/vendor verification.
- To check business/vendor authenticity.
- To avoid frauds.
- To correct GST payments misreporting.
See also: A guide to the government’s GST portal login and online services
How to apply for GSTIN?
Step 1. Visit the GST online portal www.gst.gov.in
Step 2: Click on the ‘New Registration option.
Step 3: Fill Part A of the application. Provide details like your name, e-mail ID, and mobile number.
Step 4: An OTP will be sent to your mobile and e-mail.
Step 5: After successful verification, you will receive the Application Reference Number (ARN) via mobile or e-mail.
Step 6: In Part B of the application, you will have to provide the following details:
- Photographs
- Constitution of taxpayer
- Proof(s) of place of business
- Bank account details
- Authorisation form
Step 7: Input details and upload all documents. Submit the application, using DSC or Aadhaar OTP. Your application will be verified within three working days.
How to do a GSTIN search?
You can conduct a GSTIN search on the official GST portal. Read our guide on GST search to understand the step-by-step process.
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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