What is GST number?
GST number, also known as GSTIN (Goods and Services Tax Identification Number), is a unique identification number assigned to a business or individual for the purpose of registering and tracking transactions under the GST (Goods and Services Tax) system in India. GST number is a 15-digit number, which is unique to each registered business or individual.
The GST number consists of the following parts:
The first two digits represent the state or union territory code, where the business or individual is registered.
The next ten digits are the PAN (Permanent Account Number) of the business or individual.
The next two digits are the entity code, which represents the type of registration (for example, regular, composition, casual, etc.)
The last digit is a check digit, which is used for validation purposes.
The GST number is required to be mentioned on all invoices and other GST-related documents issued by a business, and it is also used for tracking GST transactions, filing GST returns, and making GST payments to the government. Businesses and individuals with a GST number are also required to file regular GST returns and pay GST to the government on a regular basis.
Who can apply for GST?
In India, it is mandatory for businesses to obtain a GST number if they meet certain threshold limits for turnover or sales. The threshold limits for mandatory GST registration are as follows:
- For businesses engaged in making taxable supplies: A business whose turnover exceeds Rs. 40 lakhs (Rs. 20 lakhs for northeastern states and hill states) in a financial year is mandatorily required to register for GST.
- For businesses engaged in making both taxable and exempt supplies: A business whose turnover exceeds Rs. 20 lakhs (Rs. 10 lakhs for northeastern states and hill states) in a financial year is mandatorily required to register for GST.
- Special cases: Certain businesses are mandatorily required to register for GST regardless of their turnover, including:
- Casual taxable persons
Non-resident taxable persons
Businesses paying tax under the composition scheme
Businesses required to deduct TDS (Tax Deducted at Source) or TCS (Tax Collected at Source)
Businesses providing e-commerce services
Businesses engaged in the supply of goods or services through an e-commerce operator.
It is also important to note that, even if a business does not meet the threshold limits for mandatory GST registration, they can still choose to register for GST voluntarily. This can be beneficial for businesses that want to claim input tax credit (ITC) or for businesses that want to avoid the hassle of dealing with multiple taxes.
How to get GST number in India step by step
Getting a GST number (also known as GSTIN) in India is a simple process that can be completed in a few steps. Here is a step-by-step guide on how to get a GST number in India:
- Step 1: Register for GST
To register for GST, you will need to go to the GST portal (https://www.gst.gov.in/) and click on the “Register Now” button. - Step 2: Fill out the registration form
You will need to fill out the registration form with your personal and business details, including your PAN (Permanent Account Number) number, business name, and address. - Step 3: Submit the required documents
You will need to submit the following documents as part of the registration process: PAN card, proof of business address, and a cancelled cheque or bank statement. - Step 4: Validate the OTP
After submitting the registration form, you will receive an OTP (one-time password) on your registered mobile number. You will need to enter the OTP to validate your registration. - Step 5: Submit the application
After validating the OTP, you will need to submit the application and wait for it to be processed. - Step 6: GST number allocation
Once your application has been approved, you will receive your GST number (GSTIN) through email or SMS.
It is important to note that, after getting the GST number, you will have to file GST returns on a regular basis and pay GST to the government. Also, it is mandatory to mention GST number on all invoices issued by the business.
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