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Writer's pictureCA Samaaj

GST: Significance and Application process

The Goods and Services Tax (GST) number is a unique identifier assigned to businesses by the government of India for tax purposes. To search for a GST number, you can use the GST portal, which provides a search tool for taxpayers to verify the GST registration of a business by entering either the GSTIN or PAN of the business.



Structure of a GST Number:


The structure of a GSTIN (Goods and Services Tax Identification Number) in India is a 15-digit unique identifier assigned to a business registered under the GST Act. The structure of the GSTIN is as follows:

1-2: The first two digits represent the state code where the business is registered.

3-12: The next 10 digits represent the PAN (Permanent Account Number) of the taxpayer.

13-15: the next 13th digit is the numbers of entity within a state under the same PAN.

14th digit is the alphabet by default and The last digit is the check code to detect errors.


For example, a GSTIN may look like "22AAAAA0000A1Z5", where "22" represents the state code, "AAAAA0000A" represents the taxpayer's PAN, "1" represents the numbers of entity , "Z" is the alphabet by default and "5" is the check code.


Significance of GST Number


Legal Recognition: GSTIN grants legal recognition to your business, enhancing customer trust and attracting more consumers.

Input Credit: Businesses with GSTIN can claim input credit on their purchases, reducing the overall tax burden.

Interstate Transactions: GSTIN enables small business owners to engage in interstate supplies, broadening their market reach.

E-commerce Opportunities: GSTIN holders can expand their business by listing products on e-commerce platforms or establishing their own e-commerce websites.

Automated Returns: With GSTIN, returns filing becomes automated, demonstrating compliance with GST regulations and enhancing your business's reputation, which can lead to increased sales.


GST Number Application Process

> Visit the official GST Portal (https://www.gst.gov.in/).

> Select "New Registration" under the 'Services' menu and provide the required details.

> Complete OTP verification using the codes sent to your email and mobile.

> Note down the Temporary Reference Number (TRN) displayed on the screen

> Return to the GST portal, select "New Registration," choose "Temporary Reference

> Complete OTP verification again.

> Check the status of your application and click the edit icon to begin the registration process

> Submit necessary documents and business details for verification

> Review and submit the declaration on the verification page.

> Apply for a Digital Signature Certificate (DSC) or use Electronic Verification Code (EVC) or e-sign method

> Upon successful completion, you'll receive an Application Reference Number (ARN) and an acknowledgment via email and SMS.

> Monitor the ARN status using the GST Portal.


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