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What is GSTIN and How to Apply for Goods and Services Tax Identification Number?

what is GSTIN

What is GSTIN and How to Apply for Goods and Services Tax Identification Number?

The Goods and Service Tax Act has made it possible to implement a uniform tax structure in the country by eliminating the cascading effect of multiple indirect taxations.

Since GST has replaced all previous methods and policies of indirect taxation, it has also led to several new requisites such as a new identification number for every taxpaying or involved entity – GSTIN.

What is GSTIN?

Goods and Service Taxes Identification Number or GSTIN is a vital point of identification for any taxpaying or tax-collecting entity involved in this taxation regime.

For starters, the GSTIN is a unique identification number that is assigned to GST registered business individuals or firms. It enables tax authorities to maintain and monitor all GST related payment and defaults.

Additionally, GSTIN has replaced all the taxpayer identification system like the Tax Identification Number or a TIN number and Service Tax registration number.

This endeavour has further, brought all the registered taxpayers under a common platform and has made them answerable to a single authority.

Importance of GSTIN

Individuals who have been looking for tax saving tips for small business should make it a point to know their GSTIN.

By quoting the correct GSTIN on each invoice, business owners would be able to claim their input tax credit allocated accurately.

It will directly help them to claim their share of input credit on their purchases under the situation where all their suppliers are GST compliant.

Availing the tax input credit feature is among the several advantages of GST.

Though claiming the same would probably not serve as an encouragement for MSME owners to expand their existing business venture, it helps them to generate more earnings.

However, if individuals planning to expand their business venture can always rely on external financial assistance such as business loans.

Business owners can refer to lenders such as Bajaj Finserv who extend such loans at attractive interest rates along with multiple repayment-friendly features such as Flexi Loans, no-charge part prepayment and foreclosure.

GSTIN application procedure

Individuals who are migrating to GST from previous indirect taxation regime or those who want to register afresh would be able to apply for GSTIN.

Being an online-based endeavour, the entire process is quick and hassle-free and can be completed within these few steps –

  • Visit the official online GST portal and log into it.
  • Select the GST REG-01 Form and provide all the essential details.
  • Make it a point to fill out pages that require your business details, partner details, authorised signatory, authorised representative, place of business, bank details, goods and services details, state-specific information.
  • Post submission, individuals would be notified about the same via e-mail and SMS. It would also include their 15-digit Application Reference Number.
  • After completing the verification process through GST portal and availing an approval in the same, individuals would receive a unique 15 digit GSTIN and a temporary password.

Individuals can also apply for GSTIN offline through a GST Seva Kendra. Both online and offline applicants can register for GST and avail their GSTIN free of cost.

GST Rates in India

The GST rates in India are set differently for different products and services.

For example, the GST levied on gold is 3%, while that on caffeinated beverages is 28%. It means the way GST affects gold jewellery is different from how caffeinated beverages would be effected.

Being aware of different GST rates in India, especially the rates that are applicable to the goods and services that an aspiring business owner plans to deal in comes handy while calculating GST and filing for its returns.

However, to do the same, individuals need their GSTIN, which makes it vital for them to register for their goods and services tax identification number as soon as possible. Additionally, they should ensure that they provide accurate details to enhance their chances of availing a GSTIN at the first attempt.

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