Every business entity needs to obtain a unique number under GST registration to collect tax and avail input credit. Therefore CGST Act 2017 makes it mandatory for the following persons to get registered under GST and obtain GSTIN .
- individuals or entities having an aggregate turnover of more than 40 lakh rupees in case of goods
- entities or individuals having an aggregate turnover of more than 20 lakh rupees in case of services
- individuals or entities having an aggregate turnover of more than Rs. 20 lakhs for supply of goods in case of hilly or north-eatern states.
Furthermore, registration under GST is not tax specific. This means that a single registration is needed for CGST, SGST/UTGST. Additionally, business entities having branches in multiple states need to take GSTIN state wise.
However, a business entity having varied branches within a given state need to apply for single GSTIN . Under this case, such a business can declare one place as the principal place of business and the other places as additional places of business. But, a business entity having varied business verticals in a given state may have to apply for different GSTIN for each business verticals.
So, to know how GSTIN is given, lets first understand what is GSTIN and structure of GSTIN.
What is GSTIN?
Goods and Services Tax Identification Number (GSTIN) is a 15 digit number that is given in a certificate of registration to an applicant. This number is given once his application for the grant of GST registration is approved. Furthermore, this number is made available to the applicant on the common portal once GST registration gets completed.
What is the Format of GSTIN?
The GSTIN comprises of 15 digits. Furthermore, this number is PAN based and is specific to each state. Thus, following points denote the structure of goods and services tax identification number which is unique to every legal person (individual or sole proprietor, partnership, LLP, AOP/BOI (Association of persons/Body of Individuals, company etc).
1. First Two Digits Represent State Code
The first two digits of the GSTIN indicate the code number of a specific state as per the Indian Census 2011. Thus, every state has a distinct two digit code of its own.
Take for instance Kapoor Pvt Ltd which has GSTIN 06BBBBB1111B1ZE.
Now, the first two digits stand for 06. Thus, 06 in Kapoor Pvt Ltd’s GSTIN shows the state code of Haryana since the first two digits represent a state code.
So, to make things easier for you, following is the list of state codes and the first two digits of a specific state’s TIN number.
|State Name||TIN Number||State Code|
|Andaman and Nicobar Islands||35||AN|
|Andhra Pradesh (New)||37||AD|
|Dadra and Nagar Haveli||26||DN|
|Daman and Diu||25||DD|
|Jammu and Kashmir||01||JK|
2. Next Ten Digits Indicate PAN or TAN
The next 10 digits of the GSTIN represent Permanent Account Number(PAN) of the taxpayer. Thus, this means every person registering under GST needs to have a PAN compulsorily. However, only a non – resident taxable person seeking registration under GST can apply for registration without a PAN.
This is because non – resident taxable persons are granted registration on the basis of a unique number or a Tax Identification Number (TAN). Thus, this number helps the government of foreign land, where such an entity is based, to identify the entity.
3. Thirteenth Digit Represents Number of Registrations Under a Single PAN
Next, the 13th digit of the GSTIN represents the number of registrations the entity or person has within the state of a given PAN. Now, this number is an alphanumeric number that starts with 1 continues to 9 and then further continues from A to Z. Therefore, this number is assigned on the basis of number of registrations an entity has within a single state having the same PAN.
Say for instance, Singhania Traders has a GSTIN – 06CCCCC0000C9Z5. Now, the thirteenth digit in the aforementioned GSTIN is 9. This means that Singhania Traders has 9 branches in the state of Haryana under the same PAN – CCCCC0000C.
Furthermore, say Sharma Pvt Ltd has a GSTIN – 06DDDDD1111DBZE. Here, the thirteenth digit indicates the alphabet ‘B’. As mentioned above, after the number 9, the sequence A – Z starts as the number of registrations of an entity increase beyond 9. Thus, the alphabet ‘B’ represents ‘11’ branches of Sharma Pvt Ltd in the given state of Haryana.
4. Fourteenth Digit Indicates the Nature of Business
Now, the 14th digit in GSTIN is ‘Z’ by default . This is kept blank for future use.
5. Fifteenth Digit is a Check Code
The 15th digit is an alphanumeric character known as check code. Now, check code is nothing but a digit or an alphabet added to a series or string of characters in order to detect errors. This digit or alphabet is computed from the digits or characters present in the string of characters mentioned. Usually, identification numbers such as bank account numbers or other ids used for application use this kind of check code.
Application For Registration
The Application for Registration procedure under GST is described under Rule 8. Hence, following are the steps to apply for the GSTIN number.
First, you need to log onto to GST portal using your username and password details.
2. Fill Details in Part A of REG-01
Once you login, you then need to declare the following details in Part A of Form GST REG-01 on the common portal. These details include:
- Mobile number
- Email address and State or UT
3. Verification of the Details
After filling the details, your PAN and mobile number get verified through one-time password sent to the said mobile number. Then, your email address gets verified through a separate one-time password sent to the email address so mentioned.
4. TRN Gets Generated
Once your PAN, mobile number and email address details get verified, a Temporary Reference Number (TRN) is generated. Such reference number is sent to your mobile number and your registered email ID.
5. Submit Application in Part B of REG-01
On receipt of TRN, you are required to submit an application in Part B of Form GST REG-01. However, such an application should be signed or verified through electronic verification code. Moreover, your application should also be accompanied by the documents specified in the said Form.
6. Issuance of Acknowledgement
After submitting the application, an acknowledgement will be issued to you in Form GST REG-02.
7. Verification of Documents by the Officer
Then, your application along with the accompanying documents is sent to the proper officer for verification. Furthermore, the officer approves the grant for registration once he finds your application and documents to be in order. Thus, such an approval is given within 3 working days from the date of submission of the application.
8. Notice Issued in Case of Flaw
In case there is some flaw in your application, the officer will issue you a notice electronically in Form GST REG-03. Such a form is issued within 3 working days from the date of submission of application. Then, you are required to furnish such clarification, information or documents in Form GST REG-04. Such details should be furnished within 7 working days from the date of receipt of such intimation.
9. Grant of Registration
The officer will approve the grant for registration once he is satisfied with the clarification, information or documents so furnished. Such an approval is given within 7 working days from the date of such clarification or information or documents.
10. In Case The Application Gets Rejected
In case your application gets rejected, the officer will inform you about the rejection in form GST REG – 05.
11. Issue of Certificate Of Registration
Upon approval of your application for grant of registration, a certificate of registration will be issued to you. Further, such a certificate shall be issued in Form GST REG-06. Additionally, the certificate will incorporate the 15 digit GSTIN and will be made available to you on the common portal.
Fees For Registration
There is no fee for registering under GST. In other words, obtaining GST registration is free of cost.
Here is an infographic that explains the concept of GSTIN in a much simpler way.