Struggling with your GST Identification number? Check this out

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If you are a business that provides services or goods under the Goods and Services Tax (GST) regime, you need to make sure you complete your GST registration online and obtain a GST number. This should help you get some clarity on how to get a GST number or GST Identification Number (GSTIN)

What is GSTIN?

In simple terms, GSTIN refers to a unique identification number that is assigned to businesses that provide goods or services. The following outlines the format and structure of a GSTIN:

  • The first two digits of the GST number represent the state code. Each state in the country has a state code.

  • The next ten characters denote the taxpayer’s Personal Account Number (PAN).

  • The two digits that come after the PAN represent the entity code. The entity code shows the number of registrations that were carried out by the provider of services or goods in the state.

  • The final digit represents a check code which is used to determine errors.

Should you get a GSTIN?

If your business’ annual turnover is Rs. 40 lakh, you will have to register for a GSTIN. However, for some special category states like Himachal Pradesh and the North-Eastern states, the annual turnover threshold is Rs. 20 lakh. You will have to complete your GST online registration in the following situations:

  • If you happened to be registered under another tax regime like VAT
  • If you have your registered business transferred or demerged. In this case, the transferee will bear the responsibility of registering your business under the GST regime.
  • If you are a casual taxable person
  • If your business deals with the inter-state supply of goods
  • If you are the agent of a supplier
  • If you are a non-resident person who is taxable
  • If you are paying tax in accordance with the reverse charge mechanism
  • If you are an operator or aggregator for E-commerce
  • If you are supplying via E-commerce aggregators
  • If you are an input service distributor

Why should you get a GSTIN?

Here are a few reasons you should consider getting a GSTIN:

  • Having a GSTIN concretizes your chances of getting recognized as a legitimate supplier of goods or services. If your business is transparent and you file your GST returns on time without any issues, you will likely become increasingly credible in the eyes of the government.

  • A GSTIN helps simplify the process of claiming your Input tax credit. If yours is a business that maintains a consistent tax payment under the GST regulations, you should have no problem receiving your income tax returns on the tax that you pay on your purchases.

  • Make sure you specify your GST number correctly to claim your Input tax credit.

  • You must ensure you have your business registered to a GSTIN if you want to be able to carry out inter-state transactions and expand your market without unnecessary restrictions.

How is GSTIN being misused?

Many companies have managed to find a loophole in the GST system. This loophole is in the form of a fake GST invoice. Many companies generate fake GST invoices in an attempt to get out paying taxes. However, most of them get caught when it is time to file their GST returns as their irregularities become apparent.

GST Number Search

Now that you have a GST number, you should know how a GST number search works. This is especially true in light of the number of fake GST invoices that companies issue and the other forms of manipulation that occur. Here’s what you need to know about the GST number check:

GST number search by name

You can utilize useful tools such as KnowYourGST or Masters India that can help you search GST numbers.

Search GST number using PAN

Carrying out a GSTIN search using your PAN is a straightforward process. Use the following steps to make it happen:

  • Step 1: Head over to the online GST portal.
  • Step 2: Click on the ‘Search Taxpayer’ tab that pops up on the menu.
  • Step 3: Finally, hit the ‘Search by PAN’ option.

If you are entirely new to GSTIN and everything that comes with it, this should help you get started and help you search for your GSTIN without issues.