You’re probably a beginner and utterly new to the working of the Goods and Services Tax (GST). In a nutshell, GST is a tax introduced to subsume all the indirect taxes that were levied at different stages under the old tax system. These taxes include Sales, Entertainment, VAT, Excise, and so on. The underlying principle of the Goods and Services Tax is ‘One Nation, One tax.’
What is GSTIN, and Why Register for one?
The Goods and Services Tax Identification Number (GSTIN) is a unique and exclusive 15 digit number that traders and businesses receive upon the completion of the GST registration process. There are a few critical reasons why you need to obtain a GSTIN as soon as possible. Here they are:
It simplifies the process of Claiming ITC
The old tax regime did not make provisions for Input Tax Credit (ITC). However, GST in India allows you to claim your Input Tax Credit so long as you pay your taxes regularly and on time. This should go without saying, but you also need to enter the correct GSTIN.
Helps you get recognized as a credible supplier of goods and services
If you are looking to up your chances of getting recognized as a genuine and authentic dealer, trader, or business, know that your GSTIN plays a significant role in making that happen. Again, you need to make sure you pay your taxes on time.
Broaden your market
Any well-to-do business or individual understands the need and value of tapping into bigger markets and expanding them. If you want to boost your sales, you will need to use E-commerce and facilitate inter-state transactions at scale. However, you will need to have a GSTIN to make this happen.
Going about the GST Registration Process
Now that you may have gotten the hang of GSTIN and its value, this is how you should register your business for one:
Firstly, go to the GST portal online and sign in with your account details.
Search for the services tab, go to new registration, and submit the necessary details, including information like your Personal Account number, phone number, email address, and so forth. Then, proceed.
If you have done this step correctly, you will get a One time password (OTP) on the phone number used for registration. Enter the OTP and confirm the details you are asked for, and you will receive a Temporary Reference Number (TRN).
Head back to the services section, hit registration, and click on new registration. Now, enter your TRN, the captcha code that you see, and continue to the next step. You should get another OTP and get redirected to the saved application page. Ensure your information is saved but clicking on the edit button and continue.
Now, you will be required to provide information on business-related aspects like your business location, business partners, bank account details, and so on. Additionally, you will have to submit documents as proof to supplement the details mentioned above.
Finally, send in your application and sign it using E-signature, Digital Signature Certificate, or an Electronic Verification Code (EVC). After you do this, you will get your Application Reference Number (ARN).
Handling GST Number Verification
Many companies try to evade taxes by generating fake invoices. You do not want to be one of those companies. You need to be able to convince the market and the government that you are a legitimate business and follow the book. You also need to do business with companies that follow the rules just like you do. This is where GST number verification comes into play. If you want to perform a GST number verification, here’s how:
Visit the GST registration portal and hit the search taxpayer option. Then, enter the GSTIN in the search bar to see if it is genuine. If it is legitimate, you will receive the primary details of the company like the registered name of the company, the date of registration, and many more. However, if it displays an error, you can be certain that the GSTIN is fake.