The Goods and Service Tax (GST) number, also known as GSTIN (Goods and Service Tax Identification Number), is a unique identification number assigned by the Indian government to businesses as part of GST compliance. This number plays a crucial role in identifying businesses and tracking their GST transactions.
Understanding the GST Number
The GST number consists of 15 digits, each serving a specific purpose:
- The first two digits represent the state code based on the Indian Census code.
- The next 10 digits are the Permanent Account Number (PAN) of the business.
- The 13th digit indicates the number of registrations within a state.
- The 14th digit defaults to the alphabet “Z.”
- The last digit is the check code used to detect errors and can be either a number or an alphabet.
Mandatory GST Registration
Businesses meeting certain turnover criteria are mandated to obtain a GST number. This includes businesses with an annual turnover exceeding INR 40 lakhs for goods and INR 20 lakhs for services. Additionally, businesses engaged in inter-state transactions or selling goods online are required to have a GST number, regardless of their turnover.
Businesses can apply for GST registration through the GST portal. Once the registration is approved, a unique GST number is assigned to the business.
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Turnover Thresholds for Registration
As of now, the turnover thresholds for GST registration are as follows:
- INR 40 lakhs for most states in the case of goods.
- INR 20 lakhs for most states in the case of services.
- For some northeastern and hilly states, the threshold is INR 20 lakhs.
Even if businesses have turnover below these thresholds, they may voluntarily opt for GST registration.
Specific Scenarios Requiring GST Number
- E-commerce platforms must obtain a GST number, regardless of turnover.
- Businesses engaged in inter-state supply need to register for GST, irrespective of turnover.
- Businesses with turnover below the prescribed limits can still opt for voluntary GST registration.
In conclusion, if your business deals with goods and crosses the annual turnover of INR 40 lakhs or provides services with an annual turnover exceeding INR 20 lakhs, obtaining a GST number is mandatory. For interstate supply and e-commerce platform sales, GST registration is necessary, even if turnover is below the specified thresholds.
If your business does not surpass the annual turnover limits and does not engage in e-commerce or interstate sales, obtaining a GST number is not mandatory.
Businesses required to obtain GST registration must do so within 30 days of crossing the turnover threshold. Failure to register or comply with GST rules may result in penalties and fines.
You can apply for a GST number online at no cost. Valid identification and business address proof are essential for the application, along with a mobile number linked to your Aadhaar card for verification.