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    What is GST Registration Number: How to Apply Online and Cancel?

    what is gst registration number

    Atal Bihari Vajpayee took the first initiative to implement a GST regime in India. It came into existence on 1st July 2017, and Assam was the first ever state to pass this bill in India. After its implementation, both intra-state and inter-state business operation has become easier with greater transparency in taxation.

    If you are new to the business and do not have enough idea about the meaning or importance of GST, read this article to gain sound knowledge on GST registration numbers.

    Team Digit

    What Is a GST Registration Number?

    GST registration number, also known as the GSTIN, is an acronym for Goods and Service Tax Identification Number. It contains 15 unique digits and is a form of indirect sales tax. The Government of India made it mandatory for every business entity across the country to register under this tax system.

    Previously, businesses had to pay VAT (for conducting business within a single state), CST (for carrying out business with other states), service tax, excise tax and entertainment tax. GST is an integration of all these taxes and is applicable to the entire nation.

    [Source]

    GSTN State/Union Territory Code List

    State code list

    State in Southern India

    01

    Jammu & Kashmir

    02

    Himachal Pradesh

    03

    Punjab

    04

    Chandigarh

    05

    Uttarakhand

    06

    Haryana

    07

    Delhi

    08

    Rajasthan

    09

    Uttar Pradesh

    10

    Bihar

    11

    Sikkim

    12

    Arunachal Pradesh

    13

    Nagaland

    14

    Manipur

    15

    Mizoram

    16

    Tripura

    17

    Meghalaya

    18

    Assam

    19

    West Bengal

    20

    Jharkhand

    21

    Orissa

    22

    Chhattisgarh

    23

    Madhya Pradesh

    24

    Gujarat

    25

    Daman & Diu

    26

    Dadra & Nagar Haveli

    27

    Maharashtra

    28

    Andhra Pradesh (Old)

    29

    Karnataka

    30

    Goa

    31

    Lakshadweep

    32

    Kerala

    33

    Tamil Nadu

    34

    Puducherry

    35

    Andaman & Nicobar Islands

    36

    Telengana

    37

    Andhra Pradesh (New)

    What Are the Features of a GST Registration Number?

    The following features will help you to understand the criteria for GST registration number and other associated facts:

    • GST registration completely depends on PAN.
    • States falling under the normal category must take GST number if business turnover in the previous financial year is above ₹40 lakhs in case of supply of goods and ₹20 lakhs for supply of services.
    • Companies with a turnover of more than ₹20 lakhs are also entitled to take the GST registration number. This applies to states belonging to a special category.
    • It is mandatory for suppliers to take registration for all the states where they supply the goods.
    • This taxation system prevents businesses from several compliances that were mandatory to adhere to previously.

    However, all business entities should obtain GST registration to operate in a hassle-free manner, even if the turnover is below the mentioned sum of money.

    Here is the meaning of the digits present in the GST registration number:

    Digits

    Interpretation

    1st & 2nd digit

    State code

    3rd to 12th digit

    Business PAN

    13th digit

    Total number of registrations of a firm within a state

    14th digit

    ‘Z’ by default

    15th digit

    Check code which can be in the form of a number or alphabet

    Note that the 13th digit can be either a digit or an alphabet, 1-9 and then A-Z. For example, if a firm has done four registrations, the 13th digit will be 4. In the case of thirteen registrations, it will be 'D'.

    [Source]

    What Is the Importance of the GST Registration Number?

    Below are the points which will help you to know the significance of registering your business under GST:

    • The easy tax compliance process of the GST has eliminated a lot of time wastage from tax filings, thus improving the way of conducting business.
    • Business credibility will increase with the input of appropriate tax credits.
    • One of the provisions of the GST Act is to file various GST returns. For doing so, you should have a proper registration number.
    • A registration number will also enable you to claim any refund as mentioned under the Act.

    In many cases, it is a pre-requisite for some businesses to have a registration number. So, always be on the safe side and acquire the number.

    What Are the Advantages of GST Number?

    There are various advantages to getting a registration number on GST. Go through these below-mentioned points to know how you can get benefit from it:

    • There is no need to pay any service tax or other taxes if the annual turnover is below ₹20 lakhs in case of supply of services and ₹40 lakhs in case of supply of services. Previously businesses were bound to pay a certain amount of VAT if their turnover exceeded ₹5 lakhs, and this amount varied with states.
    • The transparent structure of the GST allows retailers and business owners to have a clear tax payment structure, where they do not have to pay any hidden costs or taxes. Leading to less business expenditure.
    • Earlier, small companies had to give multiple indirect taxes. With a  GST registration number, they only have to pay a single tax. This also prevents corruption issues such as selling products and services without receipts.
    • Businesses can transfer goods easily from one state to another, unlike before when it was necessary to manage several warehouses to get away from other additional taxes for inter-state movement. This results in the reduction of operational costs in the logistics industry.
    • Implementation of the GST number has led to the formation of clearly defined provisions, particularly in the e-commerce sector. This eliminated the need for the sector to comply with variable laws. Hence, you will hardly face any complications while delivering goods to other states with a valid GST number.

    What Are the Disadvantages of GST Number?

    There are some disadvantages, as well, of the GST number that might impact business processes:

    • SMEs are bound to pay more taxes after registering under GST. Previously, tax-paying criteria for SMEs were different. Only those, whose annual revenue was above ₹1.5 crores had to pay an excise tax. This completely contradicts the present GST tax system.
    • There has been a rise in the selling price of goods and services because of GST. This made a negative impact on the purchasing power of middle-class and lower-middle people.
    • It is not possible to transport goods to other states without a GST registration number and timely filing of the returns.

    How to Apply for a GST Registration Number?

    Now that you have understood the advantages and disadvantages of having a GST number, decide accordingly whether your business needs registration or not. Here is the detailed step-by-step process of GST number registration online. It is a long process shown in separate parts.

    Step 1: Go to the official portal of Goods and Service Tax.

    Step 2: Select ‘New Registration’ under the ‘Services’ group.

    Step 3: Fill in the given information.

    Step 4: Click on 'Proceed.'

    Please note that you will get two separate OTPs for mobile number and email id verification.

    Step 5: Enter the OTP on the next page and click 'proceed.'

    At this stage, you will get a temporary reference number (TRN) after the contact verification process.

    Step 6: Revisit the official website of GST and go to the ‘Service’ group to click on ‘Register.’

    Step 7: Provide TRN and captcha before clicking to proceed.

    Here, again you will receive a new OTP.

    Step 8: Enter the OTP generated and click on ‘proceed.’

    Step 9: You can view your GST registration number status on the next page, known as  'My Saved Application.'  Here, click on the 'edit' button to proceed further.

    Step 10: Next, fill up all the ten sections of the application form. Here you have to submit some documents for a successful application. Following are the essential GST number registration documents required:

    ● PAN number

    ● Proof of business address

    ● Aadhaar number

    ● Passport size photograph

    ● Bank account details

    ● Class 2 digital signature

    ● Constitution of taxpayer

    Make sure to consult an expert before the final submission of the form to avoid any kind of inconvenience.

    Step 11: Sign the form digitally. 

    Step 12: Go through the declaration for verification and submit the application if all information is correct.

    You will receive a message on your email id and contact number with an Application Reference Number (ARN) if your application is successful.

    [Source]

    How to Cancel a GST Registration Number?

    If you want to cancel the registration number for any specific reason, the following steps will be helpful to you.

    Step 1: Go to the official website of GST and log-in there

    Step 2: Go to the ‘Registration’ section under ‘Services’ and click on ‘Application for Cancellation of Registration.’

    Note that you need to provide a valid reason for your cancellation.

    Step 3: Click 'yes' if you have issued a tax invoice, or else 'no.'

    Step 4: Enter the necessary information of the authorised signatory and submit the form either by clicking on DSC or EVC.

    Moreover, obtaining a GST registration number not only helps businesses to comply with the law but also provides them with numerous benefits, such as availing input tax credit, boosting credibility among customers, and increasing business opportunities. With the introduction of GST, the entire taxation system in India has been transformed, making it more streamlined and transparent.

    However, businesses should ensure that they follow the guidelines and rules set by the GST Council to avoid any penalties or legal issues. Overall, obtaining a GST registration number is a necessary requirement for businesses to thrive and succeed in the Indian market.

    [Source]

    FAQs About GST Registration Number

    Is there any specific validity period for GST?

    No, the GST registration number is valid for a lifetime and has no expiry date unless you cancel it voluntarily. However, the validity period of the registration number for casual taxable and non-resident individuals is limited to 90 days.

    No, the GST registration number is valid for a lifetime and has no expiry date unless you cancel it voluntarily. However, the validity period of the registration number for casual taxable and non-resident individuals is limited to 90 days.

    Who is not liable for getting the GST number?

    Suppliers involved in transferring goods and/or services free from tax are not required to register under GST. Some of the non-taxable products include petrol and alcohol.

    Suppliers involved in transferring goods and/or services free from tax are not required to register under GST. Some of the non-taxable products include petrol and alcohol.

    Can everyone cancel GST registration?

    No, everyone cannot cancel GST registration. If the tax officer already takes any measure on the application and allots the UIN, then the person cannot cancel it. Furthermore, people who have registered themselves as tax collectors or tax deductors also do not come under the provision.

    No, everyone cannot cancel GST registration. If the tax officer already takes any measure on the application and allots the UIN, then the person cannot cancel it. Furthermore, people who have registered themselves as tax collectors or tax deductors also do not come under the provision.

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    Go Digit General Insurance Limited | Corporate Office Address: Atlantis, 95, 4th B Cross Road, Koramangala Industrial Layout, 5th Block, Bengaluru 560095 | Registered Office Address: 1 to 6 floors, Ananta One (AR One), Pride Hotel Lane, Narveer Tanaji Wadi, Shivaji Nagar, Pune-411005, Maharashtra | Trade logo of Go Digit General Insurance Ltd. displayed above belongs to Go Digit lnfoworks Services Private Limited and is provided and used by Go Digit General Insurance Ltd. under license.

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