GST Number is a 15 digit unique number. GST (Goods and services tax) is a common Indirect tax replaced by numerous Indirect taxes in India. The act came into effect on 1st July 2017 in India. The regulations are applicable to everyone purchasing goods and services at the same rate in India. In addition to this, if the purchase was made by a business for sale to a customer, then the business can claim an input tax credit to set-off GST liability. Hence, the GST liability is pushed to the end-consumer through the use of the input tax credit mechanism. GST Registration generally takes 2-6 working days.
The Goods and Service Tax Identification Number (GSTIN) is the unique number each taxpayer will receive once they have registered on the common portal. It is based on a taxpayer’s PAN.
For example: 22AAAAA0000A1Z9
22- (State code)
AAAAA0000A- (PAN)
1- (Entity number of the same PAN holder in a state)
Z- (Alphabet ‘Z’ by default)
9- (Check sum digit)
There are 2 types of GST registration:
Any business whose turnover exceeds the threshold limit of Rs. 40 lakhs will have to register under GST as per the amendments made in 32nd GST Council Meeting. One may require the help of an expert due to the complications stated below before deciding whether to avail this exemption limit or continue to be in GST regime.
Covers only Goods and not Services: The limit is applicable only for sale of goods. For service providers limit continues to be Rs. 20 lakh for all states except for special states where it is Rs. 10 lakh.
Higher Exemption Threshold Limit for Supplier of Goods: There would be two Threshold limit for exemption from Registration and Payment of GST for the suppliers of Goods i.e. Rs. 40 lakhs and Rs.20 lakhs. States would have an option to decide about one of the limits within a weeks’ time. The threshold for Registration for Service Providers would continue to be Rs. 20 lakhs and in case of Special Category States at Rs. 10 lakhs.
Person covered under compulsory registration are mandatorily required to obtain registration irrespective of quantum of turnover
In case of LLP- Registration Certificate of the LLP, Copy of board resolution, Appointment Proof of authorized signatory- letter of authorization.
Suggested Read: Benefits of GST for Small Business and Start up
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