With the Goods and Services Tax act applicable in the nation, the government has made it compulsory for all the traders and businessmen to show their GSTIN on their business billboards. GSTIN is presently one of the most necessary requirements. It stands for Goods and Services Tax Identification Number.
- The GSTIN is basically a 15 digit number, and is also abbreviated as GSIN.
- Those dealers who have chosen the GST composition scheme are likewise required to make their status ‘active’ and have to disclose their status that they are not permitted to collect taxes from the people.
- The government has adopted a severe arrangement under the new regime that the business entities who neglect to generate the GST registration certificate inside the period of 90 days can now get their GST provisional ID cancelled.
- The tax officials have also said that every taxable person needs to show his GST Registration Number on the billboard.
In short, every trader having a GST Registration must show his GST Number on his signboard.
And this is mandatory for all.
What is a GST number?
GSTIN or the Goods and Services Tax Identification Number is basically a 15 digit number for the recognition of a business and its trade.
- The GSTIN is obtained by the taxpayers after getting the GST registration on the GST Network Portal.
- The GST Council has already stated that the Goods and Services Identification Number, or commonly the GSIN is a legal requirement. There is no charge or fee to get the GST registration and acquire GST number.
- The new GST Identification Number has now replaced the old TIN (Taxpayer Identification Number) issued under the previous Value Added Tax law by the State authority.
Whether GST number shall be shown on the signboard?
Yes. Here is the GST council official statement in this regard-
“Every taxable person is mandatory to illustrate his GSTIN number on the name board or the billboard of his shop or business. He is also required to give evidence for his GST registration certificate in business location with the end goal that a civilian can easily see if a person has GST registration or not.”
The GST authority has also added that The GST Number is a legal requirement with the end goal that the citizens must be able to see if the person from whom they are dealing is entitled to collect GST tax from them. The disclosure of business details under the GST law is basically an obligatory condition so as to ensure the transparency the system.
What are the Key features of a GSTIN?
Here are the salient features of a GSTIN:
- Every taxable person shall be granted a state-wise PAN-based GSTIN.
- The GSTIN is absolutely free to apply for.
What is the structure of GSTIN?
The structure of GSTIN is explained below-
- The first 2 digits of GSTIN represent the State code, (as per the Indian census 2011).
- The next 10 digits of the GSTIN are the PAN number of the taxpayer.
- The 13th digit will be assigned based on the state code.
- The 14th digit is ‘Z’. It is standard.
- The last digit of this GSTIN might be an alphanumerical. This is the check digit.
Next time you visit any business premises, you must check the GSTIN as per the standard parameters given above. These are prescribed by the GST authority.
What are the benefits of getting a GSTIN?
GST registration helps your business in getting recognized as a legal registrant but also gives a wide range of prospects in your business name. Some Benefits of GST registration are as follows:-
- Competitiveness: The business can become more competitive in comparison to your unregistered competitors since you will carry valid tax registration.
- Online Business Expansion: You just can’t sell your product or service online if you GST registration. If you’re about to launch your brand on e-commerce portal like Flipkart, Amazon, eBAy, Shopify or through your own website, you require a GSTIN.
- Input credit: Only Registered if you have a GST registration, you can avail the input credit of GST tax you’ve paid on your purchases and thus you can save the cost.
- Pan India sale with no restriction: You can do inter-state supply of goods only if you’ve GSTIN. This is possible by getting a GST registration.
- Government Tenders: you need a GSTIN to apply for a government tender. Now, if you don’t have a GST number, you may miss this business opportunity.
- Current Bank Account: If you’re a sole proprietor, Banks & Financial Institution will allow you to open a current bank account in business trade name only if you have tax registration. GST registration certificate is now the only valid tax registration that can help you to open the current bank account.
- Business with MNCs: Generally, MNC’s are much more comfortable to deal with the small businesses until they are having a valid tax registration proof, and that is again the GST registration.