How to Find and Use Your GSTIN Number Effectively?

GSTIN (Goods and Services Tax Identification Number) has become a household name these days. However, despite its widespread use, many business owners still find it confusing. A thorough understanding of GSTIN is essential to avoid unexpected penalties and fines. Read on as we explore what GSTIN is, how to find a GSTIN number, and how to use it effectively. 

What is GSTIN?

GSTIN (Goods and Services Tax Identification Number) is a unique 15 alphanumeric code granted to taxpayers or firms in India, registered under the GST (Goods and Service Tax) regime. Most importantly, a single taxpayer can hold multiple GSTINs as an assessee under the Income Tax Act. On crossing the threshold limit for the GST registration process, individuals or firms should apply for it to obtain the GSTIN. If you own this number, you can use it to submit GST tax returns, obtain input tax credits, and make GST-related payments. 

Go over the following details to learn the 15-digit GSTIN digit unique combination in a simplified manner:

• The first two digits of the GSTIN code indicate the GST state code (Every state or union territory has a unique number)
• Then, 10 digits of the number denote taxpayers’ or GST firms’ PAN card number 
• The 13th digit of the alphanumeric code indicates the total number of registrations in a state for the same PAN card
• The 14th digit is a default. It is used to indicate with the alphabet z
• The last or 15th digit indicates the check code used to detect errors. 

This way, it gives detailed information about the business taxpayers, including their state code, PAN card information, entity code, or check errors. 

How to Find Your GSTIN Number?

1. GST Number by PAN

Finding GSTIN with a PAN number is easy and quick via the GST portal. All you need to do is use the search feature of the GST and enter the PAN number in the search bar. This action will display precise and accurate information related to the GST associated with the PAN card. 

2. Owner’s Name from GST Number

With the GST portal, it is convenient to see the registered firms’ proprietary names. Just head over to the official GST portal and input the GSTIN number. In response, it generates the trade name and legal name of the registered firms within no time. 

3. GST Number by Name

Searching for the GST number by the registered company’s proprietary name is a breeze. Simply enter the company’s valid trade name or legal name into the search bar of the GST portal. Luckily, it shows immediate and reliable results to ease your stress. 

4. Company GST Number 

The company’s GST number is a legal recognition of its business. It is mandatory to have this number in every invoice made in a trade to validate the company’s dealings with customers and suppliers. Furthermore,  it avoids the possibility of fraud and prevents you from associating with vendors using fake GSTINs.

How to Use Your GSTIN Number Effectively? 

The following pointers are mandatory causes for which you need a GSTIN number:

• It is mandatory to obtain GSTIN if the business has more turnover than the threshold limit (for some states 40 lakhs). Failing to do so on time can result in heavy penalties
• The GSTIN number on the invoice facilitates the claim of input tax credit (ITC). With this claim, businesses reduce tax liability 
• The businesses should mention the GSTIN number, invoice number, date, and GST rate on the invoice as it makes tracking the transactions and tax law compliance easy
• GSTIN is essential for filing different types of GST returns and paying income tax online. 

Conclusion

Luckily, the government does not charge a fee to issue a GSTIN number. It is vital to obtain this unique number to comply with GST laws and regulations in India. Furthermore, remember there are a plethora of firms registered for the GSTIN  number. Hence, it is your responsibility to check the legitimacy of the GSTIN number to avoid the risk of fraudulent actions.