TaxEazy

Registration under Goods and Service Tax (GST) regime will confer following advantages to the business:

1. GST eliminates the cascading tax effect
2. GST Registration holders can avail the input tax credit during the purchase of any goods or services. So if you are B2B Business then its required GST registration from starting.
3. Legally recognized as supplier of goods or services.
4. The entire process under GST regime starting from registration to return filling is online. This would be quite advantageous for startup companies who do not have to opt for registration under various indirect tax regimes.
5. GST registered persons can easily open a current bank account.
6. Easy to get registered on e-commerce websites.

A GSTIN is a 15-digit PAN-based unique identification number allotted to every registered person under GST. A unique code knows as GSTIN is assigned to each taxpayer, which will be state wise and PAN based. Here is the breakdown of 15 digit GSTIN format -

1. First 2 digit show state code
2. Next 10 digit indicates PAN Number
3. The 13th digit shows serial number of gst registration in a state
4. The 14th digit will be alphabet 'Z' by default
5. The last digit will be for check code. It may be an alphabet or a number

According to the section 122 of CGST Act, any taxable person who fails to register under GST even if he/she is legally bound as per the GST Act needs to pay the following amount of penalty:

• 10,000/- INR or amount of tax evaded whichever is higher.

Every registered person have to file GST returns and follow all the compliances which are mandatory as per GST laws. If you want to know more about GST Returns, please visit the GST Returns section.