Neetu Choudhary, Lovely Professional University Punjab
Introduction
In the tax system, Registration of the business entity plays a vital role in collecting the tax on behalf of the government and to avail the Input Tax Credit. For collecting the tax from customers and availing the Input Tax Credit the registration of any business entity is very necessary under GST Law. If any business entity cannot register themselves then they can neither collect the tax from the customer and nor take the benefit of Input Tax Credit.
A person who has an aggregate turnover of more than 40 Lacs in the financial year then he is liable to be registered under the act, while for some special category states the aggregate turnover is 20 Lacs in a financial year for the registration of any business entity.
Basically, after the registration of any business entity, the tax authority provides the Unique Identification number which includes the Permanent Account Number (PAN) and State- specific number. Basically. Unique Identification Number is termed as the GST Identification Number (GSTIN) which is a fifteen-digit number. The first two digits of the GST Identification Number (GSTIN) represent the State code and the next ten digits represent the Permanent Account Number (PAN) of the taxpayer. After that, the thirteenth digit of the Unique Identification Number denotes the number of registration within the state and the fourteenth digit is Z by default and the fifteenth digit is for check code.
