In the pre-GST indirect tax system, TIN or Tax Identification Number was the unique identification number assigned to the registered taxpayers. In the GST regime, TIN has been replaced by GSTIN. In this comprehensive guide by earlyGST, you will learn all about TIN and how GSTIN has replaced it.
Tax Payer Identification Number is widely known as the TIN number. It is also commonly known by other names like VAT Number or CST Number, or Sales Tax Number. It is a unique number that is assigned by the Commercial Tax Department of the respective states. It is used to identify all the registered VAT dealers and for conducting inter-state as well as intra-state sales. TIN consists of eleven digit number which was mentioned in all VAT transactions and correspondence. First two digits indicate the issued state code and other 9 digits of TIN differ depending on state governments registering it.
Businesses selling goods or products say manufactures, exporters, shopkeepers, dealers, e-commerce, etc. were mandatorily required to have a TIN number or VAT registration. Basically, you required a TIN number if you were dealing in the VAT eligible products. In most of the states, TIN was generally required when your turnover crossed Rs 5 lakhs in a year. But even before commencing a business, you were required to have a valid TIN number. Let’s say, if you wanted to start an e-commerce business in the pre-GST era and wanted to sell your products on popular marketplaces like Myntra or Paytm or Amazon, you needed a TIN number.
Generally, each state had its own rules and regulations regarding the kind of documents required to apply for the TIN number, but the following are the common documents required for applying for the TIN number:
Application facility for TIN number was available online on the government’s website as well as offline in government’s facilitation centres across the country. As already discussed, rules and regulations vary from state to state. Here are some common steps described below:
Before commencement of GST, when purchasing goods or products, you were usually presented a bill with TIN number mentioned on it. TIN was mandatory for all. But now, as the scenario is different and GST has subsumed all the indirect taxes, GSTIN has replaced TIN or VAT number. All the business entities registered under GST are provided with a unique identification number known as GSTIN or GST Identification Number. It is a 15 digit alphanumeric code given to each taxpayer in the country.
Note: Consumers must always check and make sure that the GSTIN given in bill by the trader is genuine. Some dealers may put some random numbers and charge you GST.
A. Most of the states required a fixed amount as a security deposit in terms of bank guarantee or fixed deposit. It was a refundable amount which was refunded after the cancellation of the registration.
A. They have to mandatorily switch to GST and apply for GSTIN.
After the implementation of GST, the tax compliance requirements changed drastically. As a result, several businesses find it challenging to focus on their business while trying to be GST compliant. This is where we come into the picture. Our team of in-house GST experts can help you meet all the GST compliance requirements right from registration and filing of returns to handling notices.
We hope, this guide answers all the questions you had about TIN. If you still have any question in mind, you can post it on our TaxForum to get it answered from a tax expert.