CBIC notifies rules for businesses to obtain temporary identification number under GST

Businesses that are not required to register for GST but are required to make tax payments under the provisions of the GST Act can now obtain a Temporary Identification Number (TIN).

The Central Board of Indirect Taxes and Customs (CBIC) has notified an amendment to the GST rules to issue TIN to companies that are not required to register under the GST Act but are required to make payments under a certain provision.

Under the Goods and Services Tax (GST) rules, registration is mandatory for businesses with an annual turnover of Rs 40 lakh and Rs 20 lakh in the manufacturing and services sectors, respectively.

“Where a person is not eligible to register under the Act but is required to pay under the provisions of the Act, the appropriate officer may issue a temporary identification number to that person,” said the CBIC while introducing Rule 16A of the Central GST Rules. .

The decision to issue TIN to companies that do not require GST registration was taken by the GST council in its meeting last month.

This will ensure smooth payment of tax while reducing the compliance burden for those who do not regularly engage in taxable activities.