Goods and Services Tax (GST) is a comprehensive indirect tax system that was introduced in India on July 1, 2017, by merging various central and state taxes. GST has replaced multiple taxes with a single tax, which has simplified the tax structure in the country. GST has been implemented with the aim of creating a common national market and reducing the cascading effect of taxes. In this article, we will discuss the importance of GST, and how to track the GST application status using the ARN number.
Importance of GST:
Simplification of tax structure: GST has simplified the tax structure by replacing multiple indirect taxes with a single tax. Earlier, businesses had to pay a variety of taxes, including Central Excise Duty, Service Tax, Value Added Tax (VAT), etc. The introduction of GST has streamlined the tax system and made it easier for businesses to comply with tax laws.
Creation of a common national market: GST has created a common national market by removing inter-state trade barriers. Earlier, businesses had to pay taxes at each state border, which increased the cost of goods and services. With the introduction of GST, businesses can now operate throughout the country without any restrictions, which has facilitated the growth of the economy.
Reduction of the cascading effect of taxes: GST has reduced the cascading effect of taxes, which means that businesses can claim input tax credit for the taxes paid on goods and services used in their business. This has reduced the overall tax burden on businesses and has made them more competitive.
Boost to the economy: GST has boosted the economy by increasing tax revenues and reducing business costs. It has also made it easier for businesses to expand their operations across the country.
What is Application Reference Number (ARN)
The Application Reference Number (ARN) is a unique identification number assigned to each GST application submitted on the GST portal. The ARN has generated automatically when the application is filed and it serves as an important reference number for tracking the status of the application. It is an alphanumeric code that consists of 15 characters and is used to identify the GST application during the registration process. The ARN is essential for businesses and individuals who have applied for GST registration, as it enables them to track the progress of their application and take necessary actions accordingly. In this way, the ARN plays a crucial role in the GST registration process, ensuring a smooth and efficient registration experience for all applicants.
How to Track GST Application Status by ARN:
ARN stands for Application Reference Number, which is a unique identification number given to each GST application. The ARN is generated when the application is submitted and can be used to track the status of the application. Here are the steps to track the status of a GST application using the ARN:
Step 1: Go to the GST Portal
The first step is to visit the GST portal (www.gst.gov.in) and click on the ‘Services’ tab in the top menu. From the drop-down menu, select ‘Registration’ and then click on ‘Track Application Status.’
Step 2: Enter the ARN
In the next screen, you will be asked to enter the ARN of the GST application. Enter the ARN in the space provided and then click on the ‘Search’ button.
Step 3: Check the status
The next screen will display the status of the GST application. The status can be one of the following:
Pending verification: This means that the GST authorities are currently verifying the submitted application.
Pending clarification: This means that the GST authorities have sought clarification on some aspects of the application, and the applicant needs to provide the required information.
Approved: If the authorities approve the GST application, the applicant can download the GST registration certificate.
Rejected: If the authorities reject the GST application, it means that the applicant must reapply with the correct information.
Step 4: Take action
Based on the status of the application, the applicant needs to take the necessary action. If the application is pending for verification or clarification, the applicant needs to wait for the GST authorities to take action. If the authorities approve the application, the applicant can download the GST registration certificate from the portal. However, if the authorities reject the application due to incorrect information, the applicant must submit a new application with the correct details.
GST has been a game-changer for the Indian economy, as it has simplified the tax structure, created a common national market, reduced the cascading effect of taxes, and boosted the economy. It has made it easier for businesses to comply with tax laws and has reduced the overall tax burden on them. Tracking the status of a GST application using the ARN number is an important step in the GST registration process. By following the steps outlined in this article, businesses can easily track the status of their GST application and take the necessary action. Overall, GST has been a positive development for the Indian economy, and its impact will be felt for years to come.