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UIN – Unique Identity Number in GST

Unique Identity Number

Introduction

Unique Identity Number (UIN) under GST is a special class of GST registration for the special class of entities which are not liable to be taxed in the Indian territory. Any amount of tax either collected directly or indirectly from such organizations or bodies is refunded back to them.

Article 246A (inserted by the one hundred and first constitutional amendment act, 2016) empowers the parliament exclusively to make laws concerning GST in the course of inter-state trade or commerce.

GST is a destination-based tax levied at a single point at the time of consumption of goods or services by the ultimate consumer. The principle of value-added tax is used in the GST system.

There are two types of number in the GST system:

  • Goods and Services Tax Identification Number (GSTIN)
  • Unique Identity Number (UIN)

Registration

Chapter VI of the CGST Act, 2017 deals with several provisions dealing with registration for GSTIN and GST UIN.

GSTIN

The following are the persons, individuals and entities that are liable for the registration under the CGST Act, 2017 according to section 22 and section 24 of the CGST Act, 2017.

  • Any individual who is already registered under pre-GST laws (i.e. VAT, Service Tax and Excise, etc.).
  • Businesses with turnover above Rs. 20 lakh (This limit is reduced to Rs. 10 Lakh for a few states such as J&K, Himachal Pradesh, Eastern States, and Uttrakhand).
  • Every e-commerce aggregator.
  • Agents of supplier and input service distributor.
  • Those paying tax under reverse charge mechanism.
  • Any other person such as a casual taxable person or non-resident taxable person etc.

GST UIN

According to section 25(9) of CGST Act,2017 following are the persons to whom GST UIN should be granted;

  • Any specialized agency of the United Nations Organization.
  • Any institution or organization which are notified under the United Nations (Privileges and Immunities) Act,1947.
  • Embassy or Consulate of foreign countries.
  • Any other person notified by the commissioner.

Exception

However, Section 23 of the CGST Act, 2017 creates some exceptions to whom neither the GSTIN nor GST UIN would be granted namely;

  • Any person engaged exclusively in the business of supplying goods or
    services or both that are not liable to tax or wholly exempt from tax under this Act or
    under the Integrated Goods and Services Tax Act.
  • An agriculturist, to the extent of supply of produce out of cultivation of land.
  • The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under the CGST Act, 2017.

How to apply for UIN?

GST Act provides the form named ‘Form GST Reg-13’ for getting Unique Identification Number (UIN). In addition to this, suo-moto UIN may be granted to foreign embassies and consulates.

Purpose of UIN

UIN allows the registered organizations to receive the tax refund on inward supplies of goods and services (purchase).

To get a refund, it is mandatory for the UIN holder to file GSTR-11.

Format of GST UIN

GST UIN is a set of 15 digit alpha-numeric code which consists of 5 different sets.

  • First two digits refer to the State code;
  • Next ten digits refer to the Permanent Account Number (PAN);
  • Next digit refers to the Entity Number of the same PAN holder in a State;
  • The 14th digit is an Alphabet, i.e. “Z” by default;
  • The last digit i.e. 15th is a Checksum digit.

Time Required to get GST UIN

After filing the form ‘GST Reg-13’, it takes three working days to get the same. GST UIN and GST Certificate have to be issued by a GST officer within the prescribed limit of three days.

Conclusion

To reduce the cascading effect of taxes, the government of India introduced various GST laws. With the introduction of GST laws, all the previous laws relating to indirect taxes such as VAT is repealed. In the opinion of different jurists and constitutional experts, the procedure adopted for implementing the GST through all over India for “One Nation One Tax” is a model of “cooperative federalism”. Under this Act, there are two types of classification for the registration. A kind of registered person eligible for getting GSTIN while another is eligible for GST UIN.

GST UIN is a 15 digit alpha-numeric code issued to those entities which are excluded from the purview of GSTIN of GST Act, 2017. In other words, GST UIN is a special registration for those who are exempted from paying taxes. By filing form ‘GST Reg-13’, competent entities such as a foreign embassy or consulate get GST UIN within three working days.

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