Rule 16A Makes GST Process Simpler


Rule 16A Makes GST Process Simpler

Temporary Identification Number (TIN) will reduce the compliance burden on small businesses or individuals not regularly engaged in taxable activities

 
GST

Udaipur, January 25, 2025 - The Central Board of Indirect Taxes and Customs (CBIC) has made changes to the GST rules for issuing Temporary Identification Number (TIN) to reduce the compliance burden on small businesses or individuals not regularly engaged in taxable activities.

Rule 16A was added to the CGST Rules, 2017, and issued last month by the GST Council to issue TINs to those entities that otherwise do not need GST registration. A proper officer can grant the TIN and issue an order in Part B of FORM GST REG-12.

CBIC clarified, "Individuals or entities that do not require GST registration but are obligated to make tax payments under the provisions of the GST Act can now obtain a Temporary Identification Number (TIN)."

Under GST rules, businesses in the manufacturing and service sectors with an annual turnover of Rs 40 lakh and Rs 20 lakh, respectively, are required to register.

Who can obtain TIN?

  • The provision is for individuals or entities whose annual turnover is below the threshold limit for mandatory GST registration but who still need to pay taxes on certain transactions.
  • TINs will help entities involved in occasional or one-off taxable activities (such as making sales or providing services) to comply with GST without the need for full registration.

Benefits

  • TINs will help create a simpler mechanism for paying GST.
  • Will particularly benefit those engaged in isolated or infrequent taxable transactions.
  • Tax compliance will become easier for those not needing full GST registration and filing processe

With Media Inputs

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