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  • Category: Tax Planning

    What is the use of GSTIN for salaried employees?

    Have you heard about GSTIN? Looking out for details and whether it is useful for salaried employees of a private firm? On this Ask Expert page you can scroll through the answers to all your queries.

    Newly heard term GSTIN ( GST Identification Number ) during insurance policy. What is its purpose for salaried employees of privately working firm? Do they need GSTIN registration and how does it benefits them? Need advise if common man can go for it? Because in government portal there is no option for declaring salaried person. Only suitable option is HUF.
  • Answers

    5 Answers found.
  • A salaried employee will not be covered under GST. The service rendered by an employee to the employer will not be covered under service tax. The salaried persons will be covered with income tax act. So an individual who is not a businessman but only a salaried person need not get registered under GST and no GSTIN is required. Only business people and service providers have to register under GST and get GSTIN.

    always confident

  • A salaried employee (in the private sector or in Government) doesn't require GSTIN. Most probably you were filling up a common insurance application form for all. So, there was a column for GSTIN. If you are a salaried employee, you must indicate 'Not Applicable' in that space.

    GSTIN is solely for businesses and businessmen.

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

  • GSTIN is a unique identification number under the GST regime which is allocated to a business entity, dealer or service provider. So all earlier VAT numbers or service tax numbers are now migrated to this for GST compliance.

    The GSTIN is an interesting identification comprising of 15 digits/ letters and can easily be used to identify the business entity. The first 2 places are for identifying the state in which the business is registered. The next 10 places are the PAN number of the entity to link it with Income Tax and bank accounts. The thirteenth place is assigned based on the number of registration within a state. The fourteenth place is 'Z' by default and the last place is for check code which may be an alphabet or a number.

    In case of salaried person it is not required and has no significance.

    Knowledge is power.

  • GSTIN is not applicable for salaried employees. It is applicable only for those doing business of goods and services.
    Although an employee also provides services to his employer but the same is not covered under GST. If we go by literal meaning that all services are taxable by whatever name called and to whomsoever it is provided, then it will create huge problem for salaried class.

    In your case it seems you have purchased the policy online and at the time of payment it has asked for GSTIN. Even in that case it is not applicabke to you but for those who purchase policy for their covering their business or stock or vehicles, etc. The business entity can provide the GSTIN so that they can claim input credit of the tax paid to the insurer on the policy taken.

    You can ignore that part while purchasing the policy and make the payment without GSTIN.

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  • GSTIN is not applicable for the salaried class people since they are offering their service to the management in terms of physical labour or applying their mental potential to augment production. So, in no way, they are selling their own goods attracting GST regimen.
    The salaried section employee come under the preview of Income - tax Act and hence their perks earned by a way of rendering service to organisation calls for deduction of tax under the income - tax structure.
    You may make your payment of your policy ignoring the GSTIN regime.

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