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GST Rule 2025: CBIC Notifies Amendment on Temporary Identification Number (TIN) – Key Details Here

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CBIC Introduces Temporary Identification Number (TIN) for Non-GST Registered Entities

The Central Board of Indirect Taxes and Customs (CBIC) has amended the Goods and Services Tax (GST) rules to facilitate tax compliance for entities that are not required to register under the GST Act but still need to make tax payments. The amendment introduces Rule 16A in the Central GST Rules, enabling such entities to obtain a Temporary Identification Number (TIN).

Who Can Benefit?

Entities not required to register under GST include those with occasional or limited taxable activities and those falling below the mandatory registration threshold. Currently, GST registration is required for businesses with an annual turnover exceeding:

  • ₹40 lakh for manufacturing activities
  • ₹20 lakh for service-related activities

For entities that do not meet these criteria but still have obligations to pay tax under specific provisions of the GST Act, the TIN provides a streamlined process for compliance.

What Does Rule 16A Say?

The newly introduced Rule 16A states:
“Where a person is not liable to registration under the Act but is required to make any payment under the provision of the Act, the proper officer may grant the said person a temporary identification number.”

This enables non-registered entities to comply with their tax obligations without undergoing the complete GST registration process, which may be unnecessary for their limited taxable transactions.

Why Was This Change Introduced?

The decision to introduce TIN was made during the recent GST Council meeting to:

  1. Simplify Tax Compliance: Reduce the administrative burden on entities with minimal or one-time taxable activities.
  2. Ensure Smooth Tax Payments: Facilitate a hassle-free payment process for occasional taxpayers.
  3. Enhance Revenue Collection: Capture taxes from entities not formally registered under GST but still liable to pay under certain provisions.

Key Implications

  • Ease of Compliance: Businesses and individuals with infrequent tax liabilities can make payments without a full GST registration.
  • Flexibility: TIN provides an alternative route for compliance while reducing paperwork and regulatory obligations.
  • Better Tax Administration: Helps the government monitor occasional taxable activities and ensure accurate revenue collection.

The move is seen as a step toward making the GST system more inclusive and efficient, addressing the needs of those outside the ambit of mandatory registration but contributing to the tax ecosystem. For more details, entities can refer to the official CBIC notification or contact GST officials.