Common GST terms – CPIN, ARN, EVC, ISD, GST council

A quick guide on common GST terms

In this post, we will discuss the commonly used GST terms. Here are a few terms which you might be searching for and you will find it useful.

What is CPIN in GST?

CPIN stands for “Common Portal Identification Number”. This is a 14 digit number which is auto-generated at the time of challan creation. i.e., once you submit GSTR-3B and proceed to pay (In case of tax payable), a challan is generated and along with it, CPIN is also generated. The validity of CPIN is for a period of 15 days from the date of generation.

You get an invalid challan error if the CPIN has expired. In such case, generate the challan again and go for the payment.

What is ARN in GST?

ARN number stands for Application Reference Number. GST ARN number is generated on the GST Portal automatically on the submission of a GST registration application. ARN number can then be used for tracking the status of GST registration application until the GST Certificate and GSTIN is issued by the Government.

What is EVC in GST?

During the GST registration and return filing process, traders and businesses can verify themselves via the electronic code verification or EVC. IF EVC is done, authentication through digital signature certificate (DSC) will not be mandatory.

EVC can be done by using OTP. The OTP will be sent to the registered mobile number of the Authorised Signatory. Here, the OTP is called the Electronic Verification Code (EVC) and a person who wants to do the user authentication using an OTP can select this method.

This method is also applicable for authorised signatories who are not based in India.

But, companies and LLPs cannot verify using this method. They have to use DSC for registration and verification.

What is an ISD or Input Service Distributor?

ISD stands for Input Service Distributor, which means a business that receives tax invoices used by its branches. The branches can have different GSTINs but must have the same PAN as that of ISD. It distributes the tax paid to such branches on a proportional basis by issuing an ISD invoice.

In order to maintain standardisation, it is a common practice that the Head office procures certain services which will be utilised by all its branches.

Also, however, there may be times where a branch may procure a common service used by the entire organisation as well.

Let us understand with an example:

The Head office (HO) of Company XYZ is located at Bangalore and have branches at Hyderabad, Mumbai, Delhi. The HO incurred annual software maintenance expenses on behalf of all its branches and received the tax invoice for the same. As the software is used by all its branches, the ITC of all the services cannot be claimed at the Head Office Bangalore. It should be distributed among all the three locations. So, here the Input Service Distributor is the Head Office at Bangalore.

What is the GST council?

GST council is a key decision-making body which is responsible for the implementation, rules, and regulations related to GST. The most important responsibility of the council is to make sure to have one uniform tax rate for goods and services across the nation.

The GST Council is chaired by the following members.

  • The Union Finance Minister
  • The Union Minister of State of Revenue or Finance
  • Ministers in-charge of Finance or Taxation nominated for each State

This ends the post on Commonly used GST terms. If this was helpful, let us know in the comment section below.