What is the Difference Between GST/CIN and D-U-N-S Number for Indian Businesses

In India, businesses function in an environment that is highly regulated by multiple authorities. The purpose of the various numbers assigned by the different government bodies is to standardise how businesses comply with regulations, establish a record of their operations, and provide some measure of credibility. There is a lot of confusion surrounding the most common identification numbers that an Indian entrepreneur or business owner will come across. The three most common ones are GST numbers, CIN numbers and D-U-N-S numbers. It is important for an Indian business to understand the function of each of these identification numbers, the way they are utilised and the differences between them. By understanding these three numbers, Indian businesses will have a better opportunity to successfully operate and remain compliant with regulations as well as grow their business internationally through developing the credibility of their company in the marketplace.

Please follow this content and explore what each identification number is, the differences between each, and why each is essential for Indian businesses.

What is the GST (Goods and Services Tax) Number?

GST is an indirect tax (Goods and Services Tax) that is implemented through a single tax. This GST was introduced in India on July 1, 2017, and replaced all previous indirect taxes (Value Added Tax, Service Tax, Excise Duty) and simplified the taxation system, making it easier for businesses to comply with.

Key Points About GST Number:

1. Definition: GST number is referred to as GSTIN (Goods and Services Tax Identification Number), which is a unique 15-digit alphanumeric code assigned to every registered business under the GST Act.

    

2. Format:

    

   • First Two Digits = State Code.
   • Next Ten Digits = PAN of the Business.
   • 13 Digit = Entity Number for the same PAN in a State.
   • 14 = Z default value for all businesses.
   • 15 = CheckSum Character for verification.

      

3. Purpose:

    

   • The GST Number allows the registered business to be identified under the law.
   • The GST Number is utilized for Invoicing, for Filing Taxes, and claiming Input Tax Credit (ITC) from GST.
   • To be compliant under the GST Act.

      

4. Applicability:

    

   • Businesses that exceed ₹40 lakhs (₹20 Lakhs for Special Category States) will need a CIN .
   • Also applicable to e-commerce operators , casual taxable persons and non-resident taxable persons .

      

What is CIN (Corporate Identification Number)?

CIN , or Corporate Identification Number , is a unique, 21 character alphanumeric code issued to a company registered in accordance with the Companies Act 2013 by the Registrar of Companies (RoC). All companies registered in India must obtain a CIN.

Key Points About CIN:

1. A definition of CIN : The corporate Identification Number is a unique alphanumeric code that is 21 individual letters long that identifies your Company that is incorporated in India.

    

2. Format:

    

   • The first letter represents the listing status of the company (L for listed, U for unlisted).
   • The next five digits indicate the industry code.
   • The next two digits indicate the state code.
   • The next four digits represent the year of incorporation.
   • The next three letters denote the type of company (e.g., PLC, PVT, etc.).
   • The last six digits are the registration number given by the RoC.

      

3. Purpose:

    

   • To identify uniquely all Companies registered under the Companies Act.
   • To communicate with Government Authorities.
   • For Annual returns, Financial Audits and Corporate Governance Compliance.
4. Applicability:

    

   • Mandatory for All Private Limited, Public Limited and One Person Companies incorporated in India.
   • Not applicable to partnerships, sole proprietorships, or unregistered businesses.

      

What is D-U-N-S Number?

A unique nine-digit identifier assigned by Dun & Bradstreet (D&B), the D-U-N-S (Data Universal Numbering System) number establishes credibility for businesses globally. It provides identification as a participant in the global marketplace. While GST and CIN provide businesses with statutory identifiers for registration in India, The D-U-N-S number will help establish a business’s creditworthiness and facilitate global trading.

Key Points About D-U-N-S Number:

1. Definition: A D-U-N-S Number is an internationally recognised identifier for businesses worldwide that establishes trustworthiness of the company, evaluates its creditworthiness, and allows it to trade globally.
2. Format: The D-U-N-S number consists of 9 digits and is unique to each registered business.
3. Purpose:

    

   • D-U-N-S numbers support global recognition of businesses and often are essential for international transactions between international business partners.
   • D-U-N-S numbers facilitate supplier verification, creditworthiness evaluation, and credit risk assessment.

      

4. Applicability:

    

   • Although it is a voluntary registration, it is highly recommended for Indian businesses seeking to engage with global clients or participate in international project opportunities.
   • D-U-N-S numbers can be acquired by sole proprietorships, partnerships, LLPs, and corporations.

Key Differences Between GST/CIN and D-U-N-S Numbers

Why Indian Businesses Need All Three Identifiers

In India, businesses are mandated to have GST and CIN and the addition of a D-U-N-S number helps add another layer of global acceptance & credibility. Here’s the value of all three identifiers.

1. GST Number: This helps ensure compliance with tax laws, allows businesses to issue legal invoices and allows them to claim input tax credits. Without GST registration, businesses expose themselves to severe financial penalties and legal issues.
2. CIN: This indicates that an entity is recognised as a legitimate corporate body. This enables companies to enter into corporate contracts, open bank accounts, etc., and provides the framework under which businesses must comply with legal requirements outlined in the Companies Act.
3. D-U-N-S Number: This maximizes believability among foreign associates, increases chances of being a part of international tendering and furnishes a platform of exporting and importing products. Multinational companies consider companies with D-U-N-S numbers to be credible.

    

How to Obtain GST, CIN, and D-U-N-S Number in India

GST Registration:

1. Go to the GST portal (gst.gov.in) and provide details such as PAN card number, address of the business, details of a bank account where the business operates, and type of business.
2. After the above is submit, the  GST registration number will be issue, depending on the legal business entity registered.

    

CIN Registration:

1. You will have to establish/ incorporate a company with the Ministry of Corporate Affairs (MCA).
2. You will also have to provide all incorporation-related forms, including your Memorandum of Association and Articles of Association.
3. CIN will be allocate to your company by the Ministry of Corporate Affairs (MCA) after it has approve and received the above documents.

    

D-U-N-S Registration:

To obtain a D-U-N-S number, go to the Dun and Bradstreet India site (dnb.co.in). Provide company name, address, PAN number, and contact details.  After verifying your business information, you will be given your D-U-N-S number, which is a 9-digit number.

Conclusion

To effectively conduct business in India, it is important for every Indian business to know the differences between GST, CIN and D-U-N-S numbers. While GST helps businesses comply with their tax obligations, the CIN confirms the corporate identity of a business, and a D-U-N-S number gives a business global recognition. Each of these identifiers serves a different purpose, but based on your products/services and market, having these identifiers can help you operate smoothly and legally, and expand internationally.

For businesses seeking to grow domestically and internationally, compliance with Indian laws is very important for building the credibility of your company in the global marketplace. The time invested in understanding and obtaining GST, CIN, and D-U-N-S numbers will pay dividends through improved operational efficiencies, compliance with legal requirements, and increased business reputation.

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