UIN stands for Unique Identification Number. It is a special type of GST registration for foreign diplomatic missions and embassies that are not required to pay taxes in India. Any tax (direct or indirect) collected from these bodies is refunded to them.
To learn about associated costs, refer to the GST registration fees that may apply during the process.
The UIN is issued to specific entities for the sole purpose of claiming tax refunds. It serves as a unique identifier and allows for the tracking and verification of transactions made by these entities. It is important to note that the UIN is distinct from a regular Goods and Services Taxpayer Identification Number (GSTIN) and is exclusively meant for the entities mentioned above.
Importance of UIN
The main purpose of the UIN is to allow tax refunds for organisations that are exempt from paying taxes in India due to international agreements or diplomatic immunity. By providing a UIN, the Indian government ensures that these organisations can carry out their work without the burden of indirect taxes, in line with international agreements and to maintain good diplomatic relations.
How Does the UIN Work?
Once a UIN is issued, the holder can use it to claim refunds on the GST paid for their purchases. The process involves:
- Making purchases: The UIN holder buys goods or services needed for their official use
- Collecting tax invoices: The UIN holder must ensure that all purchases come with valid tax invoices showing the GST amount paid
- Filing refund claims: The UIN holder can periodically apply for a refund of the GST paid. This is done by submitting a refund application (GST RFD-10) along with the required invoices and documents
- Receiving refunds: After verifying the refund application, the GST authorities process the refund, which is then credited to the UIN holder's bank account
Learn more about how a letter of authorisation for GST can help with refund claims.
Benefits of the UIN
The Unique Identification Number offers several benefits to the holder, including:
- Tax exemption: UIN holders are exempt from GST, helping them operate more smoothly without extra costs
- Simplified refund process: The refund system makes it easier for UIN holders to get back the taxes paid on their purchases
- Support for international relations: By providing tax exemptions to diplomatic and international bodies, India strengthens its diplomatic relations and follows international agreements
Who can apply for UIN under GST?
The following organisations can apply for a UIN under the GST regime:
- A specialised agency of the United Nations (UNO)
- A multilateral financial institution or organisation notified under the United Nations (Privileges and Immunities) Act, 1947
- The consulate or embassy of foreign countries
- Any other person or group of people as notified by the commissioner
Along with the abovementioned entities, those notified by the GST Council can also apply for a UIN.
Additionally, in some cases, a GST certificate (download) may also be required for compliance purposes.
What is the purpose of a UIN?
The purpose of a UIN is to enable specific entities, such as diplomatic missions and international organisations, to claim refunds on the GST paid on their purchases. This ensures that these entities operate tax-free, in line with international agreements and treaties.
For more details on how GST aligns with broader financial and legal requirements, explore GSTN under PMLA and its significance in compliance.
- Facilitates tax-free purchases for eligible entities.
- Ensures compliance with international agreements.
- Streamlines the refund process for GST paid.
To know how to verify a GSTIN, refer to our GSTIN verification guide.
What is the difference between GSTIN and UIN?
Goods and Services Tax Identification Number -abbreviated as GSTIN, is assigned to regular taxpayers under GST. On the other hand, UIN whose full form is Unique Identification Number, is assigned to specific entities like diplomatic missions and international organisations for claiming GST refunds.
- GSTIN is for regular taxpayers, while UIN is for specific entities like diplomatic missions.
- GSTIN allows tax collection and credit, while UIN facilitates refunds.
How to register as a UIN?
To register as a UIN holder, eligible entities must submit an application in Form GST REG-13 through the GST portal. All you need to do is provide relevant details and documents to support your eligibility and comply with the prescribed procedures.
If you encounter any issues during registration, you can troubleshoot them using resources like the GST site not working guide.
- Submit Form GST REG-13 on the GST portal.
- Provide necessary documents and details to complete UIN number registration
- Within 3 working days of the application, you will receive a registration certificate via Form GST REG-06.
What returns should be filed by a UIN holder?
UIN holders must file Form GSTR-11 to claim refunds on GST paid on inward supplies. This return must be filed for every quarter in which the entity makes purchases and claims refunds.
- File Form GSTR-11 quarterly.
- Claim refunds for GST paid on inward supplies.
- Ensure timely and accurate filing.
What should a seller supplying to a UIN holder ensure?
The taxable supplier, usually a registered taxpayer under GST, must follow these steps when supplying to a UIN organisation:
- Include the UIN on the invoices
- Treat these sales as supplies to another registered person (B2B)
The suppliers to UIN holders should upload invoices in the same way as they would for regular B2B sales. Also, such supplies should be mentioned in the GST returns accurately to maintain transparency and adherence to tax regulations.
How a GST calculator simplifies Unique Identification Number management
A GST calculator is a valuable tool that simplifies the management of Unique Identification Number (UIN) by accurately computing GST amounts and facilitating proper documentation. This tool plays a crucial role in assisting UIN holders in verifying their refund claims and also supports sellers in ensuring compliance with invoicing and reporting requirements. By accurately calculating GST amounts, verifying refund claims, and ensuring adherence to invoicing and reporting regulations, the GST calculator serves as a reliable aid for businesses navigating the complexities of GST compliance.
Conclusion
A Unique Identification Number (UIN) under GST is crucial for specific entities like diplomatic missions and international organisations to claim refunds on GST paid. Proper registration, adherence to return filing, and leveraging tools like GST calculators ensure efficient management of UINs. For businesses dealing with UIN holders, understanding these processes is essential for compliance and smooth operations. This streamlined process can also help businesses maintain positive relationships with international clients and partners. Additionally, securing business loans can provide the necessary capital to manage cash flow and expand operations effectively.
Here is how you can apply for a business loan from Bajaj Finance:
- Click on the 'APPLY' button on this page.
- Enter your 10-digit mobile number and OTP.
- Fill in the application form with your basic details, such as your full name, PAN, date of birth, and PIN code.
- Once you enter all your details, please click on ‘PROCEED’ to visit the loan selection page.
- Enter the loan amount that you need. Choose from our three business loan variants – Term, Flexi Term, and Flexi Hybrid.
- Choose the repayment tenure- you can select tenure options of
12 months to
96 months and click on ‘PROCEED’. - Complete your KYC and submit your business loan application.
Our representative will guide you on the next steps. The loan amount will be transferred to your bank account on the successful verification of your documents.
