Decode GST Number

GSTIN, short for Goods and Services Tax Identification Number, is a unique 15 digit identification number assigned to every taxpayer (primarily dealer or supplier or any business entity) registered under the GST regime.

Before GST was introduced, all dealers registered under the state VAT law were issued a unique TIN number by the respective state tax authorities; the GSTIN number has replaced the same.

Business entities registering under GST are now provided with a unique identification number known as the GSTIN.

decode gst number

What is GSTIN?

Before GST was implemented, all dealers registered under the state VAT law were assigned a unique TIN number by the respective state tax authorities. Similarly, service providers were assigned a service tax registration number by the Central Board of Indirect taxes and Custom (CBIC).

Under the GST regime, all registered taxpayers are consolidated into one single platform for compliance and administration purposes and are assigned registration under a single authority. 

Every business operating in a state or Union territory will be assigned a unique Goods and Services Tax Identification Number, popularly known as GSTIN.

Every taxpayer under the GST regime is provided with a State + PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).

Here is the breakdown of the GSTIN format-

  • GSTIN Full Form: Goods and Services Tax Identification Number
  • First 2 Digits: The first 2 digits of the 15 digit GSTIN represents the state code.
  • Next 10 Digits: The next 10 digits are the PAN of the person or the business entity.
  • Thirteenth Digit: The thirteenth digit is based on the number of registrations done by the firm within a state under the same PAN.
  • Fourteenth Digit: The fourteenth digit will be the alphabet “Z” by default
  • Last Digit: The last digit is called the check code to detect errors and can be denoted by either a number of an alphabet

GST Number Example

If any legal entity or business firm has only one registration in the same state, then the number “1” will be assigned as the 13th digit of GSTIN under its format. If the same company obtains one more or second registration in the same state itself, the thirteenth digit of GSTIN will be assigned as number ”2”.

Similarly, the letter “B” will be assigned as the 13th digit of the GSTIN if the entity has done 11 registrations in the same state. In the same way, any legal entity can have up to 35 business verticals and can be registered within a state using this system.

How to apply for GSTIN?

It is part of the GST Registration process. Once the application is approved by the GST officer, a unique GSTIN is allocated to the dealer.

There are two ways to register for GST:

  • via GST Online Portal or
  • via GST Seva Kendra set up by Government of India

Documents Required

  • Photographs
  • The taxpayer’s constitution
  • Proof(s) of the business’s location
  • Account information
  • Form of authorization

Difference Between GSTIN and GSTN

GSTIN number means the Goods and Services Tax Identification Number, whereas Goods and Service Tax Network (or GSTN) is an organisation that oversees the GST portal’s whole IT system.

The Government of India will use this portal to track every financial activity and to give taxpayers all services, from registration to submitting taxes and preserving all tax records.

Benefits of Getting a GSTIN

  1. Legal recognition of the business entity as a supplier of goods or services. This, in turn, helps in attracting more customers and growing business.
  2. You will become more competitive than small businesses as purchasing from them will ensure input credit.
  3. A person who has GSTIN can take input credit on their own purchases and input services. 
  4. No restrictions on interstate sales (they will be treated as casual taxable persons). Thus, the potential market for SMEs reaches the next level.
  5. You can either register on e-commerce sites or open your own e-commerce website. This will again enhance the scope of business for a registered person. 
  6. GST registration will ensure that your business is compliant (because most returns are automated). This will result in a good GST rating for your firm and help to boost the business.

FAQs

How do I file a complaint regarding a forged GSTIN?

The GSTIN can be looked up and validated on the government portal. Assume that any variations from a supplier have been recognised. In that case, please report it immediately by using the portal, contacting the government at [email protected], or phoning 011-23370115, 0124-4688999, or 0120-4888999.

Is the GSTN and GSTIN the same thing?

No, they are not the same. GSTIN is a 15-digit alpha-numeric number assigned to each taxpayer. GSTN, on the other hand, is the Goods and Services Tax Network, which is an organisation in charge of the official GST portal’s whole information technology infrastructure.

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