Video Transcription

Today we will talk about GSTIN – GST Identification Number 

Any dealer registered under state VAT law has a unique TIN number issued by the respective state tax authorities while a service provider is assigned a service tax registration number by the Central Board of Excise and Custom (CBEC).

Going forward, in the new GST regime, all these taxpayers will get consolidated into one single platform for compliance and administration purposes and will be assigned registration under a single authority. All of these businesses will be assigned a unique Goods and Services Tax Identification Number (GSTIN).

Let’s understand your GST Identification Number: 

  • Every taxpayer will be assigned a state-wise PAN-based Goods and Services Taxpayer Identification Number (GSTIN) which will be 15 digit long.
  • The first two digits of GSTIN will represent the state code according to Indian Census 2011. As per the Census, each state has a unique two digit code like “27” for Maharashtra and “10” for Bihar. So, if a business has its operation in Maharashtra, then the first two digit of its Maharashtra GSTIN will be 27.
  • The next ten digits of GSTIN i.e. 3rd digit to 12th digit will be the PAN number of the taxpayer.
  • 13th digit indicates the number of registrations an entity has within a state for the same PAN. It will be an alpha-numeric number (first 1-9 and then A-Z) and will be assigned on the basis of number of registrations a legal entity (having the same PAN) has within one state.
  • For example, if a legal entity has single or one registration only within a state then it will be assigned the number “1” as 13th digit of the GSTIN. If the same legal entity gets another or second registration for a second business vertical within the same state, then the 13th digit of GSTIN assigned to this entity will become “2”. Similarly, if an entity has 11 registrations in the same state then it will be assigned letter “B” in the 13th place. This way up to 35 business verticals of any legal entity can be registered within a state using this system.
  • The fourteenth digit currently has no use and therefore will be “Z” by default.
  • The last digit will be a check code which will be used for detection of errors.

We hope you found this useful. For more information on such topics please visit hrblock.in

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