Getting your GST Registration Number in India starts by combining your old VAT and service tax registrations. The government then gives GST Registration numbers to people who were already registered for VAT and service tax. The goal is to bring together the two main sets of indirect tax codes. This article looks at why having a GST registration number is important.
Understanding the Parts of a GST Registration Number
A GST Registration number has 15 digits. It is assigned based on your PAN (Personal Account Number) and the state you are in. The first two digits show the State Code, followed by 10 digits for your PAN. There’s one digit for the entity code, another one left empty, and the last digit is a check digit.
What’s the GSTIN All About?
Before GST, each state had its own Tax Identification Number (TIN) for businesses under the state VAT law. Government agencies also had a service tax registration number from the Central Board of Indirect Taxes and Customs.
In the GST era, all registered taxpayers are brought together under a central agency for better compliance and management efficiency.
Now, every business trading within a state or union territory gets a unique Goods and Services Tax Identification Number. It’s important to note that this number is only for that specific business.
Breaking Down the GSTIN Structure
Every taxpayer gets a 15-digit Goods and Services Taxpayer Identification Number based on their state’s PAN. Knowing how the GSTIN is set up is crucial, and here’s a breakdown:
1. State Code (First Two Digits): Shows the state code, and each state has a unique code.
2. PAN Number (Next Ten Digits): Represents the taxpayer’s PAN.
3. Thirteenth Digit: Depends on how many registrations there are in a specific state.
4. Fourteenth Digit: Automatically set to “Z.”
5. Check Code (Last Digit): The final digit in the GSTIN, serving as a check code.
Understanding this organised format is important for dealing with the complexities of the Goods and Services Tax Identification Number.
How Many GST Registrations Are There?
The new GST Registration number is a distinct 15-digit code. It’s crucial to know that this number is unique to each taxpayer. The number is given based on the PAN and state.
Breaking it down, the first two digits show the State Code, followed by the next ten digits representing the PAN. Within these 15 digits, there’s an empty space, a digit for the entity code, and the last digit acts as a check digit. This structured arrangement guarantees the uniqueness and accuracy of each GST Registration number.
Cracking the State Codes in GST Numbers
The state codes in the GST registration number are organised based on the 2011 Indian Census, with each state getting a unique two-digit code. Here are the state codes given below:
1. Jammu and Kashmir (01)
2. Himachal Pradesh (02)
3. Punjab (03)
4. Chandigarh (04)
5. Uttaranchal (05)
6. Haryana (06)
7. Delhi (07)
8. Uttar Pradesh (09)
9. Uttarakhand (10)
10. Bihar (10)
11. Sikkim (11)
12. Arunachal Pradesh (12)
13. Nagaland (13)
14. Manipur (14)
15. Mizoram (15)
16. Tripura (16)
17. Meghalaya (17)
18. Assam (18)
19. West Bengal (19)
20. Jharkhand (20)
21. Orissa (21)
22. Chhattisgarh (22)
23. Madhya Pradesh (23)
24. Gujarat (24)
25. Daman & Diu (24)
26. Dadra & Nagar Haveli (26)
27. Maharashtra (27)
28. Andhra Pradesh (28)
29. Karnataka (29)
30. Goa (30)
31. Kerala (32)
32. Tamil Nadu (33)
33. Pondicherry (34)
34. Andaman and Nicobar Islands (35)
What’s the Difference Between GSTIN and GSTN?
Do not mix up between the GSTIN and GSTN. GSTIN is your tax registration number which is there in the GST system. On other side, the Goods and Service Tax Network is like the IT manager for the GST Portal. The portal is where the Indian Government keeps track of all money transactions and provides services for everything, from signing up up to paying taxes and keeping your tax records.
Connecting GST and PAN: The Digits Unveiled
In the Goods and Services Tax (GST) system, digits 3–12 of the GSTIN hold the PAN (Permanent Account Number) of the entity. This connection is crucial for linking the PAN database and the GST database.
Entity Number: This is a special identifier only for a business.
The 13th digit, which is alpha-numeric (from 1 to 9, followed by A-Z), depends on the number of registrations made by a legal organisation under the same PAN in a specific state. For instance, if a company has one registration in a state, the 13th digit is 1. If there’s a second registration for a different business vertical in the same state, the 13th digit is 2. This means a legal organisation in a state can register up to 35 business sectors.
Final GSTIN Digits: The first digit of the last two numbers in the GSTIN is left empty for possible future use, and the very last digit acts as a check digit, maintaining the overall integrity of the identification code.
Final Thoughts
The Goods and Services Tax Identification Number is a 15-digit code organised to convey important information about a taxpayer. Derived from the PAN and state specifics, its structured arrangement includes state codes, PAN representation, entity number, and unique digits reflecting the extent of registrations within a state. The alpha-numeric 13th digit signifies the diversity of a legal entity’s registrations, allowing up to 35 business sectors. With the final digits strategically reserved for future use and as a check, the GSTIN ensures precision and uniqueness, making compliance within the GST framework easy.
