10 Jan 2018, 09:30 — 3 min read
For the purpose of taxation, the GSTIN becomes very important for manufacturers, suppliers and traders when conducting transactions. The GSTIN is what the government uses in determining the quantum of tax after looking at corresponding invoices. For increased compliance, care must be taken to ensure that the GSTIN is used appropriately wherever necessary to ensure that taxation is done in the right manner.
As known to all, GSTIN (Goods and Services Tax Identification Number) is a 15 digit ID.
Knowing the structure of the GSTIN is important for a business for the following reasons:
The 15 digit ID comprises of:
1. 2 digits signifying the state code: Digit 1 & 2
GST State Code List of India: This state code list under GST is prescribed as per the Indian Census of 2011, and is given below.
2. 10 digit PAN number: Digits 3 – 12 represent the PAN of the entity, so that a nexus can be established between the GST and the PAN database.
3. 1 digit signifying number of registrations: Digit 13 is entity code, which signifies number of registration that an entity has taken within a particular state. It would be pertinent to note that a new registration in a different state will have GSTIN starting with a different state code. A registered person with single registration within a State would have number 1 as 13th digit of the GSTIN. If the same registered person gets a second registration for a second business in the same State, the 13th digit of GSTIN assigned to this second entity would be 2 and so on.
4. 2 digits having default and checksum values: Last two digits are for the purpose of check digit.
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Posted byRavi Haresh Kariya
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