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GSTIN: What is it, format and example of the 15-digit GST number

In this article, we will explore in depth what GSTIN is, how you should apply for a GSTIN, and how to check its legitimacy

By Forbes India
Last Updated: Aug 27, 2024, 10:13 IST2 min
Unlike active or fundamental investing which relies on the skill and judgement of a fund manager at each stage of the investment process, quant investing is driven by tech-enabled investment models. Image: Shutterstock
Unlike active or fundamental investing which relies on the skill and judgement of a fund manager at each stage of the investment process, quant investing is driven by tech-enabled investment models. Image: Shutterstock
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GST is a household term in India, not just because it’s a tax levied on most goods and services, but because it’s a relatively new phenomenon that also attracted controversy. But there’s more to it than its oft-repeated controversies. Like GSTIN.

The Goods and Services Tax Identification Number (GSTIN) is a unique identification number provided to firms in India that are registered under the Goods and Services Tax (GST) system.

Significant changes have been made to the Indian taxation system as a result of the implementation of the GST, which has simplified the tax collecting and compliance processes. Businesses must register for GST and get a GSTIN to comply with laws and reap the benefits of the GST system.

Nonetheless, as the number of firms registering for GST continues to rise, it has become vital to check the legitimacy of GSTIN to prevent fraudulent actions.

In this article, we will explore in depth what GSTIN is, how you should apply for a GSTIN, and how to check its legitimacy, assuring a compliant and efficient business operation under the GST regime.

What is GSTIN?

GSTIN (Goods and Services Tax Identification Number) is a unique identifier granted to firms in India that are registered under the Goods and Services Tax (GST) regime. It is a 15-digit alphanumeric code used for a variety of GST-related procedures, including submitting returns, obtaining input tax credits, and making payments. The GSTIN identifies the taxpayer and allows the GST system to follow their transactions.

The first two digits of the GSTIN signify the state code, followed by ten digits of the business"s PAN (Permanent Account Number), followed by the entity code and the check digit. Businesses must obtain a GSTIN to comply with India"s GST legislation and regulations. Since the 2017 adoption of the Goods and Services Tax (GST), the GSTIN has become required for conducting business in India.

GSTIN structure simplified

  1. Registrations in the state are represented by the 13th digit. It"s a combination numeric/alphabetic code, with digits 0 through 9 preceding the letters A through Z.
  2. The 14th digit is a default that is determined by the type of company. The letter Z is used to indicate a typical taxpayer.
  3. The GST department grants a GST Number to an NRTP (non-resident taxable person) who doesn"t have a Permanent Account Number. Therefore, the following 10 digits of GSTIN would be the foreign government"s tax identification number.
The example of a GSTIN would go like this: 22AAAAA0000A1Z5, where 22 is the state code, which is Chattisgarh, AAAAA0000A is the PAN or the Personal Account Number, 1 is the entity number of the same PAN holder in a state, Z is the default alphabet and 5 is the checksum digit.

Here’s a detailed look at the structure of a GSTIN

First Published: Aug 27, 2024, 10:13

Goods and Services Tax (GST)Goods and Services Tax Network (GSTN)
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