All About GSTIN (GST Number

Goods and Services Tax Identification Number (GSTIN), , consists of a distinct 15-digit identification code allotted to each taxpayer registered under the GST regime.

  1. The first two digits represent the state code according to the Indian Census of 2011. Every state or union territory has a unique code. For example, 27 stands for Maharashtra and 08 for Rajasthan.
  2. The next ten digits are the PAN Number of the taxpayer or business house.
  3. The 13th digit indicates the number of registrations in a state for the same PAN. It is alpha-numeric (first 1-9 and then A-Z).
  4. The 14th digit is the alphabet ‘Z’ by default.
  5. The last digit is a check code to detect errors. It can be an alphabet or a number.

The government has made it mandatory for businesses with an annual turnover exceeding Rs. 20/40 lakh to have a GSTIN. If you are a registered dealer, you need to file GST returns and pay if GST liability exists. Also, if the GST you pay is more than the GST liability, you can claim a refund through your GSTIN.

Features of GSTIN

  1. Legal Compliance: GSTIN is mandatory for businesses with an annual turnover above the threshold limit prescribed by the GST law. It ensures legal compliance with GST regulations.
  2. Input Tax Credit (ITC): Businesses use their GSTIN for claiming Input Tax Credit (ITC) on taxes paid on inputs and input services used in the course of business.
  3. Invoice Generation: GSTIN is used for issuing GST-compliant invoices for the supply of goods or services. It helps in proper tax invoicing and documentation.
  4. Online Verification: GSTIN can be verified online through the GST portal or other authorized platforms. This helps in validating the authenticity of a GSTIN provided by a taxpayer.

GSTIN plays a pivotal role in the GST regime, serving as a unique identifier for taxpayers and facilitating seamless tax administration and compliance. It streamlines tax procedures, enhances transparency, and fosters the smooth functioning of the GST system in India.

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