This blog describes about decoding GST registration number. It explains to the reader the intricacies associated with the same. Read carefully to know more!

The Goods and Services Tax (GST) is an indirect tax system that was introduced in India on July 1, 2017, to replace the existing multiple tax systems. Under GST, all businesses that meet certain criteria are required to register for a GST identification number, which is a unique 15-digit alphanumeric code. In this article, we will discuss how to decode GST registration number.

Describe GSTIN: The Basic Concept

Before the introduction of the GST, each state’s tax authority provided a unique TIN to each dealer enrolled under the state VAT statute. Likewise, the Central Board of Indirect Taxes and Customs granted government agencies a service tax registration number (CBIC).

For compliance and management reasons, all registered taxpayers are combined onto a single platform under the GST regime and given registration under a central agency.

Every company doing trade in a state or a union territory will receive a special GSTIN or Goods and Services Tax Identification Number. Please note that such a number is unique and shall only be applicable to the particular business being discussed in a given context.

GSTIN Arrangement: What Exactly Do You Need to Know?

Each taxpayer receives a 15-digit Goods and Services Taxpayer Identification Number based on their state’s PAN (GSTIN). But for the formatting of a GSTIN, you need to understand the basics. Please follow the steps given below to understand more.

Here is how the GSTIN is formatted:

• According to the Indian Census of 2011, the first two digits are the state code. Each state has its specific code. For instance, Karnataka’s state code is 29, and Delhi’s state code is 7.
• The taxpayer’s PAN number will be the following ten numbers.
• The assignment of the thirteenth digit will depend on the quantity of registration within a state.
• By default, the fourteenth digit will be “Z.”
• The check code will be the last digit. It could be a letter or a number.

Number of GST Registration 

A 15-digit identification number makes up the New GST Registration number. Please note that this number is one and unique. The taxpayer was assigned a number depending on the applicant’s PAN and state. The State Code represents the first two digits of a GST registration number. The following ten numbers represent the applicant’s PAN. An integer is left blank, another digit represents an entity code, and the final digit is a check digit.

Calculate the GST amount that needs to be paid before registering for GST using our GST Calculator.

GST Number State Code

According to the 2011 Indian Census, the initial two digits of the state code are as follows. The following states are represented by the state codes in the GST registration number:

Jammu and Kashmir are number one, followed by Himachal Pradesh, Punjab, Chandigarh, Uttaranchal, Haryana, Delhi, Uttar Pradesh, Uttarakhand, and Bihar.

Sikkim (#11)

Arunachal Pradesh (12), Nagaland (13), Manipur (14), and Mizoram (15) are all included.

16 Tripura, 17 Meghalaya, 18 Assam, 19 West Bengal, and 20 Jharkhand.

Orissa, Chhattisgarh, Madhya Pradesh, and 22 are all on the list.

Gujarat, Daman & Diu, and 24

Dadra & Nagar Haveli (number 26)

Maharashtra is number 27, Andhra Pradesh is number 28, Karnataka is number 29, Goa is number 30, Kerala is number 32, Tamil Nadu is number 33, and Pondicherry is number 34. The Andaman and Nicobar Islands are number 35. 

GST and PAN

The entity’s PAN is represented by the digits 3–12. It indicates the link between the PAN database and the GST database.

Entity Number: This is a Unique Number assigned to the business

The assignment of the 13th digit, alpha-numeric (1-9, followed by A-Z), depends on the number of registrations a legal organization (with the same PAN) has made in a particular State. For instance, the 13th digit of the GSTIN for a legal company with a single registration inside a State would be 1. The 13th digit of the GSTIN allocated to this second firm would be two if the same legal entity is applying for a second registration for a second business vertical in the same State. Therefore, a legal organization inside a State may register up to 35 business sectors.

Final GSTIN Digits

The first digit of the GSTIN’s final two numbers is left empty for usage in the future, and the last digit serves as a check digit.

Conclusion

This blog explains the registration of GST: https://reg.gst.gov.in/registration/ against a particular business house. It is appropriate for business owners to have a clear idea related to it. If you wish to know more, get in touch with the legal experts at Vakilsearch.

Understanding how to decode GST registration number is crucial for businesses that have registered under the GST regime. The GST registration number contains important information about the state code, PAN number, entity type, and other details. By understanding the components of a GST registration number, businesses can ensure that they are complying with GST regulations and avoiding any potential penalties or fines.