The introduction of GST was welcome from the point of view of integration of taxes, a single point of control and inspection and clarity of tax rates for fixing MRP’s. However, naturally as any new system does, there were teething issues and a little confusion which was minor in comparison to the momentous change in the system of taxation. One such confusion was the mix-up in the tax identification number, which is now known as GSTIN with the ARN number allotted for Provisional registration – They were used interchangeably when they should not have been. Over time this confusion has been clarified and resolved. In this article, we will focus on what GSTIN is and how the GST state code gives the identity to the GSTIN allotted.
What is GSTIN?
GSTIN is a coalition of different identification numbers which were required for registration purposes under the erstwhile indirect tax taxation laws. All of them have now coalesced into a single umbrella number called the GSTIN. It also means that all the taxpayers have been consolidated into a single platform for compliance and administration purposes and have been assigned registration under a single authority. The government has set up GSTN (Goods and Services Tax Network) –a special purpose vehicle to provide the IT infrastructure necessary to support GST digitally under which all the businesses have been assigned a unique Goods and Services Tax Identification Number (GSTIN). This 15-digit GSTIN number is similar to the Tax Identification Number (TIN) that is allotted to business entities registered under a state’s Value Added Tax law.
What is the structure or format of 15 digit GSTIN (Goods and Services Tax Identification Number)?
The 15 digit unique code which will be assigned to each taxpayer, will be State-wise and PAN-based. The structure or format of 15 digit GSTIN (Goods and Services Tax Identification Number) will look like this 15 digit GSTIN (Goods and Service Tax Identification Number format
|
33 |
ABCDE1234F |
2 |
Z |
F |
GSTIN Break up:
|
33 |
State Code |
Why State Code: The GSTIN is assigned to each taxpayer state wise and is PAN based. India being a vast country divided into smaller parts has 29 states and 7 Union Territories. Each state is provided a 2 digit number which we call as State Code for identification. Here State code would play the role of anIdentity Code as India is vast area geographically and it will be difficult to identify the location of the tax payer. When and where will these State Code be used by the taxpayer :
State Code list : 01-Jammu and Kashmir, 02-Himachal Pradesh, 03-Punjab, 04-Chandigarh, 05-Uttarakhand, 06-Haryana, 07-Delhi, 08-Rajasthan, 09-UP, 10-Bihar, 11-Sikkim, 12-Arunachal Pradesh, 13-Nagaland, 14-Manipur, 15-Mizoram, 16-Tripura, 17-Meghalaya, 18-Assam, 19-West Bengal, 20-Jharkhand, 21-Orissa, 22-Chattisgarh, 23-MP, 24-Gujarat, 25-Daman and Diu, 26-Dadar and Nagar Haveli, 27-Maharashtra, 28-Andhra Pradesh, 29-Karnataka, 30-Goa, 31-Lakshadweep, 32-Kerala, 33-TamilNadu, 34-Puducherry and 35-Andaman and Nicobar Islands. In our example, 33 is the State Code for Tami Nadu, meaning the taxpayer’s registered place of business is from Tamil Nadu.
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|
ABCDE1234F |
PAN |
What is PAN : PAN as stands for Permanent Account Number, a code that acts as an identification for individuals, families and corporates (Indian or Foreign), especially those who pay Income Tax. It is a unique, 10-character alphanumeric identifier, issued to all judicial entities identifiable under the Indian Income Tax Act, 1961. It is issued by income tax department under the supervision of Central Board for Direct Taxes. What’s the significance of PAN number in GSTIN: Only a person holding a Valid PAN account can get himself registered under GST Act, this applies for a new taxpayer as well who is intending to get enrolled under GST. This is applicable also for migration from erstwhile indirect tax laws – He should have been registered under the former tax laws with a PAN number. |
|
2 |
No. of Registrations |
This 13th digit of the GSTIN represents the number of registrations a business entity has within a state for the same PAN. It will be an alpha-numeric number (first 1-9 and then A-Z) and will be assigned on the basis of the number of registrations a legal entity (having the same PAN) has within one state. Example: Company XYZ is registered in the same state 5 times for different businesses. In such case, this digit will be printed as 5. Let us assume, the same company registered 5 times, then it should be represented as F (1-9 numeric and later on 10th registration be named as A and 11th as B and so on up to Z). |
|
Z |
Default |
This 14th digit has no major significance and is by default Z for every registered taxpayer. |
|
F |
Check Code |
The last digit is a check code which will be used for detection of errors. One might have encountered his term while using third party ERP Software such as Tally.ERP 9 – If the last digit is entered wrongly, the ERP system throws up an error stating “wrong GSTIN”. |
Under the GST system, the country has been divided into specific geographical areas called jurisdictions for superintendence. It is important that GST taxpayer know his Jurisdiction and Jurisdictional officer. Knowing the Jurisdictional office, becomes important at the time of GST Registration where in the first part the person registering for GST has to give in the details of Jurisdictional office. These details can be found on the CBEC site. All one needs to do is go to CBEC GST: Know Your Jurisdiction > Select your state, zone, division, and range and your Jurisdictional office will appear before you on the computer screen after this. This is how a tax payer or a potential tax payer can check his or her GST Jurisdiction online.
With so much buzz around GST these days, it is getting tougher each day for the businesses [both B2C and B2B] to operate without GSTIN. The businesses do not want to be seen as violatorsbut also do not wish to be a part of the new taxation regime. They have found an ingenious way to try and beat the system – the invoice reflects the GSTIN ID with the proper CGST+SGST break-up and the tax is collected from the consumer, but doesn’t head towards the government, because it is fake. This is much more than simple tax evasion and could be termed as a robbery using mass’s ignorance towards GSTIN. The GST system has made it easy to identify such fraudsters – All they need to do is check the GSTIN number quoted through the GSTIN finder tool on the GST portal. Knowing about GSTIN and its components helps compliance and as well as check fraud.
