How does State Code gives the GSTIN number its identity.
The impact of GST had been seen on a few smaller things, especially regarding businesses at the initial stages of implementation where in, the tax identification number, which is now known as GSTIN was often interchangeably used with ARN number allotted for Provisional registration. In this article, we will exactly find out what GSTIN is and how gst state code gives the identity to the GSTIN allotted.
What is GSTIN? GSTIN is a culmination of different identification numbers which were required for registration purposes under erstwhile indirect tax taxation laws which has now been replaced by a single umbrella number called the GSTIN.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 will be 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 below
| 33 | ABCDE1234F | 2 | Z | F |
15 digit GSTIN (Goods and Service Tax Identification Number format:
GSTIN Break up analysis :
| 33 | State Code |
Why State Code : We already learnt that the GSTIN is a 15 digit unique code, which will be assigned to each taxpayer state wise and PAN based. Here State code would play the role of Identity Code as India is divided into vast area and it will be difficult to identify as from which state the taxpayer is registered to GSTN or from where he is operating his business. Thus State code has a major role to play in giving GSTIN it’s identity. 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.
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 registered place of business is from Tamil Nadu. |
| ABCDE1234F | PAN |
What is PAN : PAN as stands for Permanent Account Number is 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 importance does your PAN number hold in GSTIN : Only of a person holding a Valid PAN account could get himself registered under GST Act, this applies for a new taxpayer as well who is intending to get enrolled under GST indirect tax taxation law. And also for migration from erstwhile indirect tax laws, it would be made possible only when the registered person holds a valid PAN or who is registered under the former tax laws with such PAN number. |
| 2 | No. of Registrations |
This 13th digit represents the number of registrations as 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. Say for an example : Company XYZ registered in the same state for 5 times for different businesses. In such case, this digit will be printed as 5. Let us assume, the same company registered for around 15 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 digit has no meaning to derive with and thereby its by default to be Z for every registered taxpayers. |
| F | Check Code | The last digit will be a check code which will be used for detection of errors. One might have encountered with this term while using third party ERP Software such as Tally.ERP 9 for the sake where in if the last digit is entered wrongly, the ERP system throws an error stating wrong GSTIN. |
Additionally I would like to also give some light upon the topic GST jurisdiction which is very important to identify who is the Jurisdictional officer for your GSTIN Operations. Knowing your 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. The details of which could be found from CBEC site. All you need to do is go to CBEC GST: Know Your Jurisdiction > Select your state, zone, division, and range and your Jurisdictional office would appear before you on the computer screen after this. This is how you can check your GST Jurisdiction online.
It is getting tougher each day for the businesses [both B2C and B2B] to operate without GSTIN, when there is so much buzz around GST these days. The businesses do not want to be seen as violators but also do not wish to be a part of the new taxation regime. This is leading to an illegal and hazardous scenario, wherein the so called GST 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 and how easy and quick is it to verify GSTIN with GSTIN finder tool at the GST portal. And to learn about the GSTIN number its components so as to be aware of such GSTIN frauds.