Last updated: December 13th, 2024 3:03 PM

GST Number Format - Decode GST Number

The Goods and Services Tax Identification Number (GSTIN) is a unique identification number assigned to every business registered under the Goods and Services Tax (GST) regime in India. If you're wondering how many digit in GST number, it is a 15-digit alphanumeric code. This number serves as proof of GST registration and enables businesses to comply with GST regulations. In this article, we will delve into the details of GSTIN, GST number format, and how it impacts businesses. If you are a business owner, it's crucial to obtain a GST number to comply with GST regulations and enjoy the benefits of this simplified tax regime. IndiaFilings is here to guide you through the process, making GST registration hassle-free and convenient. [shortcode_4]

What is the GST Number?

Prior to the implementation of GST, businesses registered under state VAT laws were issued a unique TIN (Taxpayer Identification Number) by the respective state tax authorities. Similarly, service providers were assigned a service tax registration number by the CBIC (Central Board of Indirect Taxes and Customs). With the advent of the GST regime, all registered taxpayers have been brought onto a unified platform for streamlined administration and compliance. Under this system, every business operating in a state or union territory is assigned a unique Goods and Services Tax Identification Number (GSTIN), simplifying the tax structure and ensuring consistency nationwide.

GST Number Format

If you're asking how many digits in the GST number, the answer is 15. The 15-digit GST Number Format is as follows: GST Number Format

First Two Digits: State Code

The first two digits represent the state code as per the Indian Census 2011. Each state and union territory in India has a unique code. The state code in the GST registration number represents the following states:

• 01 - Jammu & Kashmir
• 02 - Himachal Pradesh
• 03 - Punjab
• 04 - Chandigarh
• 05 - Uttarakhand
• 06 - Haryana
• 07 - Delhi
• 08 - Rajasthan
• 09 - Uttar Pradesh
• 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 - Chhattisgarh
• 23 - Madhya Pradesh
• 24 - Gujarat
• 25 - Daman & Diu
• 26 - Dadra & Nagar Haveli
• 27 - Maharashtra
• 28 - Andhra Pradesh
• 29 - Karnataka
• 30 - Goa
• 31 - Lakshadweep
• 32 - Kerala
• 33 - Tamil Nadu
• 34 - Pondicherry
• 35 - Andaman & Nicobar Islands

Next Ten Digits: PAN of the Business

The next ten digits are the Permanent Account Number (PAN) of the business or individual entity. This ensures that GST number is linked directly to the PAN, maintaining uniqueness for each taxpayer.

Thirteenth Digit: Entity Code

13th digit is alpha-numeric (1-9 and then A-Z) and is assigned based on the number of registrations a legal entity (having the same PAN) has within one State. For example, a legal entity with single registration within a State would have number 1 as the 13th digit of the GST number. If the same legal entity goes for a second registration for a second business vertical in the same State, the 13th digit of the GST number assigned to this second entity would be 2. Hence, a legal entity can register up to 35 business verticals within a State.

Fourteenth Digit: Reserved for Future Use

The fourteenth digit is currently kept blank or assigned as "Z. It is reserved for future purposes as the GST system evolves.

Fifteenth Digit: Checksum Code

The fifteenth digit is a checksum character used to validate the correctness of the GST number. This character is generated using an algorithm and helps detect errors in the GST number. It can be both an alphabet or a number. To decode GST number, it’s important to understand each segment and how it works together to represent specific details about your business and its GST registration.

Example of GST Number Bifurcation

Let’s consider the GST number 27AAAPA1234A1Z5:

• 27: Maharashtra (State Code)
• AAAPA1234A: PAN of the business
• 1: First registration under this PAN in Maharashtra
• Z: Reserved character
• 5: Checksum digit for error detection

This GST Number Bifurcation helps simplify the GST system, ensures accuracy, and makes it easier for authorities to validate and manage GST-related activities.

Why is a GST number Required?

Obtaining a GST number is mandatory to legally operate your business in India if your annual turnover exceeds the specified threshold. Registering for GST and securing a GST number not only ensures compliance with tax laws but also helps you avoid fines and penalties. Here are the key reasons why a GST number is required:

• Filing GST Returns: A GST number is essential for filing GST returns, which detail your business's transactions and tax liabilities for a specific period. Even if your business has no activity or tax liability during a period, GST-registered entities are required to file these returns to remain compliant.
• Claiming Input Tax Credit (ITC): A GST number enables you to claim the input tax credit, allowing you to offset the GST paid on purchases against your GST liability. This benefit is only available if the supplier uploads the invoice details on the GST portal and includes your GST number on the invoice.
• Avoiding Penalties: Failing to register for GST when required can lead to substantial penalties. Non-compliance with the GST Act attracts a penalty of 10% of the tax due or Rs. 10,000, whichever is higher. Moreover, collecting GST without remitting it to the government can result in a penalty equal to 100% of the tax amount.

In summary, a GST number ensures your business operates within legal frameworks, enables tax efficiency, and protects you from penalties and legal complications.

Importance of GST number

The Goods and Services Tax Identification Number (GST number) plays a crucial role in ensuring the smooth operation and compliance of businesses under the GST regime. Here are the key benefits and importance of having a GST number:

• Prevents Tax Evasion and Fraud: GST number helps minimize tax evasion, fraud, duplication, identity theft, and other economic crimes by providing a transparent and unique identification for each registered business.
• Enables Transaction Tracking: It facilitates the tracking of transactions across states and union territories, ensuring accountability and reducing malpractices in the tax system.
• Streamlines Tax Compliance: GST number provides a unified platform for all indirect tax-related compliance, simplifying processes and reducing administrative burdens for businesses.
• Facilitates Interstate Sales: With a GST number, businesses can engage in interstate sales without restrictions, opening new market opportunities for small and medium-sized enterprises (SMEs) and promoting business growth.
• Ensures Input Tax Credit Claims: A GST number allows businesses to claim input tax credits on purchases and services, ensuring compliance with GST regulations. This not only reduces the overall tax liability but also improves a business’s GST rating, enhancing credibility in the marketplace.

In conclusion, the GST number is more than just a registration number; it is an essential tool for fostering transparency, compliance, and growth in India’s business ecosystem.

How to Get a GST Number?

Obtaining a Goods and Services Tax Identification Number (GST number) in India is a straightforward process. Follow this step-by-step guide to apply for a GST number online:

• Login to the GST Portal: Visit the official GST portal and click on the 'New Registration' option.
• Provide Your Details: Enter your basic details, including your name, phone number, email ID, and other relevant information. Verify your contact details using the OTP sent to your mobile number or email.
• Receive Application Reference Number (ARN): Once your details are verified, you will receive an Application Reference Number (ARN) via mobile or email. Use the ARN to access and fill out Part B of the GST number application form.
• Submit Required Documents: Upload the necessary documents as part of your application.
• Submit Your Application: Once you have completed the form and uploaded all required documents, submit your application online.
• Verification and Approval: The GST authorities will review your application and verify the submitted documents. This process typically takes up to three working days. Upon approval, you will receive an email notification along with your GST number through Form GST REG-06.

Offline Option:

Alternatively, you can visit the nearest GST Seva Kendra to complete the registration offline. Submit the required documents in person for assistance with the application process. By following these steps, you can successfully register for GST and obtain your unique GST number.

Documents Required for GST number

To successfully apply for a Goods and Services Tax Identification Number (GST number), you need to provide the following documents:

1. PAN Card

• For the Business: The PAN card of the business entity (e.g., company PAN for companies).
• For the Authorized Signatory: The PAN card of the individual designated as the authorized signatory.

2. Business Constitution Documents

• Depending on the business structure, submit one of the following:
  • Partnership Deed (for partnerships)
  • Registration Certificate (for proprietorships or other entities)
  • Memorandum of Association (MoA) or Articles of Association (AoA) (for companies)

3. Identity and Address Proof of Promoters/Directors/Partners

• Provide acceptable documents such as:
  • Aadhaar Card
  • Passport
  • Voter ID Card

4. Proof of Principal Place of Business

• Submit any of the following documents to verify the address of your principal place of business:
  • Property tax receipt
  • Electricity bill
  • Rent agreement (if the premises are rented)
  • Any official document supporting the business address

5. Bank Account Proof

• Provide evidence of your business bank account using:
  • A canceled cheque with account details
  • A recent bank statement

6. Signed Authorization Form

• Submit an authorization form designating an individual as the authorized signatory for GST-related purposes.

7. Photographs

• Recent passport-sized photographs of the promoters, directors, or partners.

What is the Difference Between GST number and GSTN?

While both GST number and GSTN are essential components of India’s Goods and Services Tax (GST) framework, they serve distinct purposes:

GST number (Goods and Services Tax Identification Number)

• A GST number is a unique 15-digit identification number assigned to every business registered under the GST regime.
• It acts as the sole identification for businesses, replacing state-specific VAT registration numbers.
• GST number is mandatory for filing GST returns, claiming input tax credit, and ensuring compliance with GST regulations.
• It provides businesses with legal recognition and enhances trust among customers and business partners.

GSTN (Goods and Services Tax Network)

• The GSTN is the organization responsible for managing the IT infrastructure of the GST system in India.
• It oversees the operations of the GST portal, which facilitates:
  • Registration for GST
  • Filing GST returns
  • Maintaining and reconciling tax records
  • Monitoring financial transactions to ensure compliance
• GSTN is the backbone of the GST framework, enabling the government to streamline taxation processes and provide services to taxpayers.

Key Difference:

• GST number is the identification number issued to businesses for GST-related activities, while GSTN is the platform and organization that manages the GST portal and related infrastructure.
• GST number helps businesses comply with tax laws, whereas GSTN ensures the smooth functioning of the entire GST ecosystem.

In essence, GST number is a business's identity under GST, and GSTN is the system that powers the tax framework.

What is the Cost of Obtaining GST number?

Compliance and Validity

Once a business obtains a GST number, it is required to comply with various GST regulations:

• Filing of returns: Businesses need to file regular GST returns, including GSTR-1 (outward supplies), GSTR-3B (summary return), and GSTR-9 (annual return).
• Tax payment: GST number holders are required to pay their tax liabilities within the specified due dates to avoid penalties and interest.
• Amendments and updates: Any changes in business details, such as address, contact information, or business structure, must be updated on the GST portal within a specified time.
• Validity: The GST number is valid as long as the business remains active and complies with the GST regulations. It can be cancelled or suspended if the business fails to meet the compliance requirements.

Conclusion

In conclusion, obtaining a GST number is a straightforward and cost-free process that ensures businesses comply with the GST regime. Understanding the GST number format is essential, as it consists of 15 alphanumeric characters. If you're wondering how many digit in the GST number, the answer is 15, with each digit serving a specific purpose. The GST number bifurcation includes components such as the state code, PAN details, and check codes, all of which are crucial for identification. By learning to decode GST numbers, businesses can better understand their registration details and streamline tax compliance.

Get Your GST number with IndiaFilings!

Ready to register for GST and obtain your GST number? Let IndiaFilings guide you through the process with ease. Our expert team ensures that your GST registration is fast, hassle-free, and compliant with all regulations. Start your GST registration today and take the first step towards smooth business operations! [shortcode_4]