GSTN Number Format: What Does This 15 Digit Number Indicate?
Before bringing GST into execution, VAT was applied in the bill of every purchase. Be it a purchasing of grocery, shopping online or food almost into everything. Hence, to implement VAT in the billing, the dealers had to get registered under the state VAT law to get the TIN number as a registration token. This VAT number comprises 11 digit which is assigned to all the business organizations enrolled in the commercial tax department.
Now, after the introduction of GST into this realm, this TIN (Taxpayer Identification Number) has been replaced by 15 digit GSTN Number Format. GST seems to be a bit confusing terminology but it is not. It is simply a replacement of VAT.
GSTN number is assigned to every business entity that pays tax akin VAT. The structure of this 15 digit GSTN number is easy to understand. Here is a perfect picture of this GSTN number.
The first two digit is the state code following the Indian census 2011. In the above example the code 22 represents Chhattisgarh.
Next ten digit is the PAN Number of the business entity. The PAN Number is placed in the same way as it displayed in the PAN card.
13th digit indicates the number of registrations the business organization has within the state using the PAN number.
For example; the company XYZ has registered 5 times for 5 different ventures within the state. Hence, the 13th digit will be replaced by 5 instead of 1. The important point to note here is that, a business can register 35 times within the state.
The 14th digit is by default Z.
The 15th digit is the check code which is used to check the errors.
Ending Note
Hope now you are clear about the GSTN number format. Now when you see any bill that includes GST you can easily check it with the GSTN number format structure to make sure that it is matching the above structure as explained in brief.
Now, after the introduction of GST into this realm, this TIN (Taxpayer Identification Number) has been replaced by 15 digit GSTN Number Format. GST seems to be a bit confusing terminology but it is not. It is simply a replacement of VAT.
GSTN number is assigned to every business entity that pays tax akin VAT. The structure of this 15 digit GSTN number is easy to understand. Here is a perfect picture of this GSTN number.
The first two digit is the state code following the Indian census 2011. In the above example the code 22 represents Chhattisgarh.
Next ten digit is the PAN Number of the business entity. The PAN Number is placed in the same way as it displayed in the PAN card.
13th digit indicates the number of registrations the business organization has within the state using the PAN number.
For example; the company XYZ has registered 5 times for 5 different ventures within the state. Hence, the 13th digit will be replaced by 5 instead of 1. The important point to note here is that, a business can register 35 times within the state.
The 14th digit is by default Z.
The 15th digit is the check code which is used to check the errors.
Ending Note
Hope now you are clear about the GSTN number format. Now when you see any bill that includes GST you can easily check it with the GSTN number format structure to make sure that it is matching the above structure as explained in brief.
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