Goods and Service Tax Identification Number (GSTIN) is the unique code a business is allotted after it gets itself registered or migrated into GST.
GSTIN is a 15 digit PAN based alpha-numeric unique code obtained for every state the assessee operates in. Let us decode for you, what this 15 digits means:
GSTIN – 27AAAAA0000A1ZG
This 15 digit GSTIN denotes as following:
|First 2 digits||2 7||Numerical||State Code|
|Next 10 digits||AAAAA0000A||Alpha-numeric||PAN of assessee|
|13th digit||1||Numerical||Entity Code|
|14th digit||Z||Alphabetical||Blank digit|
|15th digit||G||Alphabetical||Check digit|
A two digit numeric code is given to every State / Union Territory which provides identification to State in which business is registered. A firm having different place of business in different State gets a unique GSTIN having same PAN due to such different State Codes.
For eg. If a firm supplies goods to its customers from more than one city of different States, such as from Mumbai, Pune, Ahmedabad, Delhi, Ludhiana and Chennai; it will have to obtain GST registration State wise and not city wise. In the given case the firm will apply for GSTIN in Maharashtra for place of supply at Mumbai and Pune, another GSTIN for Gujarat for business at Ahmedabad and one GSTIN each at Delhi, Punjab and Tamil Nadu to operate its business at Delhi, Ludhiana and Chennai respectively.
The firm will have one GSTIN from one State. A question arises that a single firm will take several GSTINs will get a same number or each number will be unique. Then let us explain you, GSTIN of each State will be different from each other as their State Code will be different.
Therefore, there cannot be two different GSTIN in same State for one PAN. Hence, we can say that, GSTIN is State-wise PAN-based unique identification number.
PAN of the Assesse:
Since now we know that GSTIN is PAN based code, that makes PAN card mandatory for each person willing to get registered under GST. PAN (Permanent Account Number) is 10 digit alpha-numeric code under CBDT database, usually needed for Income Tax Returns, with first 3 letters of its jurisdiction, followed by type of Person, initial letter of name of organisation or surname, 4 numbers and then an alphabet.
It states the number or position of entity in that PAN list.
Now since you know what does this 15 digit GSTIN stands for, you will easily identify any GSTIN in front of you.
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