GSTN is the acronym of Goods and Services Tax Identification Number. The Indian Parliament introduced the GST scheme to make the teeth business tax sector less complicated. GST is the only service tax collected instead of multiple ones, VAT, service tax, etc.
The government started the GST registration procedure for small-scale enterprises(SMEs) and Medium-scale enterprises(MSMEs) to ensure they are registered under the new tax-saving scheme.
In this new scheme, each of the registered businesses has been assigned their exclusive GSTIN. These numbers alongside the certificate should be displayed where the company operates. The GST number allows the consumers to identify any business and find if they are registered under the new scheme or not.
GST Number – Overview
As a responsible consumer, one should always know how to identify a GSTIN. You can quickly identify a unique number through the detailed guide with GST number example–
- The GSTIN is a 15 digit alphanumeric combination.
- The first two numbers are of the state where the business is situated. It is derived from the Indian Census 2011 state list.
- The next ten digits are the PAN or permanent account number of the business owner. In the case of partnership businesses, the PAN of the business must be used.
- The 13yh digit is the number of business dwellings that a particular organization has inside its registered state. For example, if a business organization has three branches, they will be assigned the number “3”. After this comes the letter “Z.” It is applicable for all the government’s GST numbers.
- The last digit is called”Check code.” It can either be an alphabet or a number.
Here is a GST number example
29WERGH8996A1ZA
Another GST number example is
11OIUYT9877B2Z8
Applying for GSTIN
A business must apply for their exclusive GSTIN and certificate. For this, they have to register in the GST portal (https://services.gst.gov.in/services/quicklinks/registration ) first. The business owners must register with their business details like PAN, account details, business name, partnership details, etc.
They can also go to the GST Seva Kendra of the Government of India and apply from there.
Golden rules of accounting
Businesses must follow the accounting golden rules even after eating their GSTIN. The account is the golden rules are-
- Personal account
For personal accounts, the receiver should be rated as the “Debit,” and the giver should be treated as “Credit.” That means if the business reviews any account, the receiver’s account will be debited the amount, and the giver should be credited with the money in their history.
- Real account
For real accounts, the golden rule is to credit the amount going away from the business and debit the amount that is coming into the business. For example, if a company purchases assets, they will be debited as the cash used for the purchase is going out from the industry. On the other hand, the money gained through the asset will be used as credit.
- Nominal account
For nominal accounts, the expenses and losses are treated as debt, and the revenues or assets gained are treated as a credit.