GSTN – The Goods and Services Tax Network will create a special facility to allow buyers and sellers to converse with each other after the new simplified GST return system is rolled out on April 1 next year.
GSTN Stands for Goods and Services Tax Identification Number or GST Identification Number, is a unique 15 digit alphanumeric code used to identify business registered under Goods and Services Tax (GST).
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What is GSTIN?
Before GST was implemented, all dealers registered under the state VAT law were assigned a unique TIN number by the respective state tax authorities. Similarly, service providers were assigned a service tax registration number by the Central Board of Excise and Custom (CBEC).
Under the GST regime, all registered taxpayers are consolidated into one single platform for compliance and administration purposes and are assigned registration under a single authority. It is expected that 8 million taxpayers will be migrated from various platforms into GST.
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All of these businesses will be assigned a unique Goods and Services Tax Identification Number (GSTIN).
Format of GSTIN
Each taxpayer is assigned a state-wise PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
- The first two digits represent the state code as per Indian Census 2011. Every state has a unique code. For instance,
State code of Rajasthan is 08
State code of Delhi is 07 - The next ten digits will be the PAN number of the taxpayer.
- The thirteenth digit will be assigned based on the number of registration within a state.
- The fourteenth digit will be Z by default.
- The last digit will be for check code. It may be an alphabet or a number.
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Good news for small businessmen. The government is going to give them a lot of convenience. From April next year, taxpayers will be able to file Goods and Services Tax i.e. GST returns by sending only SMS from their phones. Small businesses have been given a big facility to fill GST returns. With this facility, small businessmen can complete the process of filling GST returns with just one SMS to GSTN.
With the new return system in place, about 22.73% of GST assessees with nil turnover will only need to send an SMS to GSTN to complete their compliance and then confirm it with a one-time password. “We will provide a messaging platform that will allow buyers and sellers to talks to each other,” Prakash Kumar, CEO at GSTN, said.
He said it could also be developed into an SMS facility that will allow businesses to settle issues related to invoices expeditiously. A little over 7% of registered GST taxpayers, reporting a turnover of over Rs 5 crore and contributing 85% of the tax revenues, will have to file quarterly returns.
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The new return form will have the facility for auto population of key details in returns and capture harmonised system of nomenclature (HSN) at invoice level. It will check the issue of fake invoices as assessees will have to pay tax on the basis of what is filed in the ANX-1.