When a business is while migrating towards a GST registration or going for a new registration, the business is required to receive a 15 digit provisional ID or GSTIN (Goods and Services Tax Identification Number). This shall make certain that the suppliers quote the right GSTIN number in their invoices together with the invoices given towards consumers because the input tax credit relies on this due diligence.
In the 15 digit ID, the 2 two-digit of every GSTIN number signifies the ‘State Code’ where the taxpayer is registered. A 2 digit state code has been allotted to each state in India towards getting the details of origin as well as consumption of Goods and Services.
Also, the state code comes the 10-digit PAN number that acts as an identity of the individuals, the ‘Entity Number’ which is the 13th digit represents the numbers of registrations as a business organization within the state for the same PAN number. The 14th digit is Z by default for each registered user.
And the last digit signifies as a checker and if the last digits are entered in erroneously, the system would show an error informing that the incorrect GSTIN is entered.