Costing and Taxation · Ch 7 — Goods and Service Tax (GST)
GST on Goods vs Services; GSTIN and GSTN
GST on Goods vs Services; GSTIN and GSTN
GST rules on goods vs services
GST applies a single unified law to the "supply" of both goods and services, but a few rules differ in their detail between the two, reflecting the practical difference between a physical item that can be moved/stored and a service that generally cannot:
| Aspect | Goods | Services |
|---|---|---|
| What is taxed | The supply (sale, transfer, etc.) of a movable/tangible item | The supply of an intangible activity/benefit |
| Place of supply | Generally where the goods are delivered/moved to | Generally the location of the recipient (with specific rules for particular services) |
| Time of supply | Generally linked to the invoice date or the date goods are made available | Generally linked to the invoice date or the date payment is received, whichever is earlier, with its own specific rules |
| Registration threshold | A specified aggregate turnover threshold, which can differ between goods and services suppliers, and between States | A specified aggregate turnover threshold, generally treated separately from the goods threshold |
This unit's syllabus scope is conceptual — recognising that GST treats goods and services under one common law but with some distinct procedural rules (place of supply, time of supply, registration thresholds) — not detailed rate-by-rate computation.
GSTIN — GST Identification Number
Every person registered under GST is issued a GSTIN, a unique 15-character (digit-and-letter) identification number, structured as follows:
| Position | What it represents |
|---|---|
| 1st and 2nd digits | The State code (as per the Census 2011 State code list) of the State in which the taxpayer is registered |
| Next 10 characters | The taxpayer's Permanent Account Number (PAN) |
| 13th character | A number assigned based on the number of registrations the same PAN holder has within that State (allowing more than one GST registration per PAN in one State, e.g. for different business verticals) |
| 14th character | The letter 'Z' by default |
| 15th character | A checksum digit, used for error detection |
GSTN — Goods and Services Tax Network
GSTN is the organisation that built and operates the common GST portal — the technology backbone of the entire GST system, handling taxpayer registration, return filing, tax payment, and invoice/input-tax-credit matching for the whole country. GSTN was originally structured as a non-Government, not-for-profit private company with a mix of Government and private financial-institution shareholding; it was later restructured (2018) into a fully Government-owned company, with the Central and State Governments together holding its entire equity, reflecting GST's status as a jointly-administered Centre-State tax. …
A unique 15-character registration number for every GST-registered taxpayer: 2-digit State code, 10-character PAN, a registration-count digit, the default lett …
The organisation operating the common GST portal (registration, returns, payment, invoice/ITC matching) for the whole country — restructured in 2018 into a fully Government-owned company, join …