Tax Glossary Definition
A tax registration number is a unique identifier issued to a business so that the authorities can monitor its tax obligations and activities. Depending on the specific law, this may be called a TIN, GSTIN, or another registration code. Under GST, each registered entity is assigned a 15-character GSTIN (Goods and Services Tax Identification Number). This number enables the government to follow a business’s transactions, verify compliance, ensure the correct flow of input tax credit, detect irregularities, and manage administration across the country. It serves as the official GST identity of the business.
Example: When ABC Traders registers under GST, it is allotted a GSTIN such as 29ABCDE1234F1Z5. This identifier allows the authorities to review its tax filings and invoice data, enables its trading partners to claim accurate ITC, and authorizes the business to charge GST and submit returns. It is also used during audits, inspections, and official correspondence.
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