Comprehensive Guide to GSTIN ‘Goods and Services Tax Identification Number’

When someone registers for GST, they get a 15-digit GST Identification Number or GSTIN. The registration certificate with this number is available on the GSTN common portal. The GSTIN is a unique ID for every taxpayer, whether you’re an individual or a business, registered under the Goods and Services Tax (GST) system in India.

Here’s how it breaks down: the first two digits are the state code, the next ten digits are based on the PAN (Permanent Account Number) of the business, followed by two digits that represent the entity code, and the last digit is a checksum. Registration isn’t tied to specific taxes, meaning one registration covers all taxes, like CGST, SGST/UTGST, IGST, and other cesses. The GSTIN came into play when the GST system started in India on July 1, 2017. It is required to show their GSTIN on the name board at their registered locations.

Structure of GSTIN

The GSTIN is issued by the tax authorities and is required for businesses to collect and remit GST. It consists of 15 digits, each serving a specific purpose. The GSTIN is important for businesses to carry out their GST-related activities, including filing returns, collecting tax, and claiming input tax credits:

First 2 digits: State Code

These represent the state in which the business is registered. Each state in India has a unique two-digit code (e.g., 09 for Uttar Pradesh, 07 for Delhi).

Next 10 digits: Permanent Account Number (PAN)

These 10 digits represent the PAN (a unique tax identification number for individuals or businesses) of the taxpayer. It is the same PAN used for Income Tax purposes.

13th digit: Entity Number

This digit indicates the number of registrations under the same PAN in the state. E.g. if the same business has multiple GST registrations in the same state, the 13th digit is used to differentiate between them.

14th digit: Z

This is a default letter “Z,” which is used to maintain uniformity in the structure.

15th digit: Checksum Digit

This is a random digit used for validation and ensuring that the GSTIN is a legitimate number.

Example of GSTIN Structure: If a business is registered in Uttar Pradesh with the PAN MNOPQ1234R, the GSTIN might look like:

09MNOPQ1234R1Z5

• 09 = Uttar Pradesh (State Code)
• MNOPQ1234R = PAN of the business
• 1 = First GST registration in Uttar Pradesh for the same PAN
• Z = Default value
• 5 = Checksum digit

This structure helps that GSTINs are unique, easy to identify, and maintain consistency.

Uses of GSTIN

GSTIN (Goods and Services Tax Identification Number) uses several key purposes for businesses and individuals registered under GST:

• Business Identification: It acts as a unique identification number for each business entity registered under GST, ensuring smooth operations and tax transactions.
• Invoicing: Businesses must include their GSTIN on invoices, making it easier for tax authorities to trace and verify transactions.
• Tax Compliance: GSTIN is essential for businesses to comply with the GST laws. It is used for filing GST returns, paying taxes, and claiming input tax credits.
• Tracking Transactions: The GSTIN is used to track all transactions (sales and purchases) of a business, ensuring transparency in the system and preventing tax evasion.
• Legal Recognition: It gives legal recognition to a business under GST, making the business eligible for various government schemes, benefits, and exemptions.

What is Provisional GSTIN?

A Provisional GSTIN (Goods and Services Tax Identification Number) is a temporary identification number issued to taxpayers who are either migrating from the previous tax system (such as VAT, Service Tax, or Excise Duty) to the Goods and Services Tax (GST) regime or who are newly applying for GST registration. 

 This number is provided to businesses before their formal GST registration is completed and serves as a transitional status until the registration is confirmed and finalized. The provisional GSTIN allows businesses to begin operating under the GST system while they complete the necessary formalities.

State and their GST code: