A GSTIN Number (Goods and Services Tax Identification Number) is a unique 15-character alphanumeric identification number assigned to every business registered under the GST regime in India. Before GST, businesses had different numbers for VAT, Service Tax, and Excise. GSTIN replaced all of them with a single consolidated number.
When you ask “what is GSTIN Number,” you are looking for the tax identity that proves a business is legal and authorized to collect tax from customers. It is mandatory for any business with a turnover exceeding the prescribed limit (usually ₹20 lakhs or ₹40 lakhs) or those involved in interstate trade.
What Does GSTIN Number Mean?
The 15 digits of the GSTIN are not random; they follow a specific state-wise structure:
- First 2 digits: State Code (e.g., 27 for Maharashtra, 07 for Delhi).
- Next 10 chars: PAN Number of the business or individual.
- 13th digit: Entity Number (1 for the first registration in the state, 2 for the second, etc.).
- 14th char: Always ‘Z’ by default.
- 15th char: Check digit (for error detection).
Why GSTIN Number is Important
- Input Tax Credit (ITC): You cannot claim ITC on your business purchases if the supplier’s invoice does not mention a valid GSTIN.
- Legitimacy: It builds trust. Customers know that the tax they are paying is actually going to the government.
- E-Way Bills: Required to generate E-Way bills for transporting goods worth over ₹50,000.
Where is GSTIN Number Used?
- Tax Invoices: Must be printed on every bill issued.
- Shop Signboard: Mandatory to display the GSTIN on the name board of the business premises.
- GST Portal: Used as the username to log in and file monthly returns (GSTR-1, GSTR-3B).
How to Find or Check GSTIN Number
Method 1: Search by Name/PAN
1. Visit the GST Official Portal.
2. Go to “Search Taxpayer” > “Search by PAN”.
3. Enter the PAN of the business.
4. The system will display all active GSTINs linked to that PAN.
Method 2: Verify a GSTIN
If you want to check if a shopkeeper’s number is valid:
1. Go to “Search by GSTIN/UIN”.
2. Enter the number on the bill.
3. Check the status (Active/Suspended/Cancelled).
Example of GSTIN Number
Format: 27ABCDE1234F1Z5
State: 27 (Maharashtra)
PAN: ABCDE1234F
Entity: 1 (First registration)
Common Problems or Errors
- Mismatch: If you enter the wrong GSTIN while filing returns, your buyer will not get the tax credit.
- Fake Numbers: Some fraudsters use fake GSTINs. Always verify on the portal if the name matches the number.
Important Things to Remember
- GSTIN is state-specific. If you have branches in Mumbai and Delhi, you will have two different GSTINs.
- Check what is ARN Number if you have applied but not got the GSTIN yet.
- Understand what is HSN Code which must be used alongside GSTIN on invoices.
Frequently Asked Questions
Is GSTIN mandatory for small businesses?
Only if your annual turnover exceeds ₹40 Lakhs (for goods) or ₹20 Lakhs (for services), or if you sell online or interstate.
How can I get a GSTIN number?
You can apply online on the GST portal using your PAN, Aadhaar, and proof of business address. The process is free.
What is the difference between GSTIN and GSTN?
GSTIN is the Number assigned to you. GSTN (Goods and Services Tax Network) is the company/system that manages the IT infrastructure of GST.
Can a person have multiple GSTINs?
Yes, a single PAN can have multiple GSTINs if the business operates in different states or has different business verticals within the same state.
How long does it take to get a GSTIN?
Usually, it takes 3 to 7 working days after submitting the application, provided all documents are correct.