What is GSTIN? Structure, Example, Registration & Verification

What is GSTIN? Learn about GST Number structure, how to search for a GSTIN, and verify GST registration. Step-by-step guide for businesses & taxpayers

GSTIN (Goods and Services Tax Identification Number) is a 15-digit unique identifier assigned to businesses registered under India’s GST system. It ensures tax compliance, enables GST return filing, and allows businesses to claim Input Tax Credit (ITC). The GSTIN format includes a state code, PAN, registration sequence, and a checksum digit, making it easy to track tax liabilities. Businesses exceeding the turnover threshold must register on the GST portal to get a GSTIN.

Verifying a GST number prevents fraud, ensures compliance, and simplifies tax filing. Without a valid GSTIN, businesses cannot issue GST-compliant invoices or operate legally under GST regulations. In this blog, we will explore the GSTIN structure, application process, verification steps, and compliance requirements. Learn how GSTIN benefits businesses and simplifies tax obligations.

GST Number Format

If you’re asking how many digits are in the GST number, the answer is 15. The 15-digit GST Number Structure is as follows:

• First Two Digits: State Code

The first two digits represent the state code assigned as per the Indian Census 2011. Each state and union territory in India has a unique GST code.

For example:

• 27 → Maharashtra
• 22 → Chhattisgarh
• 07 → Delhi
• 29 → Karnataka

This code helps identify the state where the business is registered under GST. Here’s the comprehensive list of GST state codes for all states, Union Territories, and Central Jurisdiction:

• Next Ten Digits: PAN of the Business

The next 10 digits represent the Permanent Account Number (PAN) of the business or entity. This ensures that the GSTIN is directly linked to the PAN, making each taxpayer unique.

Since PAN is unique to each taxpayer, it prevents duplication and ensures seamless tax compliance.

• Thirteenth Digit: Entity Code

The 13th digit is alphanumeric (1-9 and A-Z) and indicates the number of registrations a legal entity has in a state under the same PAN.

• 1 → First registration in the state
• 2 → Second business under the same PAN in the same state
• A business can have up to 35 registrations in a state, each with a unique entity code.

Example: If a company has two business verticals in Maharashtra, its GST numbers would be:

• First GSTIN: 22ABCDE1234F1Z5
• Second GSTIN: 22ABCDE1234F2Z5

• Fourteenth Digit: Reserved for Future Use

The 14th digit is always “Z”, which is a system-reserved character. It currently has no specific use but is kept for future updates in the GST system.

• Fifteenth Digit: Checksum Code

The 15th digit is a checksum character used for error detection and validation.

• It is system-generated using an algorithm to ensure accuracy.
• It can be a number (0-9) or a letter (A-Z).
• This prevents fraudulent GST registrations and helps in verification.

Example of GST Number Breakdown

Let’s consider the GST number 22ABCDE1234F1Z5:

• 22 → Chhattisgarh (State Code as per the Indian Census)
• ABCDE1234F → PAN of the business (Permanent Account Number)
• 1 → First registration under this PAN in Chhattisgarh
• Z → Default character (Reserved by the system)
• 5 → Checksum digit for validation and error detection

This GST Number Breakdown helps simplify the GST system, ensures accuracy, and assists authorities in validating and managing GST-related activities effectively.

Why is a GST Number Required?

A GST Identification Number (GSTIN) is mandatory for businesses in India that meet the annual turnover threshold. It ensures compliance with tax laws, prevents penalties, and offers tax benefits.

1. Required for Filing GST Returns

• Businesses must file GST returns to report their sales, purchases, and tax liabilities.
• Even if there are no transactions, registered businesses must still file GST returns to stay compliant.

2. Allows Input Tax Credit (ITC) Claims

• A GST number enables businesses to claim Input Tax Credit (ITC) on GST paid for purchases.
• ITC is available only if:
  • The supplier uploads the invoice on the GST portal.
  • Your GST number is mentioned on the invoice.

3. Prevents Legal Penalties

• Failing to register for GST when required leads to penalties:

• • 10% of the tax due or ₹10,000, whichever is higher, for non-compliance.
  • 100% penalty on collected GST if not remitted to the government.

A GST number helps businesses operate legally, reduce tax burdens, and maintain smooth financial operations.

Importance of GSTIN Number

A GST Identification Number (GSTIN) is essential for businesses operating under the Goods and Services Tax (GST) regime. It not only ensures tax compliance but also enhances credibility and facilitates smooth business operations. Here’s why having a GSTIN is important:

• Tax Compliance: Enables filing GST returns, tax payments, and claiming Input Tax Credit (ITC).
• Legitimacy: Establishes legal registration under GST.
• Transparency: Helps track tax liabilities and transactions.
• Ease of Operations: Mandatory for issuing GST-compliant invoices and conducting trade.

Who Requires a GSTIN?

Any individual or business providing goods or services in India and exceeding the prescribed turnover threshold must obtain a GSTIN. The GST registration threshold limits are as follows:

• ₹20 lakh: For most states in India
• ₹10 lakh: For businesses operating in special category states such as Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim, Uttarakhand, and others.

How to Apply for a GST Number?

If you are a business owner, getting a GST registration number is essential to comply with tax regulations. A GST number allows you to collect and pay Goods and Services Tax (GST) legally. Here’s a step-by-step guide on how to apply for a GST number and get your business registered.

Steps to Apply for a GST Number

1. Visit the GST Portal: Go to the official GST registration website (www.gst.gov.in) and click on the “Register Now” option.
2. Fill in Basic Details: Provide details like your PAN card, business name, mobile number, and email address. You will receive an OTP for verification.
3. Submit Business Information: Enter details such as business type, location, and bank account information.
4. Upload Required Documents: 
   • PAN Card
   • Aadhaar Card
   • Business Registration Proof
   • Bank Account Details
   • Address Proof
5. Receive Your GST Registration Number: After verification, you will receive your GST registration number (GSTIN) via email and SMS. You can then start collecting GST from customers and filing tax returns.

How to Search for a GST Number? (By Name, PAN, or Firm Name)

If you need to verify a business’s GST Identification Number (GSTIN), the GST Portal provides a simple way to search using the business name, PAN, or GSTIN. Follow these steps to find the required GST details:

1. Visit the GST Portal – Go to https://www.gst.gov.in.
2. Click on Search Taxpayer” – Located in the main menu.
3. Enter Details – Input Business Name, PAN, or GSTIN.
4. Click “Search” – The portal will display registration details and status
5. Once you have the results, click on the option to Download PDF.
6. The downloaded file will contain all the details about the GSTIN, including the entity’s status, legal name, and registration date.

How to Check GST Number?

GSTIN verification can be done in the official GST site in the following way:

• Step 1: Open the GST Portal: Visit the official GST website.
• Step 2: Look out for the ‘Search Taxpayer’ Section: Find the search for taxpayers’ GSTIN option.
• Step 3: GSTIN & PAN to be Entered: Enter the GSTIN of the vendor or the business concerned which you intend to verify. Search can also be done using PAN or Business name.
• Step 4: Click on Search: When all the details have been filled in, press the trigger ‘Search’ to see the GSTIN verification details.
• Step 5: Verify GST Status: The portal will provide information including but not limited to the business registered name and its GSTIN status whether active/cancelled and registration type.

Advantages: Verifying a GSTIN also helps in verifying the credentials of the vendor, avoiding fraud, and ensuring that the business in question is a tax compliant business.

What is the Cost of Obtaining GST number?

Registering for a Goods and Services Tax Identification Number (GSTIN) is completely free, with no government fees. You can apply for a GST number:

• Online – Through the official GST portal.
• Offline – At a GST Seva Kendra.

While the process is free, it can be time-consuming and complex due to documentation requirements. Vakilsearch offers affordable expert assistance, ensuring a smooth registration process and full compliance with GST laws.

Conclusion on GST Number (GSTIN) 

In conclusion, obtaining a GST number is crucial for businesses operating under India’s Goods and Services Tax system. It ensures compliance with legal requirements, simplifies tax reporting, and enables businesses to claim input tax credits, improving their financial efficiency. Understanding the GSTIN structure and application process is essential for smooth operations in the modern tax landscape.

Professional guidance can simplify the registration and compliance process, allowing businesses to focus on growth and success. Registering for a GST number is mandatory for businesses exceeding the turnover threshold. Need expert assistance? Contact Vakilsearch GST experts today!

FAQs on GST Number

What is the meaning of GSTIN?

GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit identification number assigned to businesses registered under the Goods and Services Tax (GST) system in India. It is issued by the GST authorities and is mandatory for businesses with a turnover exceeding the prescribed threshold.

Is There Any Validity Period for a GST Number?

A GST Number does not have an expiry date and remains valid indefinitely. However, businesses must ensure compliance by filing returns regularly, or they may face penalties or cancellation of the GST registration.

What Happens if I Do Not Use My GST Number Actively?

If a business does not engage in any transactions, it is required to file NIL returns. Failing to do so may result in penalties or the cancellation of the GST registration.

How Do I Know if a Business is Registered with GST?

You can verify a business's GST registration using the GSTIN verification tool available on the official GST portal. This will confirm the legitimacy of the GST registration and ensure compliance with tax regulations.