What is GST Identification Number?

The GST Identification Number, commonly known as GSTIN, is the unique identifier assigned to a business or individual registered under Goods and Services Tax in India. It is a 15-digit number based on the Permanent Account Number (PAN) of the business or the individual. The first two digits are for the state code, next ten are for the PAN number, the thirteenth is for the registration under the same PAN within a state, the fourteenth by default is Z, and the fifteenth is a check code.

Breakdown of a GSTIN

Example GSTIN:

27AAECV2454M1ZZ

27 = STATE CODE

AAECV2454M = PAN NUMBER

1ZZ = RANDOM SEQUENCE

GSTIN is an important key to following the rules and regulations under GST for return filling, input tax credit, and ensuring transparency in the entire taxation system. A registration number must be displayed on invoices, signboards, and every other business document. GSTIN is compulsory for any business that crosses the turnover threshold specified by the legislation or for businesses engaged in inter-state commerce. The GSTIN system aims to simplify taxation, reduce evasion, and improve effectiveness in tax administration in India.