GSTIN stands for Goods and Services Tax Identification Number. It is a 15-digit unique identification number assigned to every registered taxpayer under the Goods and Services Tax (GST) regime in India. The GSTIN is based on the Permanent Account Number (PAN) of the taxpayer.
Here’s a breakdown of the GSTIN format:
1. The first two digits represent the state code as per Indian Census 2011.
2. The next ten digits are the PAN of the taxpayer.
3. The thirteenth digit indicates the number of registrations the entity has within a state for the same PAN.
4. The fourteenth digit is by default “Z”.
5. The fifteenth digit is a checksum digit for error detection.
Every registered person under GST is assigned a GSTIN, and it is used for various purposes related to GST compliance, including filing returns, issuing invoices, and claiming input tax credits. Since GST is a destination-based tax, businesses operating in multiple states need to obtain separate GSTINs for each state or Union Territory where they operate.
The introduction of GSTIN replaced the need for multiple registration numbers that were required under the previous indirect tax regime, such as Excise, Service Tax, and VAT, streamlining the registration process for taxpayers.