Definition
A GSTIN, or Goods and Services Tax Identification Number, is the 15-character number assigned to each business registered for GST in India. It must appear on every tax invoice the business issues. The GSTIN encodes the state code and the business's PAN, so each state registration of the same business has a different GSTIN.
Also called: GST Identification Number, GST number
GSTIN in practice
The first two digits are the state code, the next ten are the business's Permanent Account Number (PAN), followed by an entity number, a default letter, and a check character. Because the state code is built in, a business registered in several states has a GSTIN for each.
Indian GST invoices must show the supplier's GSTIN and, for business-to-business supplies, the recipient's GSTIN as well. The buyer needs the correct GSTIN on the invoice to claim input tax credit.
Larger businesses must also issue e-invoices through the government's Invoice Registration Portal, which validates the GSTINs and returns a unique reference number and QR code for the invoice.
Example
A Pune software firm invoices a Bengaluru client. The invoice shows the supplier GSTIN starting with 27 (Maharashtra) and the client GSTIN starting with 29 (Karnataka), so integrated GST applies.
Frequently Asked Questions
Who needs a GSTIN?
Businesses in India whose turnover exceeds the GST registration threshold, plus some businesses that must register regardless, such as interstate suppliers of goods and certain e-commerce sellers.
How can I verify a client's GSTIN?
Use the search taxpayer tool on the official GST portal. It confirms whether the number is active and shows the registered business name and state.
Related terms
- GST GST (goods and services tax) is a broad consumption tax applied to most goods and services, functioning like VAT.
- Tax ID A tax ID is the number a tax authority assigns to a business for reporting and collecting taxes.
- Tax invoice A tax invoice is an invoice that meets the legal requirements for the buyer to claim a tax credit, typically under a VAT or GST system.
- Input tax credit An input tax credit is the VAT or GST a registered business paid on its own purchases, which it can deduct from the VAT or GST it collected on its sales.
- E-invoicing E-invoicing is the exchange of invoices in a structured electronic format that the recipient's system can process automatically, as opposed to a PDF or paper invoice that must be read and keyed in.
This page is for general information only and is not legal, tax, or financial advice. Rules change and vary by location, so consult a qualified lawyer or accountant about your situation.