GST GST basics

How to read a GSTIN

A GSTIN is a 15-character number: two digits for the state, ten characters of the holder’s PAN, one character for the registration count, a default Z, and a check character at the end.

Updated 2026-11-054 min read

Who this is for

Billing and accounts staff
Purchase teams checking suppliers
Owners reviewing new parties
Distributors with multi-state dealers
Anyone learning GST basics

On this page 12

The structure at a glance

Take a made-up GSTIN, 08ABCDE1234F1Z5:

Position	Example	Meaning
1–2	08	State code (08 = Rajasthan)
3–12	ABCDE1234F	PAN of the business
13	1	Entity number: which registration under this PAN in this state
14	Z	Default letter for normal registrations
15	5	Check character, computed from the first 14

The example is invented to show the layout; it will not pass a real check. For the full meaning of the term, see the GSTIN glossary entry.

Characters 1–2: the state

The first two digits are the state or union territory where the registration is held, using the GST state code list: 07 Delhi, 09 Uttar Pradesh, 27 Maharashtra, 33 Tamil Nadu, and so on. Compare them with the place of supply to decide whether to charge IGST or CGST + SGST. Full list in GST state codes.

Characters 3–12: the PAN

The middle ten characters are the holder's PAN. Two useful things follow:

All GSTINs of one business across India share the same PAN portion. A company with branches in Delhi and Gujarat will have GSTINs beginning 07ABCDE1234F… and 24ABCDE1234F….
The fourth character of the PAN (the 6th character of the GSTIN) shows the type of holder: P individual or proprietor, F firm or LLP, C company, H HUF, A association of persons, T trust, G government, among others.

So 08ABCPE1234F1Z5 would belong to an individual (a proprietorship), and 08ABCCE1234F1Z5 to a company. If a supplier calls itself "Pvt Ltd" but the GSTIN shows P, ask questions.

Characters 13–15: entity number, Z and check digit

13th character: the number of the registration for that PAN in that state. A business with one registration in a state gets 1. A second registration in the same state, for example a separate business vertical, gets 2, and so on through 9, after which letters are used.

14th character: Z for normal taxpayers. Some special registrations, such as those for tax deductors or non-resident suppliers, follow different patterns.

15th character: a check character worked out from the first fourteen. A single typing error almost always produces a GSTIN that fails this check, which is why accounting software and the portal can reject a wrong GSTIN instantly.

How to verify a GSTIN

Open the GST portal and use Search Taxpayer → Search by GSTIN/UIN.
Check the status: Active, Suspended or Cancelled. Do not book credit from a cancelled registration's invoices after the cancellation date.
Check legal name and trade name against the invoice.
Check the taxpayer type: Regular or Composition. A composition dealer cannot charge GST on invoices.
Look at return filing status. A supplier who has not filed for months is a credit risk for you.

More on this in how to check GSTIN validity.

Practical uses beyond checking

Reading GSTINs well helps in everyday work, not just compliance:

Finding duplicate parties. Two ledgers with different names but the same GSTIN are the same business. Merge them so outstanding and credit limits are right.
Grouping a customer's branches. Dealers with the same PAN portion in different states belong to one group; you may want one credit limit across them.
Billing the right branch. A buyer with GSTINs in two states must be billed from your side with the GSTIN of the branch receiving the goods, or their credit goes to the wrong state.
Spotting typing errors early. If a GSTIN's state code and the address disagree, the GSTIN was probably typed from the wrong document.

Red flags

State code does not match the address on the invoice.
PAN portion does not match the PAN the supplier gave for TDS or payments.
GSTIN shows Composition but the invoice charges GST.
Registration date is after the invoice date.
Legal name on the portal is a different business from the one billing you.

Any of these can cost you input tax credit. A two-minute check when a new party is created prevents months of correspondence later.

This is general information, not tax advice.

GSTINs in Tally and Cashflow OS

The party's GSTIN and state live in its TallyPrime ledger. In Cashflow OS, an authorised user can create or alter a party ledger from the phone, and when a voucher is created, GST is worked out from the party's state. In the GSTR-1 view, invoices to parties without a GSTIN fall into B2C, which is a quick way to spot dealers whose GSTIN was never entered.

Avoid these

Common mistakes

MistakeAssuming a correctly formatted GSTIN is active
Do this instead
Format only tells you it could be real. Check status, name and taxpayer type on Search Taxpayer before booking credit.
MistakeChoosing IGST or CGST + SGST from the GSTIN alone
Do this instead
Use the place of supply, which for goods is usually where delivery ends; the buyer's state code is a clue, not the rule.
MistakeKeeping two ledgers for one GSTIN
Do this instead
Merge parties that share a GSTIN so outstanding, credit limits and GSTR-1 all show one business.
MistakeIgnoring a PAN type that does not fit the name
Do this instead
If a 'Pvt Ltd' supplier's GSTIN has P as the 6th character, ask for the registration certificate before paying.

Keep handy

Checklist

How to read a GSTIN — 7 checks. Tick them as you go.

15 characters, letters in capitals, no spaces
State code matches the address and the branch you deal with
PAN portion matches the PAN given for TDS or payments
6th character fits the type of business named on the invoice
13th character noted if the party holds more than one registration in the state
Status, legal name and taxpayer type confirmed on Search Taxpayer
Registration date is before the invoice date

In Cashflow OS

How Cashflow OS helps

Cashflow OS puts your TallyPrime books on every phone in the team. Where it fits this topic:

Spot dealers with no GSTIN

In the GSTR-1 view prepared from your Tally data, invoices to parties without a GSTIN fall into B2C, which quickly shows registered dealers whose GSTIN was never entered.

See GST reports from your Tally data

Correct GSTIN and state in the ledger

Authorised users can create or alter a party ledger from the phone when writing back is on, and GST on new vouchers is worked out from the party's state.

See Create Tally vouchers from your phone

Questions people ask

Can two businesses have the same GSTIN?

No. Each registration has a unique GSTIN. Branches of one business in different states share the PAN portion but have different GSTINs.

What does the Z in a GSTIN mean?

It is the default 14th character for normal registrations and carries no other meaning.

Does the GSTIN show whether a business is a company?

Yes, indirectly. The 6th character of the GSTIN is the 4th character of the PAN, which shows the type of holder, such as C for company or P for individual.

Does a GSTIN change if the business moves?

A move within the same state is an amendment to the existing registration, so the GSTIN stays. Supplying from another state needs a new registration there, with that state's code.

Does a proprietor's GSTIN contain their personal PAN?

Yes. A proprietorship is registered on the proprietor's PAN, so characters 3–12 are the owner's PAN and the 6th character is P.

What does a 2 in the 13th position mean?

It is the second registration under that PAN in that state, for example a separate business vertical. Bill the registration that actually makes or receives the supply.

Can I work out a GSTIN from a PAN?

No. You can predict the middle part, but the entity number and check character come from the actual registration. Use Search by PAN on the GST portal.

Does a GSTIN expire?

A normal registration has no expiry date; it stays valid until it is suspended or cancelled. Casual and non-resident registrations are for a limited period.

This page is general information for Indian businesses, not tax, legal or financial advice. Rules and rates change — check the official portals or your CA before acting.