Table of Contents
Introduction
In the modern Indian fiscal landscape, the Taxpayer Identification Number (TIN) has undergone a significant transition. Originally a unique identifier for entities registered under Value Added Tax (VAT), TIN was the cornerstone of state-level indirect taxation. Following the 2017 tax revolution, the Goods and Services Tax Identification Number (GSTIN) replaced TIN for the vast majority of businesses. However, as of 2025, TIN remains active for specific sectors outside the GST ambit—such as petroleum products and liquor—and for resolving legacy tax cases. This article explores the current structure, application, and significance of identification numbers in India’s evolving tax system.
Understanding TIN vs. GSTIN (2025 Context)
While often used interchangeably in casual conversation, these two identifiers serve distinct purposes today:
Taxpayer Identification Number (TIN): An 11-digit number assigned by state tax departments. In 2025, it is used only by businesses dealing in Non-GST goods (Petroleum crude, high-speed diesel, petrol, natural gas, aviation turbine fuel, and alcoholic liquor for human consumption).
GSTIN: A 15-digit comprehensive identifier that replaced TIN for all other goods and services. It facilitates a unified national market and allows for the seamless flow of Input Tax Credit (ITC) across state borders.
Structure of Identifiers
The shift from TIN to GSTIN also involved a shift from state-centric codes to a PAN-based national format.
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The TIN Structure (11 Digits)
- First 2 Digits: State Code (e.g., 07 for Delhi, 27 for Maharashtra).
- Next 9 Digits: Unique identification number assigned to the dealer.
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The GSTIN Structure (15 Digits)
- Digits 1-2: State Code (e.g., 09 for Uttar Pradesh).
- Digits 3-12: The business entity’s PAN.
- Digit 13: Entity code (number of registrations a business has in that state).
- Digit 14: Blank (currently the letter ‘Z’ by default).
- Digit 15: Checksum digit (for internal data verification).
How to Apply: The Current Process
In 2025, the application process is entirely digital and depends on the nature of your business:
For GST-Applicable Businesses: You must register via the GST Common Portal (www.gst.gov.in). You will need your PAN, Aadhaar (for biometric authentication), business address proof, and bank details.
For Non-GST Businesses (VAT/TIN): If you deal in petroleum or alcohol, you must apply through the State Commercial Tax Department’s portal of the respective state.
Mandatory Aadhaar Authentication: New registrations now require Aadhaar-based biometric verification to curb the creation of “shell” companies and fake invoicing.
Importance of Identification Numbers
Whether it is a legacy TIN or a modern GSTIN, these identifiers are critical for:
Tax Compliance & Audits: Enabling authorities to track sales and purchases through the Annual Information Statement (AIS).
Input Tax Credit (ITC): Businesses cannot claim credit for taxes paid on inputs unless they have a valid GSTIN.
E-Way Bill Generation: Necessary for the movement of goods worth over ₹50,000 across state lines.
Global Trade: A GSTIN is usually a prerequisite for obtaining an Import Export Code (IEC) for international business.
Conclusion
While the 11-digit TIN was a pioneer in India’s indirect tax history, it has largely passed the torch to the 15-digit GSTIN. In 2025, the focus has moved toward a “One Nation, One Tax” philosophy, where your identification number is your financial DNA. For any new venture, obtaining a GSTIN via the official GST portal is the first and most vital step toward legal and fiscal compliance. Understanding these identifiers ensures that businesses can navigate state and central regulations without friction.
Disclaimer: The views expressed here are of the author and do not reflect those of Dhanvantree. Mutual funds are subject to market risks, please read the scheme documents carefully before investing.