The fundamental goal of GST was to have one nation, one tax, and one market. GST has largely replaced several federal and state-levied taxes. Businesses must register for GST and get a 15-digit Goods and Services Tax Identification Number (GSTIN).
On 01 July 2017, the Indian government implemented the Goods and Services Tax (GST) to simplify the country’s tax structure. The fundamental goal of putting it was to have one nation, one tax, and one market. GST has largely replaced several federal and state-levied taxes, including excise, VAT, and service tax. Businesses must register for GST and get a 15-digit Goods and Services Tax Identification Number (GSTIN). This has taken the place of the Tax Identification Number (TIN) assigned to enterprises by state tax authorities to register for the VAT system. GST number check and GSTIN verification are essential to ensure that the Goods and Services taxes are allocated in the right hands. Keep reading the article for a more detailed insight on why is it necessary to verify gstin or gst number?
GST will combine all registered taxpayers into a single platform for compliance and administration purposes, and they will be registered under a single authority. More than 8 million taxpayers were transferred from several taxing platforms to GST. Tax officials generally use the number to keep track of GST payments and due records for people registered under the GST Act. The GST regime provides businesses with a single platform for all compliance and administration procedures under a single authority. The regime offers a single number for a single business – The Goods and Services Tax Identification Number. GSTIN is open to the public.
Why Do You Require a GSTIN?
GST registration is required for businesses to take advantage of the various benefits offered under the GST regime. The government has made a GSTIN mandatory for enterprises with an annual turnover of more than ₹20 lakhs.
If you are a registered dealer, you must file GST returns and pay liability if you have any. In addition, if the GST you pay exceeds the GST liability, you can obtain a refund using your GSTIN. A GSTIN is also useful when applying for a loan to fund your business. Financiers such as Bajaj Finserv offer business loans to help companies buy merchandise, develop commercial space, and expand operations. To be eligible for a business loan, your company must be registered on the GST portal with the Government of India and have a valid GSTIN.
Why Is It Important to Verify It?
Implementing a procedure to validate GSTIN numbers serves as a straightforward and efficient approach to thwart GST registration fraud in its initial stages and establish the authenticity of a business. The significance of GSTIN verification encompasses the following key aspects:
- It communicates the credibility of a business entity to a broad spectrum of stakeholders, including customers, financial institutions, business associates, and governmental bodies
- It validates the legitimacy and entitlement of a business to claim input tax credits. Furthermore, it facilitates cross-referencing of a business’s identity, its transactions, and other commercial activities
- The verification of business GSTINs holds pivotal importance for all GST-registered enterprises, regardless of their size. Verified GSTINs contribute to fostering a mutually beneficial ecosystem, enabling businesses to validate the credibility of their counterparts while affirming their own authenticity.
GSTIN Search and Verification Tool
If you have your GSTIN, you can, free of charge, verify any GSTIN by using a search tool on the GST portal.
The advantages of using the online GSTIN search and verification tool are as follows:
- Verifying validity
- Simple verification
- Preventing connection with sellers who use forged GSTINs
- Preventing Fraud
- Correction of any GSTIN reporting inaccuracies.
How Do I Utilise the GSTIN Search and Verification Tool
Follow the steps given below to use the GSTIN search and verification tool.
- In the search box, enter a valid GSTIN number
- Press the Search button.
If the GSTIN entered is correct with the help of GST Verification, you can check the following information:
- The legal name of the business
- The date of registration
- The State
- The GSTIN status/ UIN status
- The business constitution – corporation, sole proprietorship, or partnership
- The kind of taxpayer – ordinary taxpayer or composition dealer
How to Find and Verify GSTIN
When a taxpayer registers under the GST Act, the GSTIN is listed on the GST certificate that they receive. Entering the GSTIN number into the government portal will allow you to verify the GST number check. GSTIN information is open to the public, and GST verification can be done via the government portal. You may also locate your GSTIN by entering your PAN number in the government portal: https://reg.gst.gov.in/registration/
GSTIN Misuse
Vendors can abuse GSTIN to deceive customers. The following are some common examples of GSTIN misuse:
- To avoid paying taxes to the government, the supplier can use a forged GSTIN ID.
- A provider might generate fake inward invoices to balance the amount of tax liability. These invoices would be generated even if no products were supplied to anyone.
Before registering for GST, you can calculate your owed GST using our GST Calculator India
GSTIN Structure
Because it has a consistent format and structure, you can quickly determine your GSTIN. Each GSTIN consists of 15 characters. The following are the inspirations for these 15 characters:
- State Code: The first two characters of a GSTIN represent the state code of the individual registered under the GST Act. Each state has its code, and the first two digits of the GSTIN are assigned under this
- PAN: PAN is an abbreviation for the permanent account number. The PAN of the individual who pays tax under the GST Act is the ten digits after the state code, which is 3 to 12 characters of a GSTIN
- Registration Number: The GSTIN’s 13th digit is the entity or registration number of the person whose PAN number is preceded in GSTIN, i.e. the person who pays taxes following the GST Act. The number is assigned based on the number of registrations in the taxpayer’s state of residence.’ Z’: For all people registered under the GST Act, the 14th or penultimate digit in the GSTIN is always the alphabet ‘Z’
- Check Code: The GSTIN’s last digit is a check code, which can be either an alphabet or a number
How to Apply for GSTIN?
After registering under the GST Act, a GSTIN will be assigned. Taxpayers can register under the GST Act and acquire a GSTIN as a result:
- By visiting a GST Seva Kendra set up by the government; or by registering online at https://reg.gst.gov.in/registration/
- Once the taxpayer’s application to register under the GST Act is approved, the individual will be assigned a unique 15-digit number known as the GSTIN. Accordingly, this will be delivered through email and SMS to the taxpayer’s registered email address and phone number.
As a result, it is preferable to check and verify GSTIN to avoid GSTIN manipulation and misuse. Furthermore, GSTIN strives to maintain openness in business transactions and ensure that legitimate GST Returns are filed for the applicable tax period. GSTIN verification and GST number check are also beneficial because Input Tax Credit can be claimed when the correct GSTIN is utilised.
Frequently Asked Questions
GST verification is necessary to ensure that the GSTIN provided by a supplier or customer is valid and that they are a registered taxpayer. This helps to prevent fraud and tax evasion.
When you verify a GST number, you can obtain the following information:
There are two ways to verify the authenticity of a GST number:
Yes, GST verification is mandatory for businesses. Businesses are required to verify the GST numbers of their suppliers and customers before making any transactions with them. This is to ensure that they are dealing with registered taxpayers and that they can claim input tax credit on their purchases.
The consequences of using an unverified GST number include:
Yes, there are penalties for using an invalid or unverified GST number. The penalties include fine of up to 10% of the tax liability, Interest on the tax liability from the date of the transaction to the date of payment, Cancellation of the GST registration.
No documents are required for GST number verification. You can verify a GST number online or offline using only the GST number.
Businesses should verify the GST numbers of their suppliers and customers on a regular basis, especially before making any high-value transactions. This is because GST numbers can be cancelled or suspended by the GST authorities for various reasons.
The main objective of both verification and validation in the GST context is to ensure that the GST system is fair and transparent. Verification helps to ensure that taxpayers are registered and that they are complying with the GST laws. Validation helps to ensure that the GST transactions are accurate and that the taxes are being paid correctly.
GST verification is the process of checking whether a GST number is valid and whether the taxpayer is registered under the GST regime. GST validation is the process of checking whether a GST transaction is accurate and that the taxes are being paid correctly. Why is it necessary to verify a GSTIN or GST number?
What information can be obtained by verifying a GST number?
How can I verify the authenticity of a GST number?
Is GST verification mandatory for businesses?
What are the consequences of using an unverified GST number?
Are there penalties for using an invalid or unverified GST number?
What documents are required for GST number verification?
How frequently should businesses verify their GST numbers?
What is the main objective of both verification and validation in the GST context?
Can you explain the differences between GST verification and GST validation?
