On July 1, 2017, the Indian government rolled out Goods and Service Tax (GST) to simplify the country’s tax structure. The basic philosophy behind putting it was one nation, one tax, and one market. GST has largely subsumed several federal and state-levied taxes, including excise, VAT, and service tax. Businesses must get registered for GST and obtain a 15- digit Goods and Services Tax Identification Number, GSTIN. This number has replaced the Tax Identification Number assigned to enterprises by state tax authorities to register for the VAT system. GST number check and GST number verification are very important to make sure that the Goods and Services taxes are allocated to appropriate hands.
GST will pool all registered taxpayers into a single platform for compliance and administration purposes, and they will be registered under a single authority. Over 8 million taxpayers were migrated 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 Registration Process offers businesses 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 Need a GSTIN Number?
Businesses need GST registration to avail of all the benefits enshrined in the GST regime. The government has made a GSTIN compulsory for enterprises with more than ₹20 lakhs annual turnover. If you are a registered dealer, you need to file GST returns and pay liability if any.
Additionally, if the GST paid by you is more than the GST liability, you can get a refund using your GSTIN. A GSTIN is also useful while applying for a loan to fund your business. Financiers like Bajaj Financrv offer Business Loans to help companies buy merchandise, develop commercial space, and expand operations. But to be eligible for a business loan, your company needs to be registered on the GST portal with the Government of India and have a valid GSTIN.
GSTIN Search and GST Number 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 benefits of using the online GSTIN search and GST number verification tool are as follows
Verifying validity
Easy verification
Avoiding association with sellers who operate on forged GSTINs
Preventing Fraud
Correcting any inaccuracies in reporting GSTIN
How Do I Utilize the GSTIN Search and GST Number Verification Tool?
To use the GSTIN search and GST verification tool, follow the steps given below.
A-In the search box, input a valid GSTIN number
B-Click the Search button.
If the GSTIN entered is correct with the help of GST number verification, you can fetch the following information:
1-The legal name of the business
2-The date of registration
3-The State
4-The GSTIN status/ UIN status
5-The business constitution – corporation, sole proprietorship, or partnership
6-The kind of taxpayer – regular taxpayer or composition dealer
How to Find and Verify GSTIN?
When a taxpayer registers under the GST Act, the GSTIN gets featured on the GST certificate that they receive. Inputting the GSTIN number on the government portal will help you with the GST number check. GSTIN information is a public record, and GST verification is possible via the government portal.
GSTIN Misuse
GSTIN is misused by vendors to cheat their customers. Some common examples of GSTIN misuse are as follows:
To avoid paying taxes to the government, the supplier might use a fake GSTIN ID
A provider can generate fake inward invoices to balance the amount of tax liability. These invoices would be generated even if no goods were supplied to anyone
GSTIN Structure
You can easily identify your GSTIN as it has a standard format and structure. Each GSTIN has 15 characters. The following is the inspiration for the 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 the acronym for Permanent Account Number. The PAN of the individual who pays tax under the GST Act is the 10 digits after the state code, which is 3 to 12 characters of a GSTIN.
Entity/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 in accordance with 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
Example: A GSTIN example is 29GGGGG1314R9Z6, where ’29’ is the Karnataka state code, ‘GGGGG1314R’ is an example of a PAN, ‘9’ is the entity or registration number, ‘Z’ is a frequently used character in GSTIN, and ‘6’ is the check code, which has been signified by a numerical in the given example.
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;
–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. This will be delivered through email and SMS to the taxpayer’s registered email address and phone number, accordingly.
Hence, it is always better to verify and validate GSTIN so that GSTIN manipulation and misuse are checked. Furthermore, GSTIN seeks to maintain transparency in business dealings and also ensure that there are genuine GST Returns filed for the relevant tax period. GST number verification and GST number check are also useful as Input Tax Credit can be claimed only when proper GSTIN is used.