Goods and Services Tax (GST) has simplified the indirect tax system in India, replacing multiple state and central taxes with a unified structure. Every registered business under GST receives a unique GST Identification Number (GSTIN) to conduct tax-compliant operations.
Before starting a new venture or engaging with new suppliers, it is wise to check your business loan eligibility to understand the financing options available for business expansion or working capital needs.
Verifying your business or supplier’s GSTIN ensures legal compliance and smooth business transactions. You can also track compliance when filing your GST return.
What is a GSTIN/GST number?
GSTIN stands for Goods and Services Tax Identification Number, or simply GST number. It is a unique 15-digit number based on a PAN, assigned to every person registered under GST. As a GST-registered dealer, it is important to verify your GSTIN before including it in your GST returns. You can use a GST number check tool to perform GSTIN verification.
Pro Tip: To avoid entering an incorrect GSTIN in your returns, make use of the built-in validation features available in Clear GST software.
A single person or entity may have multiple GSTINs linked to the same PAN if they operate in different states or Union Territories. GST registration becomes mandatory once a person exceeds the threshold limit for GST and must register in each state they operate from.
Unlike the earlier indirect tax system, where separate registration numbers were required for Excise, Service Tax, and VAT, GSTIN serves as a single, unified registration number under the GST regime.
Why is it necessary to verify the GST number?
A GSTIN, or GST number, is public information. Conducting a GST search by name is an essential task for any business dealing with GST-registered suppliers, as it helps confirm the authenticity of the vendor and the GSTIN used on invoices.
At a basic level, you can partially verify a GSTIN by checking if the vendor’s PAN matches the digits from the 3rd to the 10th position in the GSTIN. Check how to verify a GSTIN in full detail.
However, it is important to carry out a full verification of the GSTIN to avoid errors in invoices and e-invoices, ensure that input tax credits are claimed correctly, and pass tax credits to the rightful recipients when filing your GST return.
GST identification number format
The structure of a GST Identification Number (GSTIN) is as follows:
- First 2 Digits: Represent the state code of the registered taxpayer
- Next 10 Digits: Correspond to the PAN (Permanent Account Number) of the registered business or individual
- 13th Digit: Indicates the number of registrations the taxpayer has within the state
- 14th Digit: Default letter ‘Z’
- 15th Digit: Checksum digit used to detect errors
Example of GST Number Breakdown
Consider the GST number: 29AAACC6106G1ZX
- 29: Karnataka (State Code)
- AAACC6106G: PAN of the business
- 1: First registration under this PAN in Karnataka
- Z: Reserved character
- X: Checksum digit for error detection
How to use the GST verification tool?
Verify a GST number online instantly by following these simple steps:
Step 1: Enter a valid GSTIN in the search box at the top of the page.
Step 2: Click the “Search” button to view the results.
If the GSTIN is valid, you will be able to check the following details:
- Legal name of the business
- Principal and additional business locations
- State of jurisdiction, including the Centre
- Date of GST registration
- Business type – company, sole proprietor, or partnership
- Taxpayer category – regular taxpayer or composition dealer
- GSTIN / UIN status
- Cancellation date, if applicable
Features of the GSTIN search tool
- Instant Verification and Authenticity: Quickly confirms whether a GSTIN is valid or fraudulent, ensuring transactions are carried out with genuine, registered vendors.
- Real-Time Data: Provides the latest information directly from the government GST portal, showing whether the GSTIN status is active or suspended.
- Business Details Retrieval: Displays important information such as the legal name, trade name, principal and additional business addresses, and the type of business (e.g., Proprietorship, Private Limited).
- Compliance Check: Verifies if the supplier is a regular taxpayer or a composition dealer and provides details about their GSTIN filing status.
- Error Detection: Flags mistakes in GSTINs on invoices, such as an incorrect PAN structure or invalid checksum digits, which is crucial for accurate GST returns.
- Fraud Prevention: Helps avoid dealings with businesses using fake, invalid, or cancelled GST numbers.
Advantages of online GSTIN search and verification tool
The advantages of verifying a GST number using the online GST Search tool include:
- Confirms the authenticity of any GSTIN
- Easily verifies GSTINs on handwritten or unclear invoices
- Helps avoid dealing with vendors using fake GSTINs
- Prevents GSTIN fraud at the source of the transaction
- Enables vendors to correct any errors in their GSTIN reporting
- Assists in accurate tax calculations when used alongside a GST calculator, ensuring correct GST amounts are applied on invoices and returns
How to complain about a fake GST number?
If you come across a fake GSTIN, you can report it to the GST authorities by emailing helpdesk@gst.gov.in or calling +91 124 4688999 or +91 120 4888999, so that appropriate action can be taken.
The GST portal also provides a tool to check all GST registrations linked to a particular PAN. If you notice any unknown registrations under your PAN, you can file a complaint with the GSTN by following these steps:
- Step 1: Visit the GST portal, click on ‘Search Taxpayer’, and then select ‘Search by PAN’.
- Step 2: Enter your PAN. The portal will display a list of all GST registrations associated with that PAN, including their state and registration status.
- Step 3: If you identify any suspicious or fake GST registrations, select the check box under the ‘Select to Report’ column. This step ensures that these registrations cannot be used for fraudulent transactions.
Note: GSTINs that were not properly migrated from earlier tax laws cannot be reported. - Step 4: A pop-up box will appear with the legal name auto-populated. Provide the required details for validation.
- Step 5: Enter the OTP sent to your registered email and mobile number to complete the verification.
- Step 6: Complete e-KYC through Aadhaar verification and give consent for GSTN authentication. This information is used by the GSTN to file a report against the fake GST registration. Data is transmitted to the Central Identities Data Repository for processing.
- Step 7: Once you provide your Aadhaar number, you will receive a second OTP. Enter it to complete the authentication, then click ‘Ok’. An ARN (Acknowledgement Reference Number) will be generated for each GSTIN reported. You can track the status of your complaint using the ‘Track ARN’ option on the GST portal (available pre-login).
Conclusion
Verifying GSTINs and using tools like the GSTIN Search Tool is essential for maintaining compliance and safeguarding your business operations. Regular checks ensure you deal only with legitimate suppliers and claim eligible tax credits accurately.
To further strengthen your business finances while complying with GST, you can explore a business loan, check your business loan eligibility, and review the business loan interest rate to make informed financial decisions.
