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?
A GSTIN is a unique 15-digit alphanumeric number issued to businesses registered under GST. It acts as an identity for taxpayers in the GST system and helps the government track tax compliance.
Each GSTIN is linked to a state and a specific business entity. This makes it easy to monitor transactions, prevent tax evasion, and ensure smooth credit claims.
Why is it necessary to verify the GST number?
Verifying a GST Number is crucial for businesses for several reasons:
- Confirms the legal authenticity of suppliers and clients
- Ensures eligibility to claim input tax credit
- Reduces the risk of dealing with fraudulent entities
- Maintains compliance while filing GST returns
Businesses can learn how to verify GSTIN using the official GST verification tool.
GST identification number format
A GSTIN is structured as a 15-digit alphanumeric code:
Pointers:
- First 2 digits: State code
- Next 10 digits: PAN number of the taxpayer
- 13th digit: Entity code of the same PAN in a state
- 14th digit: Default ‘Z’
- 15th digit: Checksum for validation
Understanding the format helps businesses quickly validate GSTINs and identify discrepancies.
How to use the GST verification tool?
The GST verification tool is an online utility provided by the government to authenticate GSTINs.
Pointers:
- Enter the 15-digit GSTIN of a business or supplier
- Click on the “Verify” button
- View the legal name, state, registration date, and status
- Confirm the details match your supplier’s information before transactions
This ensures compliance and prevents fraudulent dealings. If you are planning to invest in a new business or upgrade operations, you can check your pre-approved business loan offer to see if instant funding is available.
Features of the GSTIN search tool
The GSTIN Search Tool offers several convenient features for businesses:
Pointers:
- Quick verification of multiple GSTINs
- Displays taxpayer name, registration date, and state
- Checks the active or inactive status of a GSTIN
- Provides GSTIN details for proper record-keeping
Benefits of online GSTIN search tool
Using the GSTIN Search Tool online provides tangible advantages:
Pointers:
- Prevents transactions with unregistered or fake suppliers
- Streamlines business audits and GST filings
- Saves time by eliminating manual verification
- Enhances accuracy in claiming input tax credits
Businesses can also cross-check values before calculating taxes using the GST calculator.
How to complain about a fake GST number?
If you identify a fake GST number, it is important to report it immediately:
Pointers:
- Gather supporting documents and transaction records
- Lodge a complaint on the official GST portal
- Provide the fraudulent GSTIN and associated details
- Follow up for resolution to prevent financial losses
Reporting ensures compliance and protects your business from penalties.
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.
