What is GSTIN or GST Number?
GSTIN or GST Identification Number is a PAN-based unique identification 15-digit- alpha numeric PAN based code that is allotted to all taxpayers registered under GST. As a registered GST taxpayer,GST number validation is necessary for enterprises to comply with GST laws and regulations, which allow them to collect and transfer GST to the government.
A single person with a PAN under the Income Tax Act can have multiple GSTINs, one for each state or Union Territory where they operate. Obtaining a GSTIN becomes mandatory once the person exceeds the threshold limit for GST registration.
Unlike the earlier indirect tax system, which required separate registration numbers for Excise, Service Tax, and VAT, GSTIN serves as a unified registration number under GST.
Why is it necessary to verify the GST number?
There are various benefits of verifying your GST Identification Number. Given below are some of those benefits and why should you complete GST verification online -
- Authenticity - It helps verify the authenticity of the taxpayer or business under the GST regime.
- Validity - It helps the taxpayer check the validity of GSTIN in real time and provides up-to-date information to the business.
- Verification of Invoice - Verifying your GST number can help avoid the generation of incorrect or e-invoices.
- Transparency - It allows taxpayers to ensure that the business information remains transparent. This makes it easy to file correct GST returns.
- Tax Credit - It helps the taxpayers claim input tax credits and pass them to the correct buyers.
- Errors - GST verification online help GST-registered taxpayers check for errors in GSTIN.
- Fraud Detection - It helps avoid fraud by helping the GST payers detect fraud or potential fraud right at the source of origin.
How to Check GST Number?
In order to use the GST Number Search Tool, you have to follow the below-mentioned steps -
- First of all, Visit the GST portal.
- Navigate to the tab ‘Search Taxpayer’ on the top menu bar.
- Click on search by GSTIN/UIN of the taxpayer.
- Enter a valid GST Identification Number in the search box given on the GST portal page.
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If the GSTIN entered by you is correct, then you can verify the following details -
- The legal name of the business
- Additional places and principal places of business
- The state of jurisdiction, including the business.
- Date of registration
- Sole Proprietorship or partnership, business constitution - company
- Taxpayer type - composition leader or regular taxpayer
- UIN status/GSTIN status
- Cancellation date (if applicable)
Before you go ahead and verify your GST Identification Number, it is important to check if the 15-digit alphanumeric GST code is in the format mentioned below. Remember, if the GSTIN allotted to you is not in this format, then it is not a valid GST number.
- First 2 Digits: Represent the state code of registered taxpayer
- Next 10 Digits: Refers to PAN (Permanent Account Number) of the registered business or individual
- 13th Digit: Assigned based on the number of registrations within a state
- 14th Digit: Default Z letter is taken
- 15th Digit: Checksum digit is used to detect potential errors
Let's consider this sample GST number 29AAACC6106G1ZX
- 29:Karnataka (State Code)
- AAACC6106G:PAN of the business
- 1:First registration under this PAN in Karnataka
- Z:Reserved character
- 5:Check digit for error detection
Spotting Fake GSTIN
Fraudulent suppliers may sometimes use fake GSTINs while supplying goods to customers. In such cases, the supplier collects taxes as CGST+SGST/UTGST or IGST from the recipient but fails to deposit them with the government. Additionally, some individuals may attempt to claim Input Tax Credit (ITC) by generating fake or bogus inward invoices, thereby avoiding tax liability without any genuine supply of goods.
These malpractices can significantly harm customers’ interests and lead to substantial revenue losses for the government. To prevent such issues, recipients must verify and validate the GSTIN of every new supplier to ensure proper GST compliance and avoid potential risks.
Where and How to Complain About Fake GSTIN?
If you come across a suspicious or fake GSTIN during a GST number verification, you can act as a whistleblower to help curb fraudulent practices. Here's how:
- Verify GSTIN on the Official Portal:
Before making any payment, always ensure the GST number mentioned on the invoice is valid by checking it on the official GST portal: www.gst.gov.in.
- Report Illegality to Authorities:
If you detect any discrepancy or illegality, you can report it to the concerned authorities. Contact details:
- Authorities across Noida, Gurgaon, and Delhi actively monitor and respond to such complaints.
Ensuring the accuracy and legitimacy of your GST Identification Number is not just a regulatory requirement, but it helps you avoid fraud and errors. Therefore, ensuring you complete your GST verification online is important to make sure that you are able to use it for business purposes while avoiding potential fraud. From GST registration, GST filing to any GST-related query, our experts have got you covered. Let our experts handle your taxes while you focus on what matters most to you. Book an online CA Now!
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