When talking about Goods and Services Tax (GST), the first thing that one has to consider is obtaining a GST Identification Number (GSTIN). This unique 15-digit alphanumeric identification number plays an important role in the GST landscape. This blog explores the significance of GST verification, its benefits, the GST number search and the process of GST verification online. Understanding the various aspects of GSTIN verification is indispensable for businesses seeking to be compliant with the GST law.
What is GSTIN or GST Number?
GSTIN or GST Identification Number is a PAN-based unique identification number that is allotted to all taxpayers registered under GST. As a registered GST taxpayer, you can also do a GST verification before entering it into the GST return.
Why Should you do GST Verification?
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 Use the GST Number Search Tool?
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.
Enter a valid GST Identification Number in the search box given on the GST portal page.
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
What is the GST Identification Number Format?
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 - The code of the state in which the registered person or registered entity is present.
Next 10 Characters - The next 10 characters consist of the PAN number of the registered user or entity.
Next Number - The next number indicates the number of registrations for the same PAN in the state under consideration.
Next Character - The next character does not indicate any particular information but is generated automatically by default and is in the form letter ‘Z.’
Last Number - The last number or letter, whatever it might be, is used for detecting errors.
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. The complexity associated with GST law makes it common for you to have queries. But, don’t worry! Our tax experts are always here to help you with tax-related matters.
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