Why is it Necessary to Verify GSTIN or GST Number?

Why is it Necessary to Verify GSTIN or GST Number?

The Indian government imposed the Goods and Services Tax (GST) on July 1, 2017, in order to streamline the country’s tax structure. The main purpose of putting it was to have one nation, one tax, and one market. GST has largely superseded many federal and state-levied taxes, including excise, VAT, and service tax. Businesses must register for GST and obtain a 15-digit Goods and Services Tax Identification Number (GSTIN).

This has replaced the Tax Identification Number (TIN) provided by state tax authorities to businesses in order for them to register for the VAT system. GST number verification and GSTIN verification are required to verify that the Goods and Services Tax is allocated correctly. Continue reading for a more in-depth explanation of why it is vital to validate gstin or gst number.

GST will consolidate all registered taxpayers into a single platform for compliance and administration, and they will be registered under a single authority. More than 8 million people were migrated from other taxing platforms to GST. Tax officials commonly use the number to maintain track of GST payments and due records for people enrolled under the GST Act.

The GST regime provides businesses with a single platform for all compliance and administration requirements under a single authority. The regime provides a single number for a single business – the Goods and Services Tax Identification Number. GSTIN is accessible to the general public. 

Why Do You Need a GSTIN?

GST registration is necessary for businesses to take advantage of the GST regime’s various benefits. The government has made a GSTIN mandatory for businesses with a yearly revenue of more than 20 lakhs. 

If you are a registered dealer, you must file GST returns and pay any liability. Furthermore, if the GST you pay exceeds your GST liability, you can get a refund by using your GSTIN. A GSTIN might also help you get a loan to fund your firm. Business loans are provided by lenders such as Bajaj Finserv to assist businesses in purchasing merchandise, developing commercial space, and expanding operations. To be eligible for a business loan, your company must be registered on the GST site with the Government of India and have a valid GSTIN.

How Do I Use the GSTIN Search and Verification Tool?

To utilize the GSTIN search and verification tool, follow the instructions below.

  • Enter a valid GSTIN number into the search box.
  • Select the Search option.

You can check the following information if the GSTIN entered is correct using GST Verification:

  • The company’s legal name.
  • The date of registration.
  • The government.
  • The GSTIN/UIN status.
  • The business structure – corporation, sole proprietorship, or partnership.
  • The type of taxpayer – ordinary taxpayer or composition dealer.
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How Do I Get a GSTIN?

A GSTIN will be assigned after registering under the GST Act. Taxpayers can register for a GSTIN by registering under the GST Act:

  • By going to a GST Seva Kendra established by the government; or by registering up online in the GST registration portal.
  • When a taxpayer’s application to register under the GST Act is approved, he or she is assigned a unique 15-digit number known as the GSTIN. As a result, this will be sent through email and SMS to the taxpayer’s registered email address and phone number.

As a result, checking and verifying GSTIN is preferable to avoiding GSTIN manipulation and misuse. Furthermore, GSTIN works to keep business transactions open and to verify that authentic GST Returns are lodged for the corresponding tax period. GSTIN and GST number verification are also beneficial since Input Tax Credit can be claimed when the correct GSTIN is utilized.

Conclusion

Verifying the Goods and Services Tax Identification Number (GSTIN) or GST number is required to establish the authenticity and credibility of a business or supplier. It is critical for various reasons. For starters, GSTIN verification confirms whether a business is registered under the GST regime, which assures legal compliance. Second, it aids in checking the accuracy of the GSTIN provided by a business, lowering the danger of dealing with fraudulent or non-existent companies.

Third, checking GSTIN allows firms to obtain input tax credit properly because it ensures that their suppliers are authentic and registered. Overall, GSTIN verification is critical for maintaining openness, combating tax avoidance, and fostering trust in business transactions.