How to Perform GST Number Verification?

A GST number is a unique 15-digit number for every registered taxpayer. So, a GST number verification is a way to confirm a vendor is legitimate. This helps to protect businesses from fraud. A proper check helps businesses carry out secure transactions. You can verify the GST number through the official GST Portal search tool. It will show the business's official name, registration status, and filing history. In this blog, you will get guidance on how to verify a GST number.

What is a GST number?

A GST number refers to a unique 15-digit alphanumeric code. This code is issued to every business registered under the GST regime in India. A GST number is also called GSTIN. The GSTIN full form is the Goods and Services Tax Identification Number. In other words, it is an official identification number for businesses. Businesses can collect tax and claim Input Tax Credit (ITC). They can also comply with tax regulations.

Thus, this number helps with:

a) Invoicing

b) Tax filing

c) Input Tax Credit (ITC) claiming

d) Other tax compliance within the system.

GST Number Format

Here is a breakdown of the GST number format:

a)   State Code (First 2 digits)

The state code means the first two digits of the GSTIN. In India, there is a list of codes for each state and union territory. This code shows the location in which the taxpayer registers their business. For example, "27" is for Maharashtra and "19" stands for West Bengal.

b)   PAN (Next 10 characters)

In GSTIN, the next ten characters represents the Permanent Account Number (PAN). A PAN is a unique identification number. The Income Tax Department issues the number. A person or business uses this number to track their financial transactions. It supports tax compliance for businesses.

A GSTIN with PAN helps to connect the GST registration for the existing tax records. This helps to stop duplicate registrations.

c)   Entity Code (13th digit)

The thirteenth digit specifies the entity code. It represents the number of registrations that taxpayers holds within the same state. You can differentiate different business verticals with this number. This also helps to distinguish business locations under the same PAN in the same state.

d)   Default Alphabet 'Z' (14th digit)

The fourteenth digit means the default alphabet letter "Z" for most regular taxpayers. This digit acts as a fixed placeholder. It does not have any specific information about the business or taxpayer.

e)   Check Digit (15th digit)

The last 15th digit is a check digit. This is calculated by a formula to check the GSTIN accuracy. The final digit is used to detect errors in the GSTIN. It can include mistyped or invalid characters. This confirms that the GSTIN submitted during transactions is valid. It also confirms the reduction the risk of mistakes.

Who must have a GST number?

Every business or individual that completes GST registration needs a GST number. A GST number is also known as GSTIN (Goods and Services Tax Identification Number).

Here are the following entities:

a) Businesses Exceeding Turnover Threshold

b) Inter-State Suppliers

c) E-commerce Operators and Aggregators

d) Casual Taxable Persons

e) Non-Resident Taxable Persons

f) Agents of a Supplier

g) Input Service Distributors (ISD)

h) Persons Required to Deduct or Collect Tax at Source

i) Persons Making Taxable Supplies

What is GST Number Verification?

A GST number Verification is the process to check GSTIN. The GSTIN is the Goods and Services Tax Identification Number. Businesses get this number under the GST regime. This official process helps to check its authenticity, accuracy, and current status. You will see the current status as active, suspended, or cancelled.

You can verify GST number online which is free of cost. Businesses and individuals to verify that a supplier or buyer is officially registered. This verification confirms registration under the GST regime in India. It also confirms authenticity, reduces fraudulent transactions, and supports compliance with tax rules.

How to Perform GST Number Verification?

Below are the steps to perform GST number verification:

Steps to verify GST Number online in India:

Step 1: Visit the official GST Portal

As a user, you need to visit the official GST portal. This allows you to verify a GST number or GSTIN.

Step 2: Click on the ‘Search Taxpayer’

Next, click on the "Search Taxpayer" option and select the "Search by GSTIN/UIN" option. You will find this option on the home page.

Step 3: Enter the GST number

In this step, you must enter the GST number as per your need in the "GSTIN/UIN" field. Then, you need to complete the captcha code.

Step 4: Click on the ‘Search’ button

Click on the "search" button to proceed after entering the GSTIN and captcha code.

Step 5: Verify the details

You will see the details of the GST number on the official GST portal. The details can include business name, date of registration, status, address, and so on. It confirms that the GSTIN for the business is authentic.

Thus, it is the final step to conduct a GST number Verification.

How to Apply for a GST Number?

Listed below are the steps to get GST number:

Step 1: Access the GST Portal

As a user, you need to go to the official GST portal to get a GST number. This portal also helps you to conduct GST number verification.

Step 2: Initiate New Registration

Go to the "Service" menu from the homepage. You must select the "Registration" option. Next, you need to click on the "New Registration". This helps to start the process to get GSTIN.

Step 3: Complete Part A of the Application

You need to fill out and complete Part A with the basic details. This is an initial application form. Here:

a) You must choose "Taxpayer" option as a type of applicant.

b) Choose the state and district in which the business operates.

c) Enter the legal business name. This name will appear on the PAN card.

d) Then, you need to give the PAN number of the business or proprietor.

e) Once you give the PAN number, submit a valid email address and mobile number. Next, you will get verification codes.

f) The portal will display the captcha code. You need to enter this code to verify it.

Once you have completed all fields, click on the "proceed" button to continue.

Step 4: Verify OTP

You will get two One-Time Password (OTP). One on your email address and one on your registered mobile number. Enter the OTP to confirm your contact details. This will confirm the authenticity of your provided information.

Step 5: Get a Temporary Reference Number (TRN)

Once the OTP verification is completed, you will get a Temporary Reference Number (TRN). This number acts as a reference for completing the remaining registration steps. You can also save the TRN for future access.

Step 6: Complete Part B of the Application

On the GST portal, you must choose the Temporary Reference Number (TRN). You will find this option under "New Registration". Then, you need to enter your saved TRN and verify with an OTP again to continue.

The application includes:

a) Details about the nature and activities of the business

b) The details of partners, promoters, or owners who are involved in the business

c) Identification of the authorized signatory

d) Address of the principal place in which the business operates.

e) Details of any additional business locations, if applicable

f) Description of goods and services of a business

g) Bank account details for refund and tax purposes.

Next, you need to submit the required documents.

Step 7: Submit the Application

Once completed, you must finalize your submission.

You can do it by several methods:

a) Digital Signature Certificate (DSC) for Limited Liability Partnerships (LLPs) and registered companies.

b) E-signature. It is an online verification method for individuals and proprietors.

c) Electronic Verification Code (EVC). It is an OTP-based authentication for individuals.

So, you need to choose the correct verification mode and submit the application.

Step 8: Receive Application Reference Number (ARN)

Once submitted, you will get an Application Reference Number (ARN). It guarantees that the application is under process. You can take this number to track the progress of your registration.

Step 9: Track Application Status

You need to revisit the GST portal to check the application status. Next, you need to visit the "Registration" option. Select the "Track Application Status" option. If you want to see the current status, enter the ARN and the captcha code.

Thus, you can also do a GST number verification on the GST portal.

Conclusion

GST number verification is a significant process for businesses in India. You can do it from the official GST portal. This helps to protect businesses from fraudulent activities and maintains compliance. In other words, it can be said as GSTIN verification. A proper search confirms a vendor's authenticity and prevents fraudulent ITC claims. It also helps to avoid other delays for official purposes. You must stay updated about it and get in touch with Online Legal India to get assistance.

FAQ

Q1. Where can I perform a GST number Verification?

You can perform a GST number verification from the official GST portal.

Q2. What is GST Number Verification?

It is an official process to check the authenticity of a GSTIN. This is a Goods and Services Tax Identification Number that is issued to businesses in India. You can verify a GST number from the official GST portal. It confirms a supplier or business is officially registered, active, and compliant with tax laws.

Q3. Is it compulsory to verify the GST number?

No, it is not compulsory. Still, it is necessary to verify the GST number before every business transaction. 

Disclaimer

This article is for informational purposes only and does not constitute legal advice. Online Legal India is a digital platform. If you require legal assistance, we strongly recommend consulting a qualified lawyer or law firm.