In this blog, we go over “Simple Methods to Verify the Validity of Your GSTIN—2023 Update” for the benefit of interested readers.
What Makes GSTIN Validation Crucial?
The term “GST identification number” is abbreviated as “GSTIN.” The government assigns each registered company entity a specific 15-digit number. On a single platform, all taxpayers who have registered will be subject to the same authority. Compliance and administration will be simplified. The tax identification number (TIN) originally given to businesses has been replaced by the goods and services tax (GST).
The following are some reasons why GSTIN validation is crucial:
- Operating digital platforms marketplaces: To be able to sell products on websites and marketplaces like Amazon, Flipkart, Meesho, Ola, Snapdeal, ShopClues, Uber, Udaan, and Zomato, an online merchant must register for GST. It’s important to note that Internet sales are not subject to the GST registration level.
- Filing GST returns and reclaiming input taxes: The GST Act mandates the filing of several tax returns. It is essential to have the supplier’s GSTIN to file these forms for appropriate reporting and record-keeping, especially when requesting input tax credits (ITCs) and refunds.
- Claiming an ITC: The GSTIN of the seller is required to claim the ITC (the GST paid on the acquisition of goods or services).
- Claiming a refund: Under the requirements of the GST Act, refunds may be requested (in Form GST RFD-01). This typically happens when exporting services, supplying businesses in special economic zones, or having unused input tax credits. Again, having the supplier’s GSTIN is essential for filing a refund claim.
- Preventing tax fraud: There could be cases where a supplier uses a fake GSTIN to collect the goods and services tax but does not pass it on to the government. To stand a chance of identifying and preventing such types of fraud, businesses must make use of more sophisticated GSTIN validation tools (e.g., that make use of techniques like fuzzy matching).
GSTIN Validation Requirements
A GSTIN can be validated using either a manual process or an automated process.
Manual validation, as its name suggests, is a laborious, time-consuming method that is not practical for bulk validations or real-time validations if you are working with thousands of customers or vendors.
For real-time and/or bulk validations, automated validation is a swift, reliable, and smooth process.
What Does the GSTIN Validation API Stand for?
A digital tool called a GST verification application programming interface (API) enables companies to fulfill know your customer (KYC) by confirming a registered company’s GSTIN number. The GSTIN is normally accepted as the API request, and the API returns validated data in response, including the GSTIN, business name, business constitution, address, and other information.
Advantages of Using the GST Verification API
Companies may benefit in a variety of ways by using the GST verification API, including the following:
Saves effort and time
Manually validating GST numbers could be challenging and take a lot of time. By using the GST verification API, businesses may automate the procedure and save a substantial amount of time and labor.
Manual GST number verification can contain errors. The GST verification API, on the other hand, provides accurate and up-to-date information on GSTINs, ensuring that businesses are dealing with reliable and real merchants.
Businesses must verify their GST numbers to ensure that their operations comply with GST requirements. The GST verification API can help businesses stay compliant and stay out of trouble.
Improves customer experience
Using the GST number verification API may enhance the client experience by providing quick and accurate GST number verification. This could help businesses win over customers’ trust and confidence.
How is Onboarding Using the GST verification API?
To use the GST verification API, you must first integrate it into your program or website. Following the API documentation that the API provider has provided can help you achieve this. The GST authentication process can be completed once everything is linked by entering the GSTIN data or by uploading a photo of the front of the GST certificate, which is then scanned using artificial intelligence (AI)-based optical character recognition (OCR).
To leverage our AI-powered solutions right now, any application may be linked to IDcentral’s workflow. Client productivity has increased, and merchant onboarding times have sped up by 45% as a result of the implementation of an API-based seamless merchant onboarding procedure.
How Can Organizations use APIs for GST verification?
All financial institutions are required to confirm the GSTINs of their customers, merchants, and business partners before engaging in any commercial transaction. The GST verification API has made this process simple and dependable. By doing so, you can ascertain the customer’s honesty and prevent fraud.
Also, most regulatory agencies advise specific institutions and businesses to use online GST verification API solutions to verify the legality of their customer’s accounts and the identification of their consumers. All that is required for this process are the specific credentials of the client.
API-based GST Verification Benefits
- The API is dependable and small, and integrations don’t require assistance from outside parties.
- It works well and is reliable; GSTIN verification is completed quickly and successfully most of the time.
- API connectivity is easy, not just for merchant onboarding but for all significant touch points in a business. If merchant verification is required for account adjustments, APIs can be used.
- APIs help businesses expand and modernize critical client-facing procedures like onboarding. By integrating with APIs, businesses may refocus their efforts away from customer verification and toward attaining growth.
- APIs for GST verification help with efficient documentation and produce accurate KYC data. The data acquired can be easily maintained on a smart dashboard and are safely protected by adhering to the strongest international norms.
How Can you Pick the Best API for GST Verification?
When choosing a GST verification API, there are several factors to consider, including the following:
- Accuracy: The API must provide accurate and recent information about GSTINs.
- Integration: The API should be easy to integrate into your program or website.
- Support: The API provider should offer trustworthy and prompt support to assist with any potential issues.
- Price: The API provider’s verification fees should be affordable and suitable for your business requirements.
The kind of clients you have and the current procedure will both have a significant impact on the GST verification API you select during merchant onboarding.
What are the GST Verification APIs Available for Online Onboarding?
Businesses can confirm GST numbers with the two key APIs listed below. These APIs automate document validation and data administration, which speeds up merchant onboarding for businesses.
Below is a list of the top two APIs for GST number verification. The GST verification API functions by sending a request and receiving a response.
API for GST verification
The input for this API is a business’s GSTIN. The validated information shown below is included in the API’s output:
API for automated GST OCR extraction
To extract pertinent data, this API uses OCR to scan the front side of the GST certificate. The following data has been taken from the API response:
- The legal description of the company
- Address as of the date of registration
- Kind of taxpayer
Using an API to Extract and Verify GST Automatically
To access KYC data such as the GSTIN, registration date, and business name, this API also uses OCR to scan the front side of the GST certificate. After extraction, the data is checked using widely used databases.
The following validated details are included in the API response:
- Business name
- The legal description of the company
- Address as of the date of registration
- Kind of taxpayer
Businesses have been able to speed up merchant onboarding and save costs by as much as 50% by integrating with GST verification APIs. The easy processes of the GST verification API have also benefited firms in enhancing production and efficiency.
How Long is a GST Registration Valid?
The certificate of GST registration that is granted to the regular taxable person or the normal taxpayer does not have any validity or expiry date and shall be valid until the taxpayer voluntarily cancels it due to any reason.
Yet, there must be a basis for the certificate’s validity in the case of the occasional and non-resident taxpayer.
Validity of a Non-resident and Occasional Taxable Person’s GST Registration
For 3 months or 90 days from the date of registration, or for a period that was specified by the applicant in the registration form, whichever is earlier, the registration of the GST certificate, which is passed as the original certificate under GST for a casual taxable person or a non-resident taxable person, will be held valid.
By submitting an application using Form GST REG-11, this time frame may also be extended for a further 3 months or 90 days.
Process for Extending the Validity of the GST Registration Certificate
The following processes shall be performed by the casual taxable person and the non-resident taxable person for asking for an extension of the time limit or validity of the GST registration certificate held by the same:
- After logging in, select the ‘Services’ tab on the GST portal. Choose ‘Registration’ and then ‘Application for Extension of Registration Period by Casual or Non-Resident Taxable Person.’
- The user will now be directed to the registration page’s extension, which has two more tabs. The “Company Information” and “Verification” sections would be included on this tab.
- Using the provided calendar, select the extension term under the “Company Information” tab. Enter the expected turnover and net tax liability that would be incurred during the extension period now as well.
- Next, select the “Create Challan” option to create an advance tax payment challan and deposit it into the electronic cash ledger.
- The payment will be reflected or displayed on the screen once it has been made. The “Click and Continue” button appeared after this click.
- Go to the “Verification” tab to complete the login and verification. Choose verification by checking the box. Choose the name of the designated Authorized Signatory here, and then authenticate using the electronic verification code (EVC) or a digital signature certificate (DSC).
- A message indicating the successful submission of the application will be shown on the screen once the authentication has been completed using EVC one-time password or DSC.
- The following can be used to monitor the status of an application: Services: registration; application status monitoring.
Who in India Needs to Register for GST?
A person who conducts business everywhere in India and who is registered or obliged to be registered under the GST Act is referred to as a “taxable person” under the GST. Any individual who conducts economic activity, such as trade or commerce, is regarded as a taxable individual.
The term “person” in this context refers to an individual, a HUF, a company, a firm, a limited liability partnership, any corporation or government company, a body corporate organized in accordance with the laws of another nation, a cooperative society, a local authority, the government, a trust, or an artificial juridical person.
The categories of taxable people who must register for GST are as follows:
- The one who makes an interstate taxable supply
- Casual taxpayer
- The one who pays tax under reverse charge
- Non-resident taxable person
- Input service provider
- E-commerce operator
Registering for GST as an Individual
A person would be considered a taxable person for GST if they are registered or legally required to be registered. A person would be required by law to register in one of two circumstances:
- A person who must be required to register.
- A person who is required to register if their combined turnover for the delivery of products, services, or both reaches the threshold amount.
A person is often required to pay tax on all supplies of goods or services that he or she makes.
- Composition scheme
The threshold limit for North-Eastern states is Rs. 75 lakhs, while the annual turnover requirement for the composition plan has been raised to Rs. 1.5 crore.
How to Verify the Authenticity of the GSTIN
(a) How to check the validity of your GSTIN on the GST Portal: A Step-by-Step Guide
When you apply for GST registration, it typically takes 7 working days to receive your provisional GSTIN and 10 days to receive your final GSTIN along with your GST registration certificate. At the moment of submission of the GST registration application, the status can be viewed on the GST portal.
How to Verify the Status of an Existing GST Registration
The methods below might be used if you want to verify the status or legality of an existing GST registration.
Step 1: Visit the GST Portal
Visit the GST website. Also, you can access gst.gov.in and choose Services -> User Services -> Search Taxpayer.
Check your GST registration status
Step 2: Provide the GSTIN number.
Fill out the CAPTCHA and enter the supplier’s or customer’s GSTIN number in the space provided.
Step 3: Status of your GST registration application
The portal shows the GST registration status and the registration status when you click search, as shown below:
(b) How to install and use the app to check the authenticity of the GSTIN
We can check the authenticity of our GSTIN by downloading the “GSTIN Checker: Verify GST numb” app from the Google Play Store.
(c) Description of independent websites that provide services for GSTIN verification
You may use GST search by Razorpay to view other business facts, including the legal name of the firm, status, date of registration, business type, and many more. You can also use GST Search to check the validity of any GST number (GSTIN) online for free.
Format for GST Identification Numbers
The components of the 15-digit alphanumeric GSTIN code are as follows:
First 2 numbers:
State code of the registered proprietor
Next 10 characters:
PAN of the registered proprietor
Entity number of the same PAN
Alphabet Z by default
Check code which may be alpha or digit, used for the detection of errors
By taking a few easy actions, you can use the GST Number Search Tool with ease.
In the search field, type a genuine GSTIN.
Choose “Search” from the menu.
Together with a few other facts about the company, you may verify its authenticity.
By IRIS Peridot
The most cherished IRIS GST product, IRIS Peridot, has favorably impacted the lives of millions of taxpayers and businesses. They hope to make GST compliance simple and physically at the users’ fingertips with IRIS Peridot.
How Can I Determine Whether or Not a GST Number is Active?
You can verify a GST number if it is correct and valid (or not expired) by utilizing the Clear GST number search tool. Enter the GSTIN at your disposal to acquire information about the taxpayer, customer, or supplier right away. The search tool will indicate that the GST number is invalid if it is.
How Come a GST Number was Rejected?
If a person doesn’t give clarification or provide clarification that the GST office doesn’t accept, their GST registration will typically be rejected.
The initial application submitted in Form GST REG-01 may be rejected if you fail to respond to the notice’s request for clarification or if the GST office is still unsatisfied with the clarification or new documents. The decision will be made in Form GST REG-05.
The application would be rejected, and the GST office would explain why.
The application is always denied if the PAN’s initial details are inaccurate. The PAN is compared to the Central Board of Direct Taxes (CBDT) database, and the application is rejected if there are any discrepancies.
If the taxpayer is satisfied with the reasons for denial listed in the order, a ticket may be raised or the GST Suvidha Center may be contacted.
We anticipate that interested readers will now have a clearer understanding of how to check GST validation based on our discussion thus far in this blog.
Are you still manually filing your taxes? Switch to GST registration online and streamline your tax processes. Sign up now!
FAQs on GST Registration
The fees for GST registration of business can sign up for free through the GST Registration Portal. The whole process is done online for free.
SGST for state GST or SGST applies to intrastate sales of goods and services, per the SGST Act. It is administered by each state's government. Only SGST liability can be offset by SGST or IGST input tax credit.
GSTIN or Goods and Service Tax Identification number is a 15 digit number which is assigned to the applicant or businesses when it is successfully registered under GST.
ARN in GST Registration or Application Reference Number is generated once the submission of the application is successful to the official GST servers.
PAN card mandatory for registering GST - The short answer is "yes," PAN cards are required for GST filing. Except for TDS registration, which can be done with a TAN, GST registration cannot begin without a PAN card.
The threshold limit for GST registration if your company's annual sales are more than 40 lakhs (20 lakhs for north-eastern and hill states), you must register as a regular taxable person and pay taxes. A minimum of 20 lakhs is required from service providers (10 lakhs in northeastern and hill regions).
To get a GST number entire GST registration process, including receiving the GST number, takes 7 to 10 working days.
No, current account is not required for a company to register for GST.
Yes, get multiple GST registrations within a state. The company may file for as many GST registrations as desired within a state. For ease of doing business, the process of holding multiple GST registrations only for different industries within a state has been eliminated.
If the GST application is rejected, you will have the opportunity to respond to the rejection notice. However, you would need to wait for a final rejection, which will take about 10 days, if you wanted to submit a fresh application.