Goods and Services Tax (GST) is one of the greatest tax reforms in India that came into effect from July 2017 by integrating several indirect tax systems into one. Every business [“registered in the Goods and Services Tax”] will get a GST Identification Number (GSTIN) which they will use for all their identity purposes for tax, such as issuing invoices, filing GST returns, and claiming input tax credit (ITC).
However, as GST is very new, there are now various instances of fraudulent behaviour, with various fake GST Numbers being published online for fraudulent services. To avoid getting caught up in one of these fraudulent situations, it is very important to check if you are using the correct GSTIN of your supplier, vendor or service providers before you make any business transactions.
The good news is that it is very easy to verify GST numbers using the government GST portal, which you can find at www.gst.gov.in. In this discussion, we will describe what a GSTIN is, the importance of checking GSTINs, how to check GST numbers step by step and some common pitfalls/ mistakes to consider.
What is a GST Number (GSTIN)?
GST Identification Number (GSTIN) is a 15-digit alphanumeric number that is given out by the GST authorities to businesses upon successful registration. The GSTIN is required on every GST invoice, returns and compliance form for GST purposes.
Here is the breakdown of the 15-digit GSTIN –
- First 2 digits → Code for the state (as per the Indian Census 2011)
- Next 10 digits → The businesses’ PAN (Permanent Account Number)
- 13th digit → Entity code (the number of registrations for a PAN in that state, e.g. 1, 2, 3)
- 14th digit → Default “Z”
- 15th digit → Check code (alphanumeric) for error detection
For example – GSTIN – 29ABCDE1234F1Z5
- 29 = Karnataka (state code)
- ABCDE1234F = PAN
- 1 = First registration in that state
- Z = Default
- 5 = Check digit
Thus, a structural GSTIN is unique and traceable.
The Importance of GST Number Verification
- Discouraging Fraud Activities: Numerous businesses produce invoices with false GST numbers to misrepresent themselves as an actual business, or to improperly charge GST from customers. Verifying the GSTIN ensures that you are dealing with a real taxpayer.
- Input Tax Credit (ITC): If the GSTIN of your supplier is invalid or inactive, when you claim ITC on such purchases, it will be denied on filing your GST returns or as a result of an audit. Verification is a safeguard for your ITC claim.
- Compliance with GST Law: The GST regime is compliance-driven, so verifying GST numbers before entering into a transaction will help you ensure that you are protecting yourself by being compliant with the law.
- Trust and Transparency: Verifying GST numbers can give you reassurance about your transactions and transparency for a buyer/seller relationship.
- A Defense against Notices or Penalties: Doing business with suppliers that falsely represent their GST registration can lead to receiving show-cause notices, penalties imposed on you, the buyer, or having your GST registration cancelled. Verifying is a safeguard against that risk.
Steps to Verify a GST Number Online
The GST portal easily allows you to check the validity of any GSTIN. Here’s how you can do it –
Step 1. Go to the official GST Portal
You have to visit https://www.gst.gov.in.
Step 2: Go to “Search Taxpayer”
On the homepage, click on Services → Search Taxpayer → Search by GSTIN/UIN.
Step 3. Provide the GSTIN
You have to provide the 15-digit GSTIN or UIN (Unique Identification Number) you want to check.
Step 4. Enter the Captcha and Click on Search
Enter the captcha code and click on Search.
Step 5. Review the Results
If the GST number is valid, you will receive –
- Legal name of the business
- Trade name (if different from legal name)
- GST registration status (Active/Cancelled/Inactive)
- Date of GST registration
- Type of taxpayer (Regular, Composition, Casual Taxable Person, Non-Resident)
- State jurisdiction and centre jurisdiction
- Nature of business activities (like retail, wholesale, services, manufacturing)
If the GST number is not valid, you will see the message – “No records found.”
Alternative Methods to Verify GST Number
There are other methods of GSTIN verification outside of the GST portal, through:
- The GSTIN Verification Apps – You can use several apps available for quick GSTIN verification. Just make sure to use reliable apps that keep up to date with the official data.
- Cross-Check Invoice – The GSTIN on the invoice must always match the legal name and PAN structure of the supplier.
- GST Return Filing Records – If you are claiming ITC, check if the supplier is filing GST returns regularly, as ITC is allowed only when the supplier uploads the invoice in GSTR-1.
Common Mistakes When Checking GST Number
- Incorrectly entering GSTIN (even just one letter wrong is invalid).
- Making a mistake by confusing O (letter O) and 0 (zero).
- Not remembering that a GSTIN is state-specific (a PAN can have multiple GSTINs in different states).
- Trusting any printed invoice rather than verifying online.
Benefits of Online GST Number Verification
- Authentic Business Transactions: Verifies your supplier is a real business.
- Seamless ITC Claims: Avoids denial of Input Tax Credit.
- Reduced Risk of Fraud: Avoid fake invoices.
- Compliance: Ensures continual compliance with GST law.
- Time Efficient: It is quick and takes less than 2 minutes to verify a GST number.
Example Scenario
Suppose you bought raw materials of ₹5 lakhs from a new supplier charging 18% GST (₹90,000). Later, during your GST filing, you find out that your ITC claim has been rejected because the supplier’s GSTIN was fake and he never filed GSTR-1.
The result is that not only do you lose ₹90,000 in ITC, but you also risk penalties. You would have avoided the situation by conducting an online verification of the supplier’s GSTIN before doing business with them.
Conclusion
Now, it is essential to check GST Number (GSTIN) online, which is no longer an optional step in doing business under GST. Due to phoney GST invoices and fraudulent activities, XXXXXX’s online GST kgf is the sole means to be clear and defend your ITC claims while staying within the law.
When it comes to business best practice, confirm the GSTIN of any new supplier, vendor or service provider before you perform any transaction with them. It builds trust and protects your business from uncertainty regarding possible disputes, penalties, or losses.
By incontrovertibly confirming the GSTIN of new business partners, you can focus on efficiency, growth, and compliance with India’s evolving tax system.
References
https://tutorial.gst.gov.in/
https://cbic-gst.gov.in/
https://gstcouncil.gov.in/
https://www.gst.gov.in/
