All taxpayers are given a unique identification number aka the GSTIN that combines all the registered taxpayers on a single platform for compliance and administration purposes. Every business entity that surpasses the threshold level (a turnover of more than Rs. 20 Lakh annually) to pay tax then has to register them on the GST platform to ensure they pay their dues regularly and file for their returns.
The Goods and Service Tax has quite a few steps one needs to do to fill in their taxes. But one of the main steps and rather a very early on one is the GST verification. The GST verification is the verification of the GSTIN code that one needs to get onto the process of filing their taxes. Verification is an extremely crucial step that all vendors and business entities should ensure they follow before entering into business with another party. Through the process of GST number verification, one can know most of the details of the business like their scope of business, state of business registration, PAN card details of the business and the business owner, type of entity and so on. If the GST number verification does not pass through or shows an error on the GST portal screen, one can be alarmed and aware if they are getting into a scam.
What does the GSTIN combine of?
The GSTIN is a 15 digit identification number which is a combination of numbers and alphabets, very much like our PAN card. The number is allotted to each business entity based on their state, PAN card details and type of business. Full disclosure of the business needs to be done to obtain the GSTIN number and for registration purposes. One can obtain all information about a business entity through the GSTIN and thus can reduce fraud or malpractices by doing a background check on the business through the GSTIN before entering into business together.
GSTIN basically can be broken into 5 segments for better understanding as verification perspective:
- The first two digits refer to which state the business entity belongs to or is registered at. Each state has its own unique code to make identification easier.
- The following ten digits represent the PAN number of the taxpayer.
- The thirteenth digit is allotted based on the number of registration within a state.
- The fourteenth digit is a Z by default.
- And the last and the fifteenth digit can either be a number or an alphabet, used as a check code.
GST registration validity
The GST regular taxpayers do not have an expiry date and are valid until the GST registration is canceled or surrendered. Only GST for casual taxable payers and non-residents have a validity date which is mentioned on the GST certificate provide by the government.
An example of how the GSTIN looks:
|11 BBBBB9999C 2 Z 6||GSTIN|
|11||The first two digits are the state code|
|BBBBB9999C||The next 10 digits are the PAN Card Number|
|2||Entity number of the same PAN holder in a state|
|Z||Alphabet by default|
Once your GST registration process has been completed, it takes 7 working days for the registration to accept and a provision GSTIN is provided. In 10 working days from the day of registration, the final GSTIN is provided along with the GST certificate.
From the time the registration has been done on the portal, the status of the application can be checked. It is extremely easy to check the verification of your GST number registration process in just a few simple steps.
- Click on the GST portal – https://www.gst.gov.in/
- Click on Search Taxpayer > Search by GSTIN/UN
- Enter the GST number
Once you have done these three steps you will see any two options:
- Correct – You will be able to see information about the business entity such as the
– Name of the business
– Date of registration
– Taxpayer details
– Address or registration of business
– Type of business – Partnership, LLP, and Sole Proprietary
- Incorrect – An error will appear on the page. At this point, you will have to verify the number again or get in touch with your vendor about the GST number details.
It is essential to check and verify a GST number before getting into business with any vendor or business entity as it can lead to fraud and malicious practices. Many business entities will try to dupe you in by saying that even though they have registered they have not received a GST number. You should note that, once the registration is complete, each and every enterprise will receive a provisional GSTIN number which can be used for business purposes until they receive a final one. Do not fall for this trap and always ask for the GST number under every case. There are quite a few consequences and offenses when dealing with a fake GST number and hence ensuring the opposite party’s GSTIN is essential to steer clear from the legal penalties.