The Ultimate Guide to GSTIN Verification in India

The Goods and Services Tax (GST) revolutionized India’s indirect tax system. Every business registered under GST receives a unique 15-digit identification number called the GST Identification Number (GSTIN). This number is crucial in ensuring smooth business operations and compliance with GST regulations.

This blog explains all about GSTIN, including its importance, step-by-step process to verify GSTIN, benefits, and GSTIN verification APIs.

What is GSTIN?

A GSTIN is a unique identifier assigned to businesses registered under the GST regime. It acts as an identification for a business, facilitating tax collection and administration. The structure of a GSTIN is as follows:

First two digits: Represent the state code where the business is registered.
Next ten digits: Represent the Permanent Account Number (PAN) of the business.
The thirteenth digit: Represents the number of registrations a particular PAN holds within the state.
Fourteenth digit: Z by default.
The last digit is a check code which may be alpha or digit, used for the detection of errors.

Importance of GSTIN under GST

Obtaining a GSTIN is mandatory for businesses with a turnover exceeding ₹40 lakh (₹20 lakh for certain specific categories). Here’s why a valid GSTIN is crucial:

Compliance: A valid GSTIN enables businesses to collect GST from customers, claim Input Tax Credit (ITC) on purchases, and file GST returns. Operating without a GSTIN can lead to penalties and legal action.
Credibility: A GSTIN acts as a mark of legitimacy for a business. It assures customers that the business is GST-compliant and contributes to the country’s economy.
Input Tax Credit (ITC): Businesses can only claim ITC on purchases from GST-registered suppliers. Verifying a supplier’s GSTIN ensures you claim genuine ITC.
Smooth Transactions: While not mandatory, many businesses prefer to deal with GST-registered suppliers to streamline their tax compliance processes and avoid potential disruptions.

Step-by-step process to verify GSTIN on the GST portal

Verifying a GSTIN is a simple process that can be done online through the official GST portal. Here’s a step-by-step guide:

Step 1: Visit the GST portal:

Go to the official GST portal website: https://www.gst.gov.in/
Look for the “Services” tab and click on it.
Under the “Search Taxpayer” section, select “Search Taxpayer.”

Step 2: Enter GSTIN and Verify Captcha:

In the “Search by GSTIN/UIN” field, enter the 15-digit GSTIN you want to verify.
Enter the captcha code displayed on the screen.
Click on the “Search” button.

The portal will display the details of the taxpayer associated with the entered GSTIN, including:

Legal Name of the Business
Trade Name (if any)
Registration Address
State and GSTIN
Type of Taxpayer
Status of Registration

If the entered GSTIN is invalid or does not exist, the portal will display an error message.

Benefits of GSTIN verification

Regular GSTIN verification offers numerous benefits for businesses:

Prevents fraud: Verifying a supplier’s GSTIN safeguards you from dealing with fake or unregistered businesses. This protects you from potential tax liabilities and financial losses.
Facilitates ITC claim: Verifying a supplier’s GSTIN ensures you only claim ITC on purchases from legitimate GST-registered businesses.
Reduces compliance burden: Verifying GSTINs before transactions streamlines your tax filing process and minimize the risk of discrepancies.

GSTIN Verification APIs: A Streamlined Approach

GSTIN verification APIs offer a more efficient way to automate the process, especially for businesses that need to verify a large number of GSTINs. These APIs integrate seamlessly with your business applications, allowing you to:

Automate verification: Easily checks the validity of GSTINs without manual intervention.
Real-time verification: Obtain instant verification results, improving decision-making processes.
Bulk verification: Verify multiple GSTINs simultaneously, saving time and effort.
Enhanced onboarding: Seamlessly integrate GST number verification into your existing ERP or accounting software to ease the vendor/customer onboarding process.

Several API providers, such as Zwitch, offer GSTIN verification services. GSTIN verification is crucial in ensuring compliance with GST regulations and safeguarding your business interests. By following the steps outlined in this guide and leveraging the power of GST number verification APIs, you can streamline your verification process and make informed decisions.