What is GSTIN?
GSTIN is also known as GST Number or GST Registration Number. GSTIN (Goods and Services Tax Identification Number) is 15 digits alpha-numeric number (PAN based registration number) which is allotted at the time of issuing registration certification. There can be multiple GSTIN for a single person, for every State or Union Territory in which such person operates from.
GSTIN structure consist of:
First 2 numbers- State code of the registered person
Next 10 characters -PAN of the registered person
Next 13th number-Entity number of the same PAN
Next 14th character - Alphabet Z by default
Last 15th number - Check code which may be alpha or digit, used for detection of errors
Why GSTIN is Important?
GSTIN is extremely important as the suppliers of the business need to mention the GSTIN correctly in all the invoices which are supplied, which will lead to the right allocation of input tax credit. Similarly, businesses should also get GSTIN from their customers, and include that in invoices issues to them, as the customers’ input tax credit will be dependent on this.
GSTIN is public information. It helps to ensure the authenticity of the vendor. We should search GST number before preceeding with a deal. We can also verify GSTIN or GST number on the first look of it by checking if the vendor’s PAN number matches with the characters between 3 and 10 in the GSTIN. It also has to be quoted, while generating e-way bills, during GST return filing, and during the submission of information to the tax department.
What Is GST Number Search Tool?
The GST Number Search Tool and GSTIN Validator enables businesses to verify any GSTIN with a single-click GSTIN search. This feature can be used by anyone free of cost, provided they have the required GSTIN on hand.
How to use the GST Number Search Tool and GSTIN Validator?
Complete process is as follows:
Go to https://services.gst.gov.in/services/searchtp
Enter a valid GST number in the search box and captcha code
Click on “Search” button
If the GST number is correct, the details that can be verified are-
The legal name of the business
State
Date of registration
Constitution of business – whether company, sole-proprietor or partnership
Type of taxpayer – regular taxpayer or composition dealer
GSTIN status / UIN status
Advantages of online GSTIN search tool or GSTIN Validator:
The benefits of verification of a GST number using GSTIN Validator are:
To check the authenticity of any GSTIN
A GST number on a hand-written invoice can be verified easily, if unclear
You can prevent yourself from associating with vendors who is using fake GSTINs
Can avoid a GSTIN fraud
Help vendors to correct any potential error in reporting GSTIN
Conclusion
Whenever we make any invoice or Bill, utmost care should be taken that right GST no. is mentioned so that both the parties do not have issues while filing their returns on portal. So, it is required to check and validate the GSTN of the customer before preparing the invoices. For more information you can consult our tax experts with CA Pulkit Goyal and drop a mail on [email protected].