GST Registration Check - How to check GSTIN Validity?

GSTINs (Goods and Services Tax Identification Numbers) are vital to avoiding frauds and ensuring compliance with GST regulations. GSTINs confirm that businesses are registered under the GST system, which allows them to claim tax benefits and input tax credits. Verifying GSTINs before transactions is essential for suppliers, buyers, and tax professionals. This blog will explain how to check GSTIN validity and the key details you can retrieve through GST verification.

What is GSTIN? 

GSTIN stands for Goods and Services Tax Identification Number which is a unique 15 digit identification number. This number is assigned to the registered businesses under the GST law in India. GSTIN is an essential compliance and helps to claim input tax credit. The GSTIN number consists of: 

• First 2 digits: State code
• Next 10 digits: PAN of the business entity
• 13th digit: Entity code within the same PAN
• 14th digit: Default ‘Z’
• 15th digit: Checksum digit for validation 

Why Should You Verify GSTIN? 

Verifying GSTIN assures the authenticity of a business and aids to prevent fraudulent transactions. There are several reasons to check GSTIN validity include: 

1. Avoiding Fraud - Checking validity assure that whether the GSTIN is registered and valid.
   
   
2. Claiming Input Tax Credit (ITC) - ITC claims only valid if suppliers GSTIN is active.
   
   
3. Ensuring Tax Compliance - Verifying GSTIN assure that transactions comply under the GST Regulations.
   
   
4. Confirming Business Legitimacy - GSTIN verification helps to check if a business is genuine and registered under the GST or not. 

Stepwise Process to Check GSTIN Validity 

Step 1: To check the GSTIN validity, the first step is to visit the GST official portal - https://www.gst.gov.in.

Step 2: Once you come to the portal, click on the “Search Taxpayer” option which you will get in the top menu bar. Click on it and open the dropdown menu with different search options. 

Step 3: Select “Search by GSTIN/UIN from the dropdown menu. This option mainly allows one to enter the UIN of GST to verify its validity.

Step 4: Carefully enter your 15 digit GSTIN which you want to verify. Then you will see a CAPTCHA code enter that appropriately.

Step 5: Once each details entered click on the “Search” button.

Step 6: At the end, the information associated with the GSTIN will be shown accordingly. 

What Information can You find through GSTIN Verifications 

When you are going to verify GSTIN, you may retrieve these below mentioned details - 

1. Legal business Name
2. Status of GST Registration whether it is Active, Cancelled or Suspended. 
3. Types of GST Registration such as Regular, Composition and many more. 
4. State of Registration 
5. GST Registration Date
6. GST returns filing status

Conclusion 

The GSTIN verification process is crucial to ensuring tax compliance and preventing fraudulent transactions. Businesses can safeguard themselves from potential tax-related issues and maintain transparency in their transactions by regularly verifying GSTINs. As well as ensuring that ITC claims are valid and accurate, it also helps with the validation process.

Frequently Asked Questions 

• Is GST registration mandatory?

Yes, once your turnover exceeds the specified threshold limits, you need to apply for GST registration.

• Who is not eligible for GST registration?

The following are not eligible for GST registration: Casual Taxpayers, Non-resident Foreign Taxpayers, Entities registered as Tax Collectors.

• What is a TRN?

TRN stands for Temporary Reference Number, it is a 15-digit reference number that is generated by completing Part A of the new registration. You will receive the TRN via SMS and Email.

• How long will the GST credentials be valid?

The GST credentials will be valid for 120 days.

• Is it compulsory to add a bank account? 

No, it is not compulsory to add a bank account as it is optional and non-mandatory.

• What is a TRN? 

TRN stands for Temporary Reference Number; it is a 15-digit reference number that is generated by completing Part A of the new registration. you will get TRN via SMS and Email.