GST: Importance and Verification

The GST number, also known as the GSTIN (Goods and Services Tax Identification Number), is like a special code given by the Indian government to businesses so that they can pay their taxes correctly. To check if a business has a valid GST number, you can use the GST portal. This portal has a search tool where you can enter either the GSTIN or the PAN number of the business.

Structure of a GST Number

A GSTIN is a 15-digit code. It is made up of three parts:

1. The first two digits show the state where the business is registered.
2. The next ten digits are the PAN number of the business.
3. The last three digits show how many businesses are registered under the same PAN. One of these three digits is an alphabet, and the last one is a special code used to check for mistakes.

For example, a GSTIN could look like this: “22AAAAA0000A1Z5.” In this example, “22” is the state code, “AAAAA0000A” is the PAN number, “1” shows how many businesses are registered, “Z” is an alphabet, and “5” is the special code.

Why the GST Number Matters

Having a GSTIN is important for several reasons:

1. Legal Recognition: It shows that your business is recognized by the government, which can make customers trust you more and attract more buyers.

2. Input Credit: If you have a GSTIN, you can reduce the amount of tax you pay when you buy things for your business.

3. Interstate Sales: A GSTIN allows small businesses to sell their products or services in different states, reaching more customers.

4. Online Business: If you have a GSTIN, you can sell your products online, either on big e-commerce websites or by creating your own online store.

5. Easy Tax Filing: With a GSTIN, filing your tax returns becomes easier because it’s done automatically. This can make your business look good and might lead to more sales.

How to Get a GST Number

To get a GSTIN, follow these steps:

1. Go to the official GST Portal at https://www.gst.gov.in/.
2. Click on “New Registration” under the ‘Services’ menu and fill in the required information.
3. Verify your identity by entering codes sent to your email and phone.
4. Note down the Temporary Reference Number (TRN) that appears on your screen.
5. Go back to the GST portal, select “New Registration” again, choose “Temporary Reference Number (TRN),” and enter your TRN and captcha.
6. Verify your identity again.
7. Check the status of your application and start the registration process.
8. Submit the necessary documents and details about your business.
9. Review and submit a declaration.
10. Apply for a Digital Signature Certificate (DSC) or use the Electronic Verification Code (EVC) or e-sign method.
11. After successful completion, you’ll get an Application Reference Number (ARN) and a confirmation via email and SMS.
12. Keep an eye on the ARN status using the GST Portal.

Checking a GST Number

Checking a GST number is important for various reasons:

1. Following the Rules: It helps make sure that the business you are dealing with follows the tax rules set by the government.

2. Invoices: When you buy things from a registered business, their invoice should have the right GST number. Checking it ensures that the invoice is real, and the taxes are recorded correctly.

3. Tax Benefits: In the GST system, businesses can get benefits for the taxes they paid on things they used for their business. Checking the supplier’s GST number helps ensure you get the right benefits.

4. Record Keeping: Checking GST numbers helps keep accurate records of transactions for tax reasons.

To check if a GST Number (GSTIN) is valid:

1. Visit the official GST portal at https://www.gst.gov.in/.
2. Click on “Search Taxpayer” and choose “Search by GSTIN/UIN.”
3. Enter the GSTIN you want to verify.
4. After verifying, you will get information like the company’s name, state, and other details. This process makes sure the GSTIN is real and helps everyone follow the tax rules better.