Goods and Services Tax Identification Number (GSTIN) is a unique 15-digit number that is assigned to every business that gets itself registered in the official GST portal. With the help of the Goods and Services Tax Identification Number, people can check important details of a GST-registered business entity, such as the name of the business, check GST registration status, the type of taxpayer, the registered business address, etc., and get answers to questions like ‘Is this GST number valid?’. When a person carries out the verify GST number process, they are essentially checking the authenticity and validity of a business’s GSTIN number.

GSTIN is a unique 15-digit alphanumeric number wherein each digit represents an important identification mark of a business entity. The GSTIN format is broken down below for one’s understanding:

• State code: The first two digits of a GSTIN represent the state code or the Union Territory code where the business is established. For example, the number 27 is for Maharashtra, the number 07 is to identify the Union Territory of Delhi, etc.

• PAN number: After the first two digits, the next ten digits represent a business’s PAN (Permanent Account Card) number, which is issued by the Income Tax Department of India. This ensures the linking of a business’s GST registration with its PAN card for the smooth working of the taxation system.

• Entity number: The thirteenth number of the Goods and Services Tax Identification Number represents the entity number assigned to a business entity. An entity number is used to identify the total number of GST registrations linked to a PAN.

• Alphabet ‘Z’: The fourteenth digit in the GSTIN is usually the alphabet ‘Z’. Its function is still not clear, but it has been kept for future purposes.

• Checksum digit: The fifteenth digit of the Goods and Services Tax Identification Number is called a checksum digit, primarily used for the detection of errors. It can be a number or an alphabet, decided based on a calculation formula.

The GSTIN verification online process is broken down in steps below for one’s reference and clarity:

Step 1: Please visit the official website of Jaagruk Bharat.

Step 2: Find the ‘services’ option, and navigate to the ‘GSTIN Verification’ option.

Step 3: Fill in the requested information and upload the required documents. Make the payment and complete the verify GSTIN process.

When one engages in the process of GSTIN verification, they get to see various significant details related to a business entity claiming to have GST registration. Details such as:

• The legal name of the business.

• The trade name of the business using which the business operates in the market. This is particularly for those business entities that operate using a different commercialised name.

• The status of a business’s GSTIN, shown as either ‘Active’ or ‘Inactive’.

• The exact category of taxpayer that the business qualifies for.

• Type of business, like a sole proprietorship, partnership, private or public limited company, or others.

• Principal place of the business.

• Nature of the activities carried out by the business entity, and other additional details.

Numerous reasons validate the importance of GSTIN verification for a business entity, some of which are described below in detailed points for one’s reference:

• One of the main reasons why businesses should do GST registration and get their GSTINs is to authenticate their business entity. Other people or businesses can easily verify your business’s GST registration using GSTIN verification, which would not only help in building trust but would also help your business in gaining clients or customers and get into partnerships with reputed business entities.

• Another one of the biggest advantages of doing GST registration and successfully getting through GSTIN verification is the ability to claim Input Tax Credit (ITC). ITC can only be claimed by those entities that have valid GST registrations, but only when their supplier has it too. To check these conditions for eligibility, suppliers or businesses primarily take the help of the GSTIN verification process.

• Along with technological advancements and protective layers, the instances of fraudulent businesses have been increasing too, meaning those businesses that collect GST but do not have a valid GST registration. GSTIN verification is the primary resolution mechanism helping people and other businesses to stay on guard when in contact with such fake entities.

• A business entity gets into contact with multiple suppliers across different states, sectors, or even countries at times. It is crucial to first verify these suppliers and check their authenticity before getting into any deals with them, and one of the ways of doing so is via the GSTIN verification process. It not only tells a business about the authenticity of a supplier but also provides them with an insight into their compliance behavior with related rules and regulations.

One should opt for the services provided by Jaagruk Bharat for several key reasons. Let’s have a look at these benefits one by one.

• Digitised Process: Jaagruk Bharat is an online platform that allows you to apply for GSTIN verification without going anywhere. The process of verification is completely digitised; you do not have to physically visit any government or private office or stand in long queues to file a complaint. Please be assured that the platform utilises extremely secure, verified, and encrypted channels to keep your sensitive personal information protected. This not only reduces hefty paperwork but also saves both people’s time and unnecessary effort.

• Direction: Proper guidance is one of the most commonly faced challenges when it comes to applying for government services or services like check GSTIN validity through methods like GST number search or by verify GSTIN by PAN number. Hence, the platform provides users with clear instructions that would help eliminate doubt and confusion, so that users from all backgrounds can understand it properly without any further confusion. This proper guidance helps people in avoiding commonly made mistakes or delays.

• Enhances ease: A smooth user experience is a core principle of Jaagruk Bharat. In a few steps and with some basic information, Jaagruk Bharat will help you in completing complex tasks like GSTIN verification. All we need from your end is some basic details. Our interface is extremely easy to navigate and figure out.

• Assistance team: Our platform has a dedicated assistance team that is ready to help you with any queries you might have, like ‘How to verify GSTIN of a company?’ or ‘How to check if GSTIN is active or cancelled?’ or information on ITC eligibility verification through chat. The assistance team is trained to handle both technical and process-related doubts so that none of you feels stuck or even more confused. The Jaagruk Bharat assistance team will provide you with the personal touch that makes applying for legal and government-related services a trustworthy and holistic experience.

• Fair charges: Affordability and transparency are seeped into our foundations. Services provided by Jaagruk Bharat, such as GSTIN verification for ITC claim, can be availed at affordable prices so that everyone can avail of our services without worrying about the high costs. There are no hidden or surprise costs added after you select the service; the pricing breakdown is displayed before payment. We carefully do this to build a trusting relationship with all our users so that they can feel taken care of, not exploited.

GSTIN verification is not only crucial but also comes along with several benefits, some of which are as follows:

• The process of GSTIN verification helps a person or a business entity gain insight into the compliance behavior of the business in question, meaning whether the business follows all the rules and regulations imposed by the government for optimal functioning of the business sector.

• Post-verifying GSTIN, the business model automatically appears authentic and safe in the eyes of the public. Successful GSTIN verification helps the clients, customers, or investors in making informed decisions as to whether to get into deals or contracts with the business in question or not. This has a direct positive impact on the business’s revenue and its reputation.

• After GSTIN verification, it becomes easier for businesses to conduct various functions like filing GST returns, claiming input tax credit, collecting GST from people, and issuing GST invoices, etc.

GSTIN verification is one of the most crucial steps. However, businesses that do not comply with it would face several difficulties, such as:

• Businesses that don’t conduct GSTIN verification have a high chance of getting into deals with fake or fraudulent business entities, suppliers, or vendors. This would lead to various punitive actions, like penalties, reversal of ITC if it has already been claimed, all in all leading to immense financial burdens for the business.

• Businesses that get into contracts with invalid GST entities will receive official formal notices from the GST authorities concerning their non-compliance with the rules and regulations. Clearing out these notices is not only hectic but time and resource-consuming.

• Businesses that do not verify Goods and Services Tax Identification Number of other entities may unknowingly become a part of a criminal act, which will not only negatively impact the operations of their business but will also severely damage their reputation.

ITC (Input Tax Credit) is the tax that a business entity pays while purchasing goods and services that can be later used to reduce the tax liability on its sales (also called output tax). The sole purpose of Input Tax Credit is to ensure that tax is charged only on the value a business adds to a product or service. It is a significant mechanism that protects businesses against double taxation.

The ability to claim ITC is one of the biggest advantages of having GST registration for one’s business. However, this benefit can soon turn into an unpleasant consequence if a business gets into deals with suppliers who have fake or invalid GST registrations. In these situations, the authorities begin the ITC reversal process, wherein an already claimed ITC will be paid back, along with necessary penalties and interest, by the business entity in question.

ITC reversal may seem like a financial burden on businesses, and it surely is one; however, it is the business’s responsibility to first verify and cross-check the details of the suppliers before even getting into any kind of deals with them. This punitive measure might seem difficult but it aims to imbibe responsibility in businesses concerning doing a thorough verification check of suppliers or vendors.

The authorities have designed various ways through which businesses or people can do the process of GSTIN verification even without the help of any tool. Some of the ways of doing fake GSTIN check are described below in brief points for one’s reference:

• One of the most important characteristics of a Goods and Services Tax Identification Number is that it follows a standard 15-digit alphanumeric format. The number is usually arranged in state code first, then PAN number, then an entity code, a default letter, and finally a checksum character. Carefully observe the format of the business’s GSTIN and see if you can find any discrepancies or differences with the standard one.

• The first two digits of a GSTIN number always represent the state code assigned to a particular state in India for easy identification and classification. One can check the state code mentioned in a business’s GSTIN and then cross-verify it with the official code. If there are differences, know that the error clearly indicates the fakeness of the business’s GST registration.

• The middle ten digits of a Goods and Services Tax Identification Number comprises the business’s PAN number. PAN number also follows a standard alphanumeric format, which one can check manually. Notice if it is deviant from the usual structure, and if it is, know that the business’s GSTIN is fake.

• One of the ways of doing fake GSTIN check is by observing the invoices issued by GST-registered business entities. Fake businesses usually issue a poorly prepared GST invoice, wherein you will definitely end up finding many inconsistencies and errors. Simple, keen observation would help you in identifying if there are any errors.

• Fake businesses with fake, stolen, or invalid GST registrations often provide vague addresses, unreachable contact numbers, and incomplete business-related information. If you come across a business with such details, trust your instinct, and later confirm things with the help of the GST search portal.