In today’s business world, the term “GST” is everywhere. Whether you’re a business owner, a freelancer, an accountant, or even a customer, you’ve likely come across a 15-digit number on an invoice called a GSTIN. But what is this number, and how do you know if it’s real?
What if you’re about to pay a supplier a large sum, but you have a nagging feeling something isn’t right? Or what if you need to claim tax credits and must ensure the vendor’s details are 100% correct?
This is where a GST Number Search Tool becomes your best friend. In this guide, we’ll break down everything you need to know about verifying a GST number, why it’s crucial for your business, and how you can do it effortlessly.
What is a GST Number (GSTIN)?
A GSTIN, or Goods and Services Tax Identification Number, is a unique 15-digit code assigned to every business registered under the GST law in India. Think of it as a business’s tax identity card.
This number isn’t random; it has a specific structure:
- First 2 digits: State Code (e.g., 27 for Maharashtra, 07 for Delhi).
- Next 10 digits: The business’s PAN (Permanent Account Number).
- 13th digit: The entity number for the same PAN holder in a state.
- 14th digit: A default ‘Z’.
- 15th digit: A final check-sum digit for validation.
Understanding this structure helps you spot an obviously fake GSTIN right away. But for proper verification, you need a reliable tool.
GST Identification Number Format
Before you proceed to undertake a GST number check, check out if the GSTIN is in the format below. If a GSTIN is not in this format, then it is not a valid GST number.
GSTIN structure comprises
- First 2 numbers → State code of the registered person
- Next 10 characters → PAN of the registered person
- Next number→ Entity number of the same PAN
- Next character → Alphabet Z by default
- Last number → Check code which may be alpha or digit, used for detection of errors
Why Verifying a GST Number is Non-Negotiable
You might be thinking, “Is it really that important to check a number?” The answer is a resounding YES. Here’s why verifying a GSTIN is critical:
1. To Claim Input Tax Credit (ITC):
This is the big one. To claim ITC on your purchases, the GSTIN of your supplier must be valid and active. If you file with an incorrect or inactive GSTIN, your claim will be rejected, leading to a direct financial loss.
2. To Avoid Fraud and Fake Invoices:
Scammers often create fake invoices with invalid GST numbers to cheat businesses. By using a GST verification tool, you can instantly confirm if the company on the invoice is legitimate, protecting yourself from financial fraud.
3. To Ensure Compliance:
Dealing with non-compliant or unregistered businesses can put you in a tough spot with the tax authorities. Verifying a GSTIN ensures you are working with legitimate, registered entities, keeping your own business compliant.
4. To Maintain Accurate Records:
Clean and accurate data is the backbone of any successful business. Verifying GST details at the source ensures your accounting records are correct, which saves you from major headaches during audits and tax filing.
How to Use a GST Number Search Tool: A Simple Step-by-Step Guide
Gone are the days of complex procedures. Verifying a GSTIN is now as easy as a few clicks.
Step 1: Find the GSTIN
Locate the 15-digit GST number on the invoice, bill, or document provided by the supplier or vendor.
Step 2: Enter the Number
Navigate to a reliable GST Number Search Tool (like the one on the official GST portal or a trusted third-party website). You’ll see a simple search box. Carefully type or paste the GSTIN into this box.
Step 3: Click ‘Search’
Hit the search or verify button. The tool will instantly connect with the official GST network database to fetch the information.
Step 4: Review the Results
Within seconds, the tool will display all the public information associated with that GSTIN.
What Information Will You Get from a GST Search?
A successful search will provide a wealth of information that helps you confirm the legitimacy of a business. You can expect to see:
- Legal Name of Business: The official name registered with the government.
- Trade Name: The name the business operates under (if different).
- GSTIN Status: This is crucial. It will show if the GSTIN is “Active” or “Inactive/Cancelled”.
- Date of Registration: When the business was registered for GST.
- Constitution of Business: Whether it’s a proprietorship, partnership, private limited company, etc.
- Principal Place of Business: The registered address of the business.
- Types of Taxes Covered: Details on whether the business is registered for CGST, SGST, IGST, etc.
If the details match the invoice and the status is “Active,” you can proceed with confidence!
Searching by PAN: Another Handy Feature
Some advanced GST search tools also allow you to search for a GST number by PAN. If you have a business’s PAN but not their GSTIN, you can enter the PAN to see all the GSTINs registered under that PAN across different states. This is incredibly useful for verifying larger businesses with multiple branches.
Frequently Asked Questions (FAQs)
Q1: Is a GST verification tool free to use?
Yes, the official GST portal provides a free search tool, and most third-party websites also offer this service for free.
Q2: What should I do if a GSTIN shows as “Inactive” or “Cancelled”?
Do not make any payments or business deals based on that GSTIN. An inactive or cancelled status means the business is no longer a registered taxpayer. You cannot claim ITC on invoices from such entities. Contact the supplier immediately to resolve the issue.
Q3: Can I find a GST number by using the business name?
The official government portal does not currently support searching by name. However, some third-party services claim to offer this feature, but its reliability may vary. The most accurate way to verify is by using the GSTIN or PAN.
Q4: What if the tool says “Invalid GSTIN”?
This means the number you entered does not match the standard 15-digit format or fails the checksum validation. Double-check the number for any typos. If it’s still invalid, the number is likely fake.
Conclusion:
A GST Number Search Tool is more than just a utility; it’s a shield that protects your business from fraud, ensures tax compliance, and secures your hard-earned money. By making a quick GSTIN check a standard part of your process, you can build stronger relationships with genuine suppliers and maintain flawless financial records.