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What is GSTIN and Why Do Businesses Need It?
The Goods and Services Tax Identification Number (GSTIN) is a 15-digit alphanumeric code that is allotted to every taxpayer under the GST system. Having a GST identification number is important as it helps in verifying the authenticity of a taxpayer registered under GST. Businesses also need to quote their GSTIN during the process of issuing invoices, generating e-way bills, filing GST returns, and submitting information to the tax department.
Structure of GSTIN
There is a lot of information we can get from just taking a look at the GST number, such as:
- The state where the business is being operated
- The PAN number of the GST registered entity/individual
- Number of registrations done by an entity in a state with the same PAN (maximum 35 registrations are allowed)
Why is GSTIN Verification Needed?
It is important to verify the GSTIN of an entity to verify the authenticity of the vendor or third party. GSTIN Verification helps maintain transparency in business transactions and allows a business to check the credibility of its customers, vendors, etc. Along with this, businesses/ merchants can verify GSTIN details of their users for quick KYC, Vendor onboarding, financing loans to businesses, and insurance purposes.
There are various industries/businesses which can benefit from this feature of GSTIN Verification. Some of them are:
- Ecommerce marketplaces
- B2B Reseller Companies
- B2B Ecommerce
- Tax processing and return filing platforms
- Lending and micro-financing platforms
- Insurance providers
- Banks
- Identity verification companies
How to verify GSTIN?
You can verify the GSTIN of any entity in 3 simple steps:
- Log in (or create an account) to your Cashfree Payments account and go to GSTIN Verification which is a part of the Verification Suite.
- Click on ‘Verify GSTIN’ and enter the 15-digit GSTIN number of the entity whom you want to validate
- Get the verification status and other details (if GSTIN is valid) in seconds!
If the GST number is valid, you will get the following details:
- GSTIN status
- Registered legal name of the business
- Taxpayer type [Regular, Composite, Exempted]
- Date of registration under GST
- Nature of business activity
- Business principal place address
- Center and State jurisdiction
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