Meaning of GSTIN
It is an identification number or you can say GST number. It consists of 15-digit PAN-based unique identification number which would be provided to all persons registered under GST. After registration under GST, when you receive goods or services from another registered supplier and paid GST as mentioned in Invoice, you might want to do the verification of GST Number (GSTIN) of such supplier because you will be able to use the input tax credit from such invoice only when you enter the correct GST number of such supplier in your inward supply returns in GSTR-2 (Currently GSTR-3B).
Multiple or Single GST Registration:-
It is possible to have a multiple GST identification number to a single person. If the person is having a business in different states then he shall be required to get the registration in each state in which he is making a taxable supply of goods or services. Even if the person is having a different place of supply within a state then also, he may opt for separate registration for each place of supply.
Note: It an optional for the person to get separate registration within the state for different place of supply and not compulsory.
Note: Earlier, there was a concept of business vertical i.e. if, within the state, a person is having a different business, in that case, he may get a separate registration but if he is having the same business within the state at different places then he cannot opt for separate registration.
However, the concept of business vertical has been deleted and now within the state even for the same business at different places, a person may go for separate registration.
For Example, Mr. A is having the following business:
|State||Type of Business|
|Delhi (Rajiv Chowk)||Stationary|
|Delhi (Rajouri Garden)||Stationary|
|Delhi (Karol Bagh)||Shoes|
In Delhi, he is having 2 business verticals that mean he may take separate registrations in Delhi and one registration in Mumbai. So,
Minimum Registration: 1 in Delhi and 1 in Mumbai
Maximum Registration: 2 in Delhi and 1 in Mumbai
In Delhi, he is having 2 place of business that means he can take 3 separate registrations in Delhi and one registration in Mumbai. So,
Minimum Registration: 1 in Delhi and 1 in Mumbai
Maximum Registration: 3 in Delhi and 1 in Mumbai
Compulsory Registration(Sec 24):-
As and when the person exceeds its threshold limit of turnover as defined under section 22 and 24 of CGST Act, It becomes compulsory to obtain GST number for him.
In the earlier laws, there were the different limit for registration in each indirect tax act due to which the person had required to take multiple registration numbers for different laws like Excise, Service Tax, and VAT, and now after GST, it is a single registration number under GST- GSTIN.
Verification of the GST number/GSTIN
By verifying the GST number, the registered person can ensure the authenticity of the vendor and the nature of the transaction. It can be searched by name or number. It can be checked by any person i.e. GSTIN or GST number is public information. It is also important that if the person enters a wrong GST number for claiming the input tax credit, then such ITC shall be disallowed to him and it will be automatically added in the output liability and interest also charged on such transactions.
Now, with the help of Technology, we can verify GSTIN by just clicking a button from anywhere and anytime. It is always advisable to the registered person to Search GST number before he proceeds for any transaction with the registered supplier.
GST number/GSTIN Structure:-
As we already discussed above that GST is a PAN-based number in which first 2 codes are state code, next 10 digits are PAN number, Next digit is entity code, next digit is default number and a last digit is a number of place of business. For example, if the person GST number is 11BHCOH7488D5X1. In this case,
1st 2 digits: 11 is the state code
Next 10 digits: BHCOH7488D is the PAN number of the registered person
Next digit: 5 is the entity code
Next digit: X is a default number
Last digit: 1 is the sum total of registrations
Hence, by looking at the GST number, You can partly verify GSTIN or GST number, by cross verifying the PAN number of such registered person.
Advantages of online GSTIN search & verification tool
The verification of GST number can helpful for n number of reasons for the registered person. Some of the advantage of such verification is as follows:
- To check the authenticity of any registered person
- If on Invoice, GST number is written manually, then it would be very important to verify which is very easy by clicking on one button.
- The person may prevent himself from associating with vendors having fake GSTINs
- GSTIN fraud can be avoided
- If the GST number was wrongly mentioned in the invoice then after verification, it would be helpful for the supplier also to correct the GST number in his invoices in further supply.
By entering the details at GST portal, you can not only verify the GST number but you may also check the following details,
- The name of the business as specified at GST Portal
- State i.e. place of supply
- Registration date
- Type of business – company, sole-proprietor or partnership
- Taxpayer type – regular taxpayer or composition dealer
In the above para, we have discussed the meaning and advantages of verification of GST number. Now we will discuss the process for verification of GST number.
Procedure to verify the GST Identification number:
- Go to the GST portal and log in to the account
- On the Dashboard, click on the “Search Taxpayer”
- Enter the GST number which you want to verify
- If the number was correct, then you will be able to see the above-specified details
- If the number was incorrect, then an error message will appear. In such a situation you should contact such person and ask for the correct GST identification number.