Why do GST Verification?
Along with an individual’s identity, it is extremely important for businesses to ensure the credibility of the identity of businesses that they’re planning to partner with. After all, you don’t want to share your company’s data with an organisation having a precarious identity. Moreover, increased government and industry regulations (such as AML, KYC, and SOX) seek to place the responsibility on businesses to carry out identity authentication with all organisations that they partner with to ensure that their data remains safe.
GST identification number verification can help authenticate identity of an individual/business to prevent identity frauds and to ensure basic compliance with the GST system in India.
GSTIN verification from AuthBridge is a reliable proof of business identity. Using the PAN of the entity, we can pull out the GST registration details of the particular business and verify information for its authenticity.
GST Verification- More Information
GSTIN is a 15-digit number that is allotted to businesses which are registered under state’s VAT law. Prior to GST implementation, all business entities must register themselves under value added tax(VAT) law which is imposed by state Government. Under this law, businesses were assigned with a unique TIN number by tax authorities and service providers were assigned with service tax registration number by Central Board of Excise & Custom.
After GST law implementation, all registered taxpayers get combined into one single platform for compliance and administration purposes and will be assigned a unique registration number i.e. unique Goods and Services Tax Identification Number (GSTIN) controlled and managed by single authority.
The purpose of GST reform India’s indirect tax structure and to introduce single tax instead of paying multiple taxes. After GST, now there will be single tax from manufacturer to consumer. This means interim tax stages such as service tax, excise duties and VAT will fall under GST. So, Consumer will have to bear single tax charged by final supplier in supply chain management.
GST verification as a company perspective is very helpful to identify business alliances, joint ventures and mutual partnerships between the vendors trust and reliability which can only be ensured by his financial transition and cash flow. GST verification is also part of the comprehensive background checks to make sure your business entity in the safe hand.
The GSTIN allotted to each business entity, service provider & taxpayer is a state-wise, PAN-based, 15-digit identification number which is combination of alphabets & digits. GST number obtained the full information of that particular business entity. You can check the name and address of the GSTIN/UIN holder and you can make sure that your business is prevented with such fraud.
GSTIN basically can be broken into 5 segments for better understanding as verification perspective:
- The first two digits refer to the state code. Each state has its own unique code to make identification easier.
- The next ten digits represent the PAN number of the taxpayer.
- The thirteenth digit is allotted based on the number of registration within a state.
- The fourteenth digit is a Z by default.
- And the last and the fifteenth digit can either be a number or an alphabet, used as a check code.
GST Verification- Process & Reports
This important step could save you from sharing important data or extending business with a company with a precarious identity.
The improved government and industry regulations further seek to commission the task of identity authentication on businesses before they partner with new organizations.
Signing up with verification and screening service providers is also another safe and effective way for business identity authentication. Such service providers bring into use, their knowledge of certifications and couple it with latest technological solutions to help people and organizations.
When you head off to deal with a new business entity, you risk capital, vital data, and business ideas; in short, your entire business is at risk. Hence, to not get conned or face any legal hassles later on due to the involvement of an untrustworthy partner, proper authentication of the second party is extremely important for you.
GST Verification – FAQs
GST is goods & services tax implemented by Government of India to reform the India’s traditional indirect tax structure. Identification of businesses either for alliance purpose or starting partnership with them by their registration number (GSTIN)is known as GST verification.
GSTIN is a 15-digit number which is combination of alphanumeric digits. It is pan based number. GSTIN is used for verification of the registration & genuineness of the businesses. Every taxpayer, business entity & service provider should have GSTIN.
Before getting into any partnership or alliance with any business, it is necessary to check the genuineness of the business entity to avoid any business-related fraud. GST verification helps to identify the risk associated with the business whom you are partnering with.
Sign up with screening service provider is safe idea. Because when you are going to partner with a new business, it is important to verify it thoroughly to avoid any misuse or else one can refer to GST portal for verification of third party GST identification number.
Yes, before getting into any type of contract, one can ask for GSTIN number of the business and authenticate the business registration.