{"id":11079,"date":"2024-02-09T16:08:40","date_gmt":"2024-02-09T10:38:40","guid":{"rendered":"https:\/\/www.startupfino.com\/blogs\/?p=11079"},"modified":"2024-02-09T16:10:25","modified_gmt":"2024-02-09T10:40:25","slug":"why-is-it-necessary-to-verify-gstin-or-gst-number","status":"publish","type":"post","link":"https:\/\/www.startupfino.com\/blogs\/why-is-it-necessary-to-verify-gstin-or-gst-number\/","title":{"rendered":"Why is it Necessary to Verify GSTIN or GST Number?"},"content":{"rendered":"\n

Goods and services tax or GST, is a kind of indirect tax. It is imposed on every goods or services we buy. The sellers collect this tax from consumers and pay it to the government. Hence, the consumers indirectly pay this tax to the government, through sellers. GST was introduced on 1st July 2017,<\/strong> after facing a lot of opposition. Prior to its introduction there were several taxes which were burdened on all stages of supply of goods and due which at the end the consumers were required to pay a high amount of tax. Hence, in order to curb this burden and multiple staged tax imposition, the government took a bold step by implementing GST, as ONE NATION, ONE TAX.<\/strong> Now GSTIN or GST Number is mandatory for all those who cross the GST limit. Now GST Registration<\/strong> becomes compulsory for all those who come under its threshold limit. <\/p>\n\n\n\n

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What do you mean by GSTIN?<\/h2>\n\n\n\n

Before understanding what is GSTIN, let us understand GST Registration. GST Registration is filling an online application form (GST-Reg-01)<\/a><\/strong> by taxpayers to GST authorities, through the GST portal with an aim to receive an unique GST No. or GST Identification Number (GSTIN). GSTIN is made of 15 digits.<\/strong>  The GST Portal (https:\/\/www.gst.gov.in\/<\/a>)is an online GST Network made to ease the communication between Government and Consumers. The one who is successful in obtaining the GSTIN becomes a recognized supplier of goods and is permitted to collect tax on behalf of the government. It must also be kept in mind that, until and unless GSTIN is obtained, Suppliers have no right to collect tax from the customers. Every supplier has a different GSTIN. <\/p>\n\n\n\n

Why do you Require GSTIN or GST Number?<\/h2>\n\n\n\n

Due to the following reasons one needs to obtain GSTIN or GST Number in India: <\/p>\n\n\n\n

Avoid Penalty<\/h3>\n\n\n\n

Under the GST laws various types of penalties have been prescribed out of which one is regarding those who did not have GSTIN or GST Number even though they fall under the GST threshold limit. Businesses who have turnover of more than 40 lakh<\/strong> have to register for GST. They also have to get a GSTIN. In case they run their business without GSTIN, they can be punished. <\/p>\n\n\n\n

Claim Input Tax Credit (ITC) <\/h3>\n\n\n\n

Let us understand ITC with an example. If you buy or purchase something for one lakh rupees <\/strong>and pay Rs 1,800 as GST.<\/strong> Then if you sell it for Rs 2 lakh<\/strong>, you obviously receive Rs 36,000 <\/strong>as GST from buyers. Now it is your duty to pay the GST to the government. However, if you claim ITC, then you have to forward only Rs 1,800 to the Government<\/strong>. ITC benefits can only be received if you have the GSTIN.<\/p>\n\n\n\n

Helpful for customers <\/h3>\n\n\n\n

The GSTIN should be mentioned on every bill of goods and services sold. This number can be traced by the customers. It helps customers to know whether the money they are paying as GST are actually forwarded to the Government or not. As customers are also aware these days it is becoming mandatory to take this number for the businesses. <\/p>\n\n\n\n

Why is it important to Verify GSTIN or GST Number?<\/h2>\n\n\n\n

Many sellers or suppliers do not prefer to pay taxes to the Government. Therefore, they do not register GST and hence do not receive GSTIN. However, they cheat others by making and using a false GSTIN. They collect taxes from the customers but do not pay it to the government. Customers too, mostly do not track if the GSTIN is genuine or not. Hence, it is very essential to verify GSTIN. Verification protects consumers from being cheated by the suppliers.  <\/p>\n\n\n\n

Process of Verifying GSTIN or GST Number<\/h2>\n\n\n\n

If real GSTIN is searched, then it will show all valid details of the supplier or taxpayer. If the GSTIN is fake, then obviously no details will be shown. By this way, you can know if the supplier is a regular taxpayer or not. This is just a 4 step simple process:<\/strong><\/p>\n\n\n\n