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Hack of the day: Verify if a GST number is valid before making payment - Times of India

Times of India

'The Times of India' brings you 'Hack of the Day' — a new weekday-series of quick, practical solutions to everyday hassles. Each hack is designed to save you time, money or stress, using tools and features within your reach — from government websites to everyday apps. In simple words it is: Simple fixes for smarter living.In India, every business registered under GST is allotted a 15-digit GSTIN (Goods and Services Tax Identification Number). This number is mandatory on invoices, bills, and receipts.

However, with rising cases of fake GST numbers being used to dupe customers, it’s crucial to verify the authenticity of a GSTIN before transferring money or claiming input tax credit.

Risks of not verifying GSTIN

  • Fraudulent payments: Paying to unregistered entities posing as GST-compliant businesses.
  • Loss of Input Tax Credit (ITC): You cannot claim ITC on fake GST numbers.
  • Legal complications: Dealing with non-compliant businesses can attract penalties.

Quick checklist to follow before making payment

  • Confirm GSTIN format (15 digits, PAN embedded).
  • Verify GSTIN on official portals.
  • Match business name and address with invoice.
  • Check registration status (active/inactive).

Step-by-step guide to verify GST number

1. Understand the GSTIN format

  • A GSTIN is 15 characters long.
  • The first two digits represent the state code.
  • The next ten digits are the PAN number of the business.
  • The 13th digit indicates the registration number within the state.
  • The 14th digit is by default Z.
  • The 15th digit is a check code (alphanumeric).

If the GSTIN doesn’t follow this format, it’s likely invalid.2. Use Official GST verification toolsYou can verify a GST number instantly using trusted platforms:

  • GST Portal (Government of India): Enter the GSTIN on the official GST website to check registration details.
  • ClearTax GST Search Tool: Free online tool to verify GSTIN authenticity with one click.
  • GSTSearch.in: Provides name and address of the GSTIN holder.
  • BUSY GSTIN Validator: Quick verification tool for businesses.

3. Check business detailsOnce you enter the GSTIN, the portal will display:

  • Legal name of the business
  • Registration status (active/inactive)
  • Type of taxpayer (regular, composition, etc.)
  • State jurisdiction

If the details don’t match the invoice or business you’re dealing with, do not proceed with payment.

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