A GST number, known as a Goods and Services Tax Identification Number, is a unique identification number assigned to businesses registered under the GST regime. This number is not only an essential requirement for businesses to carry out various GST-related activities, such as collecting and remitting taxes, filing GST returns, and claiming input tax credits but also helps in the identification and tracking of businesses for taxation purposes and ensures compliance with the regulations.
With GST verification (Goods and Services Tax Identification Number verification), businesses can validate the authenticity and accuracy of GST identification numbers provided by businesses and ensure that they are operating legitimately.
Why do businesses need to conduct GST ID verification?
- Prevent tax evasion: GST ID verification helps businesses to ensure that the entities are registered and operating legally to prevent tax evasion. It helps identify cases where entities create bogus invoices, manipulate transaction values, or engage in fraudulent activities to evade taxes. The authenticity of the GST number ensures that it corresponds to the legitimate entity.
- Identity theft and misuse: Verifying GST IDs helps detect cases of identity theft and misuse, where fraudsters use someone else’s GST identification number to carry out illegal transactions. It ensures that the GST ID’s registered owner is involved in the transactions.
- Eliminate fake dealer fraud: With GST ID verification, businesses can filter out ‘phantom dealers’ who do not exist physically but are created to issue counterfeit invoices and claim fraudulent input tax credits. Companies can prevent fictitious transactions and financial loss by validating the GST IDs.
- Ensure reliable and smoother B2B transactions: Verifying GST ID is critical in B2B (business-to-business) transactions. It helps businesses validate the GST registration status of trading entities or other third parties, setting the seal on them being reliable and trustworthy. This helps establish trust and facilitates seamless transactions within the GST framework.
- Stay compliant: GST ID verification is crucial for ensuring compliance with tax laws and regulations. By verifying the GST identification number, businesses can stay assured that the entity is registered under the GST regime and has fulfilled its obligations, such as filing tax returns and paying taxes.
- Filter out non-existent businesses: GST ID verification helps identify businesses that portray themselves as registered entities but, in actual fact, either do not exist or are not registered under GST. It prevents non-existent businesses from participating in the GST system and committing fraud.
Summing up, GST ID verification is essential for maintaining the integrity of the GST system, preventing tax evasion, promoting compliance, and facilitating seamless business transactions within the GST framework.
Using GST Verification API for Fast and Secure Vendor Onboarding
The GST Verification API is useful for businesses and individuals who want to verify the GST registration status of a company before entering into a transaction with them. Businesses can also use it to verify the GST registration status of their suppliers and customers and prevent fraudulent activities like identity theft, tax evasion, fake transactions, phantom dealers, etc. The API typically accepts the GSTIN as the API request and responds with validated data such as the GSTIN, Business Name, Constitution of Business, Address, etc.
Leveraging the GST verification API helps businesses with faster onboarding, scalability, and smooth KYC verification with easy integrations. Businesses can set up automated workflows and perform bulk GSTIN verification in real-time.
With AuthBridge’s GST Verification API, you can validate the authenticity of GST numbers in real-time and onboard genuine and compliant business partners while being assured of the industry’s fastest onboarding turnaround time. The plug-and-play APIs help you digitize and scale your operations with easy-to-activate, simple-to-use data exchange mechanisms.
With our GST Verification APIs, you can get:
- GSTIN Active Status: Enter the provided GSTIN number and verify if the provided account is active and valid.
- GST Filing Details: Verify GST numbers, Status, Taxpayer types, and state bifurcation.
- Credibility Analysis: Dig deeper with details like mode of filing and return type bifurcation for further analysis.
Types of GST Verification APIs and their working:
- Know Your GST: Fetches all the GST numbers registered to a PAN card
- PAN-GST linkage: Fetches all the GST numbers registered on a PAN card
- GSTIN View and Track Return: Fetches GST return of the person/entity in a given financial year
- GSTIN TAXPAYER: Fetches GST return of the entity in a given financial year
You can choose from different types of modes as per your business requirements.
Simplify your compliance journey with our robust GST API, assuring seamless integration with your existing workflows. AuthBridge’s GST Verification API helps you validate GST IN in bulk in real time and assures you of the industry’s fastest onboarding TAT.
Get in touch with our solution expert, or email us at firstname.lastname@example.org to learn more. Book a free consultation today and help us understand your requirements in detail.