In a historic move, the GST was launched in India quite recently. Intending to simplify the taxation regime, the main target behind the introduction of GST is to make one tax applicable for the whole nation. As a consequence, GST has replaced most of the indirect taxes which were applicable before now.
Under GST, every applicable business shall require a registration number, which will replace the Tax Identification Number, which was allotted to them under the system of VAT. A single platform shall be administered for each such taxpayer, which shall remain under a sole authority.
Each business which is registered under GST has to obtain a GST number which makes them eligible to receive the benefits available under the taxation system. This GST number can be verified by another person using simple tools.
What Is The Process of GST Verification?
Many websites provide a simple tool using which users can enter a valid GST number in a search bar. After clicking the search button, you can verify the number for various details.
Some of the items which can be verified with this process are the legal name of the business, the date on which they were registered, the state in which they are located, the status of the business constitution and the type of taxpaying entity that they are.
The gst verification can help businesses in many ways, such as keeping them safe when conducting their business transactions. Explained below are some of the benefits of GST verification, which can help you steer clear of scammers.
Top 5 Benefits of GST Verification
Using an online tool to verify the GST of number of business has quite some benefits. Satisfactorily, these benefits can ensure that a company may not have to fall for a scam laid out by cheaters, in a bid to dupe businesses of their money and products.
Using GST verification, a business can check for the authenticity of another company with which they may be willing to enter in a transaction. In many instances, fraudulent companies use a specific name to enter into a business transaction, when, in fact, the name does not belong to them.
A quick GST verification using the registered number of the entity will reveal the legal name of the business, removing any such instance of fraud. This will help avoid a scam where you may enter into a transaction with a company with a malefic intention to defraud you.
A GST verification can be done quickly and efficiently to identify the date on which business was registered. This date is a clear indication of the period for which a particular company has been operating.
This can be useful in cases where other businesses find themselves intent on dealing with long-standing entities alone, information about which can be clouded by verbal communication. Verification will help a business remain away from scammers who might be making up their operational period.
No business wishes to associate with a fraudulent entity who claims to be from one state, while they are located elsewhere. Using GST verification, this fact can be verified in an instant to determine the place of business.
Place of business is highly relevant in determining the applicability of SGST or CGST. The cgst full form is Central Goods and Services Tax while it is State Goods and Services Tax for SGST.
Business owners can avoid a potential scam involving issues with the place of business. Thus, GST verification can unveil the faces of scammers who tend to defraud people by using a forged site of the company.
Composition and Registration
Another feature which can be verified using a GST registration number is the composition of a business. Scammers can engage an entity, posing as a company or a partnership, while in fact, they may be just a group of unregistered individuals.
It is not a good idea to enter into business with such people. Many scammers intentionally intend to defraud people by mixing terms of trade by claiming to be in a line of business, while in reality, they are not. GST verification can help avoid such incidents.
Turnover and Tax Payment Check
Verification of GST registration can inform a business if the other party is a regular taxpayer or a composition dealer. It deems to tell the concerned company about the turnover of the party with whom they may be dealing.
This is another checkpoint for you to find out if the other party is trying to defraud you and take advantage of your business relations.
Scammers can take advantage of you by lying about numerous things, and GST verification is one step to avoid this from happening. Do proper background check and research before doing business with anyone. This habit will help you get trustworthy long-term business partners and also safeguard the interests of your business.