GSTIN, or Goods and Services Tax Identification Number, is a unique 15-digit number assigned to every registered taxpayer under the GST system in India. The government releases this number after the GST registration process is completed. GSTIN is important for tracking tax payments, filing GST returns, and enabling legitimate business operations in various states. The structure of GSTIN includes the state code, PAN number, entity code, a check digit, and so on.
It plays a pivotal role in increasing transparency, deterring tax evasion, and helping in compliance with the GST regulations. It is required that all invoices and documents related to GST must clearly exhibit the respective GSTIN.
Authentication of a GST number (GSTIN) is essential for verifying the authenticity of a business and avoiding fraudulent transactions. It checks if a supplier is duly registered under GST and eligible to collect tax. This check allows buyers to claim Input Tax Credit (ITC) accurately, as only transactions with authentic GST-registered parties are valid. Besides, it also protects against dealing with fake or blacklisted suppliers. Validating the GSTIN ensures that the collected tax is correctly remitted to the government. The process of verification is quick and can be done online through the official GST portal, utilizing the 15-digit GST number.
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