The Goods and Services Tax (GST) is an overall, destination-based tax that has replaced several indirect taxes in India. Every GST-registered firm is provided a 15-digit Goods and Services Tax Identification Number (GSTIN), which makes compliance easier. One of the key components of GST compliance is checking a business GSTIN. One can easily verify this with the help of the Permanent Account Number (PAN) of the business. Verifying the GST number by PAN is essential for authenticity and compliance while dealing with sellers and service providers.

The article will explain the detailed process on how to do GST number search by PAN, its advantages and possible challenges. It can help businesses identify and work with compliant partners and ensure a robust tax process.

What is a GSTIN and How Does It Relate to PAN?

A Goods and Services Tax Identification Number (GSTIN) is a 15-digit number that is given to businesses enrolled under GST in India. It unifies multiple indirect tax identification numbers (such as Excise, Service Tax and VAT) into one registration number which now all registered companies must have. Each GSTIN contains specific elements like PAN and state code.

Here is what a typical GSTIN format looks like:

1. Starting two digits: The digits indicate the state code.
2. Following 10 characters: It should match the PAN of the business.
3. Following digit: Entity number, mentioning the number of registrations under the same PAN.
4. Following character: ‘Z,’ the default letter included in GSTIN.
5. Ending digit: Verification code for GSTIN error.

Read more: Types of GST

Advantages of Searching GST Number by PAN

GST search by PAN is a vital requirement for companies and it has many benefits besides purely verification. You can get valuable insights and ensure compliance while establishing reliable alliances and keeping proper records by running a GST check by PAN.  Let’s look at the GST verification by PAN benefits in detail below.

Authenticity Verification

Business authentication is one of the main advantages of PAN-based search of GST number. Businesses and individuals can verify GSTIN by PAN thereby ensuring that the business entity they are transacting with is properly registered under GST. This eliminates the chances of interacting with unreliable or deceptive organizations, as it certifies that the company has met the required tax obligations.

Fraudulent companies sometimes employ fake GST numbers in order to deceive customers or avoid taxes. You can identify these inconsistencies by running a GST search by PAN, and ensure you only deal with authorized, GST-compliant partners. The process promotes confidence in business connections and eliminates the possibility of being deceived or duped by non-compliant organizations.

Error Prevention

During tax filings, a minor error can result in huge problems at the time of filing or audit. Checking the partner’s GST via their PAN can help avoid such mistakes and send out accurate invoices. By having a GST number that is accurate, valid, and registered under GST, you prevent inconsistencies or errors in tax documents, which could otherwise lead to tax credit deductions or penalties.

For example, when a company assigns an incorrect GSTIN on an invoice, this can lead to an issue with input tax credit and its tax liability. A GST search by PAN reduces such mistakes because it is possible to check whether the GSTIN is entered correctly before submission. It also simplifies the billing and filing process, removing any potential problems that would otherwise take time and resources to correct.

Read more: Invoice processing software

Ensuring Tax Compliance

GST compliance is vital to Indian companies. All registered taxpayers need to abide by the GST rules for getting tax credits and preventing penalties. Verifying the GSTIN of a vendor or business associate through PAN ensures that they are a GST-compliant taxpayer.

The check is especially critical when determining input tax credits (ITC). If you work with unregistered or GST-non-compliant business partners, you risk your chance of claiming ITC. For businesses, ITC is one of the major advantages of GST as they reduce the tax burden on the inputs and services the business purchases. Thus, by conducting a GST number search by PAN, companies protect their chance of claiming ITC and maintain compliance.

State and Location Identification

Multi-state businesses are to register themselves in each state separately as GST is a destination based tax. By searching for a GSTIN using PAN, companies can identify the state where the seller/dealer is based. It helps businesses keep their records straight, especially if the seller has multiple state registrations. The information is also useful for complying with state-specific rules around inter-state transactions and state audits. 

Having an idea of where the vendor is helps plan for logistical and financial matters. For instance, if you have identified your supplier is registered in the same state, you can plan for intra-state GST rates as opposed to inter-state GST rates. Knowing these details will help companies avoid miscommunication or unforeseen expenses for tax rate changes, and ultimately will facilitate cost planning and accurate pricing.

Read more: GST state code list

How to Search GST Number by PAN

A GST number search by PAN is a simple process that allows businesses and individuals to verify the credibility of their partners. The search provides information like the partner’s business name, location, and tax status. Here are the steps you can follow to conduct a GST verification by PAN.

Visit the GST Portal

To start the search visit the official GST Portal (www.gst.gov.in). The GST portal is the centralized source of all GST queries, registrations, and compliance activities. The platform provides GST information that is comprehensive and reliable for taxpayers, businesses, and users. 

When you arrive at the GST homepage, make sure you have a good internet connection as the site will fetch data from the GST database.

Go to the ‘Search Taxpayer’ Section

The ‘Search Taxpayer’ tab can be found on the main menu of GST’s homepage. The tab lets users look up tax payers using GSTIN, PAN and other parameters. The feature is open for public usage, anyone who has a PAN number can use it to locate and validate GSTIN.

Click on ‘Search by PAN’ Option

You will be able to choose from search options like GSTIN, or PAN when you enter the ‘Search Taxpayer’ section. Choose the ‘Search by PAN’ button to continue. This will redirect you to a page where you can enter the PAN number of the company or person you want to check. Searching by PAN gives you all GSTINs in that PAN, which is especially useful for multiple-state registration businesses.

Also Read: How to Search GST Number 

Enter PAN and Captcha

On the search page, input the PAN of the organization or person you want to check. You will find a captcha code under the PAN entry box, which is used as a security measure to ensure only real people can use the feature and automated requests by bots can be prevented. To continue, input the captcha code exactly as it appears on the screen.

Check the PAN number twice before proceeding as any mistakes in the PAN will not get you results or provide wrong data.

Click on ‘Search’

Once you have entered the PAN and captcha, click on ‘Search’ to perform a search. The system will need a few seconds to get the data related to that PAN from the GST database. In case the PAN is registered with GST, the system will display the list of all the GSTINs for the PAN. If the PAN is used for entities registered in more than one state, you will have a GSTIN entry per state.

Each entry has a summary, along with simple information that helps identify if the company is registered and GST-compliant.

Access Additional Information on GSTIN

Once the search results show up, click on any of the displayed GSTINs for more information. This will allow you to access certain data, like:

• Legal Business Name: GST registered name of the business.
• Principal and Other Places of Business: The principal and other locations from which the business operates.
• Type of Taxpayer: Shows whether the entity is a regular taxpayer, composition taxpayer, or another GST registered entity.
• Date of Registration: Displays date on which the business was registered under GST so as to check the history and timeline of compliance.
• State of Jurisdiction: State and jurisdiction of the business, for state-level compliance and documentation.

You can verify the legitimacy of the business and whether the business is GST registered by going through the above information. This is a critical component when setting up new vendor relationships or looking to confirm your existing ones as you want to be sure that you’re dealing with a GST-registered partner.

Common Errors in GST Search by PAN and Their Resolutions

Here are a few errors that you may encounter when running a GST check by PAN.

1. Incorrect PAN Details: Always check the PAN entered, as a simple single digit error can result in inaccurate or incorrect searches.
2. No GSTIN Associated with PAN: If the PAN has no GSTIN, it could be that the company is not GST registered. If so, you will need to check with the vendor as dealing with an unregistered company may impact your tax liability or compliance.
3. Network or Technical Errors: The GST portal may be down due to technical issues or maintenance windows. For such cases, be patient and try searching again or use another verification service. 
4. PAN Linked to Multiple Entities: A PAN can be associated with more than one entity if the company is operating in more than one state. If that is the case, make sure to choose the GSTIN for the vendor’s state of operation to avoid confusion.

Read more: Types of GST returns

Tips for Successful GST Verification

Here are some of the best practices to follow for a hassle-free GST verification.

1. Use Reliable Tools: Only use the official GST portal or trustworthy third-party tools for GSTIN validation. Beware of suspicious tools that will yield false GST results.
2. Check the GSTIN Format: A GSTIN must have the correct format – (15 characters beginning with state code followed by PAN, entity number, ‘Z’, and a check digit). If GSTIN isn’t formatted as such, it’s not valid.
3. Regular GST Checks: If your business frequently deals with new vendors, GST verification on a regular basis can save you time and tax in the long run.
4. Keep Records: Ensure you keep proper records of the verification actions and outcomes, particularly if you are onboarding a new partner. The documentation can help during audits or as proof if issues arise in the future.

Read more: GST registration requirements

Conclusion

Under the GST regime, businesses must place priority on compliance to avoid fines and penalties and ensure the smooth functioning of business operations. GST number search by PAN is one of the quickest and easiest ways to check a vendor’s GSTIN. With this verification, you can be sure your vendor is legit and protect your business from fraudsters. By following a regular GST verification process using platforms like the official GST portal, businesses can prevent errors during GST filings and ensure they comply with tax regulations.

Ensure that these best practices are integrated in your business. Make GST search by PAN a regular part of your vendor management activities. GST compliance is easy to navigate and with the right tools and techniques.

FAQs

What does the GSTIN format say about a business?

The typical GSTIN format has a state code, PAN, entity number and check digit. The format also gives information regarding the business’s location, its individual identity in the form of PAN, and if it has a presence in multiple states.

Can the same PAN have multiple GSTINs?

Yes, one PAN can be associated with multiple GSTINs if a company has a branch in more than one state or it has more than one branch under GST. Every state or branch would have a different GSTIN connected to the same PAN.

What should I do if the GSTIN format seems incorrect?

If the GSTIN does not follow the typical 15 characters long specific format, it could be incorrect. In such cases, run a GST check by PAN to make sure it is genuine or verify the number directly with the business partner.

How does GST verification by PAN protect against fraud?

GST check by PAN process confirms whether a seller or client is actually registered with GST. It detects rogue or unregistered parties, eliminating the possibility of invalid trades and preventing deals with non-conforming partners.

Is GST verification by PAN a time-consuming process?

GST verification by PAN is a fast and convenient process. You can utilize the GST portal or other trustworthy third party tools for verification. Entering the PAN, filling the captcha and getting the GSTIN information only takes a few minutes and helps speed up the due diligence process.

What information does a GST search by PAN provide?

A GST search by PAN returns all the GSTINs linked to the PAN number, along with other details like the registered name of the business, location, taxpayer type and its status in all the states the business is registered in.

Can I use third-party tools for GST verification by PAN?

Yes, you can use third-party tools to search GST number by PAN. But ensure you check the reviews for such tools and go through the security measures they employ before using them for GST verification.

What should I do if no GSTIN appears after entering a PAN?

When GSTIN is not visible, this may mean that PAN is not registered under GST. Check PAN entry twice and confirm with the business partner if they state to be GST-registered.

What is the role of GST search by PAN in matters of tax compliance?

With the confirmation of GSTIN via PAN, you are sure that your vendor is a registered taxpayer, which will help you claim input tax credits and avoid fines and penalties due to non-compliance.

Is it mandatory to verify the GSTINs of vendors?

It is not mandatory but you can confirm the GSTIN of a vendor to be assured of their authenticity, avoid tax filing errors, and ensure eligibility for input tax credits. This is a good rule for maintaining compliant trades.