The implementation of GST brought not only a set of confusing financial regulations but a set of activities that leaves the customer in the dark without allowing them the right to information about the implementation of the right category of GST on their purchase of the goods. Yet one of the regulations clearly states the following:
Without booking of an enterprise under GST, it can’t be implemented by it.
This statement implies that the application of GST is only valid for goods verified under the GST Network with a liable GSTIN. Due to lack of this knowledge, places around the country are taking advantage of the obliviousness of the customer. One can see the solidification of such fraudulent act with fact. There has been a report of quite a few cases, where the shops have been charging customers with 10%+ GST charges without having any GST Registration for the same. Thus this has led to quite a few fraudulent acts going around by numerous such enterprises without being caught-upon for a long time. Suffice to say this causes injustice to taxpayers of the country without them, having any inclination of such happenings, in turn twisting a citizen-aiding law into one that’s undoubtedly and unknowingly having the opposite effect. Thus with every new reform comes lies it’s defects in the underlinings, thus making knowledge and information for the same, a commodity. It’s only sensible for one to know how to identify such fraudulent acts and prevent it from happening not only to themselves but to their fellow citizens as well. This identification can be by running a check for GST registration.
Ensuring one’s fundamental rights are not being taken advantage of is perhaps one of the most important responsibilities as a citizen of India. Thus verification of the GST number to ensure prevention from charging for anything extra than they have signed up is one of the utmost essential steps.
Here is the list that is curated to help one carry-out a verification of GST registration:
Step 01: Validation of GSTIN Identification
A GST number isn’t just a compilation of random number but a sequence that is not entirely random in life. At the same time, it’s a sensible code following a specific pattern, with every character in the GST sequence denoting something specific. Thus identifying whether this sequence is indicating something reasonable or gibberish will lead one to understand whether it’s an understandable GSTIN number or just another meaningless code holding no relevance.
Format of GSTIN
It’s a 15 digit code that signifies a meaning for each character in it as follows:
- First two digits: State Code for the registration of the business/entity.
- Next ten digits: The PAN Card number is the following ten numerals of the GSTIN number and thus acts as the legal and tax-paying identity for the entity.
- Thirteenth digit: This signifies the frequency of the registration of that real business within a particular state. Thus, a big franchise might have different GSTIN number varying from state to state.
- The fourteenth digit: It’s always Z by default. This digit thus plays a significant role in authenticating for a real GSTIN or a made-up one.
- Fifteenth digit: It signifies the code used to check and identify any errors.
These steps are the most valid and only applicable format of any GST registration number present by the owner of a legal entity. Owner of this type of GSTIN is only accurate to levy any GSTs at all.
Step 02: Checking the authenticity of the GSTIN
Even getting aid from a GST consultant is perhaps the safest and most logical way to sort out this complex financial law, to not bring any disadvantage to either of the parties, the entity or the customer. Thus to check whether the business rightfully owns the GSTIN in question, one can check it from the government site which provides the information for the same. This way, one can check which GSTIN is allocated to which business and so on.
Step 03: Categorizing the purchased good with a designated percentage of Tax
Since levying is of three types of GSTs on any purchased goods, there are few rules through which one can differentiate what portion of the charge, designated to the respective item.
- 5% Taxation: AC and Non-AC Restaurants
- 18% Taxation: Location of Restaurant in a starred hotel.