There have been reports of fake GST number registrations in recent months. This is found to be performed by obtaining a GST registration using another person’s identification. Through such a GST Registration, the impostor conducts illegal business and acquires GST through made-up transactions.
Authorities frequently pursue the person whose documents were used to obtain GST Registration when they take action against such schemes, allowing the primary offender to escape. To solve this ongoing problem, the Goods and Services Network has added functionality to check PAN usage. The new technology supports officials in investigating and cancelling such GST registrations and detecting and preventing fraud.
The GSTIN (Goods and Services Tax Identification Number) is a unique 15-digit identification number assigned to businesses registered under GST in India. It allows businesses to collect GST from customers and claim tax credits on their purchases. The GSTIN is essential for legal compliance and simplifies tax administration, making it easier for the government to track and regulate business activities. This number is linked to each business’s PAN (Permanent Account Number) and includes state-specific codes, ensuring that tax details are tracked accurately across different regions.
Verifying a GST Number ensures that a business is registered under GST and compliant with tax regulations. It helps avoid fraudulent transactions, as it confirms the legitimacy of a business. Unverified GSTINs may lead to risks like dealing with fake invoices, losing input tax credits, and facing legal penalties. By verifying GST numbers, businesses safeguard themselves against financial losses, improve trust with customers, and maintain transparency in their tax practices. Many online tools and government portals make it simple to check and confirm a GSTIN’s authenticity.
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The GSTIN follows a structured 15-digit format. The first two digits represent the state code, indicating the state where the business is registered. The next ten digits are the business’s PAN number, linking the GSTIN to the owner’s tax identity. The 13th digit indicates the number of registrations the entity has in a particular state. The 14th digit is typically a default character, while the final digit is a check code for error detection. This format ensures each GSTIN is unique and traceable, simplifying identification and verification.
The GSTN now has a feature that enables you to check the number of registrations associated with a taxpayer’s PAN. If you discover unauthorised registrations that the taxpayer has not acknowledged, you may immediately file a GSTN complaint. The steps for filing a complaint are listed below:
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The appropriate authorities will access the complaints once they are submitted on their dashboard on the “Application for Reporting Fake GSTINs” page for further action.
The competent jurisdictional authority where the registration is alleged to have been obtained fraudulently will receive the complaint after it has been lodged and take appropriate action.
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Your organisation could suffer financial losses if your PAN is misused. We’ve compiled a set of advice to help you avoid PAN misuse to prevent this:
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