The commencement of Goods and Services Tax, popularly known as GST, is considered one of the greatest economic transformations that our country has experienced after becoming an independent nation.
Before its introduction on 1st July 2017, India was burdened with so many Indirect Taxes in numerous sectors, which were not regulated properly. Consequently, our government put GST into practice to eliminate this incompetent structure. Since then, this tax system has brought all the countrymen under the umbrella of the ‘one nation, on tax’ scheme.
So, you must wonder whether GST verification is necessary for your business. Well, the answer is ‘YES’. This is because this verification stands as proof of the continuation of your business. GST verification for your business is important as it offers diverse benefits, such as fewer tax compliances and returns, easier logistics, and much more. On top of everything, it makes your business authentic, which helps government and financial institutions keep frauds at bay. In this blog, we will help you understand a list of reasons why GST verification is important. So, without further ado, let us begin.
3 Reasons You Must Verify Your GST Number
- Digital Presence
Once you are through the GST verification process, the GST portal online will house all the necessary details of your business. Therefore, your business’ correct information will be visible for any consumer, lender, or other businesses to check.
So, whenever you work with any dealers or suppliers, they can be assured of your authenticity and credibility by scanning your up-to-date details on the portal.
- Availing Funds Made Easier
Again, since GST verification proves a company’s authenticity, it can significantly pave the way for them to be eligible for loans. Since banks and other lenders are reluctant to offer loans to small businesses. GST verification is especially beneficial for small and medium-sized enterprises.
- Claim Input Tax Credits
Let us start this point by understanding what an input tax credit is. Input tax refers to the taxes levied on purchasing goods and services. When you deduct it from your outward supplies payable tax, the result is the input tax credit or ICT.
While this method is quite effective, your business may miss claiming it if you have not been through with GST verification. Therefore, GST verification is essential to ensure that your company stands legitimate while also being eligible for claiming it.
Impact of GST on Different Sectors
Now, let us move forward and learn a little about the impact of GST on various sectors.
It is known to all of us that the agriculture industry contributes significantly to the Indian GDP. However, one of the key issues in this sector before the introduction of GST was the transportation of agriproducts across various states. With less taxation under GST, this issue is being resolved.
The FMCG, or Fast-moving Consumer Goods sector, has also benefited from GST, experiencing significant savings in distribution and logistics costs. This is because GST has eliminated the need for multiple sales depots.
GST has brought numerous beneficial changes, such as increased limits for registration, tax credit on purchases, DIY compliance, and a free flow of goods and services. However, before the implementation of GST, many states had different VAT laws, which were puzzling for companies. This issue has been mostly resolved with the incoming GST.
Another industry that has benefited from GST is the ready-to-wear industry, particularly textile clothing. GST benefits for the textile industry include some of the following:
- Currently, capital items are eligible for ITCs, or input tax credits.
- Relatively to the previous tax regime, the shipping cost is now less.
5. Entertainment Industry
The entertainment business is another sector that reaps the benefits of GST implementation. It was subject to numerous taxes before the implementation of GST, and they were comprised of the local government tax, the state tax, and the federal tax. A single tax or tariff did not bind them, but they switched to a single tax when the GST was implemented.
Apart from these, GST has also been advantageous for Logistics, Pharma, Real Estate, Telecommunication, Textiles, and more.
Steps to Verify Your GST Number
Considering the advantages of GST verification, you must know how to verify your GST number’s authenticity. You can also use the GST verification by Razorpay to view further business information, such as the business’s legal name, status, date of registration, business type, and more. The steps to use the tool are as follows:
Step1: Visit the Razorpay website
Step 2: Go to the resources option and select the GST number search option
Step 3: Enter the GST number you want to check, and you will get the details on your screen
We hope this article has helped you learn why GST verification is necessary. The GST verification and search tool is offered by various payment solution companies for free and is very simple to use. Therefore, you may check the information before making any payments and protect yourself from fraud. Now, if you are looking for an authentic platform to check and verify the authenticity of any GST number online, and that too for free of cost, you should go for Razorpay.
Visit their website today to learn more.