GSTIN, or Goods and Services Tax Identification Number, is unique to all businesses that are registered under the unified regime as specified by the Indian Government. This number is quite essential for businesses to carry out all the GST-related activities, such as remitting or collecting taxes, claiming the input tax credits or filing the GST returns.
Not just that, but the GST number is also important for tracking or identifying the businesses for ensuring compliance fulfilment and taxation purposes. With the use of the bulk GSTIN verification API, companies can now validate the accuracy and authenticity of the GST numbers that the suppliers, vendors or clients provide them with.
It is to ensure that the partnering company is operating its business legitimately with all GST norms fulfilled. But, if you are new to the business world and want to know about the importance associated with using GSTIN verification API, then let’s dive deeper into this digital concept.
Why is it Essential for Businesses to Conduct GSTIN Verification?
Here are some of the reasons why businesses might feel the necessity of conducting GSTIN verification in bulk:
- Preventing Tax Evasion
Businesses need to conduct GSTIN verification to ensure that all the entities involved in the operations are operating legally, which helps prevent tax evasion. It will help you identify if the partnered entities are manipulating any transactions or creating false invoices for evading taxes. In short, you can determine the legitimacy of the entity.
- Detect Identity Misuse or Theft
When you verify the bulk GSTIN numbers, it will help you pick cases associated with identity misuse or theft. It is the case where some fraudsters use the GSTIN number of some other businesses to conduct illegal transactions. Therefore, validating the GSTIN number becomes important to determine whether it is being used by the registered owner.
- Prevent Fake Deal Frauds
When you run bulk GSTIN verification, your business will be able to filter out all the phantom dealers. Phantom dealers are agencies that do not have any physical existence and are only built to counterfeit invoices. With the use of dedicated API, businesses can run instant verifications to prevent themselves from facing financial loss or processing fictitious transactions.
- Ensure Smooth B2B Transactions
Verification of the GST ID is important in almost all B2B transactions. It is because you must validate the authenticity of the companies you are trading with to determine their trustworthiness and reliability. Thus, GSTIN verification establishes trust upon processing B2B transactions.
How is Bulk GSTIN Verification API Helpful in the Process?
The bulk GSTIN verification API is ideal for both individuals and businesses who want to easily verify the GST status of a company before processing any transaction with it. For instance, you can integrate this API onto your platform for validating the GSTIN of your customers, suppliers or clients.
This will help you prevent being part of any fraudulent transaction or tax evasion. The API works by taking in the GSTIN as a request and then responds to the user with validated data linked to it, such as business name, address, constitution and other such details.
With the use of bulk GSTIN verification API, businesses are now leveraging the potential of faster onboarding, smoother KYC and high scalability. You will now have the capability of setting up some automated workflows for performing real-time verifications of the bulk GSTINs.
What are the Different Types of GST Verification APIs for You to Count On?
There are two types of GST verification API types, using which your business can validate different authenticity aspects of the entities. Document verification, data management and other client onboarding necessities are automated. The two types of GSTIN verification APIs are:
- GSTIN Verification API
It is the most common form of API that most businesses are aware of. Here, you enter the GST number of the entity as an input, and the information such as business name, registration data, taxpayer type and other such details are derived.
- GSTIN Extraction API
This API is meant for reading the front side of the provided GST certificate and will then be extracting the pertinent details. It again extracts the same type of data as that of the GSTIN verification API, but the approach is different.
You can also integrate a combination of these two APIs as one, and depending on the available information on clients’ GST details, such as certificate copy or number, use the dedicated features to get verification outputs.
Benefits of Bulk GSTIN Verification API for Businesses
Now that you have understood the concept behind the GSTIN verification API and its importance for your business, now is the time to understand some of its benefits upon utilization as well. Here are the benefits of integrating bulk GSTIN verification API into your business platform:
- You don’t have to be technologically proficient to use the features and functions that GSTIN verification API brings to your platform. It is simple to navigate and user-friendly for you to speed up your business transactions with involved parties.
- The GSTIN verification API can help your business detect frauds or malafide details of companies that are trading services with your operations. Thus, it intends to help businesses and people be safe from all kinds of fraudulent transactions.
- The results determined through this API are often accurate without any errors in it. Moreover, the response to the API requests made through the bulk GSTINs is responded to in real-time as well.
- With the use of bulk GSTIN verification API, businesses can now offer faster digital KYC verifications to onboard clients or suppliers to their business. You don’t have to be a large enterprise to use this API, as businesses of all sizes can avail of it.
So, this is a brief explanation of how bulk GSTIN verification API is helpful for businesses in terms of validating supplier or client details. This helps build a healthy environment for businesses to be compliant with tax regulations and support only legitimate transactions.
FidyPay, being one of the best API service providers, enables you with a single integration onto the platform for accessing multiple data associated with GST. You just need to make a few clicks over the dedicated API-embedded feature on the platform, and you shall retrieve all the required GST data in no time!
Connect with FidyPay to learn more about the GSTIN verification API and get it integrated into your platform!