Understanding GSTIN and PAN

The Goods and Services Tax (GST) has brought about a major change in the tax system in India, replacing various indirect taxes with a unified and simplified tax structure. Introduced in July 2017, the GST was designed to streamline taxation processes, enhance accountability, and improve overall efficiency. One of the crucial aspects of GST compliance is the GSTIN, a distinct 15-digit number that is allocated to each registered taxpayer. The GSTIN plays a vital role in identifying businesses, tracking tax payments, and ensuring compliance with GST laws. An essential tool in this process is the capability to conduct a GST search using PAN (Permanent Account Number). This blog provides a comprehensive guide on conducting a GST search by PAN, including the process, benefits, and legal implications.

What is GSTIN, and Why is PAN Important?

GSTIN is an essential identifier that every taxpayer registered under the GST regime must possess. The structure of GSTIN consists of:

• The first two digits indicate the state code according to the Indian Census.
• The following ten digits represent the PAN of the entity.
• The 13th digit signifies the number of registrations an entity possesses within a state.
• The 14th digit is set as 'Z' as a standard.
• The 15th digit serves as a check code for the detection of errors.

PAN, on the other hand, is a ten-character alphanumeric identification number issued by the Income Tax Department. Having a PAN is crucial for the registration of the GST process as the GSTIN is derived from it. This system ensures that all tax-related activities for a business or individual are connected to a single entity, simplifying the management of tax compliance.

What is GST Search by PAN?

Using your PAN, you can easily retrieve GST-related details for both individuals and businesses through a GST search. By conducting this search, you can access a comprehensive list of GSTINs linked to the PAN. This information proves valuable when it comes to verifying the GST status of both businesses and individuals. This feature is particularly important for businesses, as it allows them to verify the GST registration status of their vendors, suppliers, and customers, ensuring compliance and avoiding potential legal problems.

How Do I Perform a GST Search by PAN?

Conducting a GST search by PAN is a simple procedure that can be easily completed through the official GST portal. Here is a full, step-by-step guide on how to perform this search:

1. Accessing the GST Portal

Step 1: Visit the Official GST Portal

Open your web browser and navigate to the official GST portal by typing www.gst.gov.in into the address bar. Ensure you are on the official website to avoid phishing scams or fake portals.

Step 2: Navigate to the 'Search Taxpayer' Option

Once on the GST portal's homepage, locate the "Search Taxpayer" option in the main menu. It is usually found under the "Services" tab. Click on "Search Taxpayer" to open a drop-down menu with several search options, including "Search by PAN."

2. Performing the Search

Step 3: Enter the PAN Details

In the "Search Taxpayer" section, select the option "Search by PAN." A new page will open, prompting you to enter the PAN (Permanent Account Number) of the taxpayer or entity you wish to search for. Carefully type the 10-character PAN in the provided field. Ensure there are no typographical errors, as the search will yield no results if the PAN is incorrect.

Step 4: Complete the CAPTCHA Verification

To ensure that the search is being conducted by a human and not a bot, you will need to complete a CAPTCHA verification. Type the characters shown in the CAPTCHA image into the corresponding field.

Step 5: Click on the 'Search' Button

After entering the PAN and completing the CAPTCHA, click the "Search" button to initiate the search process. The system will process your request and retrieve the GST details associated with the entered PAN.

3. Viewing and Understanding the Search Results

Step 6: Analyze the Retrieved Information

Upon a successful search, the portal will display a list of all GSTINs (Goods and Services Tax Identification Numbers) associated with the entered PAN. For each GSTIN, the following information is typically provided:

• GSTIN: The unique 15-digit number assigned to the taxpayer.
• Legal Name of the Business: The name under which the business is registered.
• State: The state in which the GST registration is valid.
• Status: Indicates whether the GST registration is active or inactive.
• Date of Registration: The date when the entity was registered under GST.
• Taxpayer Type: Whether the entity is a regular taxpayer, a composition taxpayer, or falls under another category.

Step 7: Verify the GST Details

Carefully review the details provided to ensure they match the expected information. If you are conducting this search to verify a business partner, supplier, or vendor, ensure that the GSTIN status is "active" and that the details align with the entity's registration documents.

 

4. Alternative Methods and Tools

While the official GST portal is the most reliable source, several third-party websites and tools also offer GST search by PAN services. These platforms may provide additional features, such as bulk GSTIN searches or automated verification services. However, it is crucial to use reputable and secure platforms to avoid potential data privacy issues.

5. Common Issues

No Results Found

If no results are found for the entered PAN, it could suggest that the entity is not registered under GST or that the PAN was entered incorrectly. Please ensure that you carefully review the PAN for any mistakes and attempt the process once more.

Inactive GSTIN

If the GSTIN linked with the PAN is marked as "inactive," it is possible that the entity has canceled its GST registration or that the registration has been suspended by tax authorities. In such cases, additional verification is necessary to determine the cause of the inactivity.

Mismatch in PAN and GSTIN

If you encounter discrepancies between the PAN and GSTIN details, it could be due to an error in the GST registration process. The entity may need to update its GST registration details on the portal.

Benefits of GST Search by PAN

Conducting a GST search by PAN offers several advantages:

• Verification of GSTIN: Ensures that the GSTIN provided by a vendor or customer is valid and active. This is crucial for compliance and avoiding issues during tax filings.
• Due Diligence: Helps businesses verify the GST status of their partners, suppliers, and customers before engaging in transactions, ensuring compliance with tax laws.
• Tax Filing and Compliance: Assists in accurate tax filing by ensuring that all transactions are with GST-registered entities. This reduces the risk of penalties due to non-compliance.
• Avoidance of Fraud: By verifying the GSTIN of entities, businesses can avoid dealing with fraudulent or non-compliant entities, thus protecting themselves from potential legal and financial risks.

Common Scenarios Where GST Search by PAN is Useful

A GST search by PAN is particularly useful in the following scenarios:

• Onboarding New Vendors: Before entering into a business relationship with a new vendor, it's important to verify their GST registration status to ensure compliance and avoid future complications.
• B2B Transactions: Businesses can use GST search by PAN to verify the GSTIN of their trading partners, ensuring that all transactions are compliant with GST laws.
• Audits and Compliance Checks: During internal or external audits, verifying the GSTINs of all entities involved in transactions is crucial for ensuring compliance with tax laws.

Frequently Asked Questions (FAQs)

1. What is the significance of PAN in GST registration?

Having a PAN is necessary for GST registration. It assures that all tax-related activities are connected to one organization, streamlining compliance and record-keeping.

2. Can I search for multiple GSTINs using one PAN?

Yes, it is possible for a single PAN to be linked to multiple GSTINs, particularly if the entity has registrations in various states.

3. What should I do if my GST details do not match my PAN?

It is important to update your details on the GST portal if there is a mismatch, to ensure accuracy between your PAN and GSTIN information.

4. Is GST search by PAN available to the general public?

Yes, GST search by PAN is available to the general public through the GST Portal.