GST — Goods and Services Tax — is India's unified indirect tax system, introduced on 1 July 2017. It replaced more than a dozen separate taxes (VAT, Service Tax, Central Excise, Entry Tax, and others) with a single, nationally harmonised levy. For international importers, GST is one of the most important identifiers you can use to quickly establish whether a potential supplier is a legitimate, registered business entity in India.
What is GST and Why It Matters for Exports
Under Indian law, any business with an annual turnover exceeding ₹20 lakh (approximately $24,000) is required to register for GST. Businesses involved in inter-state supply or exports must register regardless of their turnover. This means that any legitimate Indian exporter — from a small spice trader to a large pharmaceutical manufacturer — will have an active, verifiable GST registration.
For you as an importer, a valid GST number serves several purposes. A supplier without active GST is one of the most common patterns behind Indian supplier fraud:
- It confirms the supplier exists as a legally registered entity in India.
- It shows the state of registration, helping you verify the supplier's claimed location.
- It distinguishes manufacturers from traders (the GST description field reveals the nature of business).
- It confirms the supplier is authorised to issue tax invoices — a requirement for your customs documentation.
Without an active GST registration, an Indian company cannot legally issue a tax invoice, cannot claim input tax credit, and — most importantly — cannot legally export goods. A supplier without active GST is either operating illegally or is not the entity they claim to be.
Anatomy of a GST Number
Every GST Identification Number (GSTIN) follows a fixed 15-character alphanumeric structure. Understanding this structure allows you to instantly verify several pieces of information before you even consult the portal.
- Characters 1–2 (State Code): Two-digit state code. 27 = Maharashtra, 29 = Karnataka, 07 = Delhi, 33 = Tamil Nadu. If a supplier claims to be in Mumbai but their GSTIN starts with 29, something is wrong.
- Characters 3–12 (PAN): The supplier's Permanent Account Number. This links GST to income tax records — a very powerful cross-check.
- Character 13 (Entity Number): Usually "1" for the first registration. Higher numbers indicate multiple registrations in the same state.
- Character 14: Always "Z" — a fixed character in the current GST numbering system.
- Character 15 (Check Digit): Calculated from the preceding 14 characters.
How to Verify a GST Number in 2 Minutes
The official GST portal offers a free public tool to verify any GSTIN in seconds. Here is the exact process:
- Go to gst.gov.in
- Click "Search Taxpayer" in the top navigation menu.
- Select "Search by GSTIN/UIN".
- Enter the 15-character GST number provided by your supplier.
- Complete the CAPTCHA and click "Search".
A valid result will show: Legal Name of Business, Trade Name (if different), Registration Status, Principal Place of Business, and the date of registration. The status field is the most important — it should read "Active". Any other status (Cancelled, Suspended, Inactive) is a serious red flag.
What a Legitimate GST Certificate Should Contain
A GST Registration Certificate is a government-issued PDF document. A genuine certificate will include: the GSTIN number prominently displayed, the legal name and trade name of the business, the principal and additional place(s) of business, the date of liability (registration date), the nature of business activity (manufacturer, trader, exporter), and the digital signature of the issuing GST officer. Certificates without a digital signature or with mismatched addresses are immediately suspect.
Red Flags When Checking GST
- Status is "Cancelled" — the business has been deregistered, either voluntarily or by tax authorities.
- State code mismatch — supplier claims to be in one city, but GSTIN is registered in a different state.
- Registration date is very recent — a company registered 2–3 months ago with no trading history is high risk.
- Supplier refuses to share their GSTIN — every legitimate exporter will freely provide their GST number. Refusal is a major red flag. Beyond GST, also check their product-specific licences (FSSAI, BIS, MSME).
- Name mismatch — the name on the GST certificate does not match the name on the invoice, contract, or bank account.
Other Key Identifiers: IEC, CIN, PAN
GST is one of several key identifiers. When verifying a supplier comprehensively, check all of the following:
| Identifier | Issuing Body | Where to Verify | Mandatory For |
|---|---|---|---|
| GSTIN | GST Council | gst.gov.in | All registered businesses |
| IEC | DGFT | dgft.gov.in | All exporters/importers |
| CIN | MCA / ROC | mca.gov.in | Limited companies (Pvt Ltd, Ltd) |
| PAN | Income Tax Dept | incometax.gov.in | All taxpaying entities |
| Udyam (MSME) | MSME Ministry | udyamregistration.gov.in | Small/medium enterprises |
A thorough supplier verification cross-checks all available identifiers to build a complete picture of the company's legal standing. Verifying only one document — even GST — is insufficient for high-value transactions. SunPower Biotech's document verification package ($95) covers all key Indian registries as part of a single comprehensive report. See our real client cases to understand how document fraud has been caught in practice. Learn more about our team and how we work.