The Role of GST Number Search and Verification API in GSTIN Authentication

Making sure you are collaborating with reputable and legal partners/merchants is essential for business owners. Verifying your potential merchants’ GST identification numbers (GSTINs) is a crucial step in the digital onboarding process. Thankfully, the GST verification API has made this procedure simpler and more effective. In this article, we’ll examine in detail what a GST verification API is, how it functions, hy using it for your company is advantageous, how to choose the right GST verification solution and integrate it into your merchant onboarding flow.

What is GST Verification API? 

Businesses can now use GST verification APIs to instantly validate Goods and Services Tax Identification Numbers (GSTIN). It offers a software interface that lets your programmes communicate with the GST database and access details about a specific GST number, like the taxpayer’s name, address, and registration date.

Why is GST Verification important for onboarding?

The majority of companies register for the Goods and Services Tax (GST), and registration is required for those with revenues of more than Rs. 40 lakhs. Upon registration, every firm is given a special identifying number called a GSTIN.

The GSTIN may be used to locate registered businesses and to confirm important information including business names, addresses, registration dates, and more.

Businesses can undertake KYC verification using the GSTIN or a GST certificate by integrating with a GST verification API. The API obtains and verifies business KYC using the GSTIN as input; alternatively, the API may extract data from the GST certificate and instantaneously confirm this data.

• To determine if the GST invoice is registered and to confirm the legitimacy of the vendors supplying it
• To prevent fraud, phoney, and fraudulent invoices
• To check for and pay taxes in opposition to false, fraudulent, and illegal GST numbers.
• The verification helps to safeguard law-abiding taxpayers from fraudsters who issue phoney GST numbers in an effort to take advantage of the system and submit false ITC claims.
• While submitting returns in GSTR1, there may occasionally be a clerical or typographical error that causes the taxpayer to have a mismatch, thus it is essential to check the GST number before paying the tax invoice.

What are the benefits of using GST Verification API?

Businesses may gain from using GST verification API in a number of ways, including:

Saves effort and time

It might take a long time and be difficult to manually validate GST numbers. Businesses may automate the process and save significant time and effort with the use of the GST verification API.

Ensures Accuracy

Manual GST number verification is susceptible to mistakes. Contrarily, the GST verification API offers precise and current information on GSTINs, guaranteeing that businesses are transacting with reputable and genuine merchants.

Enhances Compliance

To guarantee that their operations are in compliance with GST laws, firms must confirm their GST numbers. GST verification API can assist companies in remaining compliant and avoiding fines.

Improves Customer Experience

By offering quick and accurate GST number verification, using the GST verification API may help improve the client experience. This might assist companies in gaining the patrons’ trust and faith.

How is GST Verification API used for onboarding?

You must first connect the GST verification API with your application or website in order to use it. You can accomplish this by adhering to the API documentation that the API provider has given. When everything has been connected, the GST authentication procedure may be finished by inputting the data from the GSTIN or by uploading a picture of the front of the GST certificate, which is subsequently scanned using an AI-based OCR.

The KYC verification procedure becomes quick and easy once a firm integrates with a GST verification API.

These are the steps involved:

• Step 1: Via a link, the customer logs into the onboarding site 
• Step 2: Company information is provided and the image of the GST certificate is posted
• Step 3: The API obtains verified data and compares it to client-supplied data.
• Step 4: If the details match, KYC is finished; if not, the customer must restart the procedure.

Every application may be connected to IDcentral’s workflow to instantly use our AI-powered solutions. The use of an API-based seamless merchant onboarding workflow has resulted in 45% quicker merchant onboarding rates and increased productivity for clients across multiple sectors.

How can businesses leverage GST Verification APIs? 

Before engaging in any commercial activity, all financial institutions are required to verify the GSTINs of their clients, merchantsand business partners. This procedure is straightforward and dependable thanks to the GST Verification API. This will help to ascertain the customer’s sincerity and help to stop any fraud.

Also, the majority of regulatory bodies advise certain institutions and companies to utilise online GST verification API solutions to confirm the identity of their clients and the legitimacy of their accounts. The client’s unique credentials are all that is needed for this process.

The Advantages of API-based GST Verification

• The API is reliable, and lightweight, and integrations don’t need any help from other parties.
• It is efficient and trustworthy; GSTIN verification is almost immediately finished and has a high success rate.
• Not only for merchant onboarding but for all major touchpoints in a process, API integration is simple. APIs can be used if merchant verification is necessary for account modifications.
• APIs assist companies in growing and digitally transforming essential client-facing processes like onboarding. Businesses may redirect efforts away from client Verification and towards achieving growth by integrating with APIs.
• APIs for GST verification generate accurate KYC data and facilitate effective documentation. The data received are securely protected by following the strictest international procedures and are readily maintained on a smart dashboard.

How to can you choose the right GST Verification API?

There are a number of things to take into account while selecting a GST verification API, including:

• Accuracy: The API need to offer accurate and current data about GSTINs.
• Integration: It should be simple to include the API in your application or website.
• Support: The API supplier should give dependable and quick support to help with any potential problems.
• Price: The API provider’s verification charges should be reasonable and appropriate for your company’s demands.

The GST Verification API you choose during merchant onboarding will also be heavily influenced by the sort of clients you have and the current process. This is a discussion of the many API options for GSTIN verification.

What are the types of GST Verification APIs for Digital Onboarding?

With these three GST number verification APIs, businesses may confirm GST numbers. These APIs speed up merchant onboarding for organisations by automating document validation and data management.

The top three APIs for GST number verification are shown below. By making a request and getting a response, the GST Verification API works.

GST Verification API

The GSTIN of a business is the input for this API. The API’s result contains the verified data shown below:

• GSTIN
• Name of the Company 
• Address of the Company 
• Date of Registration
• Kind of Taxpayer

Automated GST OCR-Extraction API

This API scans the front side of the GST Certificate using OCR to extract relevant data. The API response contains the extracted data shown below:

• GSTIN 
• Business 
• Name
• The legal description of the company 
• Address as of the date of registration
• Kind of Taxpayer

API for Automated GST Extraction and Verification

This API also scans the front side of the GST Certificate using OCR to retrieve KYC information such as the GSTIN, registration date, and business name. The data is validated using common databases after extraction.

The API answer contains the verified information listed below:

• GSTIN 
• Business Name 
• The legal description of the company 
• Address as of the date of registration
• Kind of Taxpayer

Connecting with GST verification APIs has helped businesses speed up merchant onboarding and cut expenses by as much as 50%. The smooth processes of the GST verification API have also assisted enterprises in increasing productivity and efficiency.

In conclusion, organisations wishing to simplify their operations and make sure they are dealing with trusted and authentic partners/merchants may find the GST verification API to be a priceless tool. GST verification API may save companies time and effort, increase compliance, and improve customer experience by automating the verification process and delivering quick, correct results. Be sure to take your company’s needs into account while selecting a GST verification API by taking into account aspects like accuracy, integration, support, and cost.

Learn more about IDcentral’s GST Verification API solution

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