Why Vendor GST Verification is Important
1. Avoid Fake Vendors and Fraud
Some people provide fake GST numbers to look like genuine suppliers. If you deal with such vendors, your business may face legal action or GST input credit rejection. Verifying their GST number protects you from these risks.
2. Ensure Input Tax Credit (ITC) Safety
If your vendor’s GST details are not valid, your ITC claims can be denied by GST authorities. This can lead to extra tax burden. Doing GST verification online before dealing with a vendor helps secure your ITC.
3. Stay Compliant and Audit-Ready
During a GST audit, if authorities find that you worked with an unregistered or fake vendor, your business can be fined. Verifying every vendor’s GST number helps keep your records clean and audit-ready.
If you deal with many vendors, using a GST verification API helps automate the process. It saves time and ensures your records are updated regularly without manual work.