Under the motto “1 Nation, 1 Tax, 1 Market” A uniform VAT was introduced in India on July 1, 2017 with the GST (Goods and Services Tax). Despite teething problems and various improvements, the new tax regime - after almost two years - is success of the government to evaluate.

The Indian economy, in particular foreign companies, benefit from the simplification and elimination of other indirect taxes on products and services: Under the new tax regime, for example, import sales taxes (simplified) can now be deducted as input tax, which makes foreign semi-finished and pre-finished products cheaper for industry.

Mandatory information on an invoice  

According to the new Indian accounting standards, the following information is required when creating invoices in India: 

  • Invoice number and invoice date 
  • Supplier data including GST number (GSTN) and digital signature 
  • Customer data including GSTN – see below
  • Service or scope of delivery: Information on the taxable goods (including HSN code) and/or services 
  • Quantity of goods or scope of services 
  • Delivery status 
  • Net cost of delivery 
  • Information about any discounts granted 
  • GST tax rates (0%, 5%, 12%, 18%, 28%) pro rata CGST, SGST and IGST.  

In order to record the customer's correct Goods and Services Tax number on the invoice, and ultimately in the tax portal of the Indian tax administration, it is necessary to check it for accuracy.

GST number to verify 

The official online portal for managing the Goods and Services Tax (gst.gov.in/) offers the possibility of querying the GST number of a taxable entity. Unfortunately, this domain is not accessible outside India. Using a VPN browser plugin (e.g. Hola Free VPN Proxy Unblocker; for Mozilla or Chrome) you can still access and use the GST portal.

Alternatively, you can use (advertising-financed online services such as gstsearch.in/verify.html or findgst.in Use it to check your customers' VAT numbers.

GST number scheme and format 

We would like to illustrate the scheme using our Indian company “DR WAMSER+BATRA INDIA PVT LTD” (GSTIN: 07.AACCD7877K.1.Z.3):

  • The first two digits represent the state – in our case Delhi.
  • The next ten characters represent the PAN number (Permanent Account Number).
  • The 13th alphanumeric code (1 to 9 / A to Z) stands for the “store” - so up to 35 shops etc. can be registered with one PAN number.
  • The 14th digit is intentionally left blank for future government use.
  • The 15th digit of the GST number is the checksum digit.

You can find out more about Good and Service Tax on the website Goods & Services Tax Council as well as directly from the experts in our WB Finance & Compliance® department.