The GSTIN, or Goods and Services Tax Identification Number, is the most important number for your business in India right now. This 15-digit number is unique and makes sure that the government knows about your business for tax purposes. When you file your taxes or claim the Input Tax Credit, you have to be sure that this number is correct. However, ignoring the common GSTIN verification errors can lead to issues during the verification process.
You can lose your Input Tax Credit if you make even a single mistake, which hurts your cash flow. A lot of business owners don't think much of checking this number, but not doing so can lead to big problems. Because of a small typing error in your records, you could be fined or have your e-invoices turned down.
This quick guide will show you the most common GSTIN verification errors and how to fix them.
9 Common GSTIN Verification Errors to Avoid
1. The invalid format or structure error
Most mistakes happen when the GSTIN doesn't follow the strict 15-digit pattern that the government has set. There is a strict order that a valid number must follow: two numbers for the state, ten numbers for the PAN, and three numbers for other information. The portal will reject your number right away as ‘Invalid Format’ if you enter one that doesn't follow this pattern.
If you check the number against the official website's rules for standard format, you can fix this. Use the ‘Search Taxpayer’ tool on the GST portal to see if the number is already there. If the portal tells you that the number doesn't work, you need to get a copy of the registration certificate from your supplier.
2. State code mismatch with the address
Each GSTIN begins with a unique two-digit code, such as ‘07’ for Delhi, which shows the state where the business is registered. When you enter a supplier's billing address that doesn't match this state code, you often run into problems.
This difference makes the system confused, and it will definitely fail to make your e-invoice or show a tax error. Downloading the official list of state codes from the GST portal will help you fix this quickly. You must always check that the first two numbers of the GSTIN match the name of the state in the store's address.
3. Difference between PAN and GSTIN
The ten numbers in the middle of the GSTIN must be an exact copy of the supplier's PAN. People often make the mistake of typing these letters backwards or entering the wrong PAN sequence into the system. There will be a ‘mismatch’ error on your GSTR-1 form if these numbers don't match the central database.
This can be fixed by going to the portal and selecting ‘Search by PAN’ to find it out. This useful search tool shows you all the active GSTINs that are linked to that PAN, so you can make changes right away.
4. The inactive or suspended status error
Sometimes you might have a number with the correct format, but the portal still rejects your invoice or e-way bill. This happens when the supplier's registration has been suspended or cancelled by tax authorities, usually because they did not file returns. Doing business with an inactive number means you cannot claim any tax credit on those specific bills you pay.
You must fix this by checking the live status of the GSTIN on the portal's home page before paying. If the status shows ‘Inactive,’ you must stop the transaction and ask the supplier to fix their compliance issues first.
5. Mismatch between trade name and legal name
It is very common for a business to have a ‘Trade Name’ that is different from its official ‘Legal Name’. When you search for a number, the portal might show the ‘Legal Name’ instead of the shop name you know. This confusion often leads accounting teams to believe the number is wrong because the names do not appear to match.
You can resolve this by using the ‘Search Taxpayer’ feature to view both names side by side. You should update your software to save both names so your invoices and ledgers remain accurate and compliant.
6. Entity code error in the 13th digit
The 13th number shows how many different business registrations a single entity has in the same state. People often get this wrong by thinking it's always ‘1,’ which means the GSTIN is wrong if they have a second branch. This error is frequent when a supplier has multiple business verticals or branches located in the same state. You must fix this by asking your supplier specifically which branch number applies to your current purchase transaction.
7. Checksum digit validation failure
The last character is a special ‘checksum’ number that ‘locks’ the 14 characters that came before it mathematically. If you misspell any of the numbers before this one, this last character will no longer match the formula. This results in an immediate ‘Invalid Checksum’ error when you try to upload your returns to the government system.
You cannot guess this digit, so you should use an online ‘GSTIN Validator’ tool to find the error. Re-enter the first 14 digits carefully in the tool, and it will tell you the correct final digit.
8. Confusion between zero and the letter O
One of the most annoying errors is confusing the number '0' (Zero) with the letter 'O' during typing. Since the GSTIN contains both letters and numbers, this visual confusion happens frequently when entering data manually.
The portal treats '0' and 'O' as completely different things, which leads to invalid data errors in your return. You can fix this by remembering the rule that the PAN part always has five letters followed by four numbers.
9. Rejecting an e-invoice because of a PIN code
Your e-invoice might not work even if the GSTIN is correct if the address information is wrong. The GST system connects each ID number to a unique set of pincodes. If the two sets don't match, it leads to a distance error. It will be marked as wrong if you enter a delivery PIN code that is too far from the registered state.
To fix this, use the ‘Search PIN Code’ feature on the e-way bill portal to look at the map. To avoid this annoying technical rejection, make sure that the state code in ‘Bill To’ matches the GSTIN.
How does TallyPrime help avoid GSTIN verification errors?
When you have hundreds of invoices to handle every week, you can't check each number on the portal by hand. TallyPrime is like having a smart assistant that checks all of your data automatically to make sure it is correct and up to date.
- You can validate single or multiple GSTINs directly from within the software without ever opening the government portal.
- TallyPrime fetches the current status of your supplier so you never create a bill for an inactive party.
- It allows you to fetch and update the correct Legal Name and Trade Name directly into your business ledgers.
- The software alerts you immediately if you try to save a voucher with an invalid or incorrect number structure.
- It also helps you check the tax number and HSN codes to make sure your e-invoices are valid.
Conclusion: Fix GSTIN Verification Errors
As highlighted above, the common GSTIN verification errors such as mismatch between trade name and legal name or structure error can lead to failed verification process. Putting in place a systematic process for verification will keep your cash flow healthy and protect you from these financial risks.
With the use of a comprehensive software solution like TallyPrime, these checks will be done automatically, so you can focus on running your shop.
