Payments and API banking solutions startup Cashfree Payments is introducing a tool businesses in India can use for the real-time verification of vendors’ and partners’ Goods and Services Tax Identification Number (GSTIN).
GSTIN verification is offered as part of Cashfree Payments Verification Suite that includes authentication of bank accounts, Aadhaar numbers, Permanent Account Numbers (PAN), Unified Payments Interfaces (UPI), and Indian Financial System Codes (IFSC).
The new feature validates the 15-digit unique GSTIN number with detailed information in real-time, which can help lower the chances of fraud by verifying identifying data. The verification solution can be used by numerous business sectors, including eCommerce marketplaces, B2B resellers, insurance providers, and others, according to a press release emailed to PYMNTS on Thursday (July 28).
The tool uses the Verification Suite’s synchronous application programming interface (API) and can confirm the identity of the end-user in real-time by using the entered GSTIN number. The business registration type, legal name, registered office address, and GSTIN status are also verified.
Akash Sinha, CEO and co-founder of Cashfree Payments, said the new feature makes “GSTIN verification simple, quick, and error-free” and expands its Verification Suite of products “designed to make the user KYC [know your customer] and related verification processes” streamlined and secure.
“Integration of GSTIN verification will immensely benefit businesses that require real-time vendor/partner verification. Our solutions are largely aimed at making the digitization journey of our merchants effective in a convenient, secure and cost-effective manner,” Sinha said.
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Under the Goods and Services Tax (GST), all taxpayers are registered under a single authority. GSTIN “depicts the authenticity of the taxpayer,” according to the release.
“In some cases, businesses may manipulate the GST details to invade taxes. KYC of GSTIN helps merchants attain transparency of business, ensure the authenticity of GST returns, correction of any errors while reporting GSTIN, and reduce fraud.”