February 20, 2023

How to Ensure Dealing with a GST Compliant Supplier?

As a small or medium business owner or startup founder in India, you may have to deal with suppliers of goods and services who are required to comply with the Goods and Services Tax (GST) regulations. GST is a value-added tax levied on goods and services in India, and it has replaced various indirect taxes that were previously levied by the central and state governments. To ensure that your business operations are smooth and compliant with the GST regulations, it is important to deal with GST-compliant suppliers. Here are some tips on how to ensure that you are dealing with a GST-compliant supplier:

1. Check their GST registration number

The first step in ensuring that your supplier is GST-compliant is to check their GST registration number. Every supplier who is required to comply with GST regulations must obtain a GST registration number, which is a unique identification number issued by the government. You can verify the validity of the supplier's GST registration number on the GST portal or by using a GST verification app or website.

2. Check their GST returns filing status

Another important aspect of GST compliance is the timely filing of GST returns. Every registered supplier is required to file various GST returns, such as GSTR-1, GSTR-2, and GSTR-3, based on the type of business and turnover. You can check the filing status of the supplier's GST returns on the GST portal or by asking the supplier to provide you with the GST return summary.

3. Verify their GST compliance certificate

Some suppliers may provide a GST compliance certificate as proof of their compliance with GST regulations. This certificate is issued by a third-party GST practitioner or chartered accountant after verifying the supplier's GST returns and other compliance documents. You can verify the validity of the certificate on the GST portal or by contacting the issuing authority.

4. Ensure proper invoicing and documentation

To ensure that your business operations are GST-compliant, it is important to maintain proper invoicing and documentation for all your transactions with suppliers. Every invoice must contain the supplier's GST registration number, details of the goods or services, the price, the applicable GST rate, and the amount of GST charged. You must also maintain proper records of all invoices, receipts, and other GST-related documents for at least six years.

5. Be aware of the GST rates and exemptions

As a business owner or startup founder, it is important to be aware of the GST rates and exemptions applicable to your business and the goods or services you are purchasing from your suppliers. GST rates vary based on the type of goods or services and the place of supply, and there are various exemptions and concessions available for certain categories of businesses and transactions. You must ensure that your supplier is charging the correct GST rate and providing the necessary exemptions or concessions.


Dealing with GST-compliant suppliers is essential for the smooth and compliant operation of your business. By following the above tips, you can ensure that you are dealing with suppliers who are registered for GST, filing their returns on time, and maintaining proper documentation. This will help you avoid any penalties or legal issues related to GST non-compliance and establish a good business relationship with your suppliers.


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