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GST Search and Verification via APIs for SME Lending

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In today's rapidly evolving financial landscape, staying ahead of the curve is paramount for small and medium-sized enterprise (SME) lenders. The traditional lending processes have long been a bottleneck, burdened by inefficiencies, increased risks, and prolonged approval times. However, there is a game-changer on the horizon that promises to revolutionize SME lending - the GST Verification API.

The Power of GST Verification

Streamlining Due Diligence

SME lenders have historically grappled with verifying the financial health of potential borrowers. The GST Verification API emerges as a solution that automates and accelerates this critical due diligence process. With real-time access to a borrower's GST data, lenders can make more informed decisions swiftly, reducing the risk of defaults and improving the overall quality of their loan portfolios.

Enhancing Risk Assessment

Risk assessment is at the heart of lending, and the GST Verification API enhances this crucial aspect. By analyzing a borrower's GST data, lenders can gain valuable insights into their financial stability, cash flow, and creditworthiness. This granular information enables lenders to tailor loan terms and interest rates more accurately, thereby reducing the risk associated with lending to SMEs.

Expediting Loan Approvals

One of the most significant advantages of the GST Verification API is its ability to expedite the loan approval process. In the competitive world of SME lending, speed can be a decisive factor in winning over businesses seeking capital. With this API, lenders can significantly reduce the time it takes to assess loan applications and disburse funds, giving them a distinct edge in the market.

The Ripple Effect on SME Lending

Financial Inclusion

The GST Verification API not only benefits lenders but also contributes to the broader goal of financial inclusion. SMEs, often underserved by traditional banks, can now access financing more easily and at more favorable terms. This democratization of lending can spur economic growth, create jobs, and empower countless small businesses.

Fostering Innovation

The advent of the GST Verification API has opened doors to innovation within the SME lending sector. Fintech companies are leveraging this technology to create user-friendly loan application platforms that offer a seamless borrowing experience. This innovation not only benefits borrowers but also keeps lenders at the forefront of the industry.

Latest Reports and Statistics 

According to the GST System Statistics on the GST Council website, as of June 2023, there are over 1.40 crore active taxpayers in India.

The following are some key findings from the latest GSTIN verification report:

  1. The number of active taxpayers has increased steadily since the implementation of GST in July 2017.
  2. The majority of active taxpayers are Normal Taxpayers, followed by Composition Taxpayers and Special Category Taxpayers.
  3. There are significant differences in the number of active taxpayers across different states in India. The top five states with the highest number of active taxpayers are Maharashtra, Gujarat, Uttar Pradesh, Tamil Nadu, and Karnataka.
  4. The number of fake GST registrations has decreased significantly since the implementation of stricter verification measures. However, there are still some cases of fake GST registrations being reported.

The following are some statistics on GSTIN verification in India:

  • As of June 2023, there have been over 114 crore GST returns filed.
  • The average tax per GSTIN is Rs.1.24 lakh.
  • The total number of GSTINs that have been migrated from the erstwhile tax laws to GST is over 1.39 crore.
  • The number of fake GST registrations that have been reported is over 1 lakh.

The GST Council is committed to ensuring that the GST system is transparent and efficient. It has taken a number of measures to improve GSTIN verification, such as:

  • Implementing stricter KYC requirements for GST registration.
  • Introducing a new GST Registration Search Tool that allows businesses to verify the GSTINs of their suppliers and customers.
  • Launching a campaign to raise awareness among businesses about the importance of GSTIN verification.
  • The government is also working to improve the GST system by simplifying the tax structure and reducing compliance costs for businesses.

The Future of GSTIN Verification

With technology continuously advancing, the future of GSTIN verification is poised for further enhancements. Automation, artificial intelligence, and data analytics are set to play an even more pivotal role in the verification process, increasing efficiency and precision.


In summary, the GST Verification API is poised to reshape SME lending by streamlining due diligence, enhancing risk assessment, and expediting loan approvals. This transformative technology empowers SME lenders to make data-driven decisions swiftly, reducing risks and fostering financial inclusion. As the financial landscape continues to evolve, those who harness the power of the GST Verification API will undoubtedly lead the way in unlocking financial success for SMEs.

Get deeper into how Digitap is helping SME lenders in verifying through GST and extracting all other related details through PAN and GST-advanced validation. Would like to integrate for a quick vendor verification? Connect with us or schedule a call 1-on-1 with our expert.