When an accounts executive enters an invoice into tally or an ERP, the primary concern is usually checking quantities, rates, and approval signatures. However, if the supplier GSTIN on the bill is cancelled or under suspension, you cannot claim input tax credit under the GST law. Catching invalid numbers after releasing vendor payment forces your team to chase refunds or dispute reversals during reconciliation.
Why verifying vendor status protects input tax credit
Under Rule 36(1) and Rule 36(2) of the CGST Rules, input tax credit is availed on the basis of a tax invoice containing all prescribed particulars, including valid registration details. If the supplier registration is cancelled under Section 29 or suspended under Rule 21A of the CGST Rules, the supplier cannot lawfully issue a tax invoice for taxable supplies.
When a supplier registration is suspended during cancellation proceedings or due to return discrepancies, the statutory consequences are strict:
Statutory bar on invoices: Under Rule 21A, a person whose registration is suspended shall not make any taxable supply, meaning they cannot issue a valid tax invoice or charge GST on supplies during the suspension window.
If you record such an invoice in your purchase ledger and pay tax to the supplier, the invoice will fail to reflect properly in your auto-populated statements. This mismatch disrupts your monthly matching routine covered in our GSTR-2B reconciliation guide.
Free ways to verify GSTIN status
Businesses do not need expensive subscriptions to inspect vendor status. The official portals provide public access to verify whether a registration is active, suspended, or cancelled.
1. Common portal search taxpayer
On the public GST common portal, you can verify any taxpayer without logging in by opening Search Taxpayer by GSTIN / UIN. This screen displays:
- Legal name and trade name: Matches the entity name against your purchase order or contract.
- Registration status: Shows whether the GSTIN is Active, Suspended, or Cancelled. If cancelled, it shows the effective date of cancellation.
- Return filing table: Displays filing history for GSTR-1 and GSTR-3B by tax period and date of filing.
Portal search limits: The public Search Taxpayer page requires entering an image CAPTCHA for each individual search. This manual check works well for onboarding new vendors, but checking hundreds of active suppliers each month requires batch workflows.
2. Bulk master screening before ledger entry
To screen entire vendor lists without single CAPTCHA lookups, accounting departments use two standard methods:
- E-way bill portal master check: If you use the e-way bill system, the portal provides master search tools and bulk taxpayer check utilities to inspect customer and supplier GSTINs in batches.
- Monthly pre-booking register audit: Export your draft purchase register from your ERP at the end of each billing cycle before final vouchers are posted. Compare active GSTIN lists against previous filings or run automated checks to flag inactive codes before batch payment runs.
Worked example: checking vendor status before booking
Consider an engineering firm, Apex Manufacturing, preparing to book invoices from three suppliers totaling ₹4,50,000 in purchases plus ₹81,000 in GST for October 2026.
| Supplier | Invoice | Taxable (₹) | GST @ 18% (₹) | Portal status | Action required |
|---|---|---|---|---|---|
| Beta Logistics | INV-1021 | ₹1,50,000 | ₹27,000 | Active | Book invoice and approve ITC |
| Delta Spares | INV-408 | ₹1,00,000 | ₹18,000 | Suspended (Rule 21A) | Hold payment; do not claim ITC |
| Gamma Tools | INV-952 | ₹2,00,000 | ₹36,000 | Cancelled on 15 Aug 2026 | Reject invoice; withhold GST payment |
| Total | 3 bills | ₹4,50,000 | ₹81,000 | 1 Active / 2 Invalid | ₹27,000 approved / ₹54,000 held |
By screening GSTINs prior to voucher creation, the accounts manager books only ₹27,000 in valid credit from Beta Logistics. For Delta Spares and Gamma Tools, the accounts team holds ₹54,000 in tax payments, preventing irreversible cash outflow to suppliers who cannot pass legitimate credit.
Standard notice for flagged suppliers
When a supplier invoice shows a suspended or cancelled status on the portal, send a written notification before processing payments:
Frequently asked questions
Can a vendor issue a valid tax invoice while their registration is suspended?
No. Under Rule 21A(3) of the CGST Rules, a person whose registration is suspended cannot make any taxable supply or issue a tax invoice for taxable goods or services.
How can you verify multiple vendor GSTINs without paying for commercial software?
You can verify vendor details individually for free on the GST common portal using Search Taxpayer by GSTIN, or validate bulk lists via the offline returns and e-way bill portals before passing entries into your purchase ledger.
Match your purchase register with GSTR-2B
Once your vendor invoices are booked, check your eligible credits against your official GSTR-2B. Your GSTR-2B and purchase register files are read in your browser and never uploaded to any server.
Last checked: 27 October 2026. Sources: CBIC CGST Rule 21A, GST Common Portal Search Taxpayer.