How the Score is Calculated
50 pts
Registration Status
Active = 50 · Suspended = 10 · Cancelled = 0
30 pts
Filing Recency
Based on last GSTN update date. Updated within 45 days = 30 pts
10 pts
Entity Age
Older businesses get higher trust. 5+ years = 10 pts
10 pts
Compliance Type
Regular taxpayer = 10 · Composition = 5 pts
What is a GST Health Score?
A GST Health Score is a 0–100 compliance trust signal calculated from publicly available GSTN data. It gives you an at-a-glance risk rating before you transact with a supplier — so you can protect your Input Tax Credit (ITC) without manually reviewing each GSTIN on the government portal.
GSTVerify's score analyses four factors: registration status, filing recency, entity age, and taxpayer type. Each factor is weighted by its ITC risk impact, giving you a single number that tells you how safe it is to accept an invoice from that business.
Score Bands Explained
80–100 · Excellent
Active registration, recent filings, established entity. ITC risk is low.
60–79 · Good
Active but may have minor gaps — newer business or filing delays. Acceptable for most transactions.
40–59 · Fair
Some compliance gaps. Verify manually and consider requesting return filing proof before transacting.
0–39 · High Risk
Suspended or cancelled, or extended non-filing. High ITC risk — avoid accepting invoices without verification.
Why Check a Supplier's GST Health Score?
- ITC protection: Invoices from cancelled or suspended GSTINs are not eligible for ITC under Section 16 of the CGST Act.
- Avoid demand notices: If a supplier doesn't file returns, the ITC you claimed may be reversed with 18% interest per annum.
- Due diligence at scale: Run health checks on your entire vendor list before each filing period using our Bulk Verification tool.
- Spot composition dealers: Composition taxpayers cannot charge GST on invoices — if you accept such an invoice, there is no valid ITC to claim.
How the Score is Calculated
The score is built from four weighted factors derived directly from GSTN API data — no guesswork, no self-reported information:
- Registration Status (50 pts): Active = 50 · Suspended = 10 · Cancelled/Migrated = 0. This is the single biggest factor because a non-active GSTIN voids ITC eligibility entirely.
- Filing Recency (30 pts): Based on the
lstupdt (last updated) date from GSTN. Updated within 45 days = 30 pts, declining to 0 pts after 180+ days without activity.
- Entity Age (10 pts): Older, established businesses carry lower fraud risk. 5+ years = 10 pts · 2–5 years = 7 pts · Under 2 years = 4 pts.
- Compliance Type (10 pts): Regular taxpayer = 10 · SEZ/OIDAR = 8 · Composition scheme = 5 · Other = 3. Composition dealers cannot legally charge GST on B2B invoices.
Frequently Asked Questions
Is the GST Health Score an official government rating? ▾
No. The GST Health Score is GSTVerify's proprietary compliance indicator, calculated from publicly available GSTN data. It is not issued by GSTN, CBIC, or any government body. Always verify critical decisions with your CA or on the official GST portal at gst.gov.in.
How often is the score updated? ▾
The score is recalculated every time you run a check. GSTN data is fetched live for new lookups and cached for 30 days. If you need the most current data for a supplier, add ?refresh=1 to the URL or use the main verification page to force a fresh fetch.
Can a business improve its health score? ▾
Yes. The biggest gains come from ensuring the GSTIN stays Active (no suspension) and filing returns on time to keep the "last updated" date recent. Score improvements are reflected within hours of GSTN updating their records.
What does a suspended GSTIN mean for my ITC? ▾
A suspended GSTIN means the supplier's GST registration has been temporarily blocked. You must not accept invoices from suspended suppliers — ITC on such invoices will be denied under Rule 86A, and you may receive a demand notice for any ITC already claimed.
Is this tool free? ▾
Yes, the GST Health Score checker is completely free. Enter any valid GSTIN and get the score instantly. For bulk health checks across multiple suppliers, use our Bulk Verification tool (5 free/day or paid credits for up to 500 at once).
Does a high score guarantee ITC eligibility? ▾
No. The score is an indicator, not a guarantee. ITC eligibility also depends on the supplier actually filing their GSTR-1, the invoice being reflected in your GSTR-2B, and the transaction being for business purposes. A high health score significantly reduces risk but should be combined with GSTR-2B reconciliation.
