To avoid fraudulent activities, it is essential to examine the authenticity of the GST bill. The GST bills are frequently used to settle claims and file for Input Tax Credits.
Reetu | May 9, 2023 |
Got Confused about GST Fake Bill; Follow this Step-By-Step Guide to Identify GST Fake Bill
Goods and Services Tax (GST) was introduced by the central government in the year 2017 to simplify the indirect tax system. Indirect taxes like VAT and service tax were abolished after the introduction of GST.
However, as the GST network and registrations have expanded, there has been an increase in the number of fake GST invoices produced by fraudsters.
To avoid fraudulent activities, it is essential to examine the authenticity of the GST bill. The GST bills are frequently used to settle claims and file for Input Tax Credits. Customers can avoid being deceived by doing a fast check to determine whether the bill given over to them is genuine or not.
At present, there are reports of some frauds regarding the GST. Dealing with fake GST bills is the biggest problem in this. Let us know how to identify fake GST bill and where to complain about it.
A GST invoice is generated by a supplier or a seller to the buyer of the goods and services. The bill contains all of the information, such as buyer and seller identification, product name, description, amount of goods or services purchased/ supplier details, date of purchase, discount, and so on.
According to the Union Ministry of Finance, a GST fake invoice is issued even when there is no actual supply of goods or services or payment of GST. Fake GST bills can be created for GST evasion, converting ITC into cash, registering fictitious purchases, and money laundering.
A few easy actions can be taken to verify the legitimacy of the GST bill. Here’s how to verify the legitimacy of a GST bill.
Verify the GSTIN
The first and most important step in determining the legitimacy of a GST bill is to confirm the supplier’s GSTIN (Goods and Services Tax Identification Number). Every registered supplier of goods or services is given a unique 15-digit GSTIN, which is a combination of the state code, PAN, and a registration number.
Visit GST site for authenticating GSTIN
1. To validate the GSTIN, go to the GST site and select the ‘Search Taxpayer’ tab.
2. Enter the supplier’s GSTIN into the search bar and press the ‘Search’ button.
3. If the GSTIN is legitimate, the supplier’s name and address will be displayed on the screen.
Check the Invoice Number and Date
The next step is to double-check the invoice number and date on the GST bill. Check that the invoice number is unique and consecutive, and that the invoice date is within the specified time frame. Any difference in the invoice number or date may indicate a Fake GST bill.
Verify the Invoice Value and Tax Amount
The GST bill must reflect the correct invoice value, as well as the tax amount. The tax amount should be computed using the applicable GST rate for the products or services provided. You can double-check the tax amount by using the GST calculator, which is available on the GST portal.
Check for HSN/SAC code
HSN (Harmonised System of Nomenclature) codes are unique to commodities, whereas SAC (Services Accounting Code) codes are unique to services. The right HSN/SAC code for the products or services given should be mentioned on the GST bill. The GST portal can be used to validate the HSN/SAC code.
Verify the Signature of the Supplier
The supplier or their authorised representative must sign the GST bill. The signature must be genuine and match the signature of the provider on file with the GST authorities.
Check Tax Payment Status
The GST site allows you to verify the supplier’s tax payment status. If the supplier paid the tax on the invoice, it would be shown in their GST return, which will be filed on the site.
If you come to know from the above suggested measures that the GST bill given by the buyer is fake, then report it. For this you can share mail on [email protected]. At the same time, you can also register your complaint on the official Twitter handle of the government @askGST_GoI and @FinMinIndia.
You can also visit the official GST portal, then click on CBEC Mitra Helpdesk and ‘Raise Web Ticket’.
By following these procedures, you can prevent falling victim to Fake GST invoices and guarantee that you are dealing with a legitimate supplier.
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