Synopsis A GST invoice is generated by a supplier or a seller to the buyer of the goods and services. The bill has all the information including identification of buyer and seller, name of the product, description, quantity of goods/services purchased/ details of supplier, date of purchase, discount, etc.
The implementation of the Goods and Services Tax (GST) in India in 2017 aimed to simplify the indirect tax system, but the rise in fake GST invoices by fraudulent individuals and companies has affected the GST network’s integrity and caused significant revenue loss. It is essential for businesses and individuals to be cautious and report any suspicious or fake GST invoices to maintain a fair taxation system.
To prevent fraudulent activity, it is important to verify the authenticity of a GST bill, as it is commonly used for settling claims and filing income tax credits. Customers can quickly check if the bill is original to avoid being deceived and ensure that their GST bills are accurate.
What is GST Invoice?
A supplier or seller generates a GST invoice for the buyer, containing crucial information such as the identification of both parties, product name and description, quantity, supplier details, date of purchase, and discounts. This document serves as legal proof of the transaction and is essential for claiming input tax credits.
What is fake GST Invoice?
The Union Ministry of Finance states that fake GST bills can be created without actual goods or service supply or GST payment, and are used for illegal activities like evading GST, converting tax credit to cash, fake purchases and money laundering. Reporting such fraud is crucial to maintain GST system’s integrity.
How to check the authensity of GST Invoices:
The authensity of GST Invoices can be verified by following a few simple steps.
Below is mentioned how can you check authensity of GST Invoices.
Verify the GSTIN
The first step to check the authensity of GST Invoices is to verify the GSTIN(Goods and Services Tax Identification Number) of the suppliers. Every registered suppliers is allotted 15 digit unique no by GST Department which is a combination of State Code, PAN and a Unique registration number.
Visit GST Site for verifying GSTIN
To verify GSTIN of the Suppliers, You have to visit GST Portal (www.gst.gov.in) and Click on ‘Search Taxpayer’ tab.
Enter GSTIN of the supplier and captcha code and then click on “Search” tab.
If GSTIN is valid, the Name and Address of the supplier will be displayed on the screen.
Check the Invoice Number and Date
The next step is to check the Invoice number and date mentioned on the GST Invoice of the supplier. The Invoice no. should be unique and consecutive, and the date of invoice falls within the prescribed timeline. Any discrepancy in the Invoice number and date can indicate a fake GST bill.
Verify the Invoice value and Tax Amount
The GST Invoice should mention correct value, including the tax Amount. The tax amount should be calculated based on the applicable GST rate for the goods or service provided. You can cross-check the tax amount by using the GST calculator available on the GST portal.
Verify the Signature of the supplier
The GST should be signed by the supplier or their authorized representative. The signature should be genuine and should be match with the signature available with the GST authorities.
Check the tax payment status.
You can check the tax payment status of the supplier on the GST portal. If the supplier has paid for the tax, it will be reflected in their GST return filed on the GST portal.
How to raise a complaint against GST fraud?
You can visit the official portal of GST, then click on CBEC Mitra Helpdesk and ‘Raise Web Ticket’.
People can also send emails to cbecmitra.helpdesk@icegate.gov.in.
Another way to flag a complaint is to reach out to the authority on Twitter. Their official Twitter handle is GST(@askGST_I) and the Finance Ministry (@FinMinIndia).
By following these steps, you can avoid falling prey to fake GST invoices and ensure that you are dealing with a genuine supplier.