There have been a number of recent reports of taxpayers claiming Income Tax Credit (ITC) without actually delivering the goods and issuing bogus GST invoices in the process. Businesses can no longer use a tax identification number (TIN) or a service tax registration number on their invoices now that VAT and service taxes have been merged into GST. Charging Central GST (CGST), State GST (SGST), or Integrated GST (IGST) on invoices containing a TIN or service tax registration number is now illegal.
A GST tax invoice typically has 16 mandatory fields. Under GST, a registered taxable person is required to issue an invoice containing all relevant information, such as the GSTIN, tax divergence, and so on. If a taxpayer issues an invoice that is missing critical information, the invoice may be considered a fake GST invoice.
What is GSTIN?
Each taxpayer is given a GSTIN, which is a 15-digit unique code. It is PAN-based and State-based. If the structure of this number changes in any way, it can easily be recognized as a fake.
- The first two digits of GSTIN represent the state code.
- The next ten digits represent the PAN number of the business entity.
- The thirteenth digit will be allocated based on the number of registrations a business entity has completed within a given state.
- The fourteenth digit is Z by default, can be allocated in the future, based on the number of registrations done by the entity.
- The last digit is for check code.
We've compiled all of the information you'll need to identify fake GST invoices. Not all store owners are required to register for GST and obtain a GSTIN (GST Identification Number). However, every bill with a GSTIN must show the breakdown of Central GST (CGST) and State GST (SGST).
Different ways to identify fake GST invoices
Businesses must be GST registered in order to charge GST on invoice amounts.- If a taxpayer isn't registered, he or she won't be able to charge GST to their customer.
GSTIN should be there on the invoice- Every taxpayer who is registered for GST is given a GSTIN, which is a unique identification number.
GTINs should be structured effectively- Every taxpayer is given a 15-digit alphanumeric code known as a GSTIN. Every digit has its own identity and the last number is random.
GSTIN Mentioned on the Invoice Should be Valid- To see if a GSTIN on an invoice is valid, go to the GST portal. Enter the GSTIN number and verify.
How to check if GSTIN mentioned is valid?
Step 1: Visit the search page of the official GST portal
Step 2: Enter GSTIN number
Step 3: Enter the 'captcha' code
Step 4: Click on the 'Search' button.
If the GSTIN is valid, the following details are provided:
Business name and business legal name
Registration date of GST
Jurisdiction State and Center
Corporation or type of taxpayer
Status of GSTIN or UIN
We must all know the GST platform rates, at least for important products and services. The GST slabs are - 0%, 5%, 12% and 18%.
GST Helpline Number : 0124-4688999/ 0120-4888999
GST Complaint email-id : helpdesk@gst. gov.in
GSTIN can be used to deceive customers by manufacturers. To avoid paying taxes to the government, the supplier may create a fake GSTIN ID. A supplier may generate fake inward invoices in order to balance the tax liability. These invoices would be produced even if no goods were actually delivered.