Is your GST bill fake? Know how to identify and report it quickly

November 30, 2023
CA Chandan Agarwal's Office

Even without supplying goods or services or GST payment, scammers generate a fake GST bill to defraud traders and customers. This is done for reasons like tax evasion, converting input tax credit into cash, booking fake purchases or money laundering.

Fake GST Bill: For some time now, GST officials have been trying to stop GST fraud. According to the GST Council, most of the GST fraud in the country are done through fake invoice bills. Goods and Services Tax (GST) was implemented in 2017 to simplify the taxation system in the country. The purpose of it was to remove many indirect taxes like VAT, service tax, etc. Under GST, every registered business is required to issue an invoice containing a valid GSTIN, which will show the breakup of Integrated GST, and State GST. However, like every other new system, many fraudsters have started taking advantage of the GST system.

Fake GST bill is a big problem

Fake GST invoices have become a big issue of tax evasion for the officials.

Notably, such rampant cases of fraud in the form of fake GST invoices can be a major hassle for small businesses and customers as these help fraudsters siphon off money paid by customers in the name of tax.

As stated by the Union Finance Ministry, even without supply of goods or services or GST payment, scammers generate a fake GST bill to defraud traders and customers.

This is done for reasons like tax evasion, converting input tax credit into cash, booking fake purchases or money laundering.

(How to identify Fake GST Invoice)

Fake GST invoice or bill can be identified in many ways.

GSTIN Verification

You can verify the GST invoice by visiting the official GST, portal https://www.gst.gov.in/and verifying the GSTIN (Goods and Services Tax Identification Number).
On the homepage, select ‘Search Taxpayer’ to check the GSTIN number given in the challan.
If the GSTIN is genuine, you will get its details on the website.

GSTIN Format

If you know the meaning of the 15 digit GSTIN number, you can identify a fake GST bill.

The first two digits of GSTIN represent the state code, the next 10 digits are the PAN number of the seller or supplier.

The 13th digit is the unit number of the same PAN holder, the 14th digit is the letter ‘Z’, and the 15th digit is the ‘checksum digit’.

(How to report Fake GST Challan)

There are several ways to report cases of fake GST invoices.

You can visit the official GST portal and register your complaint on ‘CBEC Mitra Helpdesk’ and ‘Raise Web Ticket’.
You can also send an email to cbic mitra.helpdesk@ice-gate.gov.in.
You can also contact the concerned authority through the official Twitter handle of GST.

Source: https://www.zeebiz.com/personal-finance/news-is-your-gst-bill-fake-know-how-to-identify-and-report-it-quickly-266110

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