Consumers Beware! Here’s how to protect yourself from Fake GST Invoices

The Goods and Services Tax system, to simplify the taxation process, has also turned into a tool for scammers to avoid paying taxes. Smaller companies and customers may experience difficulties as a result of the widespread fraud using GST invoicing. The fraudsters can even steal money from clients who have paid taxes by using fake GST bills.

The GST bills are used for paying claims and applying for income tax credits. Customers can easily perform a quick check to determine whether the bill that has been given to them is original or not in order to prevent being conned by shops and businesses pretending that it is an authentic bill.

GST invoice

Despite there being no actual supply of goods or services or GST payment, a false GST bill can nonetheless be generated, according to the Ministry of Finance circular for identifying phoney GST invoices.

For the purposes of money laundering, converting tax credits into cash, registering fictitious purchases, and GST evasion, phoney GST bills can be generated.

Mandatory Fields in GST Invoice

• Invoice number and date
• Customer name
• Shipping and billing address
• Customer and taxpayer’s GSTIN (if registered)
• Place of supply
• HSN Code/ SAC code
• Item details i.e. description, quantity (number), unit (metre, kg etc.), total value
• Taxable value and discounts
• Rate and amount of taxes i.e. CGST/ SGST/ IGST
• Whether GST is payable on reverse charge basis
• Signature of the supplier

How to identify a fake GST invoice?

It’s critical to spot a fraudulent GST invoice. The consumers must protect themselves from being conned.

1. Checking the GSTIN format

The GSTIN is 15 digits long. The first two numbers represent the state code, the subsequent ten represent the seller’s or supplier’s PAN, and the thirteenth represents the entity number of the same pan holder in the state. The letter “Z” represents the 14th digit in the GSTIN, while the “checksum digit” is the 15th digit. Any inconsistency in the GSTIN format can aid in locating errors in the GST invoice.

2. GST Website

Checking the GSTIN on the GST website is another method to validate the legitimacy of the invoice. Visit https://www.gst.gov.in, the Goods and Services Tax’s official website. To verify the GSTIN number listed on the GST invoice, select the ‘Search Taxpayer’ option. Choose “Search by GSTIN” and type the GSTIN into the search field. The supplier’s information will be displayed on the website if the GSTIN is genuine.

How to file a complaint of GST fraud?

Once it is found that the GST invoice is fraud, people can visit the official portal of GST. Then click on CBEC Mitra Helpdesk and ‘Raise Web Ticket’. People can also send emails to cbecmitra.heldesk@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_GoI) and the Finance Ministry.

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