Large number of Goods and Services Tax (GST) fraud cases involving the use of fake invoices for wrong availment of input tax credit (ITC), which is further used to pay GST on outward supply have been detected since the rollout of GST by the Central GST authorities as well as State GST authorities. Identifying a fake GST invoice is crucial to prevent tax evasion.
What Is A Fake GST Invoice?
The ‘Invoices’ that are usually treated as ‘fake’ are those wherein the GST invoices are raised by an entity without actual supply of goods or services or payment of GST.
Here’s a step-by-step guide on how to identify a fake GST invoice:
Verify the GSTIN:
Check for the presence of a valid GSTIN (Goods and Services Tax Identification Number) on the invoice. A valid GSTIN should have 15 digits.
Verify the GSTIN on the official GST portal (https://www.gst.gov.in/). Enter the GSTIN in the ‘Search Taxpayer’ section and check if the details match the supplier’s information.
Every registered supplier of goods or services is assigned a GSTIN, which is a combination of the state code, PAN, and a unique registration number.
If the GSTIN is valid, the name and address of the supplier will be displayed on the screen.
Invoice Number and Date:
Check the date and invoice number mentioned on the GST bill. Any discrepancy can indicate that the said bill is a fake GST bill.
HSN and SAC Codes
Harmonized System of Nomenclature code is assigned to goods, while Services Accounting Code is assigned to services.
This can be verified from the GST portal.
Verify Tax Payment Status:
Visit the GST portal and check the supplier’s tax payment history. Ensure the supplier has paid the taxes for the invoice in question.
Mera Bill Mera Adhikaar scheme
Recently, the government launched the Mera Bill Mera Adhikaar scheme, in an effort to encourage customers to ask for bills for all purchases. The scheme’s objective is to create a cultural and behavioural shift in people, encouraging them to request a bill as their right and entitlement.
Consumers will be eligible for exciting rewards of up to one crore rupees under this scheme. To be eligible for the reward, customers must upload their bills to the Mera Bill Mera Adhikaar app. They can also upload the bills to the merabill.gst.gov.in web portal.
Mera Bill Mera Adhikaar is presently accessible on both the iOS and Android platforms. All invoices submitted to consumers by GST registered suppliers would be eligible for the Mera Bill Mera Adhikaar initiative.
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