In recent times, fraudulent businesses and consumers have been creating fake GST bills to deceive unsuspecting parties, even without the supply of goods or services or actual GST payments. Efforts have been made by GST officials to curb GST fraud, particularly through fake invoices. According to the GST Council, most GST fraud in the country occurs through fake invoices.
The Goods and Services Tax (GST) was implemented in 2017 to simplify the country’s taxation system by eliminating various indirect taxes such as VAT, service tax, etc. Under GST, every registered business is required to issue a valid GST invoice, showing a breakdown of integrated GST, state GST, and central GST. However, like any new system, several fraudsters have started taking advantage of the GST system.
Fake GST bills pose a significant problem, especially for small businesses and consumers, as they help fraudsters embezzle money paid by customers under the guise of taxes. This is primarily done through tax evasion, converting input tax credits into cash, making fraudulent purchases, or engaging in money laundering.
How to Identify Fake GST Bills?
1. GSTIN Verification
- Visit the official GST portal https://www.gst.gov.in/.
- Verify the GST Identification Number (GSTIN) by using the “Search Taxpayer” option.
- If the GSTIN is legitimate, the information will be available on the website.
2. GSTIN Format
- Understand the format of the 15-digit GSTIN. The first two digits represent the state code, the next 10 digits represent the PAN number of the vendor or supplier, the 13th digit is the entity code of the taxpayer, the 14th digit is ‘Z,’ and the 15th digit is the checksum.
Reporting Fake GST Bills
If you come across cases of fake GST bills, you can report them through various channels:
- Official GST Portal:
- Visit the GST portal and navigate to ‘CBEC Mitra Helpdesk’ and ‘Raise Web Ticket’ to file your complaint.
- Email Complaint:
- Email your complaint to [email protected].
- Social Media:
- Reach out to GST officials through the official GST Twitter handle.
Staying vigilant and reporting instances of fake GST bills is crucial in preventing fraud and maintaining the integrity of the GST system. Remember to verify GSTINs and report suspicious activities promptly.
