The Goods and Services Tax (GST) system was introduced in India in 2017 to act as a single taxation system and promote transparency and efficiency in the tax system. Often the GST bills are used to settle claims and file for Income Tax Credits. As a customer, it is crucial to verify the authenticity of the GST bill to make sure you are not being duped.
A fake GST bill is generated without any actual supply of goods or services or GST payment. It is very easy to run a quick check to figure out the authenticity of the GST bill. Let’s see how we can verify the authenticity of a GST bill.
Verify the GSTIN
The first step to verify the authenticity of a GST bill is to check the GSTIN (Goods and Services Tax Identification Number) of the supplier. Every goods or services supplier is allotted a unique 15-digit GSTIN, which includes the state code, PAN, and a unique registration number. If the GSTIN is valid, these details – type of taxpayer, registration date, registration location (state), legal name and trade name of the business, UIN, or GSTIN status – will be displayed on the GST portal.
Check Invoice Number
The next thing to do is to verify the invoice number and date mentioned in the GST bill. The invoice number needs to be unique and consecutive, and the date of the invoice should fall within the prescribed timeline.
Check Invoice Value And Tax Amount
The GST bill mentions the correct invoice value and the tax amount. The tax applicable on the particular invoice can be calculated on the basis of the appropriate GST rate, which can be cross-checked and calculated via the GST calculator available on the GST website.
Verify Signature Of Supplier
The GST bill will include the signature of the supplier or their authorised representative. The signature seen on the bill should match the one available with the GST authorities.
Check Tax Payment Status
A customer can also verify the tax payment status of the supplier on the GST portal. If the supplier has paid tax for the invoice, it will be displayed on the GST return filed on the portal.
Therefore, keep these points in mind and always ensure that you are not being taken advantage of as a customer. If you find a fake GST bill, make sure to report it via the GST portal or the toll-free number provided there.