In the recent, there have been cases in point where customers have been given fake or improper Goods and Services Tax (GST) bills. It is crucial that one must be au courant if you are receiving an authentic bill or not. To make certain, here are some know-how to identify a fake bill so that you are not one of the others:
•Not eligible yet charging GST:
It is not necessary that all shop owners are required to register under GST. Even though the turnover is below the verge limit i.e. Rs 20 lakh (Rs 10 lakh if the business is situated in Assam, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland, or Tripura, the owners will opt to register.
It may happen that the ones that are not eligible or not registered still collect GST from the customer and do not even pass it over to the government.
• Collecting GST on old bills:
Some business or shop owners are collecting GST on old bills instead of GST Identification Number (GSTIN) but still charging customers with Central GST (CGST) and State GST (SGST) which is a crooked practice. Though for July 1, 2017, it is mandatory for businesses to migrate to GST and use GSTIN on their invoices.
• Use of provisional GST number:
In case a shop owner is charging CGST and SGST without GSTIN and trying to hide from an excuse stating that his final GST number is not verified yet. For the businesses who have not yet received their final GSTIN must use their provisional GSTIN to issue invoices, file returns and adhere to other compliances. Provisional GSTIN is the final GSTIN number itself, so there won’t be any subsequent changes to this number.
As a customer if u wish to check if the merchant is into something suspicious you can follow the certain step and check if the GSTIN mentioned is correct or not:
1. Log on to https://www.gst.gov.in
2. Under the ‘search taxpayer’ drop-down, click on ‘search by GSTIN/UIN’
If GSTIN is incorrect, the following message will be displayed:
“The GSTIN/UIN that you have entered is invalid. Please enter a valid GSTIN/UIN.”
If GSTIN is correct, the following information along with the GSTIN status will be displayed:
“Legal name of business, State, Date of registration, Constitution of business – private or public limited company, sole-proprietor or partnership”
Also, if the portal shows the message ‘Active pending verification’, the GSTIN is fine. It’s the provisional ID issued to the business/shop owner but shows that the GSTIN has been applied for.
Still, if u feel that merchant is not providing the proper bill with GST format you can step-up a complaint against him through GST portal.
Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws