There were several instances where customers have been issued improper or unauthentic bills. This festive shopping season, do not fall prey for such fake GST bills. Here is how you can spot a compliant GST bill.
First things first, every bill with GSTIN has to show the break-up of Central GST/CGST and State GST/SGST. Effective 1 July 2017, GST is compliance is a must for all the eligible business and they need to use GSTIN on their invoices. To identify fake GST bill, check for the below pointers.
Check If The Outlet Is Eligible
Some shop owners of the businesses that are not eligible and not registered for GST, also collect the tax from the customer and do not pass it on to the government.
- Small businesses with an all-India aggregate yearly turnover below INR 20 lakhs need not register for GST.
- Businesses with less than INR 10 lakh all-India aggregate yearly turnover, situated in Assam, Arunachal Pradesh, Jammu and Kashmir, Manipur, Uttarakhand, Himachal Pradesh, Mizoram, Sikkim, Nagaland, Meghalaya, or Tripura need not register for GST.
- However, they may volunteer to register for GST even though the business is below the threshold limit.
Is It A Receipt In The Old Format?
If the bill is on the old receipt containing the value-added tax (VAT)/ taxpayer identification number (TIN) and central sales tax (CST) numbers instead of GSTIN, it is a fake bill. But the bill still has CGST and SGST from customers.
Steps To Check If GSTIN Is Correct Or Not
If you think that the merchant is tricking you, here is the procedure to check the GSTIN number.
Step 1: Log on to https://www.gst.gov.in
Step 2: click on ‘search by GSTIN/UIN’
Step 3: If GSTIN is valid or correct, this info will be displayed
” Legal name of business
” Date of registration
” Constitution of business
If GSTIN is invalid or incorrect, this info will be displayed
“The GSTIN/UIN that you have entered is invalid. Please enter a valid GSTIN/UIN.”
Active pending verification: If the message saying, ‘Active pending verification’ is displayed, the GSTIN is fine.
In conclusion, the bill should clearly have GSTIN number with CGST and SGST breakup. If the merchant is not issuing the bill in a proper manner, raise a complaint by writing to email@example.com.