Fake GST

A fake GST bill is one that is created in the absence of any transactions. It is made for fake purchases, GST avoidance, and money laundering, among other things. It is prohibited and if caught is penalized. Therefore, in order to spot a fraudulent invoice, you need to do certain actions.

Fake GST Bill

Scammers fabricate a false GST bill in order to deceive customers and company owners, even in the absence of any real GST payment or delivery of products or services. Basically, it is produced for a variety of dishonest purposes, such as tax avoidance.

How to Check the GST Bill?

Learn the fundamentals of a GST bill.

If you wish to verify the legitimacy of a GST invoice, you need first be aware of its fundamental components. It contains information such as the supplier’s name, the recipient’s name, the GSTIN, the invoice number, the invoice date, the HSN code, the rate of applicable tax, the quantity, and the amount. You cannot identify the differences unless you are familiar with the components.

GST Bill Check

A list of the products shipped or services rendered, together with the payment amount owed, is what is called an invoice or bill for goods and services tax (GST). Every GST-registered firm is required to provide an invoice with a valid GSTIN and a breakdown of the three types of GST: integrated, central, and state. Additionally, it’s critical to review an invoice’s details and determine whether the GST invoice that was given is authentic.

Therefore, a GST invoice may be fraudulent if any of the necessary details are absent. For instance, 

(i) A trader’s GST invoice would be regarded as fraudulent if it were issued without a GSTIN. 

(ii) A firm will also be accused of creating a fictitious invoice if it charges GST without being registered for GST and puts a fictitious GSTIN on the invoice. This is because the tax payment will not be lodged with the government.

Every taxpayer is given a 15-digit unique code called a GSTIN, which is distributed state-by-state and is based on PAN.  This number is immediately recognisable as a fake if there is any alteration to its structure. But, even because a GSTIN is included in the right format does not imply that it is legitimate or that the company generating the invoice has the GSTIN. 

GST Verify 

In the event that a client discovers something questionable about an invoice, you may quickly confirm the legitimacy of any GSTIN using these methods:

Verifying the GSTIN, or Goods and Services Tax Identification Number, is the initial step. This is the 15-digit alphanumeric code that every taxpayer who has registered is given. The identification of all legitimate GST transactions is quite beneficial.

Check out the GST mobile app or the official website.

  1. Select “Search Taxpayer.”
  2. Next, select “Search by GSTIN.”
  3. On the invoice, enter the GSTIN.
  4. Following the completion of the captcha, click the “submit” button.
  5. All information, including the business name, address, and registration status, is visible.
  6. Verify whether the information on the invoice and the portal match.

Verify the information on the invoice again

Verifying a few crucial elements on the invoice is the next step. The information to be verified comprises

Number and date of invoice

Verify whether the invoice number makes sense in its order. An indication that the invoice is fraudulent might be the absence of a logical sequence. Additionally, make sure the date of the invoice and the supplier’s transaction match.

Supplier and recipient details

Check to make sure that the recipient’s and supplier’s legal name, address, and GSTIN are correct. Verify the information provided on the portal against the details.

Calculating Tax and Invoice Amount 

A GST calculator is available when you visit the GST portal. Utilize it to determine the tax liability. Verify that the tax amount on the invoice is the same. Any notable variations may indicate that the GST bill is fraudulent.

  • HSN System

The globally recognised Harmonised System of Nomenclature is referred to by its HSN code. Thousands of goods are classified by this 6-digit identifier. Verify if the HSN code on the invoice corresponds to the product or service. A false statement will demonstrate that the invoice is not authentic.

  • GST Rate Finder

Certain vendors could apply the incorrect GST rate. You can use the GST rate chart on the web to confirm the GST rate in this particular sort of GST false invoice situation.

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Verify GST with QR Code

GSTs have a Quick Response (QR) code attached. Since it includes all the pertinent information regarding the invoice, it makes it simpler to identify bogus GST bills. Furthermore, it gives the invoice an additional degree of protection.

You may utilize the built-in QR code scanner found on the majority of mobile phones. Installing the app to scan QR codes may be done if your phone doesn’t have one.

Scan the QR code on the invoice after opening it.

Details like the invoice number, the transaction date, and the GSTIN will be available to you.

To ensure their legitimacy, compare these facts with the information on the invoice.

  • Check again on the GST gateway

The GST site is a valuable resource for verifying the authenticity of invoices and detecting and averting fraudulent activities.

  1. Use your GST credentials to log into the portal.
  2. Navigate to the “Returns” section and choose the relevant form.
  3. Verify the information on the portal against the details shown on the invoice. Check for any discrepancies with the tax amount and any other pertinent information.
  • Verify your e-way bill number

If there is an e-way bill number on your invoice, you should verify that the products are being transported legally.

  • Examine the signature

GST invoices should be signed by the supplier or an individual with his authorization. Verify that the supplier’s signature corresponds with the sample signature.

GST Details Verify with Surepass

By streamlining the procedure and making it simple for companies to verify the legitimacy and specifics of GST registrations, Surepass’s GST Verification API ensures accuracy and compliance in GST-related processes and reduces the risk of fraud.

 Users may quickly obtain important data, like the business name, GST status, state jurisdiction, and GST Identification Number (GSTIN), by inputting their GST Number.

 This API lowers mistakes and increases efficiency in GST verification procedures, making it a useful tool for a variety of businesses, including banking, e-commerce, and supply chain management.

Automate your KYC Process & reduce Fraud!

We have helped 1000+ companies in reducing their user onboarding TAT by 95%

Book a demo to learn more