GST Bill: We should always have the GST bill with us when we shop. One type of tax is GST. The GST Bill was enacted by the Central Government in 2017. This decision was made by the government to combat tax evasion. Many vendors send out phony GST invoices. Tell us in this article what distinguishes a legitimate GST bill from a phony one.
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One type of tax is GST.
The purpose of the GST bill is to combat tax evasion.
False GST bills are a common way for providers to perpetrate fraud.
Desk for Business, New Delhi. Ensuring the smooth operation of the Goods and Services Tax System is the goal of its implementation. There was a time when a lot of people would charge others extra for taxes or avoid paying them altogether. The GST bill was introduced in this context to combat this kind of fraud.
Currently, a lot of small business owners deceive their clients by providing phony GST invoices. What distinguishes a genuine GST bill from a phony one should be known in order to prevent this kind of fraud.
A GST invoice: what is it?
One kind of bill is a GST invoice. The supplier provides this bill after delivering the goods or services. This document lists the products that the provider supplied to the client, along with the quantity and amount of tax that was applied. The supplier’s name, the product, its specifications, the purchase date, the discount, and other details are all listed on this bill.
Is a bogus GST invoice what?
The circular released by the Finance Ministry states that counterfeit GST bills or invoices don’t accurately reflect the products. The purposes of this bill include money laundering, tax evasion, and fraudulent booking. In addition, false bills are created in order to obtain income credit. What to do now is to distinguish between a genuine and a fraudulent GST bill?
How to spot a phony GST invoice
A phony GST bill can be easily recognized by its GST number. The GST bill has a 15-digit GST number. The state code appears in the first two digits of this number, and the supplier’s or shopkeeper’s PAN number appears in the next ten digits. ‘Z’ is the fourteenth digit, ‘checksum digit’ is the last digit, and the thirteenth is the PAN holder’s unit.
The format of a GST number can also be used to distinguish between a legitimate and a phony one.
On the GST website, you may also check your GST bill. The supplier’s data appear on the screen once you enter GST on the website.