Is Your GST Invoice Genuine? Learn to Recognize Authenticity

Businesses are more likely to come across phony GST bills in the era of Goods and Services Tax (GST). These fake documents may result in serious financial losses as well as legal issues.

Indirect taxes in India has undergone a radical change with the introduction of a unified system through the Goods and Services Tax (GST). On the other hand, fraud has also become easier as a result of this shift, with phony GST bills being issued. Tax evasion, wrongful refund claims, and the creation of fictitious input credits are all possible with these phony bills.

How to determine a fake GST bill

Verify the GSTIN (Goods and Services Tax Identification Number)

In India, each GST-registered entity is assigned a distinct 15-digit GSTIN. The entity type is represented by the tenth digit of the GSTIN, while the state code is represented by the first two digits. To confirm the authenticity of the GSTIN on the bill, compare it to the online GSTIN database.

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Validate the Bill Number and Series

Every GST bill has a distinct series and bill number. Compare these facts with the standard numbering scheme and invoicing format that the supplier uses. Any discrepancies or departures from the standard format could point to a fraudulent bill.

Examine the Bill Format and Printing Quality

There is a set format and layout for GST bills, which includes font sizes, color palettes, and other specifications. To look for any differences, compare the bill you receive with the required format. Additionally, keep an eye out for printing quality irregularities, such as crooked spacing or hazy lettering, as these could be indicators that the bill is fraudulent.

Check for Signature and Stamp

The supplier’s rubber stamp and signature are required on a legitimate GST bill. Check that the signature on the supplier’s GST registration certificate corresponds to the authorized signatory’s data. Make sure the rubber stamp is readable and clear as well.

Verify the Reverse Charge Mechanism

Make sure the buyer’s GSTIN is listed accurately if the bill has a reverse charge mechanism where the buyer is in charge of paying GST. Additionally, make sure the bill has the correct reverse charge indicator.

Scrutinize the Tax Calculation

Verify that the taxable value of the goods or services and the applicable GST rate are reflected in the GST amount computed on the bill. Any disparities or peculiar tax computations may be cause for concern.

Cross-Check with Purchase Order and Delivery Challan

Examine the purchase order and delivery challan that correspond to the information on the GST bill. Make sure that all documents have the same information about the quantity, description, and cost of the items or services.


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Use GST Verification Tools

With the use of the GST e-Invoice site and bill number, you can use one of the many online tools for GST verification to confirm the legitimacy of GST bills.


Read More: How to Claim GST Input Tax Credit and Perform Reversal for the FY 2022-2023


Stay Vigilant and Report Suspicions

When handling GST bills, especially from new or unknown providers, you should always use caution. Report any questions or concerns you may have concerning a bill right away to the relevant GST authorities.

You can effectively secure your business interests and prevent yourself from the perils of phony GST bills by adhering to these instructions and exercising caution. Recall that when it comes to tax fraud, prevention is always preferable to treatment.