Cracking down on fake GST invoices | Fusion - WeRIndia

In the complex landscape of Goods and Services Tax (GST), the proliferation of fraudulent activities involving fake invoices has become a pressing concern for tax authorities.

The misuse of such invoices for wrongful input tax credit (ITC) claims poses a significant threat to the integrity of the GST system.

Identifying and preventing the circulation of fake GST invoices is crucial in the fight against tax evasion.

Fake GST invoices are those issued by entities without an actual supply of goods or services, allowing them to wrongfully avail ITC for the payment of GST on outward supplies.

To safeguard against this, a vigilant approach is required, starting with a thorough verification process.

Identify Fake GST Invoices with the below-mentioned process:

• Ensure the presence of a valid 15-digit GSTIN on the invoice.
• Cross-verify the GSTIN on the official GST portal.
• Confirm that the details match the supplier’s information.
• Scrutinize the invoice number and date for any discrepancies, as these can be indicators of a fake GST bill.
• Confirm the accuracy of the Harmonized System of Nomenclature (HSN) and Services Accounting Code (SAC) mentioned on the invoice.
• Verify these codes on the GST portal to ensure alignment.
• Visit the GST portal to check the supplier’s tax payment history.
• Ensure that taxes for the specific invoice in question have been duly paid.

In a proactive move to combat tax evasion and encourage transparency, the government has introduced the Mera Bill Mera Adhikaar scheme.

This initiative aims to instil a cultural shift, urging customers to demand bills for every purchase.

Customers participating in the scheme can be eligible for rewards up to one crore rupees.

To qualify, consumers need to upload their bills through the Mera Bill Mera Adhikaar app or the merabill.gst.gov.in web portal.

The Mera Bill Mera Adhikaar initiative is available on both iOS and Android platforms, making it easily accessible to a wide audience.

All invoices issued by GST-registered suppliers are eligible for this initiative, reinforcing the importance of transparency in the GST ecosystem.

In the relentless pursuit of a fraud-free GST environment, this comprehensive guide and the Mera Bill Mera Adhikaar initiative stand as formidable tools to protect the integrity of the tax system.

In addition, they incentivize responsible consumer behaviour.

Image Credit: Yeshwanth1810183, CC BY-SA 4.0, via Wikimedia Commons

Image Reference: https://commons.wikimedia.org/wiki/File:Goods_Tax_service.jpg