Understanding A GST Bill
You must have a better understanding of GST Bill. Goods and service tax in India is an indirect tax which was introduced in India on 1st July 2017 to impose on the supply of goods and services. The different products have different GST rates. As 5% of ready-made garments, 18% on soaps and 28% on washing detergents and some products such as dairy products, fresh fruits, and vegetables, groceries, meat do not have any GST. With the effect of this tax, the GST bills must contain a breakup CGST and SGST where C & S stands for central and state respectively.
Every company having an annual turnover of more than 20 lacs per annum must apply for a GST number. A GST number comprises of a 15-digit number where the:
• 1st two digits of the GST number represents the state code
• Next ten digits in the GST number is the PAN number of the business owner
• 13th digit of GST number is the registration number within a state.
• 14th digit is alphabet Z by default.
• Last figure is the check code, which is used by the income tax department for internal checks.
GST Bill – Original Or Fake?
Businesses that have a turnover of fewer than 20 lacs needn’t apply for GST number. Hence there are many small businesses which are not eligible but collect the tax through printed GST bills from their customers without paying the taxes to the government. Therefore, you must understand the nature and the scope of the business before settling a GST bill.
There are many shopkeepers and other businesses who continue to maintain the old format of the bills. It carries VAT and TIN number along with central sale tax number (CST) instead of GST number. Do not pay for the invoice generated, which doesn’t have a GST number. All the business owners must apply for a GST number and print GST number on their bills which must have a break of CGST and SGST.
Many times, you may come across business owners who dupe you by saying that the government has not verified their GST number. In such cases, the owners must use their provisional GST number for issuing invoices and filing their returns. There won’t be any change in the GST number of the provisional ones.
How To Check an Original GST Bill?
If you notice any suspicious activities of the business, you can check if the registration of GST number is successful or not on the GST website.
Step 1: Click on the search taxpayer tab on the website
Step 2: Enter the GST number of the business.
If the GST number doesn’t exist, then it shows an error that, ‘the GSTIN that you have entered is invalid. Please enter a valid GSTIN/UIN.
If the GST number entered in the search box is correct, then you will find the complete details of the business registration with the government of India.
If the message pops up saying that Active, pending verification, it is still fine as the provisional GST issued to the business owner is genuine.
Contact 3ECPA for any GST services in India. It includes the registration and every help after that. Click here to know more about us.
3E Accounting India
3E Accounting India is a corporate service provider and accounting firm assisting clients with company formation and incorporation. We offer company secretary and business-related services in India.
