9/20/2017 GST: Here's how to spot a fake GST bill, Retail News, ET Retail

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Industry GST GST Bill proprietor Bill

Here's how to spot a fake GST bill

Businesses which have not yet received their final GSTIN must use the provisional number to
issue invoices and file returns.
Sunil Dhawan | ECONOMICTIMES.COM | September 19, 2017, 14:37 IST

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The transition to Join Now!
the goods and
services tax (GST)
regime for many
shoppers has not
been smooth,
especially with
regards to the bill
of a transaction.
This is because
there have been
instances where
The Rajya Sabha passed the bill on goods and services tax
(GST) a year after it received the approval of the Lok Sabha. This customers have
triggered a surge in the equity market and strengthened the case been given
for the so-called 'India story'. The Sensex and Nifty ended slightly
higher as investors GST Bill, though the gains were tempered by unauthentic or
concerns about the amount of work needed to bring the reforms
into reality. The broader NSE index ended up by 6.25 points or improper bills.
0.07 per cent at 8,551.10, after rising as much as 0.66 per cent
earlier in the session. Similarly, the BSE index Sensex ended up

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9/20/2017 GST: Here's how to spot a fake GST bill, Retail News, ET Retail
by 16.86 points or 0.06 per cent at 27,714.37, after gaining as
Read on to find out
much as 0.81 per cent.
how you can
identify an
authentic bill and a business that is eligible and compliant with GST
rules.

Outlet not eligible yet charging GST

Not all shop owners are required to get themselves registered
under GST and get a GSTIN (GST Identification Number). But
every bill carrying the GSTIN has to show the break-up of central
GST (CGST) and state GST (SGST).

Small businesses having an all-India aggregate yearly turnover

below Rs 20 lakh (Rs 10 lakh if business is situated in Assam,
Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh,
Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland, or
Tripura) need not register. Most Read This Week

This Month
They may, however, voluntarily opt to register even if the turnover
is below the threshold limit. It may so happen that some shop Restaurants that are still making
owners who are not eligible and not registered still collect GST you pay service charge could
from the customer and do not even pass it over to the government. now face big tax blowThe move
comes after
the department
Collecting GST in old format issued
It has also been observed that some businesses and shop owners advisories for
are using old receipts carrying value added tax (VAT)/ taxpayer making service
Forget 90% discounts: This festive s
identification number (TIN) and central sales tax (CST) numbers
instead of GSTIN but are still charging central GST (CGST) and Amazon.in sale from September 21-24
State GST (SGST) from customers. GSTIN has to show the break- Hundreds of people duped by e-reta
up of CGST and SGST. "This is an incorrect practice. Effective 1
Nothing official about it: Virat Kohli s
July, GST is applicable and accordingly compliance is a must. All
eligible businesses must migrate to GST immediately and use
Most Read in Industry
GSTIN on their invoices. Taxpayers must register with GST where
applicable and then charge SGST and CGST," says Archit Gupta, This Week This Month
founder and chief executive officer, ClearTax.
Restaurants that are
Is provisional GST number sufficient? still making you pay
service charge
There are shop owners who are charging CGST and SGST on could now face big
their bills without the mention of a GSTIN saying that they have tax blow
applied for GSTIN and will pay the government once it is received
Traders not passing
or verified. But this is not the correct practice as the mention of GST benefits to
GST number in the bill is a must. consumers: Survey

But, can the shop owner hide behind the excuse that his final GST Relaunching Cyber Hub gives us
number is not verified yet? No, says Gupta. "Businesses which incremental value : Pushpa Bector,
DLF Shopping Malls
have not yet received their final GSTIN must use their provisional
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9/20/2017 GST: Here's how to spot a fake GST bill, Retail News, ET Retail

GSTIN to issue invoices, file returns, and adhere to other

compliances. Provisional GSTIN is the final GSTIN number itself,
so there won't be any retroactive changes to this number," says,
Gupta.
Big malls roll out
the red carpet for
As a customer, how do you know if the merchant is tricking you or Uniqlo
not? If you notice anything suspicious at a shop, keep the bill
handy and follow these steps to check if the GSTN mentioned in
the receipt is correct:

Step 1: Log on to https://www.gst.gov.in

Step 2: Under the 'search taxpayer' dropdown, click on 'search by

GSTIN/UIN'

If GSTIN is incorrect, the following message will be displayed:

"The GSTIN/UIN that you have entered is invalid. Please enter a

valid GSTIN/UIN."

If GSTIN is correct, the following information along with the GSTIN

status will be displayed:

" Legal name of business

" State
" Date of registration
" Constitution of business - private or public limited company, sole-
proprietor or partnership

Active pending verification

Even if the portal shows the message 'Active pending verification',
the GSTIN is fine. It's the provisional ID issued to the

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9/20/2017 GST: Here's how to spot a fake GST bill, Retail News, ET Retail

business/shop owner but shows that the GSTIN has been applied
for.

Structure of GSTIN
If you are concerned about the GSTIN format itself, here's help.
The structure of the 15-digit GSTIN on the bill is standard across
the country.

Source: Cleartax.in

* The first two digits represent the state code and every state has a
unique code. For instance, state code of Maharashtra 27 ; for Delhi
it is 07 ( See bottom for entire list)

* The next 10 digits will be the PAN numbers of the shop owner or
the business.

*The 13th digit will be assigned based on the number of

registration within a state
* The 14th digit will be Z by default

* The last digit will be for check code. It may be an alphabet or a

number to be used for internal purpose by the tax department.

Conclusion
The bill should clearly mention GSTIN showing the breakup for
CGST and SGST. And, in case you need to ensure whether GST
has been correctly charged, one may click here. ( https://cbec-
gst.gov.in/gst-goods-services-rates.html. )

If you feel that the seller is not issuing the bill in the proper format
or if there is any other concern, one may raise a complaint by
writing to: helpdesk@gst.gov.in.

State codes representing the first two digits in GSTIN

Andaman and Nicobar Islands 35

Andhra Pradesh 28
Andhra Pradesh (New) 37
Arunachal Pradesh 12
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9/20/2017 GST: Here's how to spot a fake GST bill, Retail News, ET Retail

Assam 18 Bihar 10
Chandigarh 04
Chattisgarh 22
Dadra and Nagar Haveli 26
Daman and Diu 25
Delhi 07
Goa 30
Gujarat 24
Haryana 06
Himachal Pradesh 02
Jammu and Kashmir 01
Jharkhand 20
Karnataka 29
Kerala 32
Lakshadweep Islands 31
Madhya Pradesh 23
Maharashtra 27
Manipur 14
Meghalaya 17
Mizoram 15
Nagaland 13
Odisha 21
Pondicherry 34
Punjab 03
Rajasthan 08
Sikkim 11
Tamil Nadu 33
Telangana 36
Tripura 16
Uttar Pradesh 09
Uttarakhand 05
West Bengal 19

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