The government took a big step on GST bill fraud, know what is the truth and rumor
The government has taken an enormous decision to see the Fake GST Invoice. Now, traders with a monthly turnover of quite Rs 50 lakh are going to be required to deposit 1% of GST liability in cash. The Finance Ministry has said that monthly businessmen above Rs 50 lakh will need to pay 1 percent Goods and Services Tax (GST) liability in cash. The Central Board of Direct Taxes and Customs (CBIC) has introduced Rule 86B within the GST rules. This rule allows the utilization of input decrease (ITC) up to a maximum of 99 percent to settle GST liability. In fact, many sorts of rumors are run within the market regarding the forgery of GST bills. But the govt itself has given information for this by tweeting in order that businessmen don’t get caught within the trap of rumors. Let’s know what’s rumor and what’s reality.
What did the govt decide?
In view of the increasing fraud in GST bills, the GST Council Law Committee has issued a notification in order that fraud is often addressed. During this notification, it’s been told that about 12000 cases of faux input decrease (ITC) are registered and about 365 people are arrested thus far. Alam is that within the last 6 weeks, people are arrested in about 165 fake cases.
What are the rumor and reality?
In fact, within the previous couple of days, many sorts of rumors are being run on social media about the change in GST rules. To clear up these rumors, the Central Board of tax and Customs (CBIC) has issued a clarification to stop fake frauds under GST.
Reality: consistent with GST law, GST registration is often canceled for those that don’t file the returns for six months. Therefore it’s wrong to mention that the GST registration of an individual is going to be avoided for any reason. To guard the interest of revenue, this provision has been made within the law in order that fraudulent customers don’t collect GST and run away.
Apart from this, its registration won’t be canceled without giving the taxpayer a good chance of being heard. Immediate action is required for suspension only in cases where dishonest operators have shown fake loans of huge amounts. Such action won’t affect particular taxpayers.
What are the rumors?
It is just a myth that GSTIN is going to be canceled without permission to repair clerical errors. In cases of fraud where there are significant discrepancies supported data analytics and risk parameters, and not just clerical errors, an equivalent suspension and cancellation action is going to be taken.
This is also the reality
1,430 cases are registered against 4,586 fake GSTIN units across the country. Investigations and investigations are happening in order that the people involved within the racket are often caught and therefore the beneficiaries who use fake bills to steal the products and Services Tax (GST) are often found. Quite 130 people have thus far been arrested by the Directorate General of GST Intelligence and therefore the Central GST Commissionerate within a month as a part of a nationwide campaign against fraudulent fraud against fake bills. These include four chartered accountants and a lady. These people obtained illegal input decrease (ITC) through fraud or passed bills. Sources said that an accountant has been arrested from Visakhapatnam. he’s accused of issuing ITC worth Rs 20.97 crore by creating 14 fake companies.
In this way, verify your bill
- Open the web site https://www.gst.gov.in.
- Now attend the search taxpayer option and click on Search by GSTIN / UIN.
- If the GST number is wrong, then you’ll see notification messages and you’ll be asked to enter the right number.
- If the amount is correct then its status will show. which can include details like business name, state, date of registration, sort of business – private or public Ltd.
- This is true albeit the website is showing the message of GSTIN / UIN verification pending.
GSTIN / UIN structure
The first two numbers of GSTIN / UIN are for the state code. There’s a separate code for every state, like Maharashtra’s Kos 27 and Delhi’s code 07. Its next 10 digits are the PAN number of the business owner or shop.
It is worth noting that if the shopkeeper doesn’t offer you a computer with a GST number of 15 digits or a bill made by hand, then the bill you get is often fake. The customer can complain to the Commercial Tax Department.