The goods and services tax is now applicable to all the businesses like SMEs and MSMEs which operate on Indian premises. For the small and medium scale industries. There have been huge benefits of gst in India.
The registered businesses also need to display their GST certificate and GST number in the place they operate, i.e., their shops, godowns, factories etc.
But, there are instances when some shady businesses happen. Some of the business owners have been using fake gst numbers instead of real ones. As a responsible customer, one should know the benefits of gst in India. Besides that, they should also understand all the details about the sample gst number to ensure they can spot a fake gst number and bill in an instant.
Here are the tricks that can help you to understand a fake gst number in any shop or business premises-
Table of Contents
The Format of GST number
The sample GST number is a 15 digit alphanumeric combination as follows-
- The first two digits are the state code of the Indian state according to census 2011. Businesses will have this code according to the legislation of the state they operate in.
- The next ten numbers is the PAN number of the individual owner or the business.
- The next number is a digit that symbolizes the number of registration of that particular business in one state.
- Z lies in 14th place as a default number.
- The last number is known as the “Check Code”.
For example, here is a sample gst number- 24MDCRE9876X1Z3
If you visit a shop where the GST number doesn’t match this formula, then it is fake.
Verify the GST number
You can also verify the GST code provided by the business provider. You just have to go to the official website and input the provided GST number to check its authenticity.
The Invoice does not contain a clear GST division
Each business must clearly define GST slabs for the services or products they sell. The central and state governments both enjoy their own GST percentage, and the GST tax is made of central GST and state GST. Try to check if the Invoice has the percentage noted in it. You can also cross verify the GST rates to be assured. If the rates are not matching the government prescribed limit, a high chance is that it is fake.
The Invoice does not have any GST information
Always ask for a GST enclosed bill in a shop. If they failed to do so, then their billing is fake, and they do not have a valid GST.
The bill is not printed
If a service provider does not provide you printed slips with their official name and GST inclusions, they are offering fake bills to you.
Businesses must possess a valid GST number to ensure they are providing proper services and goods to their consumers. On the other hand, consumers should also have knowledge about how to find fake GST numbers and inform the legal authorities in case of any fraudulent activities.