Read Mandatory fields to be printed on an invoice and an E-invoice as per Rule 46 of CGST tax rules 2017 here: Invoice Printing
How do I find a fake GST invoice?
1. Ensure if all the mandatory details are filled on the invoice: There are 16 mandatory fields for an invoice under GST including Name, address and Goods and Services Tax Identification Number of the supplier. Ensure that the invoice all the required fields filled correctly.
2. Check the GST registration number: One of the most important things to look for when verifying an invoice is the GST registration number (GSTIN) of the supplier. This number should be provided on the invoice and can be verified on the GST portal or via the IRIS Peridot App. If the GSTIN is not valid or does not match the supplier's details, the invoice is likely to be fake.
3. Confirm if the GST rate charged by a supplier applies to you: A consumer must validate the accuracy of the GST rate charged after confirming the validity of the GSTIN. By checking the GST rate chart on the CBIC portal, the consumer can confirm the GST rate.
4. Compare with past invoices: Another way to identify fake invoices is to compare them with past invoices from the same supplier. Look for inconsistencies in the supplier's details, the value of the goods or services, or the GST amount. If there are any significant differences, the invoice may be fake.
5. Be aware of common red flags: To avoid falling victim to fake invoices, it's important to be aware of common red flags such as unusually high or low prices, missing or inconsistent information, or requests for immediate payment.
What is the penalty for issuing a fake invoice under GST?
Issuing fake invoices fake under GST is a serious offence and can result in severe penalties. It is important to note that these penalties apply not only to the person issuing the fake invoice, but also to any person who uses or causes to use such an invoice. This means that even if a business unknowingly uses a fake invoice, they can still be held liable for the offence. At the conclusion of the investigation, a Show Cause Notice (SCN) or any other penal steps may be issued.
The CBIC released GST Circular 171/2022 offering a clarification on issues relating to applicability of demand and penalty in respect of transactions involving fake invoices.
|Amount of tax evaded or utilized input tax credits (ITC)||Penalty|
|If the taxpayer used or obtained an ITC worth more than Rs. 5 crore using false invoices||Imprisonment up to 5 years plus fine.|
|Exceeds Rs.2 crore but does not exceed Rs.5 crore||Imprisonment up to3 years plus fine.|
|Exceeds Rs.1 crore but does not exceed Rs.5 crore||Imprisonment up to3 years plus fine.|
|Commit or raise the commission of any of the offences mentioned above.||Imprisonment up to 6 months or fine or both.|
Also Read: E-invoice under GST as per Rule 48(4) of CGST Rules 2017
Crossed the e-invoicing turnover limit? Here are 5 things to do next!
IRIS IRP is the Govt. recognized Invoice Registration Portal (IRP) for businesses and solution providers to prepare e-invoices
With IRIS IRP, you can prepare a single e-invoice via our tool or bulk generate IRN through the excel utility, pull IRN in your ERP via API Integration or custom print invoices using an awesome cloud platform!
If you are a small business owner (MSME/SME): IRIS IRP helps you to jumpstart your e-invoicing using the offline excel utility tool i.e. MS Excel interface. You can send Invoice Data to IRP in bulk and generate e-invoices real-time! Also, get to generate e-invoices and e-way bills on a single platform.
If you are a large business owner: IRIS IRP E-invoicing is the best option for you - It is the fastest and easiest way to generate e-invoice. There are multiple options to generate IRN via IRIS IRP. You can integrate IRIS IRP APIs to get IRNs directly into your accounting system.
If you are a solution provider yourself: IRIS IRP calls all ERP providers and system integrators to design a seamless user journey for your customers using IRIS IRP to build a robust and error-proof e-invoice compliance. We offer Core and Enhanced APIs for e-invoice generation.
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IRIS IRP is the Govt. authorized Invoice Registration Portal (IRP) for businesses like yours to prepare e-invoices. Schedule a free call with us and start generating IRN promptly