How to Verify the GSTIN and GST Tax Rates to Escape GST Theft

How to Verify the GSTIN and GST Tax Rates to Escape GST Theft

The government is pushing forward GST to be the most versatile form of tax governance and e-invoicing is clearly a step ahead to the goals. The complete technology framework for supply bill generation is leaving behind the era of manual billing. Today every GST registered business requires to generate its supply bills through e-invoicing. There are cases of fraudulent who barter inappropriately by issuing a fake GST Invoice. Make sure that the invoice must contain GSTIN of the seller and the segregations of IGST, CGST, and SGST.

The genuine GST invoice includes 16 mandatory fields. If any of the information is missing that means you must immediately reject the bill.

GST invoice

GSTIN - The main incorporate of a genuine GST Invoice

Every dealer is assigned a unique 15 digit GST Identification Number based on his PAN (to confirm his identity). The number is confined to a specific structure, as visible below. Any tampering with this number can easily be identified.

GSTIN format

An unregistered business using a fake GSTIN to collect GST from its customers will be considered as fraudulent and the tax will definitely not go to the government’s vault. Customers should not get convinced only with the proper GSTIN structure. They must also check whether the GSTIN entered in the invoice belongs to the same enterprise issuing the invoice or is valid.

Check whether GSTIN mentioned in the invoice is genuine or not:

If a customer finds something suspicious with an invoice, he can follow the steps below to check if the GSTIN mentioned on the invoice is correct: Cross-Check the GSTIN mentioned in the invoice through the steps mentioned below:

Step 1: Go to and click on ‘Search Taxpayer’ and ‘Search by GSTIN/UIN’

GSTIN search

Step 2: Click on ‘Search Taxpayer’ option visible on the dashboard

In the search bar enter the GSTIN/UIN number

If the GSTIN/UIN is valid the name of the firm will be flashing on the screen along with other details like State, date of registration, etc.

If the GSTIN/UIN is invalid, then the message will pop up asking you to fill the correct GSTIN/UIN.

GSTIN search

Please note: If the screen shows ‘Active Pending Verification’, the GSTIN is valid. The sentence means the firm has applied for GSTIN and the number is valid.

Make Sure the seller doesn't charge high GST rate

To escape GST theft, customers should examine the figures for GST rates. One needs to ensure that the GST rate charged by the seller is actually applicable to his purchase. One can do the needful by visiting the GST rate chart given on the CBIC portal. Search for the appropriate rates either by the product’s name or its HSN code (more appropriate).

If you are searching with the product name, you still need to cross-check its HSN code as there are various products with the same name but different HSN code and hence different tax rates.

rate chart

Note: These industries were earlier required to withstand complex processes tax calculations and payments. Gen GST billing and filing software is a savior for service industries as it allows quick and simple invoicing and easier calculation and compliance of tax.

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