GST may seem hard to understand for the buyers as well as for shopkeepers, especially bill of a transaction. As there are many unauthentic bills in the market it’s hard to judge that the invoice is genuine or not.
Outlet not eligible yet charging GST
Every shop cannot charge GST, as per the guidelines businesses having annual turnover below Rs 20 lakh does not require GSTIN (GST Identification Number). However, that limit changed to Rs 10 lakh for business situated in Assam, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland, or Tripura).
Some shopkeepers may charge the GST even if they are not eligible, so if you want to check that is the bill is genuine you can check for the central GST. Every bill carrying the GSTIN has to show the break-up of central GST (CGST) and state GST (SGST).
Collecting GST in old format
It can be seen that at many places the old bills are still in use, carrying value added tax (VAT), taxpayer identification number (TIN) and central sales tax (CST) number instead of GSTIN but are still charging GST. Effective 1 July, GST is mandatory and shopkeepers cannot use this type of bill.
Is provisional GST number sufficient?
In many shops in the Country shop owners are charging CGST and SGST on their bills without the mention of a GSTIN, they mostly say they have applied for the GSTIN and will give the tax to the government once they will have the verified GSTIN. So how can a customer check whether he has been cheated or not, as per the “Economic Times” you can check this in these few steps.
Step 1: Log on to https://www.gst.gov.in
Step 2: Under the ‘search taxpayer’ drop-down, 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
” 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 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.
* 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
It is very easy to check whether the bill is original or not, first one has to check the bill that the breakup for CGST and SGST is there or not. Other than this one can check through the process that is shown above the paragraph, and if you think the seller is not issuing a proper bill one may write a complaint on [email protected]