CBIC Advisory on Fake Invoice

CBIC Advisory on Fake Invoice

What is a Fake Invoice?

A fake Invoice refers to a “Non-Compliant GST Invoice“.

“Non-Compliant GST Invoice” means any invoice which does not comply with the provisions of the CGST Act and Rules. Usually, Fake Invoice refers to Non-Compliant GST Invoices of the following Types:

• Invoice without any supply
• The invoice with a “Non-Compliant” supply.

What is the effect of “Fake Invoice”?

Any business or trade that uses “Fake Invoice” earns Input Tax Credit which is illegal and hence is punishable under the CGST Law.

What is the social effect of “Fake Invoice”?

It is a social menace; It is against the economy, society, and development, Illegal Input Tax Credit earned using Fake Invoice is a drain on the economy and affects GST revenue collections. Evil forces use Fake Invoice to generate cash which is most likely to be used for nefarious crimes to fuel social tensions.

How is a fake Invoice dealt with legally?

Preparing and trading fake invoices is a criminal activity. the crime is punishable by law with a maximum imprisonment of up to five years, in addition to the recovery of illegal Input Tax Credit with interest and penalty.

What is the role of Citizens?

If any citizen comes across this kind of criminal activity, please immediately inform the local GST Sewa Kendra immediately either by telephone or by email with details. Your Identity will be kept confidential and you will be rewarded suitably under the guidelines of CBIC.

from Studycafe https://ift.tt/3uqjl0K