GST
Bill using someone else's GSTIN
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
A GSTIN is linked to one legal entity. If the name on the portal is unrelated to the seller, the seller may be misusing another business's GSTIN. Tax collected on such bills may not reach the government.
Provisions and law
- Sec 32, CGST Act 2017An unregistered person cannot collect GST; a registered person can collect only as the law allows
- Sec 76, CGST Act 2017Tax collected from customers must be paid to the government
- Sec 122, CGST Act 2017Penalties for issuing invoices without supply, collecting tax without paying it, and similar offences
Analysis
Some names differ for legitimate reasons, such as a trade name or a franchise owner's company. Ask the seller to explain. If they cannot, avoid paying the GST part and report it. Business buyers should never claim ITC on such bills.
Conclusion
- Compare legal and trade name on Search Taxpayer with the shop.
- Ask the seller for an explanation.
- Pay only the base price if unclear.
- Report to the state GST department.
A Savvy can do this for you
Checking GST on a bill: GSTIN validity, rate and tax shown
Quote
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.